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REPORT (2023/2179(DEC))

On discharge in respect of the implementation of the budget of the Innovative Health Initiative Joint Undertaking for the financial year 2022

A-9-2024-0093

Committee on Budgetary Control · Rapporteur: Michal Wiezik

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The report asks Parliament to grant the Executive Director of the Innovative Health Initiative Joint Undertaking discharge for the 2022 budget and to approve the closure of its 2022 accounts. It notes the Court of Auditors found the accounts fair and the underlying transactions legal and regular, and sets out observations on budget execution, contributions, procurement, staff, and control systems. It calls on the Joint Undertaking to address the gap between recognised cash and in-kind contributions and to set a time-scheduled action plan for finishing projects from previous multiannual financial frameworks.

Committee position. The Committee on Budgetary Control proposes that Parliament grant discharge to the Executive Director of the Innovative Health Initiative Joint Undertaking for the 2022 budget, approve the closure of its 2022 accounts, and adopt observations on budget management, contributions, procurement, staff and controls.

Key points

  1. Parliament grants the Executive Director of the Innovative Health Initiative Joint Undertaking discharge for the implementation of its 2022 budget.
  2. Parliament approves the closure of the Joint Undertaking's accounts for the financial year 2022.
  3. The Court of Auditors found the 2022 accounts present fairly the financial position and the underlying transactions are legal and regular in all material respects.
  4. The 2022 available budget was EUR 272,4 million in commitment appropriations and EUR 174,8 million in payment appropriations; execution reached 96,60% and 86,25% respectively.
  5. The Joint Undertaking should further address the gap between recognised cash and in-kind contributions by providing information on members' legal commitments at year end.
  6. For FP7, the maximum Union operational contribution of EUR 966 million was fully committed; around EUR 44,9 million remains to be paid for 5 antimicrobial resistance projects.
  7. For Horizon 2020, EUR 1 452,1 million (91%) of the maximum Union contribution of EUR 1 595,4 million was committed; around EUR 484,8 million remains to be paid.
  8. Parliament agrees with the Court that the Joint Undertaking should establish a time-scheduled action plan for finalising projects approved under previous multiannual financial frameworks.
  9. The staff establishment plan allows 39 temporary agents, 15 contract agents and 1 seconded national expert; on 31 December 2022, 49 positions were occupied.
  10. The Joint Undertaking reported a representative error rate of 2,1% and a residual error rate of 0,8% for FP7, and 2,7% and 0,9% for Horizon 2020.
  11. The Court found no errors or control weaknesses in the sampled Horizon 2020 payments, and the Joint Undertaking has developed a risk-based approach to ex-ante and ex-post controls.
  12. The Joint Undertaking has taken corrective action to address the 2021 Court observation on part of the employer's contributions to the Union pension scheme.

Who is affected

  • The Innovative Health Initiative Joint Undertaking and its Executive Director, who receives discharge and must act on the observations.
  • The Joint Undertaking's private members and associated partners, whose in-kind contributions and legal commitments are scrutinised.
  • The Joint Undertaking's staff, subject to the establishment plan and gender and geographical balance noted in the report.

Figures and deadlines

  • EUR 272,4 million in commitment appropriations for 2022
  • EUR 174,8 million in payment appropriations for 2022
  • 96,60% execution of commitment appropriations and 86,25% of payment appropriations
  • EUR 966 million maximum Union operational contributions for FP7
  • EUR 44,9 million (or 5%) still to be paid for FP7 projects
  • EUR 914,2 million (94,6%) in-kind contributions committed by private members for FP7
  • EUR 1 452,1 million (91%) of the EUR 1 595,4 million maximum Union contribution committed for Horizon 2020
  • EUR 484,8 million (33,4%) remains to be paid for Horizon 2020 projects

Legal basis: Article 319 of the Treaty on the Functioning of the European Union