REPORT on discharge in respect of the implementation of the budget of the European Chemicals Agency for the financial year 2009

1. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION

6.4.2011 - (C7‑0245/2010 – 2010/2185(DEC))

Committee on Budgetary Control
Rapporteur: Georgios Stavrakakis

Procedure : 2010/2185(DEC)

Document stages in plenary

Document selected :

A7-0127/2011

Texts tabled :

A7-0127/2011

Debates :

PV 10/05/2011 - 4
CRE 10/05/2011 - 4

Votes :

PV 10/05/2011 - 9.11
Explanations of votes
Explanations of votes

Texts adopted :

P7_TA(2011)0170

1. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION

Date adopted

Result of final vote

+:

–:

0:

Members present for the final vote

János Áder, Kriton Arsenis, Pilar Ayuso, Paolo Bartolozzi, Sandrine Bélier, Sergio Berlato, Martin Callanan, Nessa Childers, Chris Davies, Bairbre de Brún, Bas Eickhout, Edite Estrela, Karl-Heinz Florenz, Elisabetta Gardini, Julie Girling, Cristina Gutiérrez-Cortines, Satu Hassi, Jolanta Emilia Hibner, Dan Jørgensen, Karin Kadenbach, Christa Klaß, Holger Krahmer, Jo Leinen, Corinne Lepage, Linda McAvan, Radvilė Morkūnaitė-Mikulėnienė, Miroslav Ouzký, Vladko Todorov Panayotov, Gilles Pargneaux, Antonyia Parvanova, Andres Perello Rodriguez, Sirpa Pietikäinen, Mario Pirillo, Pavel Poc, Vittorio Prodi, Frédérique Ries, Anna Rosbach, Oreste Rossi, Dagmar Roth-Behrendt, Daciana Octavia Sârbu, Horst Schnellhardt, Richard Seeber, Theodoros Skylakakis, Bogusław Sonik, Salvatore Tatarella, Åsa Westlund, Glenis Willmott, Sabine Wils, Marina Yannakoudakis

Substitute(s) present for the final vote

Jutta Haug, Marisa Matias, Bill Newton Dunn, Bart Staes, Eleni Theocharous, Thomas Ulmer, Anna Záborská

on discharge in respect of the implementation of the budget of the European Chemicals Agency for the financial year 2009

(C7‑0245/2010 – 2010/2185(DEC))

The European Parliament,

– having regard to the final annual accounts of the European Chemicals Agency for the financial year 2009,

– having regard to the Court of Auditors' report on the annual accounts of the European Chemicals Agency for the financial year 2009, together with the Agency’s replies[1],

– having regard to the Council's recommendation of 15 February 2011 (5892/2011 – C7‑0052/2011),

– having regard to Article 276 of the EC Treaty and 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 1907/2006 of the European Parliament and of the Council of 18 December 2006 establishing a European Chemicals Agency[3], and in particular Article 97 thereof,

– having regard to Commission Regulation (EC, Euratom) No 2343/2002[4] of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Regulation (EC, Euratom) No 1605/2002, 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 the Environment, Public Health and Food Safety (A7-0127/2011),

1. Grants the Executive Director of the European Chemicals Agency discharge in respect of the implementation of the Agency's budget for the financial year 2009;

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 Executive Director of the European Chemicals Agency, 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).

2. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION

on the closure of the accounts of the European Chemicals Agency for the financial year 2009

(C7‑0245/2010 – 2010/2185(DEC))

The European Parliament,

– having regard to the final annual accounts of the European Chemicals Agency for the financial year 2009,

– having regard to the Court of Auditors' report on the annual accounts of the European Chemicals Agency for the financial year 2009, together with the Agency’s replies[5],

– having regard to the Council's recommendation of 15 February 2011 (5892/2011 – C7‑0052/2011),

– having regard to Article 276 of the EC Treaty and 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[6], and in particular Article 185 thereof,

– having regard to Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 establishing a European Chemicals Agency[7], and in particular Article 97 thereof,

– having regard to Commission Regulation (EC, Euratom) No 2343/2002[8] of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Regulation (EC, Euratom) No 1605/2002, 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 the Environment, Public Health and Food Safety (A7-0127/2011),

1. Approves the closure of the accounts of the European Chemicals Agency for the financial year 2009;

2. Instructs its President to forward this Decision to the Executive Director of the European Chemicals Agency, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Chemicals Agency for the financial year 2009

(C7‑0245/2010 – 2010/2185(DEC))

The European Parliament,

– having regard to the final annual accounts of the European Chemicals Agency for the financial year 2009,

– having regard to the Court of Auditors' report on the annual accounts of the European Chemicals Agency for the financial year 2009, together with the Agency’s replies[9],

– having regard to the Council's recommendation of 15 February 2011 (5892/2011 – C7‑0052/2011),

– having regard to Article 276 of the EC Treaty and 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[10], and in particular Article 185 thereof,

– having regard to Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 establishing a European Chemicals Agency[11], and in particular Article 97 thereof,

– having regard to Commission Regulation (EC, Euratom) No 2343/2002[12] of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Regulation (EC, Euratom) No 1605/2002, 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 the Environment, Public Health and Food Safety (A7-0127/2011),

A. whereas the Court of Auditors stated that it has obtained reasonable assurances that the annual accounts for the financial year 2009 are reliable and that the underlying transactions are legal and regular,

B. whereas 2009 was the Agency's second year in operation,

C. whereas on 5 May 2010 Parliament granted the Executive Director of the European Chemicals Agency discharge in respect of the implementation of the Agency's budget for the financial year 2008[13], and in its resolution accompanying the discharge decision, inter alia:

- drew attention to the fact that the Court of Auditors highlighted delays in the operational activities caused by difficulties in implementing the IT system and by a lack of qualified staff;

- expressed its satisfaction with the first successful year of operation of the Agency, the Commission (DG Enterprise and Industry) having been responsible for the budgetary management of the Agency in 2007,

D. whereas the Agency’s budget for the financial year 2009 was EUR 70 400 000, an increase of 6 % from the financial year 2008;

1. Notes that the Agency was financed in 2008 by a Community subsidy of EUR 62 200 000 in accordance with Article 185 of the Financial Regulation, and, to a minor extent, by fees paid by industry for registrations of chemical substances in accordance with the REACH Regulation (Regulation (EC) No 1907/2006 of the European Parliament and the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), establishing a European Chemicals Agency[14]);

2. Underlines the fact that the Agency's revenues in 2009 stemmed mainly from the annual subsidy from the general budget of the Union, which increased by EUR 4 000 000 compared to 2008 (EUR 62 600 000) and from fee-generated income of EUR 2 200 000; notes that REACH IT fee income is received from companies subject to registration and notification under the REACH Regulation;

3. Observes that the increase in Title 3 - Operational expenditure is mainly as a result of the rise in software development costs, as major investments have been needed for the enhancement of the REACH IT system architecture and for further development of a comprehensive chemical safety assessment/chemical safety report tool;

4. Takes note, in this context, that the Agency has carried forward 29 % of the total appropriations (EUR 20 000 000) as a result of contracting for major projects related to the preparation for the first registration deadline, which were not concluded by the end of 2009; recommends that the proportion of carryovers be reduced to respect the principle of annuality;

Performance

5. Congratulates the Agency for having set out, in a table annexed to the Court of Auditors' 2009 report, a comparison of the operations that were carried out during 2009 and 2008 so as to enable the discharge authority to assess more effectively its performance from one year to the next; notes that the Agency has increased the number of completed registration dossiers (500 in 2009 and 70 in 2008) and the number of enquiries (1000 in 2009 and 250 in 2008); notes, in addition, an increase in both the number of compliance checks completed (14 in 2009 and 1 in 2008) and the number of proposals for harmonised classification and labelling (30 in 2009 and 14 in 2008);

6. Expresses its satisfaction at the Agency's second successful year of operation, the Commission (DG Enterprise and Industry) having been responsible for the budgetary management of the Agency in 2007; emphasises, in particular, that the smooth and relatively rapid establishment of the Agency is mainly as a result of the effective support provided by its parent Directorate-General, exchanges of experience with other similar agencies and the provision of strong support by the host country;

7. Welcomes the Agency's initiatives for enhancing its customer focus and feedback procedures; congratulates, in particular, the Agency for having conducted a stakeholder survey in 2009 and for having increased assistance activities for industry (such as offering a phone advice service for lead-registrants, workshops, network meetings, public consultations, etc);

8. Requests the Court of Auditors to undertake performance audits on the Agency;

Carryover appropriations

9. Calls on the Agency to further develop the planning and monitoring of its procurement and budget execution so as to reduce the proportion of carry forward appropriations; notes, in fact, that the Court of Auditors registered a carry forward of EUR 20 000 000 (29 % of the appropriations) to the budgetary year 2010, approximately 88 % of which corresponds to activities not yet implemented (or, in some cases, goods not received) at the year end; remarks, furthermore, that 5 % of the appropriations (EUR 3 000 000) were cancelled;

10. Welcomes, nevertheless, the Agency's commitment to reduce for 2010 the carryover of commitment appropriations to below 20 % and limit the cancelled appropriations to a considerably lower level as compared to 2008; calls, accordingly, on the Agency to inform the discharge authority of developments in this matter;

Human resources

11. Notes that the total number of posts in the establishment plan has increased by 47 % compared to 2008; welcomes the fact that at the end of the year the Agency had achieved 90 % execution of the establishment plan; recalls, nevertheless, that it is important for the Agency to keep monitoring the implementation of its budget and recruitment plan;

Internal audit

12. Congratulates the Agency for having set up an Internal Audit Capability (IAC) with a role of conducting internal audits and advising the Executive Director on risk management and control systems by issuing independent opinions and recommendations;

13. Acknowledges that the Internal Audit Service (IAS) submitted its final strategic audit plan 2010-2012 on 1 December 2009 (three years on a rolling basis and annually updated); calls, accordingly, on the Executive Director of the Agency to inform the discharge authority of the content of this audit plan;

14. Calls on the Agency to inform the discharge authority of the steps taken to improve its control system by strengthening its financial circuits, workflows, audits, action plans and risk assessments;

15. Encourages the Agency to effectively ensure that:

- all components for financing decisions are in place (e.g. standard formats for its work programme and financial decisions),

- the information necessary at each level within the organisation is properly defined and addressed,

- the work programme shows all resources made available through the budget,

- the documentation of financial procedures and checklists is finalised and updated;

° °

16. Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its resolution of ... May 2011[15] on the performance, financial management and control of the agencies.

16.3.2011

OPINION of the Committee on the Environment, Public Health and Food Safety

for the Committee on Budgetary Control

on discharge in respect of the implementation of the budget of the European Chemicals Agency for the financial year 2009

(C7-0245/2010 - 2010/2185(DEC))

Rapporteur: Jutta Haug

SUGGESTIONS

The Committee on the Environment, Public Health and Food Safety calls on the Committee on Budgetary Control, as the committee responsible, to incorporate the following suggestions in its motion for a resolution:

1. Expresses its satisfaction with the successful operation of the European Chemicals Agency since its creation; considers 2009 as part of the start-up phase aimed at setting up the necessary infrastructures and procedures arising from registration deadlines;

2. Notes, in this context, that the total number of posts in the establishment plan has increased by 104 compared to 220 posts in the 2008 establishment plan; considers this increase necessary in order to fulfil the tasks assigned to the Agency by the relevant chemical regulations;

3. Underlines the fact that the Agency's revenues in 2009 stemmed mainly from the annual subsidy from the general budget of the Union, which increased by EUR 4 000 000 compared to 2008 (EUR 62 600 000) and from fee-generated income of EUR 2 200 000 ; notes that REACH IT fee income is received from companies subject to registration and notification under the Reach Regulation[16];

4. Observes that the increase in Title 3/operational expenditures is mainly due to the rise in software development costs, as major investments have been needed for the enhancement of the REACH IT system architecture and for further development of a comprehensive chemical safety assessment / chemical safety report tool;

5. Takes note, in this context, that the Agency has carried forward 29 % of the total appropriations (EUR 20 000 000) due to contracting for major projects related to the preparation for the first registration deadline, which were not concluded by the end of 2009; recommends that the proportion of carryovers be reduced to respect the principle of annuality;

6. Requests the Court of Auditors to undertake performance audits on the Agency;

7. Is of the opinion, on the basis of the data available, that discharge can be granted to the Executive Director of the European Chemicals Agency in respect of the implementation of the Agency's budget for the financial year 2009.

RESULT OF FINAL VOTE IN COMMITTEE

RESULT OF FINAL VOTE IN COMMITTEE

[1] OJ C 338, 14.12.2010, p.34.
[2] OJ L 248, 16.9.2002, p. 1.
[3] OJ L 396, 30.12.2006, p. 1.
[4] OJ L 357, 31.12.2002, p. 72.
[5] OJ C 338, 14.12.2010, p.34..
[6] OJ L 248, 16.9.2002, p. 1.
[7] OJ L 396, 30.12.2006, p. 1.
[8] OJ L 357, 31.12.2002, p. 72.
[9] OJ C 338, 14.12.2010, p.34.
[10] OJ L 248, 16.9.2002, p. 1.
[11] OJ L 396, 30.12.2006, p. 1.
[12] OJ L 357, 31.12.2002, p. 72.
[13] OJ L 252, 25.9.2010, p. 146.
[14] OJ L 396, 30.12.2006, p. 1.
[15] Texts adopted, P7_TA-PROV(2011).
[16] OJ L 396, 30.12.2006, p. 1.

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