Activites

• 2008/07/15 Final act published in Official Journal
  • Budget 2008/539
  • OJ L 187 15.07.2008, p. 0189
• 2007/04/24 Results of vote in Parliament
  • Results of vote in Parliament
  • Debate in Parliament
  • T6-0112/2007 summary

    The European Parliament adopted the resolution drafted by Mogens N.J. CAMRE (UEN, DK), approving the position of its budgetary control committee, and granted the Commission discharge for implementation of the budget for the Sixth, Seventh, Eighth and Ninth European Development Funds for the financial year 2005. It approved the accounts for the 4 EDFs for 2005 and recalled that the implementation rate stood at 87% for financial commitments and at almost 64% for payments. At the same time, Parliament indicated that the RAL (reste à payer) remained very high with an average of 23.2% for a global amount of EUR 10.3 billion in 2005. Parliament noted that, in 2006, the RAL was reduced for the first time and that the "old" RAL, i.e. commitments which are over 5 years old, had been reduced from EUR 1.62 billion to EUR 867 million. The dormant commitments, i.e. those for which no contract has been signed and for which no payments have been made over the last two years, have been reduced from EUR 350 million to EUR 285 million, but remain very high. Parliament made a number of observations and recommendations, which accompanied the discharge. It welcomed the fact that the share of EU funding spent on the basic health and basic education sectors was raised from 4.98% to 6.83%, but regretted the fact that this share is still far removed from the 20% target which it set in the 2005 budget. It could not accept the fact that the Commission is using the legitimate and necessary objective of better donor coordination and work-sharing between donors as an excuse for too low a level of investment in the basic health and basic education sectors and urged it to adopt measures forthwith to achieve the 20% target and inform Parliament in writing at least twice a year about the progress of implementation and about the factors taken into account in the calculation. Parliament also regretted that the Commission had not so far developed any comprehensive strategy together with the beneficiary countries for making the health and education sectors priorities in the new country strategy papers, and that the latter currently under preparation generally lack a clear Millennium Development Goal (MDG) profile. The statement of assurance: notwithstanding IT problems and incomplete information on bank guarantees, Parliament noted that the ECA was of the opinion that the revenue, EDF allocations, commitments and payments are, taken as a whole, legal and regular.  It recalled that about half of the total allocations consist of programmable aid, where the ECA observed an increased risk of errors affecting transactions that fall within the responsibility of the National Authorising Officers. As regards individual legal commitments, the errors detected concerned, for example, the use of appropriate tendering procedures, in particular under the programme estimates and grant agreements, banking guarantees and the failure to meet deadlines for starting the implementation of programmes. With regard to payments, errors concerned the amounts of payments and other errors such as non-compliance with contractual obligations. Parliament recognised, however, the Commission's efforts to build the NAOs' management capacity and asked the Commission to refine its support strategy as regards problematic cases. Enhancing accountability in the Commission's management of EDF funds: Parliament recalled  that, in the previous discharge resolution, it  called upon the Commission to clarify the breakdown of the Commissioners' responsibilities as regards the EDF and external aid. Whilst aware that the Commission's position is that the division of responsibilities works well in practice, Parliament called upon the Commission to reflect on possible ways to simplify the current management structure in order to minimise the risk of ambiguities as regards responsibilities. Stepping up democratic control over EDF funds managed by the European Investment Bank : Parliament noted that, out of the total initial allocation of the Ninth EDF, which amounts to EUR 13. 8 billion, the European Investment Bank (EIB) is responsible for EUR 2.2 billion, which is spent through the EDF investment facility, which is not covered by the ECA's statement of assurance or by the Parliament's discharge procedure. It proposed that the EIB give an account of its management of the EDF investment facility before Parliament's Committee on Budgetary Control. Tackling resource constraints: Parliament concluded once again that integration of the EDF into the EU budget would enhance the overall consistency of European development cooperation, ensure greater transparency and effectiveness and facilitate democratic scrutiny. In line with the ECA, Parliament requested that the Commission, in its financial management report for 2006, indicate the priorities which had been established as a result of the existing resource constraints and the impact on the implementation of the EDFs. The Commission was asked to consider closer cooperation with national experts from the Member States' administrations in the financial management of EDF funds in general and the extended use of well known and highly reputable private enterprises from the Member States in the execution of programmes and individual projects. Ensuring sound financial management with regard to budget support: Parliament observed that the Commission considered budget support granted to the beneficiary countries to be an ever more important tool for efficient delivery of development policies, and that the share of EDF commitments in the field of general and sectoral budget support rose considerably, from 18% in 2004 to 32% in 2005. However, it pointed out that the ECAs' control powers in the field of budget support are limited, and asked for greater powers of control. Supervisory and control systems: Parliament noted he ECAs' view that a coherent overall control strategy with regard to the management of EDF funds and external aid has yet to be established, and it welcomed the ECAs' concrete recommendations for elements to be included in this strategy. Whilst welcoming the fact that the ECA has recorded an improvement in the Commission's supervisory and control systems, Members regretted the fact that this improvement does not extend to supervision, control and audit of the implementing institutions. It was unacceptable that, as a result, such a large number of material errors continue to occur at a central point in the chain between the European taxpayer and the final beneficiary in the developing country. Parliament called on the Commission to develop a comprehensive approach towards supervision, control and audit of the implementing organisations, to ensure that EuropeAid provides better support for the operational financial personnel in delegations and central services, arranges for better risk analysis focusing on particularly high-risk sectors and more monitoring visits, achieves better central supervision of performance and follow-up of external audits initiated by delegations and central services and initiates fewer ex post verifications while at the same time improving their scope, timing and quality control. In general, Parliament strongly supported the ECA’s request that the Commission set out in detail how it has followed up the ECAs' audit findings.

• 2007/04/02 Committee report tabled for plenary, single reading
  • A6-0115/2007
• 2007/03/27 Vote in committee, 1st reading/single reading
• #2790
• 2007/03/19 Council Meeting
• 2006/10/23 Committee referral announced in Parliament, 1st reading/single reading
• 2006/07/31 Non-legislative basic document published
  • COM(2006)0429 summary

    PURPOSE: presentation of the annual accounts for the financial year 2005 of the 6th, 7th, 8th and 9th European Development Funds (EDFs).CONTENT: the balance sheets and income and expenditure accounts were drawn up in accordance with the Financial Regulations applicable to the 6th, 7th, 8th and 9th European Development Funds (EDFs) which states that the relevant documents must be presented to the European Parliament, the Council and the Court of Auditors. This year was the first year that the new accounting system has been New accrual based accounts: in accordance with the provisions of articles 99 and 135.3 of the 9th EDF Financial Regulation, full accrual based accounts have to be prepared for the first time for the 2005 financial year. To ensure the comparability of the information, the EDF Accounting Officer has restated the opening financial statements for the financial year 2005, on a full accrual accounting basis. The accounting information provided by the present IT accounting system (OLAS) has been adjusted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the Authorising Officer.These financial statements have been drafted in conformity with a new set of accounting rules and methods for the EDF. The annual accounts for 2005 are presented as follows:- the financial statements;- the reports on financial implementation;- the financial statements and information supplied by the European Investment Bank (EIB).It should be noted that the financial statements for 2005 have been prepared on a different basis to that of 2004, i.e. on accrual accounting rather than cash accounting principles. Therefore adjustments were made to the balance sheet as of 31 December 2004 so as to arrive at the opening, accrual compliant, balance sheet as at 1 January 2005 (for example, the inclusion of pre-financing amounts).1) Consolidated accounts: the EDF consolidated accounts at 31.12.2005 amount to EUR 44.455 billion compared to EUR 28.614 billion at the end of 2004.The financial statements of the different Funds are as follows :6th EDF: total at 31.12.2005 :  EUR 7.415 billion7th EDF : total at 31.12.2005 : EUR 10.782 billion8th EDF : total at 31.12.2005 : EUR 11.316 billion9th EDF : total at 31.12.2005 : EUR 14.943 billion.2) Accounting principles: as with previous years, the report respects the main accounting principles and standards. The accounting system of the European Development Funds comprises general accounts andfinancial accounts. Both sets of accounts are kept in euro on the basis of the calendar year. The general accounts allow for the preparation of the financial statements as they show all charges and income for the financial year and are designed to establish the financial position in the form of a balance sheet at 31 December. The financial accounts give a detailed picture of the use of EDF resources. They are based on the cash accounting principle. In addition, the Financial Regulation sets out the accounting  rinciples to be applied in drawing up the financial statements, as follows:– going concern basis;– prudence;– consistent accounting methods;– comparability of information;– materiality;– no netting;– reality over appearance;– accrual-based accounting.These financial statements are also presented in a consolidated way so as to provide a global view of the financial situation of the resources for which the European Commission is responsible.As regards expenditure, the document concentrates on 2 main types of financial implementation : one concerns the previous EDFs (6th to 8th) and the other concerns the 9th EDF.Concerning in particular the 9th EDF, the report states that it was set at EUR 13.8 billion, including EUR 13.5 billion allocated to the ACP States in accordance with the first Financial Protocol included in the Cotonou Agreement, EUR 175 million allocated to the OCT (provided for by the EU Council Decision on the association of the OCT) and EUR 125 million reserved for the European Commission to cover expenses in connection with implementing the 9th EDF resources (provided for in the internal agreement for the 9th EDF). The total amount of the first Financial Protocol, supplemented by the balances transferred from the previous EDFs, covers the period 2000-2007.Of the total budget of EUR 13.5 billion for the ACP States, EUR 1 billion was released in 2004 and 2005 after examination by the EU Council, on the basis of a proposal from the European Commission: EUR 250 million was released in accordance with Joint ACP-EU Council Decision 01/2004 of 7 May 2004 and allocated to the Intra-ACP Fund (natural resources) to finance the Water Facility operation.EUR 18 million was released in accordance with Council Decision 10752/05 of 19 July 2005 and allocated to the envelope for long-term development support to cover the financing of the National Indicative Programme of Timor-Leste for the period 2006-2007.EUR 482 million was released in accordance with ACP-EC Council of Ministers Decision No 6/2005 of 22 November 2005 and allocated to the envelope for long-term development support (EUR 352 million), the envelope for regional cooperation and integration (EUR 48 million) and the Investment Facility (EUR 82 million), in order to contribute to financing of the EU Energy Initiative (EUR 220 million), the International Commodity Risk Management Financing Facility (EUR 25 million), adaptation to the new EU feed and food sanitary and phytosanitary rules (EUR 30 million), strengthening the African Union (EUR 50 million), the "Education for All" Fast Track Initiative (EUR 63 million), tackling HIV/AIDS, tuberculosis and malaria (EUR 62 million), and the operating costs of the CDE/CTA (EUR 32 million).EUR 250 million was released in accordance with ACP-EC Council of Ministers Decision No 7/2005 of 22 November 2005 and allocated to the envelope for long-term development support (EUR 185 million), the envelope for regional cooperation and integration (EUR 24 million) and the Investment Facility (EUR 41 million), also to finance the Water Facility operation.3) Financial information from the EIB : ongoing EIB projects which did not entail payments during the reference period or for which the contract has not yet been signed amount to a total of EUR 98.1 million for the 6th, 7th and 8th EDF.

  • DG {'url': 'http://ec.europa.eu/dgs/budget/', 'title': 'Budget'}, KALLAS Siim

Documents

• Non-legislative basic document published: COM(2006)0429
• Committee report tabled for plenary, single reading: A6-0115/2007
• Results of vote in Parliament: Results of vote in Parliament
• Debate in Parliament: Debate in Parliament
• Decision by Parliament, 1st reading/single reading: T6-0112/2007
• : Budget 2008/539
• : OJ L 187 15.07.2008, p. 0189

History

(these mark the time of scraping, not the official date of the change)