REPORT on discharge in respect of the implementation of the budget of the Euratom Supply Agency for the financial year 2020
7.4.2022 - (2021/2137(DEC))
Committee on Budgetary Control
Rapporteur: Lefteris Christoforou
1. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION
on discharge in respect of the implementation of the budget of the Euratom Supply Agency for the financial year 2020
The European Parliament,
– having regard to the final annual accounts of the Euratom Supply Agency for the financial year 2020,
– having regard to the Court of Auditors’ annual report on EU agencies for the financial year 2020, together with the agencies’ replies[1],
– having regard to the statement of assurance[2] as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2020, pursuant to Article 287 of the Treaty on the Functioning of the European Union,
– having regard to the Council’s recommendation of 28 February 2022 on discharge to be given to the Agency in respect of the implementation of the budget for the financial year 2020 (06003/2022 – C9‑0092/2022),
– having regard to Article 319 of the Treaty on the Functioning of the European Union,
– having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,
– having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012[3], and in particular Article 68 thereof,
– having regard to Council Decision 2008/114/EC, Euratom of 12 February 2008 establishing Statutes for the Euratom Supply Agency[4], and in particular Article 8 of the Annex thereto,
– having regard to Rule 100 of and Annex V to its Rules of Procedure,
– having regard to the report of the Committee on Budgetary Control (A9-0121/2022),
1. Grants the Director General of the Euratom Supply Agency discharge in respect of the implementation of the Agency’s budget for the financial year 2020;
2. Sets out its observations in the resolution below;
3. Instructs its President to forward this decision, and the resolution forming an integral part of it, to the Director General of the Euratom Supply 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 Euratom Supply Agency for the financial year 2020
The European Parliament,
– having regard to the final annual accounts of the Euratom Supply Agency for the financial year 2020,
– having regard to the Court of Auditors’ annual report on EU agencies for the financial year 2020, together with the agencies’ replies[5],
– having regard to the statement of assurance[6] as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2020, pursuant to Article 287 of the Treaty on the Functioning of the European Union,
– having regard to the Council’s recommendation of 28 February 2022 on discharge to be given to the Agency in respect of the implementation of the budget for the financial year 2020 (06003/2022 – C9‑0092/2022),
– having regard to Article 319 of the Treaty on the Functioning of the European Union,
– having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,
– having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012[7], and in particular Article 68 thereof,
– having regard to Council Decision 2008/114/EC, Euratom of 12 February 2008 establishing Statutes for the Euratom Supply Agency[8], and in particular Article 8 of the Annex thereto,
– having regard to Rule 100 of and Annex V to its Rules of Procedure,
– having regard to the report of the Committee on Budgetary Control (A9-0121/2022),
1. Approves the closure of the accounts of the Euratom Supply Agency for the financial year 2020 / Postpones the closure of the accounts of the Euratom Supply Agency for the financial year 2020;
2. Instructs its President to forward this decision to the Director General of the Euratom Supply 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 the decision on discharge in respect of the implementation of the budget of the Euratom Supply Agency for the financial year 2020
The European Parliament,
– having regard to its decision on discharge in respect of the implementation of the budget of the Euratom Supply Agency for the financial year 2020,
– having regard to Rule 100 of and Annex V to its Rules of Procedure,
– having regard to the report of the Committee on Budgetary Control (A9-0121/2022),
A. whereas, according to its statement of revenue and expenditure, the final budget of the Euratom Supply Agency (the ‘Agency’) for the financial year 2020 was EUR 230 000, representing an increase of 3,14 % compared to 2019; whereas the entire the Agency’s budget derives from the Union budget;
B. whereas the Court of Auditors (the ‘Court’), in its report on the Agency’s annual accounts for the financial year 2020 (the ‘Court’s report’), states that it has obtained reasonable assurances that the Agency’s annual accounts are reliable and that the underlying transactions are legal and regular;
Budget and financial management
1. Notes with satisfaction that the budget monitoring efforts during the financial year 2020 resulted in a commitment appropriations implementation rate of 99,54 %, representing a decrease of 0,32 % compared to 2019; regrets, however, that the payment appropriation execution rate was 22,33 %, representing a decrease of 18,72 % compared to 2019; whereas the decrease is due to carrying forward outstanding commitments that amounted to EUR 177 578,67, or 78 % of committed amounts in relation to signed IT service contracts that had not been completed at year-end;
2. Notes that the cancellation rate of budget appropriations carried over from 2019 to 2020 was 7 %, demonstrating unjustified commitments in the previous year; calls on the Agency to carry over budget appropriations only when justified;
Performance
3. Encourages, regarding follow-up observations from previous years, the Agency to pursue the digitalisation of its services;
Staff policy
4. Notes that on 31 December 2020, the establishment plan was 94,12 % implemented, with 16 Commission officials appointed out of 17 posts authorised under the Union budget (17 authorised posts in 2019);
5. Notes that the Agency reported a gender ratio for all staff of 56 % women and 44 % men and that the Agency has an equal opportunities policy in place;
Procurement
6. Notes that the nuclear observatory and ESA management of information (NOEMI) project will reinforce the Agency’s monitoring capabilities of the nuclear materials and fuel market whilst securely hosting the data of sensitive nuclear contracts; notes that NOEMI will be implemented during 2020-2021, with an estimated cost of EUR 355 000; notes that a functional prototype, including the key features, was delivered in June 2020; calls on the Agency to keep the discharge authority informed about the progress of the implementation of the project;
COVID-19 response and business continuity
7. Notes that the Agency has made efforts to reduce the effect of the pandemic on its staff and stakeholders by taking all necessary steps to continue its core duties and introduced changes in its spending pattern via a budget amendment to reduce expenses on actions negatively affected by the pandemic; notes that the Agency invested in upgrading its core IT application and re-scoped its ongoing tasks and adjusted the approach and timeline to take account of changing circumstances in its new 2021 work programme; calls on the Agency to report to the discharge authority on the developments in this regard;
8. Notes the Agency’s observation that the worldwide lockdown measures have accelerated the deployment of secure digital solutions resulting in an overall increase of the digital knowledge and maturity of stakeholders, supporting the business case for NOEMI;
Internal control
9. Notes that in 2020 the Agency adopted its internal control framework, designed to provide reasonable assurance in achieving the objectives set in its financial regulation, which comprises effectiveness, efficiency, the economy of operations, the reliability of reporting, the safeguarding of assets and information, the prevention, detection, correction and follow-up of fraud and irregularities, and the adequate management of the legality and regularity of underlying transactions; notes that in January 2020 the Agency performed a full-scale risk assessment workshop covering all areas of agency work, operational and administrative processes; further notes that the Agency reviewed the controls in place and identified areas that required monitoring;
Other comments
10. Notes, with regard to the withdrawal of the United Kingdom (UK) from the Union, that intense negotiations were held in 2020 with regard to the future partnership of the UK and the Union in the Agency, including in the civil nuclear area; notes that on 24 December 2020 the Union and the UK signed the Euratom Agreement, which provides wide-ranging cooperation on safe and peaceful uses of nuclear energy, underpinned by commitments by both sides to comply with international non-proliferation obligations, upholding a high level of nuclear safety standards; calls on the Agency to report on developments in this regard;
11. Calls on the Agency, with regard following up on the discharge authority’s observations in the 2019 discharge, to focus on disseminating the results of its research to the general public, and to reach out to public via the social media and other media outlets;
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12. Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its resolution of [...] 2022[9] on the performance, financial management and control of the agencies.
INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE
Date adopted |
31.3.2022 |
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Result of final vote |
+: –: 0: |
28 2 0 |
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Members present for the final vote |
Matteo Adinolfi, Gilles Boyer, Olivier Chastel, Caterina Chinnici, Lefteris Christoforou, Corina Crețu, Ryszard Czarnecki, José Manuel Fernandes, Raffaele Fitto, Luke Ming Flanagan, Isabel García Muñoz, Monika Hohlmeier, Jean-François Jalkh, Pierre Karleskind, Mislav Kolakušić, Joachim Kuhs, Ryszard Antoni Legutko, Claudiu Manda, Alin Mituța, Jan Olbrycht, Younous Omarjee, Markus Pieper, Michèle Rivasi, Petri Sarvamaa, Angelika Winzig, Lara Wolters, Tomáš Zdechovský |
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Substitutes present for the final vote |
Bas Eickhout, Tsvetelina Penkova, Viola Von Cramon-Taubadel |
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FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE
28 |
+ |
ECR |
Ryszard Czarnecki, Raffaele Fitto, Ryszard Antoni Legutko |
ID |
Matteo Adinolfi, Jean-François Jalkh, Joachim Kuhs |
NI |
Mislav Kolakušić |
PPE |
Lefteris Christoforou, José Manuel Fernandes, Monika Hohlmeier, Jan Olbrycht, Markus Pieper, Petri Sarvamaa, Angelika Winzig, Tomáš Zdechovský |
Renew |
Gilles Boyer, Olivier Chastel, Pierre Karleskind, Alin Mituța |
S&D |
Caterina Chinnici, Corina Crețu, Isabel García Muñoz, Claudiu Manda, Tsvetelina Penkova, Lara Wolters |
Verts/ALE |
Bas Eickhout, Michèle Rivasi, Viola Von Cramon-Taubadel |
2 |
- |
The Left |
Luke Ming Flanagan, Younous Omarjee |
0 |
0 |
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Key to symbols:
+ : grants discharge
- : postpones discharge
0 : abstention