2 Financial management
| (31051)
14998/09
+ ADD 1
COM(09) 526
| Commission Report on the follow-up to 2007 Discharge Decisions (Summary): European Parliament Resolutions drafted pursuant to Article 276(3) of the EC Treaty and Article 180b of the Euratom Treaty, Article 147 of the Financial Regulation and Article 119(5) of the EDF Financial Regulation
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| Legal base | — |
| Document originated | 16 October 2009
|
| Deposited in Parliament | 28 October 2009
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| Department | HM Treasury |
| Basis of consideration | EM of 16 November 2009
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| Previous Committee Report | None
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| To be discussed in Council | Not known
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| Committee's assessment | Politically important
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| Committee's decision | For debate in European Committee B, together with the European Court of Auditors' Annual Report for 2008, once available, and other relevant documents
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Background
2.1 Each annual audit of the Community's general and other budgets
by the European Court of Auditors is concluded by a discharge
given to the Commission by the European Parliament on the recommendation
of the Council. But the Commission is required to act on and report
back on any observations made by the European Parliament in the
discharge decisions and any comments accompanying the Council's
recommendation. Any results from action on, and follow-up to,
observations, comments and recommendations feed into subsequent
annual audits.
The document
2.2 This document is a summary report from the Commission about
its follow-up to the European Parliament's Resolutions in its
Discharge Decisions in relation to the 2007 budget. The summary
is in three parts dealing with recommendations on:
- the General Budget, including both horizontal and sectoral
issues and European Court of Auditors' special reports;
- the European Development Funds; and
- requests in the resolutions concerning the agencies.
2.3 The summary cross-refer to the Commission's annexed
staff working document, which gives a much more detailed account
of the Commission's responses to the European Parliament's recommendations
under several headings:
- main conclusions;
- the Statement of Assurance;
- budgetary management — financial corrections,
amounts recovered and suspension of payments;
- annual summaries of audits and declarations available
in the shared-management field and national declarations (by Member
States in relation to their management of Community funds);
- control systems;
- transparency;
- the Financial Regulation;
- the European Anti-Fraud Office (OLAF);
- own resources;
- agriculture and natural resources;
- fisheries subsidies;
- cohesion;
- internal policies;
- external actions;
- non-governmental organisations;
- development;
- pre-accession strategy;
- administrative expenditure;
- follow-up measures in the light of the discharge;
- eleven special reports;
- the European Development Funds; and
- requests in the resolutions concerning the agencies.
The Government's view
2.4 The Economic Secretary to the Treasury (Ian Pearson)
says:
"This report provides a useful summary of
the action taken by the Commission in response to the recommendations
of the Council and the European Parliament on discharge of the
2007 EC Budget. These actions should lead to improvement in the
management of the budget. Nevertheless, considerable further effort
is required by all concerned, notably the Commission and Member
States, to continue in their efforts to improve financial management
if the European Court of Auditors is to provide a positive Statement
of Assurance on the EC budget.
"Looking forward, the Government will continue
to engage actively with the Commission to encourage further progress
in areas such as effective simplification, and in evaluating the
results of those measures taken so far. In the area of tolerable
risk, the Government will consider any future Commission proposals
in line with the approach set out in [the Government's Explanatory
Memorandum of 9 February 2009 on the Commission Communication
Towards a common understanding of the concept of tolerable
risk of error.][5]
"The Commission considers action at Member
State level to be central to improving the level of assurance
on EU expenditure. HM Treasury published the second Consolidated
Statement, and accompanying NAO Audit Opinion, on the use of EU
funds in the UK, in October 2009.[6]
The Government will continue to work closely with others to encourage
other Member States to undertake similar initiatives."
Conclusion
2.5 This document usefully summarises Commission
attempts to improve management of the Community's finances. As
such we recommend that it should be debated together with the
Commission's 2008 report on the fight against fraud, which we
have already recommended for debate in European Committee,[7]
and with the 2008 report of the European Court of Auditors, on
which we expect to be reporting early in the New Year.
5 (30320) 17592/08 + ADD 1: see HC 19-viii (2008-09),
chapter 8 (25 February 2009) and HC 19-xxvii (2008-09), chapter
33 (14 October 2009). Back
6
See http://www.hm-treasury.gov.uk/d/statement_eufunds151009.pdf.
Back
7
(30811) 12139/09 + ADDs 1-2: see HC 19-xxvii (2008-09), chapter
2 (14 October 2009). Back
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