having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities(2), and in particular Article 185 thereof,

17.10.2012 | EN | Official Journal of the European Union | L 286/206 ---|---|---|--- * * * DECISION OF THE EUROPEAN PARLIAMENT of 10 May 2012 on discharge in respect of the implementation of the budget of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2010 (2012/578/EU) THE EUROPEAN PARLIAMENT, — | having regard to the final annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2010, ---|--- — | having regard to the Court of Auditors’ report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2010, together with the Centre’s replies (1), ---|--- — | having regard to the Council’s recommendation of 21 February 2012 (06083/2012 – C7-0051/2012), ---|--- — | having regard to Article 319 of the Treaty on the Functioning of the European Union, ---|--- — | having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof, ---|--- — | having regard to Regulation (EC) No 1920/2006 of the European Parliament and of the Council of 12 December 2006 on the European Monitoring Centre for Drugs and Drug Addiction (3), and in particular Article 15 thereof, ---|--- — | having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (4), and in particular Article 94 thereof, ---|--- — | having regard to Rule 77 of, and Annex VI to, its Rules of Procedure, ---|--- — | having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A7-0134/2012), ---|--- 1\. Grants the Director of the European Monitoring Centre for Drugs and Drug Addiction discharge in respect of the implementation of the Centre’s budget for the financial year 2010; 2\. Sets out its observations in the resolution below; 3\. Instructs its President to forward this Decision and the resolution that forms an integral part of it to the Director of the European Monitoring Centre for Drugs and Drug Addiction, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series). The President Martin SCHULZ The Secretary-General Klaus WELLE * * * (1) OJ C 366, 15.12.2011, p. 156. (2) OJ L 248, 16.9.2002, p. 1. (3) OJ L 376, 27.12.2006, p. 1. (4) OJ L 357, 31.12.2002, p. 72. * * * RESOLUTION OF THE EUROPEAN PARLIAMENT of 10 May 2012 with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2010 THE EUROPEAN PARLIAMENT, — | having regard to the final annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2010, ---|--- — | having regard to the Court of Auditors’ report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2010, together with the Centre’s replies (1), ---|--- — | having regard to the Council’s recommendation of 21 February 2012 (06083/2012 – C7-0051/2012), ---|--- — | having regard to Article 319 of the Treaty on the Functioning of the European Union, ---|--- — | having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof, ---|--- — | having regard to Regulation (EC) No 1920/2006 of the European Parliament and of the Council of 12 December 2006 on the European Monitoring Centre for Drugs and Drug Addiction (3), and in particular Article 15 thereof, ---|--- — | having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (4), and in particular Article 94 thereof, ---|--- — | having regard to Rule 77 of, and Annex VI to, its Rules of Procedure, ---|--- — | having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A7-0134/2012), ---|--- A. | whereas the Court of Auditors has stated that it has obtained reasonable assurances that the annual accounts for the financial year 2010 are reliable and that the underlying transactions are legal and regular, ---|--- B. | whereas on 10 May 2011 Parliament granted the Director of the European Monitoring Centre for Drugs and Drug Addiction discharge for implementation of the Centre’s budget for the financial year 2009 (5), and in its resolution accompanying the discharge decision, inter alia: | — | called on the Centre to put in place appropriate instructions and procedures for analysis of potential carry-overs, and to improve the programming and monitoring of activities with a view to reducing carry-overs, ---|--- — | called on the Centre to ensure consistent implementation of the approved staff appraisal procedure, ---|--- — | urged the Centre to implement, without delay, 9 ‘very important’ recommendations of the Internal Audit Service (IAS) and to inform the discharge authority of the progress made, ---|--- C. | whereas the initial budget of the Centre for the year 2010 was EUR 15 900 323 compared with EUR 14 700 000 in 2009, which is an increase of 8,16 % compared with 2009; whereas the contribution of the Union to the budget of the Centre for 2010 was EUR 14 800 000 (6), which represents an increase of 4,59 % compared with 2009, ---|--- Budget and financial management | 1. | Observes from its Final Annual Accounts that the actual revenue of the Centre for the financial year 2010 amounted to EUR 16 245 886; notes that the difference between 2010 actual revenue and the revenue entered in the budget 2010 is due to the following factors: | — | the payment in 2010 of EUR 362 000 from the Union contribution relating to the Centre 2008 and 2009 budget revenues, ---|--- — | the offsetting of EUR 16 437 which corresponds to the positive balance of the outturn of 2008 and 2009 Norway’s contribution to the Centre’s budget, ---|--- — | the sum of EUR 1 980,00 corresponding to an amount cashed in 2010 but not entered in the 2010 budget; ---|--- | 2. | Notes that the Union contribution for 2010 amounts to a total of EUR 14 800 000, of which an amount of EUR 200 000 coming from the recovery of surplus was added to the amount of EUR 14 600 000 entered in the budget; ---|---|--- | 3. | Notes from the Final Annual Accounts of the Centre that the execution rate concerning appropriations from the 2010 budget stands at 98,82 % (-0,03 % against 2009) for commitment appropriations, 94,85 % for payment appropriations against commitments (-1,66 % against 2009) and 93,73 % for payment against the final budget (-1,67 % against 2009); ---|---|--- | 4. | Observes, moreover, that data relating to the budget execution of Titles I and II (staff and support activities) showed an increase compared with the 2009 execution rate both in terms of commitments and payments, respectively + 0,57 % and + 13,4 %; notes that the execution rate stands at 99,15 % for commitment appropriations and at 96,64 % for payment appropriations, against 98,58 % and 95,30 % for 2009; ---|---|--- | 5. | Establishes that the execution rate for Title III (projects and operational activities) shows a decrease in the use of payment appropriations (-9,58 %) compared with 2009 and a small decrease on the committed on final budget appropriations of 1,37 %; notes also that the execution rate stands at 98,04 % for commitment appropriations and at 88,83 % for payment appropriations; notes from the Centre that the situation was due to the following factors: | — | more than 70 % of the National Focal Points were only able to request the payment of the first instalment of the 2010 Reitox co-financing, ---|--- — | the impossibility of executing, before the end of 2010, some payments linked to the refunding of costs for technical meetings that were held in the last part of the year, ---|--- — | a residual number of payments linked to the implementation of small contracts for external technical studies/surveys could not be executed, due to the late conclusion of the relevant procurement/contracting operations; ---|--- Is of the opinion that a low execution rate for payment appropriations under Title III affects the development of the Centre’s projects and activities and might have a negative impact on their planed outcomes; calls, therefore, on the Centre to take immediate action to increase the execution rate for payment appropriations in the future and to keep the discharge authority informed of the progress achieved; | 6. | Calls on the Centre to consolidate its financial management; recognises that drug-related issues should be adequately represented in the new multiannual financial framework (2014-2020); ---|---|--- Carry-over appropriations | 7. | Welcomes the Centre’s initiative to further reduce the volume of appropriations carried forward; acknowledges, in particular, from its Annual Activity Report that the Centre took the following measures: | — | five training sessions concerning budget operations and procurement processes have been held for the Centre’s different financial and operational actors, ---|--- — | clearer and more structured instructions and procedures have been put in place for the analysis and prevention of carry-forwards, ---|--- — | the tendering process aimed at implementing the Annual Work Programme/Budget has, as much as possible, been anticipated in advance so that as a rule these processes are carried out during the first semester of the year, ---|--- — | an AD staff member was recruited to enhance the Centre’s capacity to plan and monitor its activities; ---|--- Calls nevertheless on the Court of Auditors to inform the discharge authority of the effectiveness of these measures; Accounting system | 8. | Acknowledges from the Final Annual Accounts that the Centre implemented a new income structure created in ABAC in order to simplify and better manage the recovery orders; ---|---|--- | 9. | Notes also that the Centre revised its activity based management system and defined a cost-based accounting system; acknowledges in particular that the relevant ABAC and SAP CO applications have been configured accordingly and the production phase should have started in the first quarter of 2011; calls on the Centre to inform the discharge authority of the progress made on this matter; ---|---|--- Public procurement | 10. | Notes from the Centre’s Final Annual Accounts that a residual number of payments linked to the implementation of small contracts for external technical studies/surveys was not be executed due to the late conclusion of the relevant procurement/contracting operations, in line with the state of advancement of the projects concerned of the Centre’s Work Programme; ---|---|--- Performance | 11. | Calls on the Centre to duly take into account the level of reporting when planning its activities; urges, in particular, the Centre to make sure that the Annual Activity Report effectively mirrors the Annual Work Programme and that the planning of resources for activities (ABB) is aligned with the organisational structure of the Centre to enable the monitoring of budget execution; ---|---|--- | 12. | Welcomes web dissemination as an effective and cost-efficient part of the Centre’s overall communication strategy and information activities; moreover, calls on the Centre to propose improvements in sustaining, with the support of Reitox, the Centre’s multilingual policy; ---|---|--- | 13. | Takes note that the economic difficulties in the European Union should be overcome and therefore urges renewed flexibility, innovative organisational measures and better coordination among Union institutions, agencies and national authorities; ---|---|--- | 14. | Welcomes the improved cooperation between the Centre and the European School Survey Project on Alcohol and Other Drugs (ESPAD); believes that the monitoring of alcohol, tobacco and other addictive behaviours which are unrelated to substances should be included as a priority in the next Drugs Strategy of the Union; ---|---|--- Risk Assessment | 15. | Notes from its Annual Report of Activities that the Centre approved a comprehensive methodology for the carrying out of risk identification and assessment as a tool for improving risk management within the Centre; calls nevertheless on the Court of Auditors to inform the discharge authority of the effectiveness of the measures taken by the Centre; calls also on the IAS to duly verify that the central risk register has effectively been set up, in line with IAS’s recommendations and requirements as laid down in the Centre’s Internal Control Standards; ---|---|--- Internal audit | 16. | Acknowledges that in 2010 the IAS performed an audit on the management of outputs for external communication in order to assess and provide assurance on the internal controls applicable to the outputs for external communication; notes in particular that various strategic documents covering the area of communication have been issued over the years but have not been linked to the 2010 Annual Work Programme and Multi-Annual Work Programme 2010-2012, and that no periodic update of target groups was planned over the lifecycle of the planning documents even though required in the Centre’s Communication Strategy; ---|---|--- | 17. | Urges the Centre in this respect to link its future Communication strategy to its (multi)-annual planning documents and regularly review the needs of target groups; ---|---|--- | 18. | Acknowledges that the Centre still needs to implement five ‘very important’ recommendations from IAS audits on ‘grant management’ (performed in 2009) and on ‘Preparedness for the Move’ (2008); is concerned that for three ‘very important’ recommendations, the implementation is delayed beyond the date defined by the Centre in its original action plan; notes also that one more recommendation has been reported as implemented by the Centre as at the end of 2010, and awaits a follow-up by the IAS with the purpose of confirming its effective implementation; urges the Centre, therefore, to take immediate steps to redress the situation and inform the discharge authority of the measures taken; ---|---|--- | 19. | Notes also that one recommendation on compliance with the Grant Agreement has been rejected by the Centre; urges the Centre, therefore, to explain its decision to the discharge authority; ---|---|--- | 20. | Draws attention to its recommendations from previous discharge reports, as set out in the Annex to this resolution; ---|---|--- | 21. | Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its resolution of 10 May 2012 (7) on the performance, financial management and control of the agencies. ---|---|--- * * * (1) OJ C 366, 15.12.2011, p. 156. (2) OJ L 248, 16.9.2002, p. 1. (3) OJ L 376, 27.12.2006, p. 1. (4) OJ L 357, 31.12.2002, p. 72. (5) OJ L 250, 27.9.2011, p. 167. (6) OJ L 64, 12.3.2010, pp. 1056-1057. (7) Texts adopted, P7_TA(2012)0164 (see page 388 of this Official Journal). * * * ANNEX EUROPEAN PARLIAMENT RECOMMENDATIONS OVER PAST YEARS European Monitoring Centre for Drugs and Drug Addiction | 2006 | 2007 | 2008 | 2009 ---|---|---|---|--- Performance | The budgetary principles of annuality and specification were not strictly observed: high number of transfers of appropriations between budget lines and in many cases the supporting documentation was insufficiently detailed | n.a. | Calls on the Centre to set SMART objectives and RACER indicators, as well as to make a Gannt diagram → promoting a result-oriented approach | Calls on the Centre to make a Gannt diagram part of the programming for each of its operational activities Budgetary and financial management | The rules for procurement were not strictly implemented | The Centre is in disagreement with Norway concerning the calculation of Norway’s financial contribution for its participation in the Centre’s work. The Centre should seek to resolve this disagreement as soon as possible as it has an impact on the budget and on the Centre’s financial statements (the Centre estimation is EUR 80 000 higher than that of Norwegian authorities) | n.a. | | — | Calls on the Centre to put in place appropriate instructions and procedures for analysis of potential carry-overs, improve the programming and monitoring of activities with a view to reducing carry-overs ---|--- — | Court of Auditors reported EUR 339 000 carry-forwards in 2009 appropriation for Title II Administrative expenditure (26 %) ---|--- Human resources | n.a. | n.a. | n.a. | Calls on the Centre to ensure consistent implementation of the approved staff appraisal procedure Internal audit | n.a. | n.a. | Calls on the Centre to fulfil 26 out of 41 recommendations made by the Internal Audit Service in 2006: i.e. quality control of the new location, precautions against damage from flooding, a business continuity plan and investment in equipment; the implementation of the internal control standards (staff promotions, staff appraisal, risk management) | | — | Calls on the Centre to inform the discharge authority of the progress made on risk management and annual risk analysis ---|--- — | Urges the Centre to implement without delay nine very important recommendations and inform the discharge authority of the progress made ---|--- * * *