PURPOSE: to grant discharge to the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) for the financial year 2015.

NON-LEGISLATIVE ACT: Decision (EU) 2017/1684 of the European Parliament on discharge in respect of the implementation of the budget of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2015.

CONTENT: with the present decision, the European Parliament grants discharge to the Director of the Centre for the implementation of its budget for the financial year 2015.

This decision is in line with the European Parliament's resolution adopted on 27 April 2017 and comprises a series of observations that form an integral part of the discharge decision (please refer to the summary of the opinion of 27 April 2017).

Amongst Parliament’s main observations in the resolution accompanying the discharge decision, the latter noted that the Centre put in place a new procurement plan which was successfully executed in close collaboration with all units.

Parliament also emphasised the important role of the Centre in detecting new trends, assessing threats posed by drugs to the health and security of young Europeans, and developing prevention strategies.

The European Parliament decided to grant discharge to the Director of the European Monitoring Centre for Drugs and Drug Addiction (EMCDD) in respect of the implementation of the Centre’s budget for the financial year 2015.

The vote on the decision on discharge covers the closure of the accounts (in accordance with Annex IV, Article 5 (1) (a) to Parliament’s Rules of Procedure).

Noting that the Court of Auditors has stated that it has obtained reasonable assurances that the Centre’s annual accounts for the financial year 2015 are reliable and that the underlying transactions are legal and regular, Parliament adopted by 518 votes to 104 with 2 abstentions, a resolution containing a series of recommendations, which form an integral part of the decision on discharge and which add to the general recommendations set out in the resolution on performance, financial management and control of EU agencies .

These recommendations may be summarised as follows:

Centre’s financial statements : Parliament noted that the final budget of the European Monitoring Centre for the financial year 2015 was EUR 18 519 843, representing an increase of 18.15 % compared to 2014. This increase was mainly due to the Centre’s own revenue, including the sale of premises, of EUR 5 million and the assigned revenue (IPA 5) of EUR 600 000. The payment appropriations execution rate was 97.35 %, representing an increase of 2.42 % compared to 2014. Financial and budget management : Parliament noted that budget monitoring efforts during the financial year 2015 resulted in a budget implementation rate of 99.83 % and that the payment appropriations execution rate was 97.35 %, representing an increase of 2.42 % compared to 2014.

Parliament also made a series of observations regarding the commitments and carry-overs, procurement and recruitment procedures, the prevention and management of conflicts of interests and internal audits and controls.

It evoked the anti-fraud strategy and stated that the Centre adopted in June 2016 an anti-fraud strategy which develops the measures that were already in place for awareness raising on staff ethics and on gifts and hospitality offered by third parties.

It noted with satisfaction the Centre’s ongoing efforts to strengthen cooperation with other Union agencies, particularly those working in Justice and Home Affairs and in the health field.

Detecting new drugs : Parliament emphasised the important role of the Centre in detecting new trends, assessing threats posed by drugs to the health and security of young Europeans, and developing prevention strategies. It welcomed the notification of 98 new psychoactive substances . It encouraged sustained efforts to monitor the use of the internet as a vehicle for drug supply.

The Committee on Budgetary Control adopted the report by Inés AYALA SENDER (S&D, ES) on discharge in respect of the implementation of the budget of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2015.

The committee called on the European Parliament to grant the Centre’s Director discharge in respect of the implementation of the Centre’s budget for the financial year 2015.

Noting that the Court of Auditors stated that it had obtained reasonable assurance that the annual accounts of the Centre for the financial year 2015 were reliable and that the underlying transactions were legal and regular, Members called on Parliament to approve the closure of the Centre’s accounts. They made, however, a number of recommendations that needed to be taken into account when the discharge is granted, in addition to the general recommendations that appear in the draft resolution on performance, financial management and control of EU agencies :

Centre’s financial statements : the final budget of the European Monitoring Centre for the financial year 2015 was EUR 18 519 843, representing an increase of 18.15 % compared to 2014. This increase was mainly due to the Centre’s own revenue, including the sale of premises, of EUR 5 million and the assigned revenue (IPA 5) of EUR 600 000. The payment appropriations execution rate was 97.35 %, representing an increase of 2.42 % compared to 2014.

Members also made a series of observations regarding the commitments and carry-overs, procurement and recruitment procedures, the prevention and management of conflicts of interests and internal audits and controls.

Members also evoked the anti-fraud strategy and stated that the Centre adopted in June 2016 an anti-fraud strategy which develops the measures that were already in place for awareness raising on staff ethics and on gifts and hospitality offered by third parties.

Lastly, they noted with satisfaction the Centre’s ongoing efforts to strengthen cooperation with other Union agencies, particularly those working in Justice and Home Affairs and in the health field. They highlighted the success of the Centre in its different missions and recommended the development and implementation of a much longer-term strategy.

Having examined the revenue and expenditure accounts for the financial year 2015 and the balance sheet as at 31 December 2015 of the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), as well as the Court of Auditors' report on the annual accounts of the Centre for the financial year 2015, accompanied by the Centre's replies to the Court's observations, the Council recommended the European Parliament to give a discharge to the Director of the Monitoring Centre in respect of the implementation of the budget for the financial year 2015.

The Council welcomed the Court's opinion that the Centre's annual accounts present fairly its financial position as at 31 December 2015 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of the Centre's Financial Regulation, and that the underlying transactions for 2015 are legal and regular in all material respects.

Nevertheless, one observation was made:

procurement : the Council noted the Court's comment in relation to the exceeding of a maximum amount specified in the contract notice for a framework contract signed by the Centre in 2012. It welcomed the Centre's reply outlining its follow-up to improve the central planning and monitoring of its procurements.

PURPOSE: presentation of the EU Court of Auditors’ report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2015, together with the Centre’s reply.

CONTENT: in accordance with the tasks conferred on the Court of Auditors by the Treaty on the Functioning of the European Union, the Court presents to the European Parliament and to the Council, in the context of the discharge procedure, a Statement of Assurance as to the reliability of the annual accounts of each institution, body or agency of the EU, and the legality and regularity of the transactions underlying them, on the basis of an independent external audit.

This audit concerned, amongst others, the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA). In brief, the Centre’s main task is to collect, analyse and disseminate information as regards drugs and drug addiction in order to prepare and publish information at European level.

Statement of assurance : pursuant to the provisions of Article 287 of the Treaty on the Functioning of the European Union (TFEU), the Court has audited:

the annual accounts of the Agency, which comprise the financial statements and the reports on the implementation of the budget for the financial year ended 31 December 2015; and the legality and regularity of the transactions underlying those accounts.

Opinion on the reliability of the accounts : in the Court’s opinion, the Centre’s annual accounts present fairly, in all material respects, its financial position as at 31 December 2015 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation and the accounting rules adopted by the Commission’s accounting officer.

Opinion on the legality and regularity of the transactions underlying the accounts : in the Court’s opinion, the transactions underlying the annual accounts for the year ended 31 December 2015 are legal and regular in all material respects.

The report also makes a series of observations on the budgetary and financial management of the Centre, accompanied by the latter’s response. The main observations may be summarised as follows:

The Court’s observations :

budgetary management : the Centre noted that in 2012 it signed a framework contract with a maximum amount for signing specific contracts of EUR 250 000, which was specified in the contract notice. However, the Centre did not respect this ceiling. By the end of 2015 the total payments made under this contract amounted to EUR 382 181; i.e. exceeded it by 50 %. The payments made above the ceiling indicate that the Centre’s procedure for monitoring framework contracts should be improved.

The Centre’s replies :

budgetary management : the Centre stated that the referred amount was mentioned as an estimate in the contract notice published for the purpose of the procurement at stake. The framework contract concluded pursuant to this process neither mentioned this amount nor did it refer to any maximum threshold. The EMCDDA has terminated this contract and launched a new procurement procedure for the concerned services.

Lastly, the Court of Auditors’ report contains a summary of the Centre’s key figures in 2015 :

Budget : EUR 18.5 million (in payment appropriations). Staff : 100 including officials, temporary and contract staff and seconded national experts.

PURPOSE: presentation by the Commission of the consolidated annual accounts of the European Union for the financial year 2015, as part of the 2015 discharge procedure.

Analysis of the accounts of the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA).

CONTENT: the organisational governance of the EU consists of institutions, agencies and other EU bodies whose expenditure is included in the general budget of the Union.

The EU's operational expenditure of these institutions takes different forms, depending on how the money is paid out and managed.

From 2014 onwards, the Commission classifies its expenditure as follows:

Direct management : the budget is implemented directly by the Commission services. Indirect management : the Commission confers tasks of implementation of the budget to bodies of EU law or national law, such as the EU agencies .

Shared management : under this method of budget implementation tasks are delegated to Member States. About 80 % of the expenditure falls under this management mode covering such areas as agricultural spending and structural actions.

This Commission document concerns the EU's consolidated accounts for the year 2015 and details how spending by the EU institutions and bodies was carried out. The consolidated annual accounts of the EU provide financial information on the activities of the institutions, agencies and other bodies of the EU from an accrual accounting and budgetary perspective.

It is the responsibility of the Commission's Accounting Officer to prepare the EU's consolidated annual accounts and ensure that they present fairly, in all material aspects, the financial position, the result of the operations and the cashflows of the EU institutions and bodies, including the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), with a view to granting discharge.

Discharge procedure : the final step of a budget lifecycle is the discharge of the budget for a given financial year. It represents the political aspect of the external control of budget implementation and is the decision by which the European Parliament, acting on a Council recommendation, "releases" the Commission (and other EU bodies) from its responsibility for management of a given budget by marking the end of that budget's existence. The European Parliament is the discharge authority within the EU.

The discharge procedure may produce three outcomes: (i) the granting; (ii) postponement or; (iii) the refusal of the discharge.

The final discharge report including specific recommendations to the Commission for action is adopted in plenary by the European Parliament and are subject to an annual follow up report in which the Commission outlines the concrete actions it has taken to implement the recommendations made.

Each agency is subject to its own discharge procedure, including the EMCDDA.

The European Monitoring Centre for Drugs and Drug Addiction : the Monitoring Centre, which is located in Lisbon (PT), was established by Council Regulation (EEC) No 302/93 and its main task is to collect data on drugs and drug addiction in order to prepare and publish information at European level that is objective, reliable and comparable.

As regards the Centre’s accounts, these are presented in detail in the document on the consolidated annual accounts of the European Union for 2015:

Commitment appropriations :

- committed : EUR 19 million;

- paid : EUR 18 million;

- carried-over : EUR 1 million.

Payment appropriations :

- committed : EUR 20 million;

- paid : EUR 18 million;

- carried-over : EUR 1 million.

For further details on expenditure, please refer to the final accounts of the Monitoring Centre .

PURPOSE: presentation by the Commission of the consolidated annual accounts of the European Union for the financial year 2015, as part of the 2015 discharge procedure.

Analysis of the accounts of the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA).

CONTENT: the organisational governance of the EU consists of institutions, agencies and other EU bodies whose expenditure is included in the general budget of the Union.

The EU's operational expenditure of these institutions takes different forms, depending on how the money is paid out and managed.

From 2014 onwards, the Commission classifies its expenditure as follows:

Direct management : the budget is implemented directly by the Commission services. Indirect management : the Commission confers tasks of implementation of the budget to bodies of EU law or national law, such as the EU agencies .

Shared management : under this method of budget implementation tasks are delegated to Member States. About 80 % of the expenditure falls under this management mode covering such areas as agricultural spending and structural actions.

This Commission document concerns the EU's consolidated accounts for the year 2015 and details how spending by the EU institutions and bodies was carried out. The consolidated annual accounts of the EU provide financial information on the activities of the institutions, agencies and other bodies of the EU from an accrual accounting and budgetary perspective.

It is the responsibility of the Commission's Accounting Officer to prepare the EU's consolidated annual accounts and ensure that they present fairly, in all material aspects, the financial position, the result of the operations and the cashflows of the EU institutions and bodies, including the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), with a view to granting discharge.

Discharge procedure : the final step of a budget lifecycle is the discharge of the budget for a given financial year. It represents the political aspect of the external control of budget implementation and is the decision by which the European Parliament, acting on a Council recommendation, "releases" the Commission (and other EU bodies) from its responsibility for management of a given budget by marking the end of that budget's existence. The European Parliament is the discharge authority within the EU.

The discharge procedure may produce three outcomes: (i) the granting; (ii) postponement or; (iii) the refusal of the discharge.

The final discharge report including specific recommendations to the Commission for action is adopted in plenary by the European Parliament and are subject to an annual follow up report in which the Commission outlines the concrete actions it has taken to implement the recommendations made.

Each agency is subject to its own discharge procedure, including the EMCDDA.

The European Monitoring Centre for Drugs and Drug Addiction : the Monitoring Centre, which is located in Lisbon (PT), was established by Council Regulation (EEC) No 302/93 and its main task is to collect data on drugs and drug addiction in order to prepare and publish information at European level that is objective, reliable and comparable.

As regards the Centre’s accounts, these are presented in detail in the document on the consolidated annual accounts of the European Union for 2015:

Commitment appropriations :

- committed : EUR 19 million;

- paid : EUR 18 million;

- carried-over : EUR 1 million.

Payment appropriations :

- committed : EUR 20 million;

- paid : EUR 18 million;

- carried-over : EUR 1 million.

For further details on expenditure, please refer to the final accounts of the Monitoring Centre .