The European Parliament decided to grant discharge to the Executive Director of the European Insurance and Occupational Pensions Authority (EIOPA) for the financial year 2017 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 Authority’s annual accounts for the financial year 2017 are reliable and that the underlying transactions are legal and regular, Parliament adopted by 507 votes to 126 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 draft resolution on performance, financial management and control of EU agencies :

Authority’s financial statements

The final budget of the Authority for the financial year 2017 was EUR 23 999 257, representing an increase of 10.28 % compared to 2016. The Authority is financed by a contribution from the Union (EUR 8 946 404, representing 37 %) and contributions from national supervisory authorities from the Member States (EUR 15 052 852, representing 63 %).

Budget and financial management

Budget monitoring efforts during the financial year 2017 resulted in a budget implementation rate of 99.79 %, reaching the Authority’s planned target and representing an increase of 0.11 % compared to 2016. Payment appropriations execution rate was at 88.09 %, representing a slight decrease of 0.88 % compared to 2016.

Parliament noted the Authority’s efforts to reallocate internally the Authority’s budgetary and personnel resources, as the Authority’s workload is increasingly shifting from regulatory tasks to supervisory convergence and enforcement. It stressed, in this respect, the need to ensure an appropriate level of prioritisation as regards resource allocation. The cancellation of carry-overs from 2016 to 2017 amounted to EUR 127 694, representing 5.47 % of the total amount carried over, a rate similar to 2016.

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

In particular, they noted that:

- the Authority faced limitations in terms of the architecture of the supervision system, scarcity of resources and, in some instances, insufficient support and collaboration from National Competent Authorities (NCAs);

- the Authority should fulfil the tasks and the mandate assigned to it by the European Parliament and the Council and should stay within the mandate of those assignments;

- while carrying out its work and in particular when drafting implementing measures, the Authority needs to regularly and comprehensively inform the European Parliament and Council about its activities. It should exhibit transparency not only to the European Parliament and the Council, but to the Union citizens as well;

- sufficient resources need to be allocated to address existing anti money laundering competences and to ensure a swift exchange with the European Banking Authority (‘EBA’) regarding money laundering and countering the financing of terrorism;

- on 31 December 2017, the establishment plan was 99.01 % executed, with 100 temporary agents (TAs) appointed out of 101 temporary agents authorised under the Union budget;

- the Authority has been one of the first agencies in the Union to launch a project delivering an e-procurement solution. This solution provides a more efficient and transparent procurement process benefiting both the Authority and its potential suppliers;

- a future decrease in the Authority’s revenue resulting from the United Kingdom’s decision to withdraw from the Union is possible.

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 Insurance and Occupational Pensions Authority (EIOPA) for the financial year 2017.

The committee called on the European Parliament to grant the Executive Director of the Authority discharge in respect of the implementation of the Authority’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 Authority 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 Authority’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 :

Authority’s financial statements

Members noted that the final budget of the Authority for the financial year 2017 was EUR 23 999 257, representing an increase of 10.28 % compared to 2016. The Authority is financed by a contribution from the Union (EUR 8 946 404, representing 37 %) and contributions from national supervisory authorities from the Member States (EUR 15 052 852, representing 63 %).

Budget and financial management

Budget monitoring efforts during the financial year 2017 resulted in a budget implementation rate of 99.79 %, reaching the Authority’s planned target and representing an increase of 0.11 % compared to 2016. Payment appropriations execution rate was at 88.09 %, representing a slight decrease of 0.88 % compared to 2016.

Members noted the Authority’s efforts to reallocate internally the Authority’s budgetary and personnel resources, as the Authority’s workload is increasingly shifting from regulatory tasks to supervisory convergence and enforcement. They stressed, in this respect, the need to ensure an appropriate level of prioritisation as regards resource allocation.

The cancellation of carry-overs from 2016 to 2017 amounted to EUR 127 694, representing 5.47 % of the total amount carried over, a rate similar to 2016.

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

In particular, they noted that:

- sufficient resources need to be allocated to address existing anti money laundering competences and to ensure a swift exchange with the European Banking Authority (‘EBA’) regarding money laundering and countering the financing of terrorism;

- on 31 December 2017, the establishment plan was 99.01 % executed, with 100 temporary agents (TAs) appointed out of 101 temporary agents authorised under the Union budget;

- the Authority has been one of the first agencies in the Union to launch a project delivering an e-procurement solution. This solution provides a more efficient and transparent procurement process benefiting both the Authority and its potential suppliers;

- a future decrease in the Authority’s revenue resulting from the United Kingdom’s decision to withdraw from the Union is possible.

Having examined the revenue and expenditure accounts for the financial year 2017 and the balance sheet as at 31 December 2017 of the European Insurance and Occupational Pensions Authority (EIOPA), as well as the Court of Auditors' report on the annual accounts of the Authority for the financial year 2017, accompanied by the Authority's replies to the Court's observations, the Council recommended the European Parliament to give a discharge to the Executive Director of the Authority in respect of the implementation of the budget for the financial year 2017.

Nevertheless, the following observations were made:

- Brexit : the Council encouraged the Authority to take into account any possible financial impact of the withdrawal of the United Kingdom from the EU on its organisation, operations and accounts;

- staff : the Authority should ensure proper transparency and publicity of its vacancy notices, while avoiding unjustified costs.

PURPOSE: presentation of the EU Court of Auditors’ report on the annual accounts of the European Insurance and Occupational Pensions Authority for the year 2017, together with the Authority’s reply.

CONTENT: the Court of Auditors carried out the audit on the annual accounts of the European Insurance and Occupational Pensions Authority (EIOPA).

In brief, the Authority’s task is to contribute to the establishment of high-quality common regulatory and supervisory standards and practices, to contribute to the consistent application of legally binding Union acts, to stimulate and facilitate the delegation of tasks and responsibilities among competent authorities, to monitor and assess market developments in the area of its competence and to foster the protection of policyholders, pension scheme members and beneficiaries.

Statement of assurance and reliability of the accounts

The Court considered that:

- the Authority’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.

Emphasis of matter

The Court drew attention to the fact that the United Kingdom (UK) notified the European Council on 29 March 2017 of its decision to withdraw from the European Union. An agreement setting out the arrangements for its withdrawal will be negotiated. EIOPA’s budget is financed by 40 % from European Union funds and by 60 % through direct contributions from EU Member States. A future decrease of the Authority’s revenue resulting from the UK’s decision to leave the EU is possible.

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

The Court’s observations

Recruitment

The Authority publishes vacancy notices on its own website and in social media, but not on the website of the European Personnel Selection Office (EPSO), which would increase transparency, publicity and allow citizens to identify vacancies published by the different European Institutions and agencies collectively.

The Authority’s reply

Recruitment

The EIOPA is leading a joint procurement for advertising recruitment campaigns that will increase visibility and reach a wide EU audience.

Lastly, the Court of Auditors’ report also contained a summary of the Authority’s key figures in 2017:

Budget

EUR 24 million.

Staff

151 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 Insurance and Occupational Pensions Authority (EIOPA) .

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.

The European Insurance and Occupational Pensions Authority (EIOPA) : the EIOPA, which is located in Frankfurt (DE), was set up by Regulation (EU) No 1094/2010 of the European Parliament and of the Council with a view to improving the functioning of the internal market by means of ensuring a high, effective and consistent level of prudential regulation and supervision, protecting policyholders, pension scheme members and other beneficiaries.

As regards the accounts , the total budget implementation rate for commitments, including commitments from internal assigned revenue, reached 99.45% in 2017, which corresponds to an absolute total of EUR 23 968 838. The commitment implementation ratio was even higher for the voted budget appropriations reaching 99.79%.

This is the result of EIOPA’s further strengthened budget planning process which led to these positive results.

Commitment appropriations :

available: EUR 24 million; made: EUR 24 million.

Payment appropriations :

available: EUR 26 million; paid: EUR 23 million.

For further details on expenditure, please refer to the 2017 final accounts of the Insurance and Occupational Pensions Authority.

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 Insurance and Occupational Pensions Authority (EIOPA) .

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.

The European Insurance and Occupational Pensions Authority (EIOPA) : the EIOPA, which is located in Frankfurt (DE), was set up by Regulation (EU) No 1094/2010 of the European Parliament and of the Council with a view to improving the functioning of the internal market by means of ensuring a high, effective and consistent level of prudential regulation and supervision, protecting policyholders, pension scheme members and other beneficiaries.

As regards the accounts , the total budget implementation rate for commitments, including commitments from internal assigned revenue, reached 99.45% in 2017, which corresponds to an absolute total of EUR 23 968 838. The commitment implementation ratio was even higher for the voted budget appropriations reaching 99.79%.

This is the result of EIOPA’s further strengthened budget planning process which led to these positive results.

Commitment appropriations :

available: EUR 24 million; made: EUR 24 million.

Payment appropriations :

available: EUR 26 million; paid: EUR 23 million.

For further details on expenditure, please refer to the 2017 final accounts of the Insurance and Occupational Pensions Authority.