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2011 discharge: European Insurance and Occupational Pensions Authority (EIOPA)

2012/2208(DEC)

The Committee on Budgetary Control adopted the report by Gerben-Jan GERBRANDY (ADLE, NL) on discharge to be granted to the Director of the European Insurance and Occupational Pensions Authority (EIOPA) in respect of the implementation of the Agency's budget for the financial year 2011.

Noting that the Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of the Authority for the financial year 2011 are reliable and that the underlying transactions are legal and regular, Members approve the closure of the Authority’s accounts. However, they make a number of recommendations that need to be taken into account when the discharge is granted, in addition to the general recommendations that appear in the draft resolution on performance, financial management and control of EU agencies:

  • Financing, budget and financial management: Members recall that in accordance with its Founding Regulation, 55% of the 2011 budget was financed by contributions from the Member States and the European Free Trade Association (EFTA) countries, and 45% was financed from the Union budget. They note that the Authority's overall allocated budget for 2011 amounted to EUR 10 667 000. The Authority recorded a positive budget outturn of EUR 2 804 969, 812, which was recorded in the accounts as a liability towards the Commission. They note that 80% of the Member States budget cashed in 2011 and they invite the Member States to contribute their full share in the future. Given that the Authority is an integral part of the European System of Financial Supervisors and works in close cooperation with its sister authorities, the European Banking Authority and the European Securities and Markets Authority, within a Joint Committee, and with the European Systemic Risks Board, Members call on the Commission to evaluate the possibility of coming up with a proposal ensuring that the budgets of the three European Supervisory Authorities (ESAs) are fully funded by the Union budget.
  • Implementation rate of appropriations: Members establish from the annual accounts that the Authority registered a budget execution ratio of 61.68% for commitments and of 58.84% for payments at the end of 2011. Members call on the Authority to inform the discharge authority of the actions taken to improve that ratio, as the low execution ratio shows difficulties in budget planning and implementation.

Lastly, Members made a series of observations as regards the accounting system, procurement and recruitment procedures of this Agency.