PURPOSE: to grant discharge to the Euratom Supply Agency (ESA) for the financial year 2016.

NON-LEGISLATIVE ACT: Decision (EU, Euratom) 2018/1415 of the European Parliament on discharge in respect of the implementation of the budget of the Euratom Supply Agency for the financial year 2016.

CONTENT: the European Parliament decided to grant discharge to the Director-General of the Euratom Supply Agency for the implementation of its budget for the financial year 2016.

This decision is accompanied by a resolution of the European Parliament containing the observations which form an integral part of the discharge decision in respect of the implementation of the general budget of the European Union for the financial year 2016 ( please refer to the summary dated 18.4.2018 ).

In this resolution, Parliament noted that in May 2016 the Agency Advisory Committee gave a positive opinion on a draft proposal for its updated Rules, in order to bring them up-to-date with current market practices. It noted that, before entering into force, the proposed Rules must be approved by the Commission. However, Parliament noted that the approval process was not finalised at the beginning of 2017.

The European Parliament decided to grant discharge to the Director-General of the Euratom Supply Agency in respect of the implementation of the Agency’s budget for the financial year 2016, and to approve the closure of the accounts for the financial year in question.

Noting that the Court of Auditors has stated that it has obtained reasonable assurances that the agency’s annual accounts for the financial year 2016 are reliable and that the underlying transactions are legal and regular , Parliament adopted by 559 votes to 110 with 28 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 :

Agency’s financial statements : the final budget of the Agency for the financial year 2016 remained stable at EUR 125 000. EUR 119 000 (95.2 %) of the budget of the Agency derives from the Union budget and EUR 6 000 (4.8 %) from its own revenues (bank interest on the paid-up capital). The Agency had 17 staff at the end of 2016, all being Commission officials; Budget and financial management : budget monitoring efforts during the financial year 2016 resulted in a commitment appropriations execution rate of 94.34 %, representing a decrease of 4.58 % compared to 2015.

Members noted that the Agency processed 344 transactions in 2016, including contracts, amendments and notifications in order to ensure the security of supply of nuclear materials. The Agency advisory committee gave its positive opinion on a draft proposal for its updated rules, in order to bring them up-to-date with current market practices. Members noted that, before entering into force, the proposed Rules must be approved by the Commission. However, the approval process was still not finalised at the beginning of 2017.

The Committee on Budgetary Control adopted the report by Bart STAES (Greens/EFA, BE) on discharge in respect of the implementation of the budget of the Euratom Supply Agency for the financial year 2016.

The committee called on the European Parliament to grant the Director-General of the Agency discharge in respect of the implementation of the Agency’s budget for the financial year 2016.

Noting that the Court of Auditors stated that it had obtained reasonable assurance that the annual accounts of the Agency for the financial year 2016 were reliable and that the underlying transactions were legal and regular, Members called on Parliament to approve the closure of the Agency’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 :

Agency’s financial statements : the final budget of the Agency for the financial year 2016 remained stable at EUR 125 000. EUR 119 000 (95.2 %) of the budget of the Agency derives from the Union budget and EUR 6 000 (4.8 %) from its own revenues (bank interest on the paid-up capital). Budget and financial management : budget monitoring efforts during the financial year 2016 resulted in a commitment appropriations execution rate of 94.34 %, representing a decrease of 4.58 % compared to 2015.

Lastly, Members noted that the Agency processed 344 transactions in 2016, including contracts, amendments and notifications in order to ensure the security of supply of nuclear materials. The Agency advisory committee gave its positive opinion on a draft proposal for its updated rules , in order to bring them up-to-date with current market practices. Members noted that, before entering into force, the proposed Rules must be approved by the Commission. However, the approval process was still not finalised at the beginning of 2017.

Having examined the revenue and expenditure account for the financial year 2016 and the balance sheet as at 31 December 2016 of the Euratom Supply Agency (ESA), as well as the Court of Auditors' report on the annual accounts of the Agency for the financial year 2016, accompanied by the Agency's replies to the Court's observations, the Council recommended the European Parliament to give a discharge to the Director General of the Agency in respect of the implementation of the budget for the financial year 2016.

No further comments were made as regards the accounts.

PURPOSE: presentation of the EU Court of Auditors’ report on the annual accounts of the Euratom Supply Agency (ESA) for the year 2016, together with the Agency’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 focused on the annual accounts of the ESA . In brief, the Agency’s main task is to ensure a regular supply of nuclear materials, in particular nuclear fuels, to EU users, by means of a common supply policy based on the principle of equal access to sources of supply.

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 2016, and the legality and regularity of the transactions underlying those accounts.

Opinion on the reliability of the accounts : in the Court’s opinion, the Agency’s annual accounts present fairly, in all material respects, its financial position as at 31 December 2016 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 2016 are legal and regular in all material respects.

The Court did not make any particular comment on the Agency’s budgetary management.

Lastly, the Court of Auditors’ report also contained a summary of the Agency’s key findings in 2016 :

Budget : EUR 0.1 million. Staff : 17 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 2016, as part of the 2016 discharge procedure.

Analysis of the accounts of the Euratom Supply Agency (ESA) .

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.

This Commission document concerns the EU's consolidated accounts for the year 2016 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 cash flows of the EU institutions and bodies, including the Euratom Supply Agency (ESA), 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 ESA .

The Euratom Supply Agency : the ESA, which is located in Luxembourg (LU), was established by Council Decision 2008/114/EC, Euratom in order to ensure a regular and equitable supply of nuclear fuels to EU users.

As regards the accounts , in 2016, the Agency’s budget remained stable at EUR 125 000 (compared to 2015). Its revenue and expenditure were in balance.

ESA’s expenses consist only of administrative costs. The Agency neither manages operational budget lines nor provides grants. The bulk of the Agency’s administrative expenses is covered directly by the European Commission budget, and is not acknowledged in the Agency’s accounts.

ESA’s financial statements from 31 December 2016 show a budget execution of EUR 117 926, or 94 % of commitment appropriations (against 99 % in 2015). Unused amounts are returned to the EU budget.

For further details on expenditure, please refer to the ESA’s annual accounts

PURPOSE: presentation by the Commission of the consolidated annual accounts of the European Union for the financial year 2016, as part of the 2016 discharge procedure.

Analysis of the accounts of the Euratom Supply Agency (ESA) .

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.

This Commission document concerns the EU's consolidated accounts for the year 2016 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 cash flows of the EU institutions and bodies, including the Euratom Supply Agency (ESA), 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 ESA .

The Euratom Supply Agency : the ESA, which is located in Luxembourg (LU), was established by Council Decision 2008/114/EC, Euratom in order to ensure a regular and equitable supply of nuclear fuels to EU users.

As regards the accounts , in 2016, the Agency’s budget remained stable at EUR 125 000 (compared to 2015). Its revenue and expenditure were in balance.

ESA’s expenses consist only of administrative costs. The Agency neither manages operational budget lines nor provides grants. The bulk of the Agency’s administrative expenses is covered directly by the European Commission budget, and is not acknowledged in the Agency’s accounts.

ESA’s financial statements from 31 December 2016 show a budget execution of EUR 117 926, or 94 % of commitment appropriations (against 99 % in 2015). Unused amounts are returned to the EU budget.

For further details on expenditure, please refer to the ESA’s annual accounts