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DRAFT REPORT (2023/2135(DEC))

On discharge in respect of the implementation of the general budget of the European Union for the financial year 2022, Section VI – European Economic and Social Committee

CONT-PR-753483

Committee on Budgetary Control · Rapporteur: Luke Ming Flanagan

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This draft report by the Committee on Budgetary Control concerns discharge for the European Economic and Social Committee's 2022 budget. It proposes granting or postponing discharge to the Secretary-General and sets out observations on budget management, internal control, human resources, ethics, digitalisation, buildings, environment, interinstitutional cooperation and communication. The report notes the Court of Auditors found no specific issues, with errors below the materiality threshold, and details a 96.12% budget implementation rate and 88.12% payment execution rate. It asks the Committee to report on sensitive posts methodology, HR mapping follow-up, harassment cases, and an external independent investigation into human resources procedures. It welcomes progress on ethics, transparency, digitalisation, sustainability and interinstitutional cooperation, while calling for an integrated anti-fraud strategy and further efforts on gender balance and geographical distribution.

Committee position. The rapporteur proposes that Parliament grant or postpone discharge to the Secretary-General of the European Economic and Social Committee for the 2022 financial year, and sets out observations in the accompanying resolution.

Key points

  1. Grants or postpones discharge to the Secretary-General of the European Economic and Social Committee for the 2022 financial year.
  2. Notes the Court of Auditors found no specific issues concerning the Committee and that errors were below the materiality threshold.
  3. Notes the final adopted budget was EUR 152 451 643, a 5.1% increase from 2021, with a 96.12% implementation rate and 88.12% payment execution rate.
  4. Notes the average payment time fell to 18 days and electronic invoicing rose to 88.84%, with late payments around 10%.
  5. Notes energy costs rose from EUR 726 000 to EUR 3 125 000 between 2021 and 2022, and ad hoc activities for Ukrainian civil society incurred costs.
  6. Asks the Committee to inform the discharge authority of progress on the sensitive posts methodology in 2023.
  7. Calls on the Committee to provide an update on the follow-up to the HR mapping in 2023.
  8. Reiterates its call for an external and independent investigation into the Committee's human resources procedures and harassment claims handling.
  9. Asks the Committee to inform Parliament about the follow-up to ongoing harassment cases and a case involving a former member before Belgian courts.
  10. Regrets the absence of an integrated anti-fraud strategy, while noting an inventory of relevant areas was completed.
  11. Welcomes the Committee joining the EU transparency register as of 1 June 2023 and adopting transparency measures.
  12. Calls on the Committee to pursue and expand interinstitutional cooperation with the Committee of the Regions, including exploring a single administration for joint services.

Who is affected

  • The European Economic and Social Committee and its Secretary-General, who are the subject of the discharge decision.
  • Committee staff, regarding human resources, working conditions, ethics and harassment procedures.
  • Committee members, regarding allowances for remote attendance and ethical rules.
  • The Committee of the Regions, as a partner in joint services and buildings.

Figures and deadlines

  • EUR 152 451 643: final adopted budget for the Committee in 2022.
  • 96.12%: budget implementation rate in 2022.
  • 88.12%: payment execution rate in 2022.
  • EUR 20 162 518: carry-over of appropriations to 2022, approximately 13% of the annual budget.
  • 18 days: average time for payment in 2022.
  • EUR 145: allowance for members' remote attendance of meetings.
  • EUR 726 000 to EUR 3 125 000: increase in energy costs between 2021 and 2022, i.e. 330%.
  • EUR 11 712 000: combined IT budget of the Committee and the CoR in 2022.

Legal basis: Article 314(10) and Articles 317, 318 and 319 of the Treaty on the Functioning of the European Union.