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DRAFT REPORT (2024/2030(DEC))

On discharge in respect of the implementation of the budget of the European Union Agencies for the financial year 2023

CONT-PR-765000

Committee on Budgetary Control · Rapporteur: Erik Marquardt

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This draft report proposes granting discharge to the directors of 31 EU agencies and two other bodies for the 2023 budget, and approving closure of their accounts, with observations in an accompanying resolution. The resolution notes audit findings, including qualified opinions for EIT, ELA, ENISA, and eu-LISA due to irregular payments, and calls for improvements in procurement, budget management, and governance. It also addresses staffing, gender balance, conflicts of interest, cybersecurity, sustainability, and follow-up on previous audit observations.

Committee position. The rapporteur proposes granting discharge to the directors of the agencies and approving closure of accounts, with observations in a resolution that highlights audit findings and calls for improvements.

Key points

  1. Parliament grants discharge to the directors of the listed agencies for the 2023 financial year, or postpones the decision, and approves or postpones closure of accounts.
  2. The resolution covers 31 decentralised agencies and two other bodies, excluding CPVO, EUIPO, and SRB which have separate discharge procedures.
  3. Calls for applying the same accountability and transparency principles to all EU-related bodies, including fully self-financed agencies.
  4. Notes that agencies should be evaluated every five years and that evaluation results should identify synergies, including mergers, and lead to legislative proposals where appropriate.
  5. Observes that governance structures vary, with some agencies having executive boards or tripartite boards, and notes evaluations of these structures.
  6. Highlights significant budget increases for some agencies, such as ESA (54.59%), Eurojust (20.86%), Frontex (19.65%), and ACER (19.15%), and calls for reconsidering Frontex's budget growth given high carryovers.
  7. Notes that some agencies are partially or fully self-financed, and calls on EBA, EIOPA, and ESMA to separately account for costs of activities funded by different revenue streams.
  8. Expresses concern over qualified audit opinions for EIT, ELA, ENISA, and eu-LISA due to irregular payments, and urges corrective actions.
  9. Notes that 14 agencies have carryover levels above 15%, with Frontex and ESA exceeding 40% and 50%, and asks agencies to adhere to payment deadlines.
  10. Calls on agencies to improve gender balance in management, address staff burnout and turnover, and prioritise permanent staff over consultants.
  11. Urges agencies to implement Court observations on internal control weaknesses, including procurement and financial management issues.
  12. Encourages agencies to adopt EMAS and corporate sustainability plans, and notes that only two agencies require Transparency Register registration for outside contacts.

Who is affected

  • The 31 EU decentralised agencies and two other bodies (EIT and Euratom Supply Agency) covered by the discharge procedure.
  • Agencies with qualified audit opinions: EIT, ELA, ENISA, and eu-LISA, which must address irregular payments.
  • Agencies with high carryovers (e.g., Frontex, ESA) and those with frequent late payments (e.g., ACER, ECDC) are urged to improve budget management.
  • Agencies with open audit observations, particularly eu-LISA, Frontex, and ELA, are requested to take proactive measures.
  • Fully self-financed agencies like CdT are noted for financial challenges and asked to report on mitigation plans.

Figures and deadlines

  • Budget increases: ESA 54.59%, Eurojust 20.86%, Frontex 19.65%, ACER 19.15%.
  • Frontex budget grew from EUR 364 million to EUR 829 million from 2020 to 2023, with 45% carryovers in 2023.
  • CdT reported losses totalling EUR 3.4 million in 2023; reserve dropped to EUR 8.9 million.
  • EIT irregular grant payments estimated at EUR 12.2 million (3.4% error rate).
  • ELA irregular payments of EUR 1.6 million (3.8% of payment appropriations).
  • ENISA irregular payments of EUR 1.8 million (4.1% of payment appropriations).
  • eu-LISA irregular payments totalling EUR 12.6 million (3.2% of payment appropriations).
  • EMA could be liable for up to EUR 550 million for its former London premises; provision of EUR 131.4 million.

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