2017 discharge: Fusion for Energy Joint Undertaking (F4E)
PURPOSE: presentation by the Commission of the consolidated annual accounts of the European Union for the financial year 2017, as part of the 2017 discharge procedure.
Analysis of the accounts of the Fusion for Energy Joint Undertaking (F4E).
CONTENT: the organisational governance of the EU consists of institutions, agencies and other EU bodies whose expenditure is included in the general budget of the Union.
This Commission document concerns the EU's consolidated accounts for the year 2017 and details how spending by the EU institutions and bodies was carried out. The consolidated annual accounts of the EU provide financial information on the activities of the institutions, agencies and other bodies of the EU from an accrual accounting and budgetary perspective.
It is the responsibility of the Commission's Accounting Officer to prepare the EU's consolidated annual accounts and ensure that they present fairly, in all material aspects, the financial position, the result of the operations and the cash flows of the EU institutions and bodies with a view to granting discharge.
Discharge procedure: the final step of a budget lifecycle is the discharge. It is the decision by which the European Parliament ‘releases’ the Commission from its responsibility for management of a given budget by marking the end of that budget's existence. It is granted by the European Parliament on the recommendation of the Council.
The decision is based in particular on the European Court of Auditors reports, in particular its annual report, in which the Court provides a Statement of Assurance (DAS) on the legality and regularity of transactions (payments and commitments).
The procedure results in the granting, postponement or refusal of discharge.
The final discharge report including specific recommendations to the Commission for action is adopted in plenary by the European Parliament and are subject to an annual follow up report in which the Commission outlines the concrete actions it has taken to implement the recommendations made.
All EU institutions and other agencies, bodies and joint undertakings are subject to their own discharge procedures.
F4E JU: Fusion for Energy (F4E) is a Joint Undertaking created under the Euratom Treaty by Council Decision 2007/198/Euratom. F4E was established for a period of 35 years from 19 April 2007 and its seat is located in Barcelona, Spain. The ITER project was created to manage and to encourage the exploitation of the ITER facilities, to promote public understanding and acceptance of fusion energy, and to undertake any other activities that are necessary to achieve its purpose. ITER involves the EU, China, India, Russia, South Korea, Japan and the USA.
Main changes in 2017: during the period covered by this report the F4E Action Plan originally prepared has evolved with the closure of some actions and the introduction of new ones:
- progress has been regularly reported to the Governing Board. The Plan aims to carry out further improvements to the ITER project as a whole;
- some adjustments have been made to the F4E organisational structure and the latest Organization Breakdown Structure is now effective as of 1st January 2018;
- the overall ITER project cost and the associated estimate of resources for the overall period 2016-2035, approved “ad referendum” (i.e. subject to domestic processes of obtaining approval including approval of budgetary authorities and/or parliament if required) in 2016 was still the basis of the work on the baseline during 2017, aiming at a final approval in 2018. In May 2017, the Commission released a communication outlining the cost involved with the completion of the ITER project until 2035, when the Deuterium-Tritium (D-T) operations will start.
As regards the accounts:
Commitment appropriations:
- available: EUR 879 million;
- made: EUR 879 million.
Payment appropriations:
- available: EUR 869 million;
- paid: EUR 835 million.
Please also refer to the final accounts of F4E.