The European Parliament decided to grant discharge to the Executive Director of the European Centre for the Development of Vocational Training (CEDEFOP) in regard to the implementation of the Centre’s budget for the 2017 financial year 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 Centre’s annual accounts for the financial year 2017 are reliable and that the underlying transactions are legal and regular, Parliament adopted by 497 votes to 124 with 9 abstentions, a reso lution 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 draft resolution on performance, financial management and control of EU agencies :

Centre’s financial statements

The final budget of CEDEFOP for the financial year 2017 was EUR 17 869 389, representing a slight decrease of 0.84 % compared to 2016.

Budget and financial management

Parliament noted with satisfaction that the budget monitoring efforts during the financial year 2017 resulted in a budget implementation rate of 99.95 %, representing a slight decrease of 0.04 % compared to 2016. The payment appropriations execution rate was at 89.66 %, representing a decrease of 4.89 % compared to the previous year. It also noted with concern that the cancellation of carryovers from 2016 to 2017 amounted to EUR 52 767, representing 5.06 % of the total amount carried over, an increase of 2.31 % in comparison to 2016.

Parliament also made a series of observations regarding performance, procurement and staff policy.

In particular, it noted that:

- on 31 December 2017, the establishment plan was 93.48 % filled, with 86 officials or temporary agents appointed out of 92 officials authorised under the Union budget.

- the transparency of recruitment processes is not always fully given;

- by the end of 2017 the Centre was not yet using any of the tools launched by the Commission aimed to introduce a single solution for the electronic exchange of information with third parties participating in public procurement procedures (e-procurement).

The Committee on Budgetary Control adopted the report by Petri SARVAMAA (EPP, FI) on discharge in respect of the implementation of the budget of the European Centre for the Development of Vocational Training (CEDEFOP) for the financial year 2017.

The committee called on the European Parliament to grant the Executive Director of the Centre discharge in respect of the implementation of the agency’s budget for the financial year 2017.

Noting that the Court of Auditors stated that it had obtained reasonable assurance that the annual accounts of the Centre for the financial year 2017 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 CEDEFOP for the financial year 2017 was EUR 17 869 389, representing a slight decrease of 0.84 % compared to 2016.

Budget and financial management

Members noted with satisfaction that the budget monitoring efforts during the financial year 2017 resulted in a budget implementation rate of 99.95 %, representing a slight decrease of 0.04 % compared to 2016. The payment appropriations execution rate was at 89.66 %, representing a decrease of 4.89 % compared to the previous year.

They also noted with concern that the cancellation of carryovers from 2016 to 2017 amounted to EUR 52 767, representing 5.06 % of the total amount carried over, an increase of 2.31 % in comparison to 2016.

Members also made a series of observations regarding performance, procurement and staff policy.

In particular, they noted that:

- on 31 December 2017, the establishment plan was 93.48 % filled, with 86 officials or temporary agents appointed out of 92 officials authorised under the Union budget.

- the transparency of recruitment processes is not always fully given;

- by the end of 2017 the Centre was not yet using any of the tools launched by the Commission aimed to introduce a single solution for the electronic exchange of information with third parties participating in public procurement procedures (e-procurement).

Having examined the revenue and expenditure accounts for the financial year 2017 and the balance sheet as at 31 December 2017 of the European Centre for the Development of Vocational Training (Cedefop), as well as the Court of Auditors' report on the annual accounts of the Centre for the financial year 2017, 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 Centre in respect of the implementation of the budget for the financial year 2017.

The Council welcomed the Court's opinion that, in all material respects, the Centre's annual accounts present fairly its financial position as at 31 December 2017 and the results of its operations, its cash flows, and the changes in net assets for the year then ended, in accordance with the provisions of the Centre's Financial Regulation, and that the underlying transactions for 2017 are legal and regular in all material respects.

Nevertheless, the following observation was made:

- recruitment : the Council regretted the weaknesses found by the Court in two recruitment procedures for management positions and called on the Centre to take appropriate actions in order to ensure the legality and regularity of the recruitment process and equal treatment of candidates.

PURPOSE: presentation of the EU Court of Auditors’ report on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2017, together with the Centre’s replies.

CONTENT: the Court of Auditors carried out the audit on the annual accounts of the European Centre for the Development of Vocational Training (CEDEFOP).

In brief, the Centre’s main task is to compile and disseminate documentation on vocational training systems.

Statement of assurance and reliability of the accounts

The Court considered that:

- the Centre’s annual accounts present fairly, in all material respects, its financial position as at 31 December 2017 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;

- the transactions underlying the annual accounts for the year ended 31 December 2017 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

Procurement

The Court observed that the management of two recruitment procedures for management positions was weak and the procedures are considered irregular. There was insufficient proof of the requested managerial experience and confidentiality requirements were not met, calling into question the equal treatment of candidates.

Financial management

In order to increase transparency, the Centre is called on to publish vacancy notices on the website of the European Personnel Selection Office (EPSO) instead of its own website and on social media.

The Court recalled that agencies should introduce a single solution for the electronic exchange and storage of information with third parties participating in public procurement procedures (e-procurement). As the same requirement exists for all EU Institutions, the Commission developed comprehensive IT solutions covering all phases of public procurement procedures however by the end of 2017 the Centre had not introduced any of these tools.

The Centre’s replies

Procurement

Cedefop is carrying out an in-depth assessment of both procedures and is considering remedial measures both concerning the two procedures at stake and recruitment procedures in general to address the weaknesses identified by the Court.

Financial management

Cedefop uses the EPSO platform in some cases. It argued that it publishes its vacancy notices on its own homepage as well as on the Inter-Agencies online platform which is accessible to all EU citizens and uses various channels to share vacancies. It publishes the vacancies of the Director and Deputy Director in EPSO and uses its social media for key positions.

The Centre is in the process of introducing the IT tools for procurement procedures and the first open tendering procedure with e-tools will be launched in October 2018.

The report contains a summary of the Centre’s key figures in 2017:

Budget

EUR 18 million (in payment appropriations).

Staff

117 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 2017, as part of the 2017 discharge procedure.

Analysis of the accounts of the European Centre for the Development of Vocational Training (Cedefop) .

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 2017 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 with a view to granting discharge.

Discharge procedure : the final step of a budget lifecycle is the discharge . It is the decision by which the European Parliament ‘ releases ’ the Commission from its responsibility for management of a given budget by marking the end of that budget's existence. It is granted by the European Parliament on the recommendation of the Council.

The decision is based in particular on the European Court of Auditors reports, in particular its annual report, in which the Court provides a Statement of Assurance (DAS) on the legality and regularity of transactions (payments and commitments).

The procedure results in the granting, postponement or refusal of 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.

All EU institutions and other agencies, bodies and joint undertakings are subject to their own discharge procedures.

Cedefop : the Centre, which is located in Thessaloniki (EL) and established by Council Regulation (EEC) No 337/75 has the task of compiling and disseminating documentation on vocational training systems and on matters relating to the development of vocational training.

As regards the Centre’s accounts , these are presented in detail in the document on the consolidated annual accounts of the European Union for 2017:

Commitment appropriations :

available: EUR 18 million; made: EUR 18 million.

Payment appropriations :

available: EUR 19 million; made: EUR 17 million.

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