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DRAFT REPORT (2023/2130(DEC))

On discharge in respect of the implementation of the general budget of the European Union for the financial year 2022, Section I – European Parliament

CONT-PR-753634

Committee on Budgetary Control · Rapporteur: Andrey Novakov

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This is the rapporteur's draft report on granting discharge to Parliament's President for the implementation of Parliament's 2022 budget, Section I. It proposes to grant discharge and sets out observations on Parliament's financial management, the Court of Auditors' findings, the Internal Auditor's report, and each Directorate-General's spending. It notes Parliament's final 2022 appropriations of EUR 2 161 million, revenue of EUR 250 473 772, and transfers, and welcomes the high use of appropriations across Directorates-General. It notes the Court of Auditors found the level of error in 'European public administration' spending not material, but found quantifiable errors in three of 13 sampled transactions and recommended stronger guidance on procurement and political group funding. It covers the Internal Auditor's 2022 activities, the follow-up to the 2021 discharge resolution, and horizontal issues including harassment, whistleblowing, the Voluntary Pension Fund, contracts awarded, and funding for political groups, parties and foundations.

Committee position. The rapporteur proposes that Parliament grant its President discharge for the implementation of Parliament's 2022 budget, Section I, and sets out observations in the accompanying resolution covering financial management, audit findings and horizontal issues.

Key points

  1. Proposes that Parliament grant its President discharge for the implementation of Parliament's 2022 budget, with observations set out in the accompanying resolution.
  2. Notes Parliament's final 2022 appropriations totalled EUR 2 161 million, 19,55 % of Heading 7, a ,76 % increase on 2021; total revenue was EUR 250 473 772.
  3. Notes 21 'C transfers' worth EUR 88 449 115 and 11 'P transfers' worth EUR 34 246 879 were approved in 2022.
  4. Notes the COVID-19 pandemic generated a moderate surplus of EUR 16 417 325 and required reinforcing other budget lines by EUR 7 549 000.
  5. Notes the Court of Auditors found the level of error in 'European public administration' spending not material, but found quantifiable errors in three of 13 sampled Parliament transactions, including on procurement.
  6. Welcomes the administration's commitment to increase guidance for political groups on implementing Parliament's internal rules and to clarify procurement guidelines.
  7. Notes the Internal Auditor's 2022 activities, including audits of staff missions, risk management, procurement in DG INLO, security equipment in DG SAFE, and political party financing; 38 of 92 open actions were closed.
  8. Notes one planned IT audit on cybersecurity staff awareness could not be carried out in 2022 because an information systems auditor post remained vacant.
  9. Calls for robust transparency standards and comprehensive financial pre-screening of entities, including NGOs, before listing in the transparency register, and for disclosure of all funding sources.
  10. Notes harassment cases continue; the Advisory Committee on Harassment received two complaints from trainees, and 13 staff sought assistance under Article 24 of the Staff Regulations, six relating to alleged harassment.
  11. Notes one whistleblowing case in 2022 and that a Bureau decision on internal rules on whistleblowing was adopted on 20 November 2023, applying from 1 December 2023.
  12. Notes the Voluntary Pension Fund's actuarial deficit was EUR 379 million on 31 December 2021, and welcomes Bureau amendments to Article 76 of the IMMS aimed at reducing future pension obligations.

Who is affected

  • Parliament's administration and Directorates-General, which must implement the observations and close outstanding internal audit actions.
  • Political groups and non-attached Members, responsible for using budget item 400 appropriations for Union political activities.
  • European political parties and European political foundations, subject to the Authority's scrutiny and compliance rules.
  • NGOs and interest representatives listed in the transparency register, facing calls for financial pre-screening and disclosure of funding sources.
  • Members and staff, regarding harassment policies, teleworking rules and the General Expenditure Allowance.

Figures and deadlines

  • EUR 2 161 million — Parliament's final appropriations for 2022.
  • 19,55 % — Parliament's 2022 appropriations as a share of Heading 7 of the Multiannual Financial Framework.
  • EUR 250 473 772 — total revenue entered in the accounts as of 31 December 2022.
  • EUR 88 449 115 — total 'C transfers' approved in 2022.
  • EUR 34 246 879 — total 'P transfers' authorised in 2022.
  • EUR 16 417 325 — estimated moderate surplus generated by the COVID-19 pandemic.
  • EUR 7 549 000 — total reinforcement of other budget lines due to the COVID-19 pandemic.
  • EUR 379 million — actuarial deficit of the Voluntary Pension Fund on 31 December 2021.

Legal basis: Article 314(10) and Article 318 of the Treaty on the Functioning of the European Union.