A3-0182/94

Decision giving discharge in respect of the implementation of the budget of the European Parliament for the 1992 financial year

The European Parliament,

-having regard to its Rules of Procedure, in particular Rule 166(3) thereof,

-having regard to Article 77 of the Financial Regulation and Article 13 of the Internal Rules for the implementation of the European Parliament's budget,

-having regard to the revenue and expenditure account and the balance sheet for the financial year 1992,

-having regard to the annual report of the Court of Auditors concerning the financial year 1992,

-having regard to the report of the Committee on Budgetary Control (A3-0182/94),

1.Adopts the figures closing the accounts of the European Parliament for the financial year 1992 on the basis of the following amounts:

Utilization of appropriations (in ecus)

Appropriations forAppropriations carried

the financial year 1992over from 1991

Art. 7(1)(b)Art. 7(1)(a)

Appropriations589 370 975,0057 083 175,84-

available

Commitments579 968 057,59--

entered into

Payments made478 485 870,8449 564 484,84-

Appropriations

carried over to

1993:

- Art. 7(1)(b)101 482 186,75--

Fin. Reg.

- Art. 7(1)(a)---

Fin. Reg.

Appropriations to 9 402 917,41 7 518 691,00-

be cancelled:

Balance as at 31 December 1992: ECU 109 728 515

Canteens, Bars, Restaurants and Shops (CBRS)

2.Notes that, somewhat belatedly, most of the past irregularities in this sector have now been remedied and, in particular, that an imprest account is in the process of being opened in order to integrate the financial management of the CBRS sector within the Institution's official accounting system; insists, however, that the Administration investigate and report rapidly to the Committee on Budgetary Control on the outstanding issue of a possible tax liability in respect of staff recruited locally for this sector in other countries in the past;

3.Considers that the cost-effectiveness of the indirectly-managed part of the sector needs to be improved radically; instructs the Administration to issue calls for tenders in all three work-places based on the form of a contractual arrangement which is most advantageous for Parliament, and to seek expert outside assistance both in devising the calls for tenders and in analysing the bids;

4.Instructs the Administration to present a paper in time for the 1995 budgetary procedure setting out and analysing the total subsidy, direct and indirect, from Parliament's budget to the CBRS sector and making recommendations aimed at significantly increasing transparency in this respect;

Inventory

5.Notes that a new regulation governing Parliament's inventories of movable property was issued in December 1993, pending the outcome of the review of this whole sector currently being conducted by outside experts which may result in further adjustment to the rules; instructs the Administration to report to the Committee on Budgetary Control on the conclusions of this review; notes further that the present rules render individual users more responsible than in the past for items issued for their use; asks therefore that they be brought to the attention of individual users as soon as possible;

6.Notes that some items not located in the 1988 and 1991 physical inventories have since been recovered but insists that any items not located be dealt with in a manner fully consistent with the Financial Regulation; instructs the Administration to report to the Committee on Budgetary Control on the outcome of both inventories;

7.Also notes that the Administration intends to entrust the 1994 physical inventory to outside consultants and instructs the Administration to report to it on any problems arising;

8.Considers that the ceiling under Article 130 of the Implementing Rules for entries in the inventory should be set at ECU 250 for the European Parliament, from such time as the Committee on Budgetary Control concludes that satisfactory methods for taking and securing the inventory are in place;

Theft from Members' offices

9.Instructs the Administration to report to the Committee on Budgetary Control by the end of April 1994 on the cases of theft from Members' offices in Brussels by employees of an outside security firm and on its management of those incidents; asks in addition that the Committee on Budgetary Control be given updated summary information on all other cases of theft, broken down between Members' offices and other offices;

Settlement of the 'BUDG' claim

10.Notes that Parliament's claim for compensation in respect of the aborted 'BUDG' computerised management accounting system has now been settled, and that the amount recovered from the contractors covers all the expenditure paid by the institution to third parties;

11.Stresses, however, that it still has no management accounting system; instructs its Administration to address this problem as a matter of urgency and to present an options paper to the Committee on Budgetary Control by October 1994;

Discrepancy between cash situation and accounts

12.Points out that the discrepancy of BF 4,136,125 between the cash situation and the accounts, an amount which was excluded from the scope of the discharge granted for financial year 1982, will have to be regularized when the European Court of Justice reaches a final decision on the issues in question;

13.Instructs the Administration to present a report to the Committee on Budgetary Control by the end of April 1994 on the origins of the problem and its management to date;

Control of expenditure under item 3708

14.Notes that the Enlarged Bureau failed to respond to the request in paragraph 18 of last year's discharge decision; draws attention to the continuing dilemma whereby the Committee on Budgetary Control is made responsible for monitoring appropriations under Item 3708 without being given the means of doing so; instructs the Conference of Presidents to resolve this dilemma, failing which the Committee on Budgetary Control will have to refuse the responsibility conferred upon it in this area; calls upon the Court of Auditors, in such circumstances, to consider in its work programme how it will allocate responsibility for monitoring these appropriations;

Overrulings of withholdings of approval

15.Notes that during 1992 and 1993 Parliament's superior authority took a number of decisions to overrule withholdings of approval by the Financial Controller without first obtaining a recommendation from the Committee on Budgetary Control as required by the established procedure; points out that this procedure was designed to ensure that the superior authority has available to it a plurality of advice before taking decisions with potentially major financial consequences; stresses, however, the sole and undisputed responsibility of the superior authority under the Financial Regulation for all overrule decisions;

Creation of budget units

16.Reiterates its call for creation of decentralised budget units, composed of specialised staff, within each Directorate-General and self-contained service in accordance with needs, and based on a 'fire prevention' approach; considers that the proposed central 'fire fighting' unit would be inappropriate;

17.Considers in addition that all authorising officers should undergo training appropriate to their function;

Mopping-up transfers (virements de ramassage)

18.Regrets that an amount of ECU 85 000 under Article 261 (STOA), which could have been included in the 1992 mopping-up transfer to reinforce line 2000/3, was instead allowed to lapse; further regrets than an amount of ECU 885 747, which could have been included in the 1993 mopping-up transfer, was allowed to lapse in the budget chapter concerned and that no proposal was subsequently made to carry over that amount to the 1994 budget;

19.Instructs the Administration to take more care in future not to let appropriations be wasted in this way;

Court cases

20.Notes that Parliament, while having a good overall record, has not only lost certain recent cases before the European Court of Justice but has attracted strong criticism from the European Union's highest legal body; instructs the Administration henceforward, when deciding whether to go to court, to demonstrate a level of responsibility and judgement compatible with Parliament's role as joint legislative and budgetary authority of the European Union;

Research

21.Notes that the Administration has presented a report on the Institution's research strategy, and that a review of STOA operations is being carried out by an external consultant; instructs its Committee on Budgetary Control to examine the internal report together with the findings of the outside expert in the context of the 1995 budgetary procedure;

Meetings outside the three usual work-places

22.Insists that efforts to reduce expenditure on meetings outside the usual work-places in a significant and lasting manner be pursued, in particular by:

(a)ensuring that away meetings are held only in venues where the necessary infrastructure already exists;

(b)exploring and exploiting alternatives to existing arrangements such as streamlined delegations and small-scale fact-finding missions;

(c)at a more technical level, ensuring greater budgetary transparency in this area (both in the charging of expenditure and in the presentation of budget and budget implementation figures);

Member State debts to Parliament's budget

23.Calls upon Member States to refund promptly VAT on goods and services supplied to Parliament, where this is not already the case; instructs its Administration henceforward to draw the attention of its Committee on Budgetary Control without delay to problems arising in this area;

Management of Parliament's buildings projects in Brussels

24.Will pronounce on the management of its building projects in Brussels following the outcome of deliberations on the report for the Bureau now being drawn up on this subject by its Committee on Budgetary Control;

o

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25.Gives its Secretary-General discharge in respect of the implementation of the budget for the financial year 1992;

26.Authorizes the giving of discharge to the Accounting Officer for the financial year 1992.