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DRAFT REPORT (2023/2157(DEC))

On discharge in respect of the implementation of the budget of the European Foundation for the Improvement of Living and Working Conditions (Eurofound) for the financial year 2022

CONT-PR-753538

Committee on Budgetary Control · Rapporteur: Petri Sarvamaa

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This draft report by the Committee on Budgetary Control concerns discharge for Eurofound'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 2022 budget was EUR 22 438 000, a 3,13% increase on 2021, with a 100% commitment implementation rate and a 79,93% payment execution rate. It commends the Foundation's performance, including 97% of its annual work programme delivered, but regrets decreases in media uptake, stakeholder engagement and academic mentions. It notes a procurement award-criteria error, an underpayment of EUR 3 330 to 16 trainees, and outstanding internal audit actions, and asks the Foundation to implement them.

Committee position. The rapporteur proposes that Parliament grant discharge to Eurofound's Executive Director for the 2022 budget and approve the closure of the 2022 accounts, while setting out observations on budget management, performance, staff, procurement, conflicts of interest and internal control.

Key points

  1. Parliament would grant the Executive Director of Eurofound discharge for the 2022 budget and approve the closure of the 2022 accounts.
  2. The 2022 budget was EUR 22 438 000, up 3,13% on 2021; the commitment implementation rate was 100% and the payment execution rate 79,93%, down 3,63% on 2021.
  3. The Foundation adjusted budget lines and adopted amending budgets, and sought savings through fewer missions and meetings and reduced spending on studies and research.
  4. The Foundation delivered 30 of 31 outputs (97% of its work programme) and improved uptake of its expertise in policy documents from 74% in 2021 to 82% in 2022.
  5. It regrets decreases in media uptake (572 press articles in 2022 against 1083 in 2021), stakeholder engagement (44% against 48%) and academic mentions (1 143 against 1 220).
  6. The Foundation published the sixth European Working Conditions Survey overview, the fifth COVID-19 e-survey round and the annual minimum wage review, and reacted to Russia's invasion of Ukraine with information and an adapted survey.
  7. The Foundation shares work programmes with six other agencies, carried out zero-based budgeting, uses EU Signature and DocuSign, and holds an Eco-Management and Audit Scheme certification.
  8. On 31 December 2022 the establishment plan was 92,3% completed, with 9 officials and 75 temporary agents out of 91 authorised posts, plus 11 contract agents and about 5% staff turnover.
  9. It regrets the high number of management board members and notes the gender breakdown at senior and middle management, board and overall staff levels.
  10. The Foundation adopted a Charter on diversity and inclusion, made office rooms wheelchair accessible, and ran ethics training with 91% staff attendance.
  11. The Court found the Foundation used professional and language skills as award criteria instead of selection criteria in a procurement procedure, contrary to Article 167 of the Financial Regulation; templates were modified.
  12. The Court found weaknesses in the traineeship programme: rules published without formal adoption and an underpayment of EUR 3 330 for 16 trainees; the Foundation paid adjustments and adopted new rules from 2023.

Who is affected

  • Eurofound and its Executive Director: would receive discharge and account closure for the 2022 budget.
  • Eurofound staff and management board: must submit annual conflict-of-interest declarations and follow the conflict-of-interest policy.
  • Eurofound trainees: affected by the underpayment of EUR 3 330 and the new grant rules from 2023.
  • The Council, the Commission and the Court of Auditors: to receive the discharge decision and resolution.

Figures and deadlines

  • EUR 22 438 000: the Foundation's final budget for the financial year 2022.
  • 3,13%: increase in the 2022 budget compared to 2021.
  • 100%: budget implementation rate of current year appropriations in 2022.
  • 79,93%: current year payment appropriations execution rate, a decrease of 3,63% compared to 2021.
  • 97%: achievement of the annual work programme, with 30 out of 31 outputs delivered in 2022.
  • EUR 3 330: underpayment for 16 affected trainees due to failure to update remuneration.
  • EUR 15 000: threshold above which contracts are processed using the Public Procurement Management Tool.
  • 91%: staff attendance rate at obligatory ethics sessions in 2022.

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