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REPORT (2023/2154(DEC))

On discharge in respect of the implementation of the budget of the European Institute of Innovation and Technology (EIT) for the financial year 2022

A-9-2024-0132

Committee on Budgetary Control · Rapporteur: Petri Sarvamaa

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Parliament's committee report proposes granting the Director of the European Institute of Innovation and Technology (EIT) discharge for the 2022 financial year and approving the closure of the Institute's accounts. It sets out observations on the Institute's budget, performance, staff, conflicts of interest, procurement and internal control, and asks the Institute to report back on several issues. The report notes the Court of Auditors found the accounts reliable and the underlying transactions legal and regular.

Committee position. The Committee on Budgetary Control proposes that Parliament grant the Director of the Institute discharge for the 2022 financial year and approve the closure of its accounts, while setting out observations on budget management, performance, staff, conflicts of interest, procurement and internal control.

Key points

  1. Grants the Director of the Institute discharge for the implementation of its 2022 budget and approves the closure of its 2022 accounts.
  2. Notes the 2022 final budget was EUR 406 585 390,99, up 12,65 % on 2021, with commitment implementation at 94,03 % and payment execution at 98,42 %.
  3. Notes the Court found the accounts reliable and transactions legal and regular, but flags a 2021 grant error rate of 1,73 % and calls on the Institute to reduce it.
  4. Notes the Institute paid EUR 32 070 in late-payment interest in two grant cases and that it has since reviewed grant management and adopted the Commission's eGrants system.
  5. Notes the Institute achieved about 95 % of its 2022 Work Programme, supported 5 600 start-ups and scale-ups attracting close to EUR 6 billion, and launched the Deep Tech Talent Initiative.
  6. Notes the Institute supported Ukraine after the February 2022 invasion and launched the European Battery Alliance Academy under the Recovery Assistance for Cohesion and the Territories of Europe programme.
  7. Notes the establishment plan was 93 % implemented with 40 of 45 temporary agents, and is concerned that understaffing has not been matched by additional posts.
  8. Raises concerns about gender balance in senior and middle management and the Board, and about geographical balance with only one managerial staff from Central-Eastern Europe.
  9. Notes one harassment case was reported in 2022 with an administrative inquiry ongoing, and calls on the Institute to report back on developments.
  10. Notes the Institute publishes declarations of interest and CVs of Board and management, and that conflicts of interest were identified for some Board members and mitigating measures adopted.
  11. Notes OLAF issued two recommendations after two investigations, one implemented in 2022, and asks the Institute to report back on follow-up.
  12. Notes that for three audited administrative payments of EUR 337 116 the Institute authorised budgetary commitments after legal commitments were signed, contrary to Article 73(2) of the Framework Financial Regulation, and urges immediate corrective action.

Who is affected

  • The European Institute of Innovation and Technology and its Director, who receive discharge and must report back on several issues.
  • The Institute's Board and management, on gender balance, conflicts of interest and post-employment restrictions.
  • The Commission, asked to consider gender balance when nominating members to the Institute's governing board.

Figures and deadlines

  • EUR 406 585 390,99 — the Institute's final budget for 2022.
  • 12,65 % — the increase in the 2022 budget compared to 2021.
  • 94,03 % — the 2022 current year commitment appropriations implementation rate.
  • 98,42 % — the 2022 current year payment appropriations execution rate.
  • EUR 656 930,67 — the amendment to the final budget adopted by the Board.
  • 1,73 % — the grant error rate in 2021, below the 2 % materiality level.
  • EUR 32 070 — interest paid on late payments in two grant cases in 2022.
  • EUR 337 116 — three audited administrative payments where budgetary commitments followed legal commitments.

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