On discharge in respect of the implementation of the budget of the European Institute of Innovation and Technology (EIT) for the financial year 2022
CONT-PR-753522
Committee on Budgetary Control · Rapporteur: Petri Sarvamaa
Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.
This is the rapporteur's draft report on granting discharge to the European Institute of Innovation and Technology (EIT) for its 2022 budget. It proposes a decision on discharge, a decision closing the accounts, and a resolution with observations on budget management, performance, staff, conflicts of interest, procurement and internal control.¶¶¶ The draft notes the Court of Auditors found the accounts reliable and transactions legal and regular, but raises concerns about the grant error rate, late payment interest, procurement irregularities and understaffing.¶¶¶ It calls on the Institute to reduce error rates, comply with financial rules, address delays in the appraisal and reclassification exercise, and report back on harassment and risk developments.¶¶
Committee position. The rapporteur proposes that Parliament grant the Director of the EIT discharge for the 2022 budget and approve the closure of the accounts, or postpone those decisions, and sets out observations in the accompanying resolution.¶¶¶
Key points
- Proposes granting the Director of the EIT discharge for the 2022 budget, or postponing that decision.¶
- Proposes approving the closure of the EIT's 2022 accounts, or postponing that decision.¶
- Notes the 2022 final budget was EUR 406 585 390,99, up 12,65% from 2021, with commitment implementation at 94,03% and payment execution at 98,42%.¶¶
- 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.¶¶
- Notes the Institute paid EUR 32 070 in late-payment interest in two grant cases due to inadequate monitoring of deadlines, and that it has since reviewed processes and trained staff.¶
- Welcomes the Institute's performance: almost 1 670 innovative products and services, 5 600 start-ups and scale-ups attracting close to EUR 6 billion, and the Deep Tech Talent Initiative to skill at least 1 million talents in three years.¶¶
- Notes the establishment plan was 93% implemented with 40 of 45 temporary agents appointed, and is concerned that continuous understaffing has not been matched by additional posts.¶¶
- Notes one harassment case was reported and an administrative inquiry is ongoing, and calls on the Institute to inform the discharge authority of developments.¶
- Welcomes the Institute's transparency measures, including published declarations of interest and CVs, and its conflict-of-interest policy and committee.¶¶
- Notes that for three audited administrative payments amounting to EUR 337 116, commitments were authorised after legal commitments were signed, contrary to Article 73(2) of the Framework Financial Regulation, and urges immediate corrective action.¶
- Points out that an important IAS recommendation on appraisal and reclassification was delayed by 15 months, and calls on the Institute to take proactive measures and report back.¶
- Notes the Institute did not carry out an ex-ante verification for a software renewal order, contrary to Article 30 of the Financial Regulation, and that it will require a price breakdown from contractors.¶
Who is affected
- The European Institute of Innovation and Technology (EIT) and its Director, who would receive discharge or have the decision postponed.¶¶
- The EIT's Knowledge and Innovation Communities (KICs), which face supervision and monitoring risks due to increased budget and activities.¶
- EIT staff, affected by understaffing, gender balance measures, well-being initiatives and the ongoing harassment inquiry.¶¶¶
- Members of the EIT Governing Board, including one former Commissioner and one former MEP receiving EUR 2 000 per attended meeting.¶¶
Figures and deadlines
- EUR 406 585 390,99 — final budget of the EIT for 2022.¶
- 12,65 % — increase in the EIT's 2022 budget compared to 2021.
- 94,03 % — current year commitment appropriations implementation rate in 2022.¶
- 98,42 % — current year payment appropriations execution rate in 2022.
- EUR 656 930,67 — amendment to the 2022 budget adopted by the Governing Board.¶
- 1,73 % — grant error rate in 2021 (0,66 % in 2020).¶
- EUR 32 070 — interest paid on late payments in two grant cases in 2022.¶
- EUR 337 116 — three audited administrative payments where commitments were authorised after legal commitments were signed.¶
Legal basis: Article 319 of the Treaty on the Functioning of the European Union.¶¶