Sittings · Document

DRAFT REPORT (2023/2149(DEC)) 2024-01-10

On discharge in respect of the implementation of the budget of the European Environment Agency for the financial year 2022

Committee on Budgetary Control · Rapporteur: Petri Sarvamaa

PR_DEC_Agencies

1. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION

on discharge in respect of the implementation of the budget of the European Environment Agency for the financial year 2022

(2023/2149(DEC))

– having regard to the final annual accounts of the European Environment Agency for the financial year 2022,

– having regard to the Court of Auditors’ annual report on EU agencies for the financial year 2022, together with the agencies’ replies,

– having regard to the statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2022, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

– having regard to the Council’s recommendation of … February 2024 on discharge to be given to the Agency in respect of the implementation of the budget for the financial year 2022 (00000/2024 – C90000/2024),

– having regard to Article 319 of the Treaty on the Functioning of the European Union,

– having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012, and in particular Article 70 thereof,

– having regard to Regulation (EC) No 401/2009 of the European Parliament and of the Council of 23 April 2009 on the European Environment Agency and the European Environment Information and Observation Network, and in particular Article 13 thereof,

– having regard to Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council, and in particular Article 105 thereof,

– having regard to Rule 100 of and Annex V to its Rules of Procedure,

– having regard to the opinion of the Committee on the Environment, Public Health and Food Safety,

– having regard to the report of the Committee on Budgetary Control (A90000/2024),

1. Grants the Executive Director of the European Environment Agency discharge in respect of the implementation of the Agency’s budget for the financial year 2022 / Postpones its decision on granting the Executive Director of the European Environment Agency discharge in respect of the implementation of the Agency’s budget for the financial year 2022;

2. Sets out its observations in the resolution below;

3. Instructs its President to forward this decision, and the resolution forming an integral part of it, to the Executive Director of the European Environment Agency, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

2. PROPOSAL FOR A EUROPEAN PARLIAMENT DECISION

on the closure of the accounts of the European Environment Agency for the financial year 2022

(2023/2149(DEC))

– having regard to the final annual accounts of the European Environment Agency for the financial year 2022,

– having regard to the Court of Auditors’ annual report on EU agencies for the financial year 2022, together with the agencies’ replies,

– having regard to the Council’s recommendation of… February 2024 on discharge to be given to the Agency in respect of the implementation of the budget for the financial year 2022 (00000/2024 – C90000/2024),

– having regard to Article 319 of the Treaty on the Functioning of the European Union,

– having regard to Rule 100 of and Annex V to its Rules of Procedure,

– having regard to the opinion of the Committee on the Environment, Public Health and Food Safety,

– having regard to the report of the Committee on Budgetary Control (A90000/2024),

1. Approves the closure of the accounts of the European Environment Agency for the financial year 2022 / Postpones the closure of the accounts of the European Environment Agency for the financial year 2022;

2. Instructs its President to forward this decision to the Executive Director of the European Environment Agency, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

3. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

with observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the European Environment Agency for the financial year 2022

(2023/2149(DEC))

– having regard to its decision on discharge in respect of the implementation of the budget of the European Environment Agency for the financial year 2022,

– having regard to Rule 100 of and Annex V to its Rules of Procedure,

– having regard to the opinion of the Committee on the Environment, Public Health and Food Safety,

– having regard to the report of the Committee on Budgetary Control (A90000/2024),

A. whereas, according to its statement of revenue and expenditure, the final budget of the European Environmental Agency (the ‘Agency’) for the financial year 2022 was EUR 88 173 021 representing an increase of 35,93 % compared to 2021; whereas the Agency’s budget derives from the Union budget and the EFTA contribution (63,32 %) and contributions under specific agreements (36,67 %);

B. whereas the Court of Auditors (the ‘Court’), in its report on the annual accounts of the Agency for the financial year 2022 (the ‘Court's report’), states that it has obtained reasonable assurance that the Agency’s annual accounts are reliable and that the underlying transactions are legal and regular;

C. whereas with regard to the Agency’s procurement sector, no issues requiring corrective actions were reported for 2022, nor are there ongoing or outstanding corrective actions from previous years’ audits and assessments;

Budget and financial management

1. Notes with appreciation that the budget monitoring efforts during the financial year 2022 resulted in a budget implementation rate of 100 % of the current year commitment appropriations, same as 2021; notes that the current year payment appropriations execution rate was 86,66 %, representing an increase of 1,75 % compared to the previous year;

2. Notes that the Court concluded in its report in 2021 that the use of a negotiated procedure without prior publication to amend a framework contract by doubling the initial budget to EUR one million was irregular and as a result, all subsequent payments made in connection with this procedure are irregular; notes furthermore that the contract expired in December 2022 and the associated 2022 payments amounted to EUR 470 660; notes that the current status of this Court’s observation is already closed;

Performance

3. Notes that the Agency’s performance framework is structured around five performance objectives monitored by 17 multiannual KPIs which include staff occupancy rate, budget execution and delivery of the annual work programme among others; observes that 95 % of the annual work programme as regards key reports and assessment was delivered and 96 % as regards core set indicators updated, both above the target stablished at 90 %; takes note of the indicators that have not yet been achieved or are lagging behind;

4. Takes note that 2022 the Agency continued to play a key role in informing actions to support the environment, responding to the objectives of the European Green Deal (EGD) and the Eighth Environment Action Programme (8th EAP), as well as to Europe's overall ambitions and global commitments; welcomes that the Agency continued to deliver on agreed actions and tasks, and took on new ones in support of the green transition and the implementation of the European Climate Law, while linking actions to the EU adaptation strategy; notes furthermore that it was the second year of the implementation of the Agency-European Environment Information and Observation Network (Eionet) Strategy 2021-2030, which aims to give EU policy makers and the public the best available knowledge to reach the targets on environment and sustainability;

5. Observes that in 2022, amid heat waves, droughts and forest fires affecting large parts of Europe as well as with the continent experiencing the hottest summer on record, the Agency was mentioned in 27 000 online articles, and several staff members were interviewed by media outlets across Europe as result of significant media interest, with a focus on the causes and consequences of extreme weather;

Efficiency and gains

6. Recalls that in line with the approach in recent years, in 2022, the Agency has continued to pursue efficiency gains through sharing services with the European Commission, other EU agencies, and the EU Agencies Network (EUAN) — Shared Support Office in Brussels; notes that following this practice, the Agency pursued joint procurement with the Commission services and EUAN, either by procuring and leading on framework contracts that are also used by the Commission and other agencies or by using framework contracts led by others;

7. Notes that the Agency also uses a variety of Commission services (e.g. payroll, IT security) and systems (e.g. ABAC, Sysper, Ares, e-Prior) in line with efficiency gains linked to increased use of electronic tools to support administration processes (in procurement, finance and human resources); also notes that in response to the pandemic restrictions, the Agency has been using online recruitment, supported by the implementation of a recruitment platform (Systal), which allowed it to complete a large number of recruitment procedures in both 2021 and 2022, giving a low vacancy rate at the year end;

8. Notes furthermore, the Agency's continued move to activity-based working has contributed to efficiency gains in the dynamic and flexible use of the refurbished office space, in addition to the extended possibility of teleworking for EEA staff; notes also with satisfaction that the Agency has gone ‘mobile only’, which in turn has produced considerable savings in telephone costs;

Staff policy

9. Notes that, on 31 December 2022, the establishment plan was 97,33 % implemented, with 3 permanent officials and 143 temporary agents appointed out of 150 posts authorised under the Union budget (compared to 140 authorised posts in 2021); notes that, in addition, 84 contract agents and 13 seconded national experts worked for the Agency in 2022; notes that from 2021 to 2023, the establishment plan authorized under the Union budget has increased in 25 Temporary agents and 14 Contract Agents to address new tasks arising from Scientific Advisory Board for Climate Change, LULUCF, Seveso and Nature Restoration Legislation;

10. Notes the lack of gender balance among the Agency’s senior management members, with 6 out of 9 (67 %) being men; notes the gender balance within the Agency’s management board, with 18 out of 36 (50 %) being men; notes the gender balance within the Agency’s overall staff, with 118 out of 221 (53 %) being women; notes that the Agency has not adopted the ‘Charter on diversity and inclusion’; encourages the Agency to adopt it and actively participate in initiatives that promote diversity and inclusion in the workplace;

11. Notes that the Agency has a wellbeing coordinator and has done extensive work on awareness raising and setting up processes for staff returning from long term absence and in case needed, staff are offered professional assistance via the medical advisor;

12. Observes that to reduce the risk of burnout - the Agency has introduced a stress monitoring app (called ‘Howdy) with their health provider; takes note that staff are signed up to the app and asked a series of questions on a regular basis to monitor their stress levels and if there is an increase in this level, they are contacted by a medical psychologist to discuss the outcome; notes that there is the option for staff to consult for up to three visits with a psychologist at the Agency’s medical provider to work through issues, highlights that all this is handled anonymously with only statistics fed back to the Agency;

Prevention and management of conflicts of interest and transparency

13. Recalls that Senior management members and Management Board members shall provide a declaration of interest which is published on the Agency website; notes that senior management members shall, as part of the career development dialogue, update the awareness of conflict of interest based on a self declaration (as part of the self-assessment), where the senior management member, as a member of staff, shall state whether any new engagements or activities have been, or are to be, undertaken that could give rise to a potential conflict of interest; observes that when finalising the career development plan, the line manager responsible shall specify his/her own assessment of the question of conflict of interest.; notes that there were no cases of conflict of interest identified in 2022;

14. Notes that the Agency continues to keep track of submitted CVs and declarations of interests for management board members and senior managers and they are published in its website;

15. Notes that according to the follow up 2021 discharge observations, the Agency is in the process of reviewing its policy on the prevention and management of conflict of interest to assess its fitness and relevance following a risk-based approach; notes that in doing so, the Agency will consider its internal control and anticorruption mechanisms and make adjustments to any gap which it may identify; calls on the Agency to report back to the discharge authority on the result of the above mentioned assessment;

Internal control

16. Takes note that in 2022, the Agency continued to work on the structural changes in its ways of working launched in 2021; notes that once changes are fully in place full attention will be given to updating the documentation of procedures, which will remedy the weaknesses identified in the Agency’s internal control framework; notes that the Agency's risk management approach is partially compliant, as it identifies and analyses risks across the organization, but the systematic identification, assessment, and follow-up of risks at the project group level have been limited;

17. Observes that the control activities to mitigate risks are also partially compliant, as they are outdated due to structural changes in 2022; notes that the European Topic Centre policy and the policy for grants are outdated given the change in the verification structure put in place in 2022 and with regard to Business continuity plans, they are in place and have been effectively used during crises, but their measures are scattered across various documents and have not been updated to reflect new ways of working; calls on the Agency to report back to the discharge authority on the measures taken to update the documentation of procedures;

Other comments

18. Welcomes that in September 2022, the EU Eco-Management and Audit Scheme (EMAS) registration for the Agency was successfully extended by a competent body for another year; notes with satisfaction from the Court’s report that the Authority is among the agencies that issue an annual environmental statement;

19. Commends the Agency for its ongoing efforts towards public visibility and online presence in 2022 like the development of an interactive digital corporate publication ‘EEA 2021: the year in brief’ to explain what the Agency is and does and the ongoing multiannual web project which delivered key elements in 2022, amongst them a user-centric navigation logic and updated content across the key knowledge areas based on intense user analysis;

20. Commends the Agency for taking part in a special task force to bring together knowledge, expertise and data for mapping the environmental impact of the Russia’s unprovoked and unjustified attack against Ukraine;

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21. Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its resolution of ... on the performance, financial management and control of the agencies.