Based on the
observations contained in the revenue and expenditure account and the balance
sheet of the European Foundation for the Improvement of Living and Working
Conditions for the financial year 2007, as well as on the Court of Auditor’s
report and the Foundation’s replies to the Court’s observations, the Council
recommends that the Parliament grant the Director of the Foundation discharge
in respect of the implementation of the budget for the financial year 2007.
In doing so,
the Council confirms that EUR 4.1 million (94%) of the EUR 4.3 million in
appropriations carried forward from the financial year 2006 to the financial
year 2007 were used and that EUR 5 million in appropriations were carried
forward from the financial year 2007 to the financial year 2008 and EUR 0.5
million were cancelled.
Recalling that
the Court of Auditors was able to obtain reasonable assurance that the
Foundation’s annual accounts were, in all material aspects, reliable, the
Council believes that there is a certain number of observations that must be
taken into consideration when providing the discharge on the implementation
of the 2006 budget, particularly regarding the following points:
- Carry-overs: the Council reiterates the call on the Foundation to remedy
in the short term the situation of recurrent exceptionally high
carry-over rates for administrative expenditure and operating
activities. In this context, the Council draws the attention of the
Foundation on the crucial importance of a thorough expenditure planning,
which should be fully consistent with its operational programming;
- VAT,
recruitment procedure and procurement: the
Council takes note of Court’s observation that a considerable amount of
recoverable VAT for the 2007 financial year was not claimed by the year
end. Therefore, the Council calls on the Foundation to act in full
conformity with the provisions of the Financial Regulation. As regards
recruitment, the Council notes, once again, the Court's observation on
deficiencies regarding the selection criteria which were neither defined
at the right time nor in conformity with the vacancy notice. The Council
urges the Foundation to act thereupon without further delay in order to
ensure transparent and non-discriminatory procedures. Lastly, the
Council notes with concern the weaknesses that undermine the quality of
the procurement procedures and calls on the Foundation to remedy this
situation.