Official Journal C 188. of the European Union. Information and Notices. Notices. Volume June English edition

Transcription

1 Official Journal of the European Union ISSN X C 188 English edition Information and Notices Volume June 2013 Notice No Contents Page IV Notices NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGCIES European Parliament 2013/C 188/01 Report on budgetary and financial management Financial year Price: EUR 3

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3 Official Journal of the European Union C 188/1 IV (Notices) NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGCIES EUROPEAN PARLIAMT REPORT ON BUDGETARY AND FINANCIAL MANAGEMT SECTION I: EUROPEAN PARLIAMT FINANCIAL YEAR 2012 (2013/C 188/01) CONTTS Page INTRODUCTION I. FINANCIAL MANAGEMT: GERAL REMARKS A. Revenue B. Initial budget and amending budgets C. Commitments and payments D. Carry-overs from 2012 to E. Carry-overs from 2011 to F. Appropriations from assigned revenue G. Cancellations H. Transfers H.1. Transfers from provisional appropriations H.2. Transfers from other sources II. FINANCIAL MANAGEMT BY CHAPTER A. Chapter 1 0 Members of the institution B. Chapter 1 2 Officials and temporary staff C. Chapter 1 4 Other staff and external services D. Chapter 1 6 Other expenditure relating to persons working with the institution E. Chapter 2 0 Buildings and associated costs F. Chapter 2 1 Data processing, equipment and movable property G. Chapter 2 3 Current administrative expenditure H. Chapter 3 0 Meetings and conferences I. Chapter 3 2 Expertise and information: acquisition, archiving, production and dissemination J. Chapter 4 0 Expenditure relating to certain institutions and bodies K. Chapter 4 2 Expenditure relating to parliamentary assistance L. Title 10 Other expenditure

4 C 188/2 Official Journal of the European Union III OBJECTIVES AND RESULTS A. Bringing about the institutional changes related to the Treaty of Lisbon A.1. Research support A.2. Impact assessments A.3. External-policy codecision and consent A.4. Improving plenary sitting services A.5. Citizens Initiatives B. Communication strategy and preparation of the information campaign for the 2014 elections B.1. Centrally organised activities B.2. Closer to citizens with Information Offices B.3. Europarl TV B.4. Progress made on the House of European History project C. Institutional changes resulting from the entry into force of the Treaty of Lisbon and Croatia s accession 30 C.1. Admission of 18 new Members C.2. Groundwork for the upcoming enlargement to include Croatia D. Continuing to implement the multiannual programmes to rationalise and modernise key parts of Parliament s administration D.1. Buildings/property policy D.2. Environmental policy D.3. Continuing to modernise information technologies D.4. The paperless programme: ecommittee/emeeting D.5. Relations with national parliaments/videoconferencing D.6. Knowledge management D.7. Thoroughgoing restructuring of the security service E. Other modernisation measures E.1. Managing the priorities of Parliament s Secretariat E.2. Financial and budgetary management E.3. Human resources management E.4. Archive management F. Overall structural changes to Parliament s Secretariat (including the political groups) ANNEXES ANNEXE I Overview of C transfers during the financial year ANNEXE II Overview of P transfers during the financial year ANNEXE III Implementation of 2012 appropriations Page

5 Official Journal of the European Union C 188/3 INTRODUCTION 1. This report analyses the European Parliament s budgetary and financial management during the financial year It outlines the use made of financial resources and the events which had a significant influence on activities during the year (in Parts I and II) and gives a overview of the results achieved as against the objectives set for 2012 (in Part III). 2. The report has been drawn up in accordance with Article 142 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 ( 1 ), hereinafter referred to as the Financial Regulation, and with Article 227 of Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union ( 2 ). The analysis is based on the provisional accounts, as established by the Accounting Officer. I. FINANCIAL MANAGEMT: GERAL REMARKS 3. Parliament s final appropriations totalled EUR , i.e. 19,62 % of heading V of the Multiannual Financial Framework ( 3 ). Table 1 below provides an overview of the implementation of Parliament s budget in the financial year Table 1 Use of appropriations Appropriation type 2012 appropriations (EUR or %) 2011 appropriations (EUR or %) Variation 2011/2012 Appropriations Initial appropriations ,9 % Amending budget 0 0 Final appropriations ,9 % Implementation for the year Commitments ,8 % As a % of final appropriations 98,6 % 93,2 % 5,4 % Payments ,0 % As a % of commitments 82,0 % 85,8 % 3,8 % Carry-overs to following year Automatic carry-overs to following year (*) ,0 % As a % of final appropriations 17,8 % 13,2 % 4,6 % As a % of commitments 18,0 % 14,2 % 3,8 % Non-automatic carry-overs (uncommitted appropriations carried over to following year) (**) ,0 % As a % of final appropriations 0,0 % 1,3 % 100,0 % Cancellations Appropriations cancelled ,5 % As a % of final appropriations 1,4 % 5,6 % 4,1 % ( 1 ) OJ L 298, , p. 1. ( 2 ) OJ L 362, , p. 1. ( 3 ) Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (OJ C 139, , p. 1).

6 C 188/4 Official Journal of the European Union Appropriation type 2012 appropriations (EUR or %) 2011 appropriations (EUR or %) Variation 2011/2012 Carry-overs from following year Automatic carry-overs from previous year (*) ,5 % Payments against those carry-overs ,6 % As a % of carry-overs 88,8 % 89,8 % 1,0 % Amount cancelled ,6 % Non-automatic carry-overs from previous year (**) ,8 % Payments against those carry-overs As a % of carry-overs 72,1 % 0,0 % 72,1 % Appropriations from assigned revenue for the year Appropriations from assigned revenue for the year ,5 % Commitments ,8 % As a % of appropriations from assigned revenue 80,9 % 51,6 % 29,4 % Payments ,3 % As a % of appropriations committed arising from assigned revenue 62,2 % 82,1 % 19,9 % Appropriations available from assigned revenue for the year ,2 % Appropriations from assigned revenue carried over to the following year Appropriations from assigned revenue carried over to the following year ,7 % Appropriations from assigned revenue carried over from the previous year Appropriations from assigned revenue carried over from the previous year ,2 % Commitments ,5 % Payments ,4 % As a % of commitments 10,2 % 73,9 % 63,7 % Note: (*) Article 13(1) and (4) of the Financial Regulation. (**) Article 13(1), Article 13(2)(a) and Article 13(5) of the Financial Regulation. A. Revenue 4. Total revenue entered in the accounts as at 31 December 2012 amounted to EUR (2011: EUR ), including EUR in assigned revenue (2011: EUR ). B. Initial budget and amending budgets 5. Total appropriations in Parliament s final budget for 2012 amounted to EUR , a 1,9 % increase over the 2011 budget (EUR ). C. Commitments and payments 6. Commitments totalled EUR , or 99 % of final appropriations (2011: 93 %). Payments totalled EUR , or 82 % of commitments entered into (2011: 86 %).

7 Official Journal of the European Union C 188/5 D. Carry-overs from 2012 to Automatic carry-overs to the financial year 2013 totalled EUR , or 18 % of appropriations committed (2011: 14 %). There were no non-automatic carry-overs to the financial year E. Carry-overs from 2011 to Automatic carry-overs to 2012 totalled EUR (2011: EUR ). Payments against those carry-overs stood at EUR , or 89 % (2011: 90 %). Appropriations cancelled thus totalled EUR , 6 % more than in 2011 (EUR ). The bulk of the cancellations was made against: Article (Buildings), Article (Expenditure on buildings), Article (Other staff and externals) and Article (Production and dissemination). Cancellations against those four articles accounted for 79 % of the total amount cancelled. 9. The amounts cancelled and the main reasons for cancellations are set out in Table 2. Table 2 Main reasons for cancellations of automatic carry-overs from 2011 to 2012 Article Cancellation Main reasons for cancellations Article (Buildings) Article (Expenditure buildings) on Article (Other staff and externals) Article (Production distribution) and Item (Acquisition of immovable property): cancellation of EUR 8,22 million relating to the Europe House in Sofia. After defects because of poor workmanship had been established, proceedings were brought before the courts in Sofia for preservation of evidence. The work should be completed in the first half of Item (Construction of buildings): cancellation of EUR 0,86 million relating to the KAD project in Luxembourg. The invitation to tender for the construction works was declared unsuccessful, suspending finalising of project management services and of the pre-carcassing work (approximately EUR 0,55 million in total). In addition, the City of Luxembourg withdrew the building permit tax (approximately EUR 0,2 million). Item (Fitting-out of premises): cancellation of EUR 0,99 million relating to several dozen commitments Item (Energy consumption): cancellation of EUR 2,9 million because of the need to allow a sufficient margin to cover worst-case scenarios. It is difficult to calculate the precise carry-over amount, given that annual billing was still very incomplete when the appropriations were carried over. Item (Building maintenance, upkeep, operation and cleaning): cancellation of EUR 1,53 million. EUR 0,83 million is accounted for by the fact that some scheduled cleaning operations did not take place (because of the weather), that the cost of securing meeting room ceilings in the Louise Weiss Building was lower than estimated, and that the cost of lift maintenance was lower than planned. Several dozen different commitments account for the remainder Item (Conference interpreters): cancellation of EUR 2,9 million. The amount carried over to 2012 included a provision for pay adjustment on the assumption that that would take place in The Court of Justice has still not handed down its judgment Item : cancellation of EUR 0,45 million. The bulk of the unused amount is made up of small sums from information office headings in connection with obligations chiefly concentrated at year-end Item : Parliamentary television channel: cancellation of EUR 0,36 million as a result of the cancellation or contesting of services in three instances (technical incompatibility, insufficient quality of deliverables received, and waiving of certain deliverables). Item : cancellation of EUR 0,45 million. This relates to commitments in connection with framework contracts or grants. In both cases, the final statement of account is usually lower than the contractual amount to be carried over (eligibility conditions, volume of services actually performed).

8 C 188/6 Official Journal of the European Union Non-automatic carry-overs to 2012 in accordance with Article 9(2a) of the Financial Regulation ( 1 ) totalled EUR and concerned items (Acquisition of immovable property) (EUR ), (Lease payments) (EUR ) and (Construction of buildings) (EUR ). 11. Payments totalling EUR (72 %) were made against non-automatic carry-overs to They mainly covered the acquisition of immovable property (initial EUR payment for the TREBEL building when the pre-sale agreement was signed). In addition, payments of EUR and EUR were made in connection with the construction of buildings and lease payments respectively. 12. No payments were made in 2011 from the appropriations carried over non-automatically to 2011 (EUR against item ) to cover the purchase and fitting-out of the Europe House in Sofia as a result of problems involving poor workmanship and the non-conformity of fitting-out work with building regulations. Proceedings for preservation of evidence have been brought before the courts in Sofia. The specific fitting-out work on the building should be completed in the first half of The contract provides for payment in full only after completion and acceptance of the works. F. Appropriations from assigned revenue 13. Assigned revenue made available in 2012 totalled EUR (2011: EUR ). Commitments totalled EUR , or a rate of commitment of 81 %, which is significantly up on previous years (2011: 52 %; 2010: 13 %). Payments totalled EUR , accounting for 62 % of the commitments entered into (2011: 82 %). 14. The source of the appropriations from 2012 assigned revenue is analysed in the figure below. Figure 1 Appropriations from 2012 assigned revenue by chapter 15. Assigned revenue carried over to 2012 totalled EUR (2011: EUR ). The bulk (90 %) of the appropriations from assigned revenue carried over to 2012 came from Chapter 2 0. This is mainly accounted for by the Belgian Government s payment of EUR , on 27 January 2010, by way of defrayal of the cost of the land forming the site for the D4 and D5 buildings and of the development costs for the roof over Brussels-Luxembourg Station. ( 1 ) Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (OJ L 248, , p. 1.).

9 Official Journal of the European Union C 188/7 16. Commitments against assigned revenue carried over totalled EUR (2011: EUR ). Payments in 2012 represented 10 % of commitments entered into, which is significantly down on the previous year (2011: 74 %). The bulk of 2012 commitments related to the purchase of the TREBEL building, in accordance with the Bureau decision of 30 November 2011, in respect of which payments will be made as from 2013 (see paragraph 19 below). 17. EUR was transferred to financial year 2013: EUR from appropriations from assigned revenue (EUR cancelled) and EUR from appropriations from assigned revenue carried over (cancelled: EUR ). The EUR paid by the Belgian Government in January 2010 (see paragraph 15) is external assigned revenue within the meaning of Article 21(2) of the Financial Regulation. Appropriations from internal assigned revenue carried over total EUR G. Cancellations 18. EUR (2011: EUR ), representing 1,4 % of final appropriations (2011: 5,6 %), was cancelled. The main reasons for the cancellations are set out in the table below: Table 3 Main reasons for cancellations from current appropriations in 2012 Article Amount cancelled % of total cancelled % cancellation/ heading Main reason for cancellation Parliamentary assistance % 2,1 % Cancellation of EUR 3,75 million relating to local parliamentary assistants. Results from overestimate of demand in respect of local assistants. MEPs do not fully use their parliamentary assistance budget Production and dissemination % 2,5 % Cancellation of EUR 0,95 million against item (Organisation and reception of groups of visitors, Euroscola programme and invitations to opinion multipliers from third countries). Budget provision is calculated on the basis of the cost of the programmes concerned and average utilisation. Commitments therefore depend on the use made by applicants (number of actual visitors and countries of origin). If, in addition, a visit is cancelled, appropriations set aside may not be used. The appropriations, if cancelled at year-end, can no longer be reused. Cancellation of EUR 0,38 million against item (Expenditure on publication, information and participation in public events). Cancellation of EUR 0,42 million against item (Organisation of seminars, symposia and cultural activities). The cancellations against these two items mainly stem from disbursements of commitments relating to the 34 information offices. The commitments represent small sums corresponding to year-end payments after it has been established that the underlying obligations have ceased to apply.

10 C 188/8 Official Journal of the European Union Article Amount cancelled % of total cancelled % cancellation/ heading Main reason for cancellation Expenditure on buildings % 2,1 % Cancellation of EUR 1,08 million against item (Security and surveillance of buildings). This cancellation stems from savings made as a result of rationalisation of security policy and insourcing of the service. Cancellation of EUR 0,74 million against item (Energy consumption). This relates to the three sites and the information offices. The appropriations to be entered in the budget cannot be calculated absolutely precisely, since they depend on a host of factors, e.g. weather, building operating costs, variations in unit prices, and impact of energy savings. In order to guard against all risks and comply with the principle of prior commitment of expenditure, a sufficient margin needs to be provided for so as to cover unfavourable eventualities Provisional appropriations % 100,0 % Outstanding balance Contingency reserve % 100,0 % Outstanding balance Other staff and externals % 1,7 % Cancellation of EUR 0,86 million against item (Other staff). Cancellation of EUR 0,5 million against item (Conference interpreters) Buildings % 0,9 % Cancellation of EUR 0,81 million against item (Fitting-out of premises). Cancellation of EUR 0,43 million against item (Other specific property management arrangements) Remuneration and other entitlements % 0,2 % Cancellation of EUR 1,36 million against item (Remuneration and other entitlements) Computing and telecommunications % 0,9 % Cancellation of EUR 0,71 million against item (Outside assistance). Cancellation of EUR 0,33 million against item (Equipment and software) Miscellaneous meeting expenses % 14,7 % Cancellation of EUR 0,47 million against item (Meetings, congresses and conferences). Cancellation of EUR 0,26 million against item (Parliamentary Conference on the WTO and other interparliamentary, ad hoc and WTO delegation meetings). It is difficult to estimate the cost of delegations because there are a large number of them (more than 100 a year) and because of uncertainties surrounding the forward programmes on the basis of which the budget is drawn up. Cancellation of EUR 0,21 million against item (Parliamentary Assembly of the Union for the Mediterranean). Although the agreement between Parliament and the Belgian Government on establishing the legal personality of the Assembly was signed in July 2012, arrangements to set up its secretariat, draw up its budget and open its bank account have still not been finalised.

11 Official Journal of the European Union C 188/9 H. Transfers 19. Over the course of the financial year, 10 C transfers (including the mopping-up transfer) were approved under Articles 24 and 43 of the Financial Regulation ( 1 ). They totalled EUR , accounting for 4,7 % of final appropriations (in 2011: nine transfers accounting for 3,7 % of final appropriations). The President authorised eight P transfers under Article 22(1) of the Financial Regulation ( 2 ), totalling EUR , or 0,6 % final appropriations (2011: nine transfers representing 0,7 % of final appropriations). The President also authorised for the TREBEL project the transfer of EUR in appropriations from assigned revenue carried over. That exceptional transfer is more of a technical adjustment which does not change the purpose of the appropriations ( 3 ), since the TREBEL building will be purchased outright rather than acquired via a long lease conferring a right in rem. 20. In all, 18 C and P transfers were authorised in 2012, involving a total of EUR , or 5,3 % of final appropriations (2011: 18 transfers involving a total of EUR , or 4,4 % of final appropriations), plus one technical P transfer of EUR in appropriations from assigned revenue carried over. Table 4 Transfers by legal basis Number of transfers Amount transferred As a % of final appropriations C transfers (Articles 24 and 43) 10 C transfers ,7 % including mopping-up transfers (C10) ,6 % P transfers (Article 22(1)) 8 P transfers of appropriations for the year ,6 % 1 P transfer of appropriations from assigned revenue n/a C + P transfers of appropriations for the year ,3 % P transfer of appropriations from assigned revenue n/a Table 5 Analysis of C transfers by receiving budget line Receiving budget line Transfer Amount transferred Ordinary travel expenses C Other travel expenses: C Transitional allowances C ( 1 ) Article 24 (budgetary authority decisions) and Article 43 (budgetary authority decisions on transfers for provisions) of Regulation (EC, Euratom) No 1605/2002. ( 2 ) Decision by the institution to transfer appropriations within a given article. ( 3 ) Transfer from item (Lease payments) to item (Acquisition of immovable property).

12 C 188/10 Official Journal of the European Union Receiving budget line Transfer Amount transferred Outside services C Lease payments C Acquisition of immovable property C Fitting-out of premises C Building maintenance, upkeep, operation and cleaning C Equipment and software for information and innovation technologies C Equipment and software for information and innovation technologies C Outside assistance for information and innovation technologies C Outside assistance for information and innovation technologies C Legal costs and damages C Organisation of seminars, symposia and cultural activities C Total Table 6 Analysis of C transfers by expenditure category and purpose Expenditure category receiving transfer Subject Transfer Amount transferred % Buildings policy Building maintenance, upkeep, operation and cleaning C % House of European History C % TREBEL building C % KAD project C % Buildings policy Total % Members Transitional allowances C % Travel expenses C % Members Total %

13 Official Journal of the European Union C 188/11 Expenditure category receiving transfer Subject Transfer Amount transferred % Administration Unforeseen legal costs (in connection with the Strasbourg Chamber, Brussels buildings and the KAD project) C % Administration Total % Information Sakharov Prize (payment of the 2008 prize and defrayal of previous winners travel expenses) C % Information Total % tech Information nology Extension of Wi-Fi coverage on Parliament premises and replacement of part of the network infrastructure and individual machines C % C % IT Total % Multilingualism Increase in demand for translation C % Multilingualism Total % Total % H.1. Transfers from provisional appropriations 21. This section looks at the use of appropriations from Chapter 10 0 (Provisional appropriations) and Chapter 10 1 (Contingency reserve). Appropriations entered against these chapters, included in Title 10 (Other expenditure), are hereinafter referred to as provisional appropriations. Excluding the mopping-up transfer, Title 10 (Other expenditure) was the main source of appropriations transferred, accounting for 73 % of the total (EUR out of a total of EUR ). 22. Of that amount, EUR was for expenditure on Members, EUR on IT, EUR on multilingualism, and EUR on buildings policy. The purpose of the transfers from provisional appropriations is set out below. Table 7 Purpose of transfers from provisional appropriations Source heading Transfer Transferred to Purpose Amount transferred 10 0 C Release from the reserve to cover Members travel expenses: ordinary travel expenses (sessions, committees, committee delegations, political groups, etc.) and other travel expenses. In its resolution of 26 October 2011, Parliament decided to reduce Members travel expenses by 5 % and also placed 15 % of appropriations for travel expenses in the reserve. In 2012, the only savings in Members travel expenses came from non-index-linking of allowances, making it necessary to release appropriations from the reserve Members Total

14 C 188/12 Official Journal of the European Union Source heading Transfer Transferred to Purpose Amount transferred 10 0 C Release from the reserve to cover works (and the monitoring thereof) in connection with the House of European History, following submission of the management report requested by the Committee on Budgets Buildings policy Total C Release from the reserve to cover unforeseen legal costs (in connection with the Strasbourg Chamber, Brussels buildings and the KAD project) Administration Total C Payment of the 2008 Sakharov prize and travel and accommodation expenses of four previous winners invited to the Council of Europe and Parliament Information Total C Release from the reserve to cover IT expenditure (extension of Wi-Fi coverage on Parliament premises and replacement of part of the network infrastructure and individual machines) IT Total C Release from the reserve to cover the cost of external translations (increase in demand for translation) Multilingualism Total Total H.2. Transfers from other sources 23. This section looks at the transfers from sources other than Title 10 (Other expenditure). A total of EUR was transferred from other titles, including EUR in the mopping-up transfer. Buildings policy accounted for the bulk (86 %) of these transfers, followed by IT (11 %) and expenditure relating to Members (3 %). Tables 8a and 8b give details of those transfers. Table 8a Sources of C transfers other than provisional appropriations (excluding mopping-up transfer) Transfer Source item Subject Amount transferred C Transfer from the item for lease payments to the item for building maintenance, upkeep, operation and cleaning so as to allow implementation of the new maintenance policy adopted by the Bureau on 24 March 2010 (new maintenance contract) C Transfer from the item for accident and sickness insurance and other social security charges to the article for transitional allowances because a higher number of Members stood down than had been forecast C Transfer from the item for ordinary travel expenses to the item for other travel expenses in view of higher than forecast applications by Members

15 Official Journal of the European Union C 188/13 Transfer Source item Subject Amount transferred C Transfer from the telecommunications item and from the item for conference interpreters to the items for equipment and software for information and innovation technologies and for outside assistance for information and innovation technologies, in order to fund the extension of Wi-Fi coverage on Parliament premises and the replacement of part of the network infrastructure and individual machines Total Table 8b Breakdown of Transfer C10 ( mopping-up ) Source chapter Heading Amount % of initial appropriations % of total transferred Remarks 1 0 Members of the Institution % 6 % Less use made than forecast of the items for salaries and for the general expenditure allowance (because there was no index-linking in 2011 or 2012) and of the items for retirement pensions and for accident and sickness insurance. 1 2 Officials and temporary staff % 32 % Less use made than forecast because pay was not adjusted in 2011 (case pending before the European Court of Justice) or Other staff and outside services % 18 % Less use made than forecast because pay was not adjusted in 2011 (case pending before the European Court of Justice) or Major savings were also made in external-interpretation costs because of the multilingualism measures adopted by the Bureau. 1 6 Other expenditure relating to persons working with the Institution % 1 % This amount represents the technical surpluses against the items for expenditure on recruitment and for mobility. 2 0 Buildings and associated costs % 11 % The main savings stem from the deferral of invitations to tender (in connection with the item for construction of buildings) and from insourcing and rationalising security activities. 2 1 Data processing, equipment and movable property % 2 % The amount results from fewer requests for equipment for the third assistant in Members offices. 2 3 Current administrative expenditure % 4 % More than half of this amount came from the item for the European Parliament carbon offsetting scheme because of delays in completing a tender procedure and a large reduction in the price of a tonne of CO 2 in The other savings chiefly stem from lower than forecast demand for office supplies and miscellaneous consumables.

16 C 188/14 Official Journal of the European Union Source chapter Heading Amount % of initial appropriations % of total transferred Remarks 3 0 Meetings and conferences % 8 % EUR comes from a reduction in the number of officials missions between the three places of work, the remainder from less expenditure on organising meetings and conferences. 3 2 Expertise and information: acquisition, archiving, production and dissemination % 4 % Lower than forecast demand for acquisition of expertise, in particular as regards internal policies, safety and security, impact analyses, and use of external databases. 4 0 Expenditure relating to certain institutions and bodies % 1 % This amount stems from technical surpluses against articles for the funding of political groups and of European political foundations. 4 2 Expenditure relating to parliamentary assistance % 13 % Less use made than forecast because pay was not adjusted in 2011 (case pending before the European Court of Justice) or 2012 and less demand than forecast for contracts for local assistants. Total % 100 % Receiving budget line Heading Amount % of initial appropriations % of total transferred Subject Lease payments % 22 % Construction of the new KAD building in Luxembourg Acquisition of immovable property n/a 78 % Second instalment for acquisition of the TREBEL building in Brussels. This transfer represents 90 % of the final appropriations for the item. Total % 100 % 24. The transfer was proposed by the Bureau and Committee on Budgets working group on Parliament s budget and made it possible to marshal the necessary funding for advance payments for the purchase of the TREBEL building and for construction of the new KAD building, as a result of which an estimated EUR 10,4 million in financing charges will be saved over the construction period and loan amortisation period. 25. An overview of the P transfers is given in Table 9. Table 9 Purpose of P transfers Item Transfer Description Acquisition of immovable property P6 Remainder for funding the TREBEL building. Amount transferred Total transfers of appropriations against assigned revenue carried over Acquisition of immovable property P8 Transfer needed to continue funding for the contract to purchase the Europe House in Sofia

17 Official Journal of the European Union C 188/15 Item Transfer Description Amount transferred Outside assistance for information and innovation technologies P1 Revision of the breakdown of appropriations, with a view to greater effectiveness, so as to take account of the 2012 IT plan, adopted early in the year, and new Digital and traditional publications P2 requirements which subsequently emerged ( migration, modernisation of the telephone system, and interinstitutional directory) Digital and traditional publications P4 Rebalancing the budget in favour of paperless and intranet programmes, given the lower volume of OJ pages requested Digital and traditional publications P9 Launching of the new computerassisted translation (CAT) tool Expenditure on publication, information and participation in public events Organisation of seminars, symposia and cultural activities P5 Refinancing for grants relating to: (a) the internet, with a view to increasing citizens web P5 presence and promoting online democracy; and (b) event management, with a view to strengthening the participatory democracy plan Exchange losses P3 Parliamentary assistance payments in 2012 were made on the basis of a rate of exchange between the euro and other currencies which Exchange losses P7 was set for the entire year (December 2011 rate). The euro s significant loss of value in 2012 in relation to the other European currencies gave rise, in connection with paying local assistants salaries and fees, to exchange losses which were higher than projected. Total Transfers of appropriations for the year II. FINANCIAL MANAGEMT BY CHAPTER 26. This section looks at the use of appropriations by budget chapter, their share of the overall budget and changes in the use of appropriations over the previous financial year. Four chapters accounted for 70 % of total commitments. Those chapters were Chapter 1 0 (Members of the institution), Chapter 1 2 (Officials and temporary staff), Chapter 2 0 (Buildings and associated costs) and Chapter 4 2 (Expenditure relating to parliamentary assistance). 27. Table 10 provides a breakdown by chapter of the appropriations committed in 2012 as against those committed in Figures 2 and 3 depict the changes between 2011 and 2012.

18 C 188/16 Official Journal of the European Union Table 10 Appropriations committed in 2012 as against those committed in 2011 Chapter Heading Change Variation 2011/ Members of the institution % 1 2 Officials and temporary agents % 1 4 Other staff and outside services % 1 6 Other expenditure relating to persons working with the Institution % Title 1 Persons working with the institution % 2 0 Buildings and associated costs % 2 1 Data processing, equipment and movable property % 2 3 Current administrative expenditure % Title 2 Buildings, furniture, equipment and miscellaneous operating expenditure % 3 0 Meetings and conferences % 3 2 Expertise and information: acquisition, archiving, production and dissemination % Title 3 Expenditure resulting from general functions carried out by the institution % 4 0 Expenditure relating to certain institutions and bodies % 4 2 Expenditure relating to parliamentary assistance % 4 4 Meetings and other activities of current and former Members % Title 4 Expenditure resulting from special functions carried out by the institution % Title 10 Other expenditure Total %

19 Official Journal of the European Union C 188/17 Figure 2 Breakdown of 2012 commitments by chapter Figure 3 Appropriations committed in 2012 as against those committed in 2011, by chapter A. Chapter 1 0 Members of the institution 28. Expenditure on Members amounted to EUR in 2012, or 12 % of total commitments for the year. That figure is EUR 8,9 million, or 5 %, more than in Alongside the increase in commitments, there was a 5 % reduction in final appropriations over the previous year. Consequently, the appropriation cancellation rate was virtually zero, whereas it was 9 % in Commitments against item (Salaries) and item (General expenditure allowance), which is intended to cover the cost of Members parliamentary activities, amounted to EUR , or 53 % of total commitments for the chapter. They were 3 % up on commitments for Members gross monthly salary is EUR 7 957; the general expenditure allowance is EUR Commitments against items (Ordinary travel expenses) and (Other travel expenses) amounted to EUR , or 39 % of total commitments for Chapter 1 0. Half of the increase in commitments for the chapter stems from the increase against these two items (EUR ). Item , which covers travel and subsistence expenses in connection with travelling to and from the places of work and other duty travel, increased by 48 % over Payments in connection with a significant proportion of Members reimbursement applications for the financial year 2011 were not made until 2012; that is in line with the rules, which allow reimbursement requests for a given year to be submitted until 31 October the following year.

20 C 188/18 Official Journal of the European Union In 2012 ( 1 ), Members ( 2 ) made journeys to attend part-sessions in Strasbourg and Brussels, journeys to committee meetings in Brussels and journeys to political group meetings in Brussels ( 3 ). As regards travel outside Parliament s usual places of work, journeys were made to committee meetings and to political group meetings, while journeys were made in connection with parliamentary delegation meetings. 32. Commitments against item (Accident and sickness insurance and other social security charges) stood at EUR , or 1 % of total commitments for the chapter. They increased by 92 % over 2011 because of the increase in the number of Members making use of the medical expenses refund scheme. There has been an uninterrupted increase since the scheme was introduced in 2009; and that is likely to continue until the projected maximum take-up level is reached. B. Chapter 1 2 Officials and temporary staff 33. Expenditure on officials and temporary staff amounted to EUR in 2012, making it the largest spending category (accounting for 33 % of total commitments for 2012). That figure is EUR 20,25 million, or 4 %, more than in the previous financial year. The growth against the chapter stems largely from the increase against item (Remuneration and allowances), which accounts for 99 % of the appropriations. 34. Commitments against item (Remuneration and allowances) amounted to EUR Item showed a surplus in 2012 and was the main source for the mopping-up transfer, providing EUR 13 million (3 % of initial appropriations and 29 % of the amount transferred see Table 8b). The main reason for the surplus is that, when the 2012 budget was drawn up, the 2011 and 2012 annual pay adjustments not yet made were factored in. 35. In 2012, 324 officials and temporary staff members were recruited to the Secretariat, 58 temporary staff were recruited to political groups and 399 people were recruited as accredited parliamentary assistants. A total of officials and temporary staff were employed within Parliament as at 31 December in the Secretariat and 754 in the political groups and there were accredited parliamentary assistants. 36. As regards the gender breakdown, women accounted for 26 % of heads of unit, 33 % of directors and 33 % of directors-general as at 31 December The figure below gives a gender breakdown of staff by function group. Figure 4 Secretariat staff by gender Source: DG Personnel. ( 1 ) Claims in respect of travel carried out during the 2012 financial year may be submitted until 31 October ( 2 ) NB: 754 Members in 2012 (736 in 2011). ( 3 ) A journey is included in the political group meeting category even if a Member subsequently attended a committee meeting (and vice versa).

21 Official Journal of the European Union C 188/19 C. Chapter 1 4 Other staff and external services 37. Expenditure on other staff and external services amounted to EUR in 2012, or 6 % of commitments. The chapter contains three main spending items: item (Conference interpreters) accounted for 45 % of commitments, item (Other staff) ( 1 ) 34 %, and item (External services) ( 2 ) 6 %. 38. Commitments for the chapter were some EUR 16,3 million, or 14 %, down on That change is largely accounted for by the reduction in commitments 42 % and 19 % respectively against item (External services) and item (Conference interpreters) as a result of structural savings made by Parliament in Appropriations for the chapter also fell by some EUR 8 million during the year (7 % of the initial amount), providing 18 % of the mopping-up transfer (see Table 8b). 39. Commitments against item (Conference interpreters) totalled EUR and covered, as part of interinstitutional cooperation and other arrangements, the fees, social security contributions, travel expenses and subsistence allowances of auxiliary conference interpreters used by Parliament to service meetings organised by Parliament. Commitments for the chapter were EUR , or 19 %, down on The reduction stems from the fact that the measures for structural savings adopted by the Bureau with regard to multilingualism in December 2011 came fully into effect on 1 April Parliament interpreters and auxiliary conference interpreters worked interpreter days in 2012 (2011: days ( 3 )) for Parliament and other institutions ( 4 ) for which Parliament provided interpretation services (11 % down on 2011). Parliament interpreters worked days (3 % down on 2011), and auxiliary conference interpreters days (18 % down on 2011). 41. Commitments against Item (External services) totalled EUR (EUR , or 42 %, down on 2011). The variation is largely accounted for by the radical reduction in the cost of translating the verbatim report of proceedings, which, in 2012, was one tenth of the 2011 amount. That reflects the Bureau s September 2011 decision to end systematic translation of the verbatim report of proceedings and written questions into 11 official languages, while allowing any Member to request translation of extracts of proceedings and/or questions into the language of his or her choice. 42. Commitments against item (Other staff) totalled EUR (14 % up on 2011). That item mainly covers the remuneration, including allowances, of other staff, including contract and local staff and special advisers, employer s contributions to the various social security schemes and the impact of salary weightings applicable to the remuneration of these staff, as well as the employment of temporary agency staff. As at 31 December 2012, Parliament employed 675 contract staff. A breakdown of contract staff by function group ( 5 ) and gender is given in Figure 5. ( 1 ) This item relates chiefly to contract staff. ( 2 ) This item relates chiefly to external translation. ( 3 ) Figure as revised in ( 4 ) Court of Auditors, Ombudsman, Translation Centre, Commission meetings in Luxembourg and, in part, Committee of the Regions. ( 5 ) Function group I covers manual and administrative support service tasks; function group II covers clerical and secretarial tasks, office management and other equivalent tasks; function group III covers executive tasks, drafting, accountancy and other equivalent technical tasks; and function group IV covers administrative, advisory, linguistic and equivalent technical tasks.

22 C 188/20 Official Journal of the European Union Figure 5 Contract staff by function group and gender in 2012 Source: DG Personnel D. Chapter 1 6 Other expenditure relating to persons working with the institution 43. Chapter 16 expenditure stood at EUR , or 1 % of total commitments for the financial year That is EUR , or 15 %, more than in % of the chapter s commitments were made against item (Early childhood centre and approved day nurseries), 25 % against item (Further training) and 24 % against item (Current operating expenditure for restaurants and canteens). 45. Outside management of Parliament s day nursery and family room in Brussels and ancillary expenditure accounted for the bulk of spending against item Commitments against this item totalled EUR % up on 2011 and covered Parliament s contribution to the overall costs of the early childhood centre and outside crèches with which an agreement has been concluded ( 1 ). 46. Commitments against Item (Further training) stood at EUR % up on 2011 and covered expenditure on training to improve staff skills and the performance and efficiency of the institution. In 2012, persons attended language courses, attended IT courses, and attended financial training courses. A total of persons attended in-house general training courses and 320 attended outside courses ( 2 ). 47. Commitments against item (Current operating expenditure for restaurants and canteens) stood at EUR (52 % up on 2011). The reason for this is that assigned revenue appropriations are being utilised more quickly than in the past, because of the growing gap between prices and cost increases (pay and ingredients), thus increasing the operating loss borne by the budget. Revised prices came into effect on 1 January In 2012, the bars, restaurants and canteens served some customers, and the staff shop E. Chapter 2 0 Buildings and associated costs 48. Chapter 2 0 commitments stood at EUR , or 15 % of total commitments for Commitments increased by EUR , or 27 %, over Appropriations for the chapter rose by close to EUR 42 million during the year 20 % of initial appropriations chiefly because of the mopping-up transfer (see Table 8b). ( 1 ) NB: Assigned revenue for this item from parental contributions totalled EUR ( 2 ) NB: These indicators reflect a new breakdown within the relevant Streamline module and are not directly comparable with the figures for 2011.

23 Official Journal of the European Union C 188/ The variation in commitments stems largely from Item (Lease payments) up by some EUR 30 million, and accounting for 56 % of the variation but also from Items (Fittingout of premises) and (Acquisition of immovable property), which were up by 48 % and 23 % respectively and accounted for, respectively, 21 % and 14 % of the variation. 50. A breakdown of Chapter 2 0 appropriations by expenditure type is given in Figure 6 below. Figure 6 Breakdown of Chapter 2 0 commitments by item 51. The commitments entered into against item (Building maintenance, upkeep, operation and cleaning) stood at EUR (20 % of the chapter) and covered the cost of maintaining premises, lifts, heating and air-conditioning systems and fire doors, as well as repainting and repair work, etc. Commitments increased by 11 % over 2011 (up by EUR ). This stems from implementation of the new, enhanced maintenance policy (when the building stock is ageing). The allocation for the item was topped up by EUR 2 million during the year (4 % of initial appropriations). 52. EUR was entered against item (Acquisition of immovable property), which initially bore a token entry, by means of transfers P8 and C10 (see Tables 8b and 9). As a result of transfer P8, taking funds from item (Rent), the item s initial allocation was reduced by 11 %. The full amount has been committed (TREBEL building and the Sofia Europe House), representing 16 % of the chapter s commitments. 53. Commitments against item (Lease payments) 14 % of the chapter totalled EUR , or almost eight times more than in The item s allocation was topped up by EUR 8 million during the year 31 % of initial appropriations chiefly because of the mopping-up transfer (see Tables 8a and 8b). The full amount has been committed, the bulk going on the project to extend the KAD Building in Luxembourg. 54. Commitments against item (Fitting-out of premises) 14 % of the chapter stood at EUR (48 % up on 2011, and a 51 % increase in initial appropriations). Fitting-out and alteration work in Brussels forms the bulk of the item (65 % of commitments) and accounts for most of the increase in appropriations and commitments. In 2012, a large volume of work was started and completed on buildings and projects at the Brussels site. The most significant work was the project to renovate the Eastman Building (House of European History), for which EUR 12,8 million was committed in (At its meeting on 15 November 2012, the Committee on Budgets approved the release of EUR 2 million from the reserve for the House of European History (see Table 7).) Work was also carried out on occupied buildings. 55. Commitments against item (Security and surveillance of buildings) 14 % of the chapter totalled EUR (3 % down on 2011). They essentially covered the costs of caretaking and surveillance in respect of buildings occupied by Parliament at its three habitual places of work and the information offices.

24 C 188/22 Official Journal of the European Union F. Chapter 2 1 Data processing, equipment and movable property 56. Chapter 2 1 commitments stood at EUR , or 8 % of total commitments for EUR , or 22 %, more was committed than in Appropriations for the chapter increased by EUR during the year, or 11 % of initial appropriations, chiefly in two transfers C5, releasing funding from the reserve, approved on 12 October 2012; and C9 approved on 5 December 2012; see Tables 7 and 8a) to fund extension of Wi-Fi coverage on European Parliament premises and the replacement of part of the network infrastructure and individual machines. 57. Items (Equipment and software for information and innovation technologies) and (Outside assistance for information and innovation technologies) accounted for 81 % of expenditure against the chapter and 88 % of the variation in commitments between 2011 and A breakdown of Chapter 2 1 expenditure is given in the figure below. Figure 7 Breakdown of Chapter 2 1 expenditure 59. Item (Equipment and software for information and innovation technologies) accounted for 31 % of Chapter 2 1 commitments, totalling EUR , which was 38 % up on Appropriations increased by EUR during the year (20 % of initial appropriations). The item covered expenditure on the purchase, hire, servicing and maintenance of equipment and software for the institution, and related work. This equipment and software relates mainly to systems at the computer and telecommunications centre, computing at departmental level and in the political groups and the electronic voting system. 60. Item (Outside assistance for information and innovation technologies) accounted for 50 % of Chapter 2 1 commitments, totalling EUR , which was 17 % up on 2011 (in line with the increase in appropriations allocated). Appropriations increased by EUR during the year (13 % of initial appropriations). The appropriations principally covered the cost of outside assistance from service bureaux and data-processing consultants in connection with the operation of the computer centre and the network, the production and maintenance of applications, support for users, including Members and political groups, the carrying out of studies, and the drawing up and input of technical documentation. G. Chapter 2 3 Current administrative expenditure 61. This chapter accounted for 1 % of 2012 commitments, totalling EUR Commitments were slightly down by 2 % over Commitments against this chapter broke down as follows: 47 % against Article (Telecommunications), 21 % against Article (Stationery, office supplies and miscellaneous consumables) and 15 % against Article (Legal costs and damages). The remaining 17 % is accounted for by Articles (Financial charges), (Postage on correspondence and delivery charges), (Removals), (Other administrative expenditure) and (European Parliament carbon offsetting scheme).

25 Official Journal of the European Union C 188/ With the exception of item (Legal costs and damages), which received funding released from the reserve (transfer C3; see Table 7), all items in the chapter provided funding for transfers C9 and C10 (see Tables 8a and 8b). Overall, as a result of those transfers, initial appropriations were reduced by 29 %, which illustrates the effort made to control current administrative expenditure. 64. Appropriations against Article (European Parliament carbon offsetting scheme), initially EUR , were reduced by 91 % as a result of the mopping-up transfer because of delays in completing a tender procedure and a large reduction in the price of a tonne of CO 2. H. Chapter 3 0 Meetings and conferences 65. This chapter accounted for 2 % of 2012 commitments, totalling EUR (which is stable in relation to 2011). Commitments against this chapter broke down as follows: 79 % against Article (Expenses for staff missions and duty travel between the three places of work), 18 % against Article (Miscellaneous expenditure on meetings), and 3 % against Article (Entertainment and representation expenses). 66. Initial appropriations for 2012 were 4 % down on 2011 and were reduced by 10 % as a result of the mopping-up transfer (EUR transferred). EUR in savings came from Article as a result of the efforts of all directorates-general to bring transport costs more under control. 67. In 2012, there were missions (2011: ) representing a total of mission days (2011: ). Most of the missions involved travel between Parliament s three places of work (Brussels missions; Strasbourg ; and Luxembourg 2 433). I. Chapter 3 2 Expertise and information: acquisition, archiving, production and dissemination 68. Commitments against this chapter accounted for 6 % of 2012 expenditure, totalling EUR (15 % up on 2011). Final appropriations increased by 5 % over the previous year; the rate of utilisation against the chapter improved and was 97 %. Some 26 % of the appropriations against this chapter were utilised for item (Organisation and reception of groups of visitors, Euroscola programme and invitations to opinion multipliers from third countries), 21 % for item (Expenditure on publication, information and participation in public events) and 13 % for item (Expenditure on audiovisual information). 69. A breakdown of commitments is given in Figure 8 below. Figure 8 Breakdown of Chapter 3 2 commitments 70. Commitments against item (Organisation and reception of groups of visitors, Euroscola programme and invitations to opinion multipliers from third countries) totalled EUR , which was slightly up (+ 3 %) on They covered the subsidies granted for group visits and associated supervision and infrastructure costs, the running costs of the Euroscola programme, and the financing of traineeships for opinion multipliers from third countries

26 C 188/24 Official Journal of the European Union Commitments against item (Expenditure on publication, information and participation in public events) amounted to EUR and covered, in particular, expenditure on information publications, including electronic publications, information activities, public relations, participation in public events, trade fairs and exhibitions in the Member States and the accession countries, and updating of the Legislative Observatory (OEIL). Commitments were 25 % up on This development stems from more frequent budget monitoring and from a strategy of budget optimisation, resulting in a marked increase in the utilisation rate (2012: 98 %; 2011: 90 %). 72. Commitments entered into against item (Expenditure on audiovisual information) totalled EUR and covered expenditure relating to: the operating budget of the audiovisual sector (including services under its own control and outside assistance such as technical services for radio and television stations, provision, production and coproduction of audiovisual programmes, the hiring of lines, the transmission of television and radio programmes, and other measures to develop relations between the institution and audiovisual broadcasting bodies), expenditure on live Internet broadcasting of plenary sittings and parliamentary committee meetings, the recording of part-session proceedings on DVD-ROMs, the establishment of appropriate archives and a search engine ensuring uninterrupted public access to that information. Commitments were 20 % up on With regard to audiovisual information, events, including 890 half-day committee meetings, were web-streamed. As regards Europe by Satellite, production was as follows: 905 news items about Parliament, 879 of which were rebroadcast by 148 channels, 57 info clips on legislative issues, 69 plenary days, 269 live broadcasts, 295 topical features produced for Eurovision (for relaying to its member organisations), and 19 events relayed by Eurovision from the European Parliament in Brussels and Strasbourg. 74. It should also be noted that commitments against item (Parlamentarium the European Parliament Visitors Centre), EUR , increased by 40 % over the previous year (in line with the increase in appropriations allocated). In 2012, people visited the Parlamentarium 4,5 times more than in 2011 which is among Brussels five most visited tourist attractions. J. Chapter 4 0 Expenditure relating to certain institutions and bodies 75. This chapter accounted for 5 % of 2012 commitments, totalling EUR (6 % up on 2011). Article (Current administrative expenditure and expenditure relating to the political and information activities of the political groups and non-attached Members) accounted for 65 % of Chapter 4 0 appropriations (2011: 66 %). Commitments against that article totalled EUR and were intended to cover the following in respect of the political groups and the non-attached Members: secretarial, administrative and operational expenditure, expenditure on political and information activities conducted in connection with the European Union s political activities. 76. Article (Funding of European political parties) accounted for 21 % (2011: 21 %) of Chapter 4 0 commitments. Article (Funding of European political parties) accounted for 14 % (2011: 13 %) of Chapter 4 0 commitments.

27 Official Journal of the European Union C 188/25 Figure 9 Breakdown of Chapter 4 0 commitments K. Chapter 4 2 Expenditure relating to parliamentary assistance 77. This chapter accounted for 11 % of 2012 commitments, totalling EUR (6 % up on 2011). Final appropriations for the chapter were 2 % down on the previous year; the utilisation rate improved. 78. Appropriations were reduced by EUR 6 million (3 % of initial appropriations) during the year (see Table 8b). Appropriations for parliamentary assistance were reduced by EUR 6,8 million, while the allocation for exchange losses increased by EUR 0,8 million. 79. A breakdown of commitments for the chapter is given in the figure below. Figure 10 Breakdown of Chapter 4 2 commitments 80. Commitments for local assistants stood at EUR (2 % up on 2011). 81. Commitments for accredited parliamentary assistants stood at EUR (8 % up on 2011). This covers salaries and mission expenses for the staff concerned, together with the cost of outside courses. Average monthly remuneration paid was EUR 7,5 million (EUR 6,9 million on average in 2011). 82. On 31 December 2012 there were accredited parliamentary assistants working at Parliament and local assistants had an employment contract with a Member (including 146 via groupings of Members). On average, each Member employed 2,26 accredited assistants and 3,31 local assistants ( 1 ). The number of local assistants employed per Member varied greatly between 0 and 47 in While 14 Members employed no local assistants, 63 Members recruited more than 10 employees in their Member States during Members employed only local assistants in Parliamentary assistance payments in 2012 were made on the basis of a rate of exchange between the euro and other currencies which was set for the entire year (December 2011 rate). The euro s significant loss of value in 2012 in relation to the other European currencies gave rise, in connection with paying local assistants salaries and fees, to exchange losses which were higher than projected. ( 1 ) Average calculated on the basis of 754 Members (including, accordingly, Members having contracts only with accredited assistants or only with local assistants).