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DRAFT REPORT (2023/2155(DEC))

On discharge in respect of the implementation of the budget of the European Labour Authority for the financial year 2022

CONT-PR-753523

Committee on Budgetary Control · Rapporteur: Petri Sarvamaa

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This draft report concerns the discharge for the European Labour Authority's 2022 budget. It proposes granting discharge and closing the accounts, and sets out observations on budget management, performance, staff, procurement, conflicts of interest and internal control. It notes the Authority's EUR 34 689 842 budget, a 96,52 % commitment rate and 34,93 % payment rate, and concerns over late publication of the budget and high carry-overs. It welcomes the Authority's achievements, including 33 concerted and joint inspections, the Road Transport Action Framework, mediation service and reaction to those fleeing the war in Ukraine. It raises concerns over an irregular contract award, irregular allowances paid to a national liaison officer, weak ex-ante and ex-post checks, and the use of interim staff for budget implementation. It calls on the Authority to improve procurement, strengthen internal control and report back to the discharge authority on measures taken.

Committee position. The rapporteur proposes that Parliament grant discharge to the Executive Director for the 2022 budget and approve the closure of the accounts, while setting out observations in the accompanying resolution.

Key points

  1. Proposes granting the Executive Director discharge for the 2022 budget and approving the closure of the Authority's 2022 accounts.
  2. Notes the 2022 budget was EUR 34 689 842, up 43,23 % from 2021, with a commitment rate of 96,52 % and payment rate of 34,93 %.
  3. Notes with concern that the 2022 budget was adopted on 17 December 2021 but not published in the Official Journal until 31 May 2023, contravening Article 31 of the financial rules.
  4. Observes carry-overs of EUR 21,8 million (65 %) to 2023, including EUR 3,4 million under Title II and EUR 16,4 million under Title III, and recalls that high carry-overs contradict annuality.
  5. Welcomes the Authority's achievements, including the Road Transport Action Framework, 33 concerted and joint inspections with 25 member states, the mediation service and support for those fleeing the war in Ukraine.
  6. Notes with concern reductions in the EURES job registration rate (– 77 %) and employer registration rate (– 37 %) compared with 2021 due to EU Login requirements, and calls for simplification.
  7. Notes the establishment plan was 86 % implemented with 49 temporary agents out of 57 authorised, plus 13 contract agents and 55 seconded national experts.
  8. Notes that 58 % of staff were temporary workers (SNEs and interims) at the end of 2022, and takes note of the call to convert 15 SNE posts into temporary agent posts.
  9. Takes note that an interim agent and a trainee were granted ABAC access for five months, contravening Article 41(1) of the financial rules.
  10. Notes that a contract with a maximum value of EUR 6 million over four years was awarded to a tenderer offering EUR 12,9 million, which the Court concluded was irregular.
  11. Notes that allowances totalling EUR 83 734, of which EUR 50 700 was paid in 2022, to a national liaison officer were irregular because proof of residence in Bratislava could not be provided.
  12. Urges the Authority to reassess and update its internal processes, ex-ante controls and ex-post methodology, and to report back to the discharge authority.

Who is affected

  • The European Labour Authority and its Executive Director, who would receive discharge and must address the observations.
  • The Authority's management board, whose members' conflict of interest declarations are published and whose CVs are to be published.
  • Seconded national experts and national liaison officers, who must reside in Bratislava and provide proof of residence.
  • The Authority's staff, including temporary agents, contract agents and interim workers.

Figures and deadlines

  • EUR 34 689 842 — final budget of the Authority for 2022.
  • 43,23 % — increase in the 2022 budget compared to 2021.
  • 96,52 % — budget implementation rate of current year commitment appropriations.
  • 34,93 % — current year payment appropriations execution rate.
  • EUR 21,8 million (65 %) — carry-overs of available 2022 commitment appropriations to 2023.
  • EUR 6 million over four years — maximum contract value in a procurement procedure.
  • EUR 12,9 million — financial offer of the tenderer awarded the contract.
  • EUR 83 734, of which EUR 50 700 paid in 2022 — allowances received by a national liaison officer.

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