PURPOSE : Council Recommendation on the implementation of the EU's budget for the European Agency for Reconstruction covering the financial year 2002.
CONTENT : Noting that the European Court of Auditor's Report gives a positive assessment to the European Agency for Reconstruction's annual accounts, the Council recommends that the European Parliament grant a discharge to the Director of the Agency in respect of the budget's implementation for the financial year 2002. However, the Council would like to make some observations, in relation to the fact that for the financial year 2001-2002 only EUR 160.2 million, or 76%, of the EUR 210.8 million in appropriations were carried forward. Similarly, for the financial year from 2002 to 2003 EUR 295.3 million in appropriations were carried forward with EUR 8.2 million having to be cancelled.
Specifically, the Recommendation notes that it is pleased with the internal control system of the Agency, which has been strengthened by the introduction of the SI2 budget accounting system. The Recommendation, however, insists that the Agency stop using spreadsheets for its general accounts and use a computerised system instead. Such a move would be in line with comments made by the Court of Auditors in its previous year's Report.
Further, the Council invites the Agency to take up the Court of Auditor's recommendations concerning finding suitable means for the provision of information on its balance sheet or annexes on funds available to specialised bodies for the financing of loan programmes in specific fields.
Lastly, the Council calls on the Agency to take appropriate management measures relating to the implementation of the budget in the delegations so as not to weaken the internal control system. Also, the Council calls on the Agency to ensure that the rules and procedures for the application of cash funds or imprest accounts are subject to a decision by the Director in accordance with the provision of the Financial Regulation.�