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DRAFT REPORT (2023/2152(DEC))

On discharge in respect of the implementation of the budget of the European Institute for Gender Equality for the financial year 2022

CONT-PR-753520

Committee on Budgetary Control · Rapporteur: Petri Sarvamaa

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This draft report by the Committee on Budgetary Control concerns discharge for the European Institute for Gender Equality's 2022 budget. It proposes granting the Director discharge and approving the closure of the accounts, and sets out observations on budget management, performance, staff, procurement, conflicts of interest and internal control. The observations note a 2022 budget of EUR 8 432 919,91, a 97,91 % commitment implementation rate and a 96,1 % work programme achievement, and flag irregularities in procurement and deficiencies found by the Internal Audit Service.

Committee position. The rapporteur proposes that Parliament grant the Director of the European Institute for Gender Equality discharge for the 2022 budget and approve the closure of the accounts, while setting out observations on budget management, performance, staff, procurement, conflicts of interest and internal control.

Key points

  1. Parliament grants the Director of the European Institute for Gender Equality discharge for the 2022 budget, or postpones that decision, and sets out its observations in the resolution.
  2. Parliament approves the closure of the Institute's 2022 accounts, or postpones it.
  3. The Institute's final 2022 budget was EUR 8 432 919,91, a decrease of 2,99 % from 2021; the Court of Auditors found the accounts reliable and the transactions legal and regular.
  4. Budget implementation reached 97,91 % for commitments and 81,10 % for payments; the rapporteur commends the Institute's monitoring despite the war of aggression against Ukraine and economic volatility.
  5. The final budget reflects amending budgets of EUR 175 000 due to inflation, a 6,9 % salary indexation and a 7,3 % rise in the correction coefficient for Lithuania.
  6. The rapporteur notes with concern that the Institute did not disclose EUR 3,7 million in earmarked appropriations for an event-organisation framework contract in its single programming documents, and calls for all operational framework contracts to be included.
  7. The Institute achieved 96,1 % of its 2022 work programme and reached its amended SPD targets; it launched the Gender Equality Index, held its first Gender Equality Forum and published reports on COVID-19's impact on youth and on artificial intelligence and platform work.
  8. The rapporteur commends the Institute's digitalisation, environmental measures and synergies with other EU agencies, and notes its cooperation with data providers such as Eurostat, FRA, Eurofound and Eurojust.
  9. The establishment plan was 100 % filled with 27 officials and temporary agents; staff turnover was 11 %; gender distribution was balanced in senior management but unbalanced on the management board and among staff overall.
  10. No harassment cases were reported in 2022; the rapporteur calls for safeguards to ensure no case goes unreported, and welcomes the Institute's wellbeing policy and its cessation of interim worker hiring from 1 January 2022.
  11. The rapporteur notes with concern an irregular payment of EUR 25 571,18 for unforeseen expenditure and an irregular negotiated procedure below EUR 60 000, and calls on the Institute to address procurement control deficiencies.
  12. The rapporteur calls on the Institute to publish meetings with interest representatives, on the Court to include the new conflicts-of-interest policy in future audits, and on the Institute to report on addressing the Internal Audit Service's findings.

Who is affected

  • The European Institute for Gender Equality and its Director, who would receive discharge and must address the observations.
  • The Institute's management board and staff, affected by observations on gender balance, conflicts of interest and internal control.
  • The Commission and member states, asked to consider gender balance when nominating management board members and to support the Institute after its external evaluation.
  • The Court of Auditors, asked to include the Institute's new conflicts-of-interest policy in future audit plans.

Figures and deadlines

  • EUR 8 432 919,91 — the Institute's final budget for 2022.
  • 2,99 % — decrease in the 2022 budget compared to 2021.
  • 97,91 % — budget implementation rate of current year commitment appropriations.
  • 81,10 % — current year payment appropriations execution rate.
  • EUR 175 000 — total amending budgets adopted by the Management Board.
  • 6,9 % — indexation of salaries; 7,3 % — rise in the correction coefficient for Lithuania.
  • EUR 3,7 million — earmarked budget appropriations not disclosed in the single programming documents.
  • 96,1 % — share of the work programme achieved in 2022.

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