LegalizeCommission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council
SECTION 1
General Rules
Article 54
Withdrawal of delegation of powers to and suspension of duties of financial actors
Article 90 of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 55
Liability of the financial actors for illegal activity, fraud or corruption
Article 91 of Regulation (EU, Euratom) 2018/1046 shall apply.
SECTION 2
Rules applicable to authorising officers
Article 56
Rules applicable to authorising officers
Article 92 of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 57
Treatment of financial irregularities on the part of a member of staff
Article 93 of Regulation (EU, Euratom) 2018/1046 shall apply.
SECTION 3
Rules applicable to accounting officers and imprest administrators
Article 58
Rules applicable to accounting officers
Article 94 of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 59
Rules applicable to imprest officers
Article 95 of Regulation (EU, Euratom) 2018/1046 shall apply.
CHAPTER 5
REVENUE OPERATIONS
Article 60
Request for payment
The Union body shall present to the Commission requests for payment of all or part of the annual Union contribution pursuant to Article 16(6) under terms and at intervals agreed with the Commission.
Article 61
Treatment of interest
The interest generated by funds paid to the Union body by the Commission by way of the contribution shall not be due to the budget of the Union.
Article 62
Estimate of amounts receivable
Article 97 of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 63
Establishment of amounts receivable
Article 98 of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
Article 64
Default interest
Article 99 of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 65
Authorisation of recovery
The authorisation of recovery is the act by which the authorising officer instructs the accounting officer, by issuing a recovery order, to recover an amount receivable that that authorising officer has established.
Article 66
Rules on recovery
Paragraphs 1 to 6 of Article 101 of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
Article 67
Recovery by offsetting
Article 102 of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
Article 68
Recovery procedure failing voluntary payment
Article 103 of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 69
Additional time for payment
Article 104 of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 70
Limitation period
Article 105 of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
Article 71
Specific provisions applicable to fees and charges
Where the Union body collects fees and charges referred to in point (b) of Article 6(3), an overall provisional estimate of such fees and charges shall be included in the Single Programming Document referred to in Article 32.
Where fees and charges are entirely determined by legislation or decisions of the management board, the authorising officer may abstain from issuing recovery orders and directly draw up debit notes after having established the amount receivable. In this case, all details of the Union body's entitlement shall be registered. The accounting officer shall keep a list of all debit notes and provide the number of the debit notes and the global amount in the Union body's report on budgetary and financial management.
Where the Union body uses a separate invoicing system, the accounting officer shall regularly, and at least on a monthly basis, enter the accumulated sum of fees and charges received into the accounts.
The Union body shall provide services by virtue of the tasks entrusted to it only after the corresponding fee or charge has been paid in its entirety. However, in exceptional circumstances, a service may be provided without prior payment of the corresponding charge or fee. In cases where service has been provided without prior payment of the corresponding charge or fee, Articles 63 to 70 shall apply.
CHAPTER 6
EXPENDITURE OPERATIONS
Article 72
Financing decisions
A budgetary commitment shall be preceded by a financing decision. Administrative appropriations may be implemented without a prior financing decision.
The annual and multi-annual work programmes of the Union body included in the single programming document referred to in Article 32 shall be equivalent to a financing decision for the activities it covers, provided that the elements set out in Article 32(2) and (3) are clearly identified. A multiannual financing decision shall specify that the implementation of the decision is subject to the availability of budget appropriations for the respective financial years after the adoption of the budget or as provided for in the system of provisional twelfths.
The financing decision shall also set out the following:
(a) for grants: the type of applicants targeted by the call for proposals or direct award and the global budgetary envelope reserved for the grants;
(b) for procurement: the global budgetary envelope reserved for procurements;
(c) for prizes: the type of participants targeted by the contest, the global budgetary envelope reserved for the contest and a specific reference for prizes with a unit value of EUR 1 000 000 or more.
Article 73
Expenditure operations
Every item of expenditure shall be committed, validated, authorized and paid.
At the end of the periods referred to in Article 75, the unused balance of budgetary commitments shall be decommitted.
When executing operations, the authorising officer shall ensure that the expenditure complies with the Treaties, the budget, this Regulation and other acts adopted pursuant to the Treaties as well as with the principle of sound financial management.
The authorising officer shall make a budgetary commitment before entering into a legal commitment with third parties.
The first subparagraph shall not apply to legal commitments concluded following a declaration of a crisis situation in the framework of a business continuity plan, in accordance with the procedures adopted by the Union body.
The authorising officer shall validate expenditure by accepting that an item of expenditure is charged to the budget of the Union body, after having checked the supporting documents attesting the creditor's entitlement as per the conditions set in the legal commitment when there is a legal commitment. For this purpose, the authorising officer responsible shall:
(a) verify the existence of the creditor's entitlement;
(b) determine or verify the reality and the amount of the claim through the endorsement ‘certified correct’;
(c) verify the conditions according to which payment is due.
Notwithstanding the first subparagraph, the validation of expenditure shall also apply to interim or final reports not associated with a request for payment in which case the impact on the accounting system will be limited to the general accounts.
The validation decision shall be expressed through electronically secured signature in accordance with Article 146 of Regulation (EU, Euratom) 2018/1046 by the authorising officer or by a technically competent member of staff, duly empowered by a formal decision of the authorising officer or, exceptionally, for paper workflow, take the form of a stamp incorporating that signature.
With the endorsement ‘certified correct’, the authorising officer or a technically competent member of staff, duly empowered by the authorising officer, shall certify that:
(a) for the pre-financing: the conditions required in the legal commitment for the payment of the pre-financing are met;
(b) for interim and balance payments in contracts: the services provided for in the contract have been properly provided, the supplies properly delivered or that the work has been properly carried out;
(c) for interim and balance payments in grants: the action or work programme carried out by the beneficiary is in all respects in compliance with the grant agreement including, where applicable that the costs declared by the beneficiary are eligible.
In the case referred to in point (c) of the second subparagraph, cost estimates shall not be deemed to comply with the eligibility conditions set out in Article 186(3) of Regulation (EU, Euratom) 2018/1046. The same principle shall also apply for interim and final reports not associated to a payment request.
In order to authorize the expenditure, the authorising officer shall, after having verified that the appropriations are available, issue a payment order to instruct the accounting officer to pay an amount of expenditure that has been previously validated.
Where periodic payments are made with regard to services rendered, including rental services, or goods delivered, the authorising officer may, subject to that officer's risk analysis, order the application of a direct debit system from an imprest account.
Article 74
Types of budgetary commitments
Budgetary commitments shall fall into one of the following three categories:
(a) individual: when the recipient and the amount of the expenditure are known;
(b) global: when at least one of the elements necessary to identify the individual commitment is still not known;
(c) provisional: to cover routine administrative expenditure where either the amount or the final payees are not definitively known.
Budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments only where the constituent act or basic act so provides or where they relate to administrative expenditure.
A global budgetary commitment shall be made on the basis of a financing decision.
The global budgetary commitment shall be made at the latest before the decision on the recipients and amounts is taken and, where implementation of the appropriations concerned involves the adoption of a work programme, at the earliest after that programme has been adopted.
The global budgetary commitment shall be implemented by the conclusion of one or more legal commitments.
Each individual legal commitment adopted following a global budgetary commitment shall, prior to signature, be registered by the authorising officer in the budgetary accounts and booked to the global budgetary commitment.
Provisional budgetary commitments shall be implemented by entering into one or more legal commitments giving rise to an entitlement to subsequent payments. However, in cases relating to expenditure on staff management, they may be implemented directly by payments.
Article 75
Time limits for commitments
Without prejudice to Articles 73(2) and 109(2) legal commitments relating to individual or provisional budgetary commitments shall be entered into by 31 December of year n, year n being the one in which the budgetary commitment was made.
Global budgetary commitments shall cover the total cost of the corresponding legal commitments concluded up to 31 December of year n + 1.
At the end of the periods referred to in paragraphs 1 and 2, the unused balance of such budgetary commitments shall be decommitted by the authorising officer.
The individual and provisional budgetary commitments for actions extending over more than one financial year shall, except in the case of staff expenditure, have a final date for implementation set, in accordance with the conditions in the legal commitments to which they refer, and taking into account the principle of sound financial management.
Any parts of budgetary commitments that have not been executed by payments six months after the final date for implementation shall be decommitted in accordance with Article 14.
The amount of a budgetary commitment for which no payment within the meaning of Article 76 has been made within two years of the signing of the legal commitment shall be decommitted, except where that amount relates to a case under litigation before judicial courts or arbitral bodies or where there are special provisions laid down in sector-specific rules.
Article 76
Types of payments
Payment of expenditure shall be made by the accounting officer within the limits of the funds available.
Payment shall be made on production of proof that the relevant action is in accordance with the contract, the agreement or the basic act and shall cover one or more of the following operations:
(a) payment of the entire amount due;
The payment of the balance shall clear all preceding expenditure. A recovery order shall be issued to recover unused amounts.
A distinction shall be made in budgetary accounting between the different types of payment referred to in paragraph 2 at the time each payment is made.
The accounting rules referred to in Article 51 shall include the rules for clearing the pre-financing in the accounts and for the acknowledgment of the eligibility of costs.
Pre-financing payments shall be cleared regularly by the authorising officer responsible, according to the economic nature of the project and, at the latest, at the end of the project. The clearing shall be performed on the basis of information on costs incurred or confirmation of the conditions for payment being fulfilled in accordance with Article 125 of Regulation (EU, Euratom) 2018/1046 as validated by the authorising officer in accordance with Article 73(3) of this Regulation.
For grant agreements or contracts above EUR 5 000 000, the authorising officer shall obtain at each year-end at least the information needed to calculate a reasonable estimate of the costs. That information shall not be used for clearing the pre-financing, but may be used by the authorising officer and the accounting officer to comply with Article 82(2) of Regulation (EU, Euratom) 2018/1046.
For the purposes of the second subparagraph, appropriate provisions shall be included in the legal commitments entered into.
Article 77
Time limits for payments
The payment of expenditure shall be carried out within the time limits specified in, and in accordance with Article 116 of Regulation (EU, Euratom) 2018/1046.
CHAPTER 7
INTERNAL AUDITOR
Article 78
Appointment and powers and duties of the internal auditor
The Union body shall have an internal auditing function that shall be performed in compliance with the relevant international standards.
The internal audit function shall be performed by the Commission's internal auditor. The internal auditor may be neither authorising officer nor accounting officer neither of the Union body nor of the Commission
The internal auditor shall advise the Union body on dealing with risks, by issuing independent opinions on the quality of management and control systems and by issuing recommendations for improving the conditions of implementation of operations and promoting sound financial management.
The internal auditor shall be responsible, in particular, for:
(a) assessing the suitability and effectiveness of internal management systems and the performance of departments in implementing programmes and actions by reference to the risks associated with them;
(b) assessing the efficiency and effectiveness of the internal control and audit systems applicable to each operation for implementation of the budget of the Union body.
The internal auditor shall perform his or her duties in relation to all the Union body's activities and departments. He or she shall enjoy full and unlimited access to all information required to perform his or her duties, if necessary on the spot access, including in the Member States and in third countries.
The internal auditor shall take note of the consolidated annual activity report of the authorising officer and any other pieces of information identified.
The internal auditor shall report to the management board and the director of the Union body on his or her findings and recommendations. The Union body shall ensure that action is taken with regard to recommendations resulting from audits.
The internal auditor shall also report in any of the following cases:
(a) critical risks and recommendations have not been addressed;
(b) there are significant delays in the implementation of the recommendations made in previous years.
The management board or, where the constituent act allows it, the executive board, and the director shall ensure regular monitoring of the implementation of audit recommendations. The management board or, where the constituent act allows it, the executive board shall examine the information referred to in Article 48(1)(a) and whether the recommendations have been fully and timely implemented.
Each Union body shall consider whether the recommendations made in the reports of its internal auditor are suitable for an exchange of best practices with the other Union bodies.
The Union body shall make available the contact details of the internal auditor to any natural or legal person involved in expenditure operations, for the purposes of confidentially contacting the internal auditor.
The reports and findings of the internal auditor shall be accessible to the public only after validation by the internal auditor of the action taken for their implementation.
Article 79
Independence of the internal auditor
The internal auditor shall enjoy complete independence in the conduct of his or her audits. Special rules applicable to the internal auditor shall be laid down by the Commission and shall be such as to guarantee that the internal auditor is completely independent in the performance of his or her duties, and to establish the internal auditor's responsibility.
The internal auditor may not be given any instructions nor be restricted in any way as regards the performance of the functions which, by virtue of his or her appointment, are assigned to him or her under the Financial Regulation.
Article 80
Establishment of internal audit capability
The management board or, where the constituent act allows it, the executive board may establish, with due regard to cost effectiveness and added value, an internal audit capability that shall perform its duties in compliance with the relevant international standards.
The purpose, authority and responsibility of the internal audit capability shall be provided for in the internal audit charter and shall be subject to the approval of the management board or, where the constituent act allows it, of the executive board.
The annual audit plan of an internal audit capability shall be drawn up by the Head of internal audit capability taking into consideration, inter alia, the director's assessment of risk in the Union body.
It shall be reviewed and approved by the management board or, where the constituent act allows it, by the executive board.
The internal audit capability shall report to the management board and the director on his or her findings and recommendations.
If the internal audit capability of a single Union body is not cost-effective or is not able to meet international standards, the Union body may decide to share an internal audit capability with other Union bodies functioning in the same policy area.
In such cases the management board or, where the constituent act allows it, the executive board of the concerned Union bodies shall agree on the practical modalities of the shared internal audit capability.
The internal audit actors shall cooperate efficiently through exchanging information and audit reports and, where appropriate, establishing joint risk assessments, and carrying out joint audits.
The management board or, where the constituent act allows it, the executive board, and the director shall ensure regular monitoring of the implementation of internal audit capability's recommendations.
TITLE V
COMMON RULES
Article 81
Forms of Union bodies' contributions
Union bodies' contributions shall help achieve a Union policy objective and results specified and may take any of the following forms:
(b) reimbursement of eligible costs actually incurred:
(c) unit costs, which cover all or certain specific categories of eligible costs which are clearly identified in advance by reference to an amount per unit;
(d) lump sums, which cover in global terms all or certain specific categories of eligible costs which are clearly identified in advance;
(e) flat-rate financing, which covers specific categories of eligible costs, which are clearly identified in advance, by applying a percentage;
(f) a combination of the forms referred to in points (a) to (e).
Union bodies' contributions under points (c), (d) and (e) of the first subparagraph of this paragraph shall be established in accordance with Article 181 of Regulation (EU, Euratom) 2018/1046 or sector specific rules. Union bodies' contributions under point (a) of the first subparagraph of this paragraph shall be established in accordance with Article 181 of Regulation (EU, Euratom) 2018/1046, sector specific rules or a Commission decision.
When determining the appropriate form of a contribution, the potential recipients' interests and accounting methods shall be taken into account to the greatest extent possible.
The authorising officer responsible shall report on financing not linked to costs pursuant to points (a) and (f) of the first subparagraph of paragraph 1 of this Article in the annual activity report referred to in Article 48.
Article 82
Cross-reliance on assessments
Article 126 of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
Article 83
Cross-reliance on audits
Article 127 of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 84
Use of already available information
Article 128 of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 85
Cooperation for protection of the financial interests of the Union
Article 129 of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
Article 86
Information to the Commission on cases of fraud and other financial irregularities
Without prejudice to its obligations pursuant to Article 8(1) of Regulation (EU, Euratom) No 883/2013 and Article 24(1) of Regulation (EU) 2017/1939, the Union body shall inform the Commission without delay on cases of presumed fraud and other financial irregularities.
Moreover, it shall inform the Commission of any completed or ongoing investigations by the European Public Prosecutor's Office or the European anti-Fraud Office (OLAF), and of any audits or controls by the Court of Auditors or the Internal Audit Service (IAS), without endangering the confidentiality of the investigations.
Where the Commission's responsibility to implement the Union's budget may be affected or in cases involving a potentially serious reputational risk for the Union, the EPPO and/or OLAF shall inform the Commission without delay of any ongoing or completed investigation, without endangering its confidentiality and effectiveness.
Article 87
Early-detection and exclusion system
Section 2 of Chapter 2 of Title V of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 88
Rules on procedures, management and e-government
Section 1 and section 3 of Chapter 2 and Chapter 3 of Title V of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
TITLE VI
PUBLIC PROCUREMENT AND CONCESSIONS
Article 89
Common provisions
As regards procurement, Title VII of Regulation (EU, Euratom) 2018/1046 and Annex 1 thereof shall apply, subject to Article 90.
The Union body may be associated, at its request, as contracting authority, in the award of Commission or interinstitutional contracts and with the award of contracts of other Union bodies.
Article 90
Procurement procedures
The Union body may conclude a service level agreement as referred to in paragraph 2 of Article 43 without having recourse to a public procurement procedure.
The Union body may use joint procurement procedures with contracting authorities of the host Member State to cover its administrative needs. In such case, Article 165 of Regulation (EU, Euratom) 2018/1046 shall apply.
TITLE VII
GRANTS AND PRIZES
Article 91
Grants
Where the Union body may award grants in accordance with the constituent act or by delegation of the Commission pursuant to Article 62(1)(c)(iv) of Regulation (EU, Euratom) 2018/1046, the relevant provisions of Title VIII of Regulation (EU, Euratom) 2018/1046 shall apply.
Article 92
Prizes
Where the Union body may award prizes in accordance with the constituent act or by delegation of the Commission pursuant to Article 62(1)(c)(iv) of Regulation (EU, Euratom) 2018/1046, the relevant provisions of Title IX of Regulation (EU, Euratom) 2018/1046 shall apply.
TITLE VIII
OTHER BUDGET IMPLEMENTATION INSTRUMENTS
Article 93
Remunerated external experts
Article 237 of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
Article 94
Non remunerated experts
Article 238 of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
Article 95
Membership fees and other payments of subscriptions
Article 239 of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
Article 96
Other instrument
Article 240 of Regulation (EU, Euratom) 2018/1046 shall apply mutatis mutandis.
TITLE IX
ANNUAL ACCOUNTS AND OTHER FINANCIAL REPORTING
CHAPTER 1
ANNUAL ACCOUNTS
SECTION 1
Accounting Framework
Article 97
Structure of the accounts
The annual accounts of the Union body shall be prepared for each financial year that shall run from 1 January to 31 December. Those accounts shall comprise the following:
(a) the financial statements of the Union body;
(b) the budget implementation reports of the Union body.
Article 98
Financial statements
The financial statements shall be presented in euro and in accordance with the accounting rules referred to in Article 51 of this Regulation and shall comprise the following:
(a) the balance sheet which presents all assets and liabilities and the financial situation prevailing on 31 December of the preceding financial year;
(b) the statement of financial performance that presents the economic result for the preceding financial year;
(c) the cash-flow statement showing amounts collected and disbursed during the financial year and the final treasury position;
(d) the statement of changes in net assets presenting an overview of the movements during the year in reserves and accumulated results.
The financial statements shall present information, including information on accounting policies, in a manner that ensures it is relevant, reliable, comparable and understandable.
The notes to the financial statements shall supplement and comment on the information presented in the statements referred to in paragraph 1 of this Article and shall supply all the additional information prescribed by the accounting rules referred to in Article 51 of this Regulation and the internationally accepted accounting practice where such information is relevant to the Union body's activities.
The notes shall contain at least the following information:
(a) accounting principles, rules and methods;
(b) explanatory notes, supplying additional information not contained in the body of the financial statements, which is necessary for a fair presentation of the accounts.
The accounting officer shall, after the close of the financial year and up to the date of transmission of the general accounts, make any adjustments that, without involving disbursement or collection in respect of that year, are necessary for a true and fair view of those accounts.
Article 99
Budget implementation reports
The budget implementation reports shall be presented in euro and shall be comparable year by year. They shall consist of:
(a) reports which aggregate all budgetary operations for the year in terms of revenue and expenditure;
(b) explanatory notes, which shall supplement and comment on the information given in the reports.
The structure of the budget implementation reports shall be the same as that of the budget of the Union body itself.
The budget implementation reports shall contain:
(a) information on revenue, in particular changes in the revenue estimates, the revenue outturn and entitlements established;
(b) information showing changes in the total commitment and payment appropriations available;
(c) information showing the use made of the total commitment and payment appropriations;
(d) information showing commitments outstanding, those carried over from the preceding financial year and those made during the financial year.
The budget result shall consist of the difference between:
(a) all the revenue collected in respect of that financial year;
(b) the amount of payments made against appropriations for that financial year increased by the amount of the appropriations for the same financial year carried over.
The difference referred to in the first subparagraph shall be increased or decreased on the one hand, by the net amount of appropriations carried over from previous financial years that have been cancelled and, on the other hand, by:
(a) payments made in excess of non-differentiated appropriations carried over from the previous financial year, as a result of change in euro rates;
(b) the balance resulting from exchange gains and losses during the financial year, both realised and non-realised.
Article 100
Supporting documents
Each entry into the accounts shall be based on appropriate supporting documents in accordance with Article 47 of this Regulation.
SECTION 2
Annual accounts timetable
Article 101
Provisional accounts
The accounting officer of the Union body shall send the provisional accounts to the accounting officer of the Commission and to the Court of Auditors by 1 March of the following year.
The accounting officer of the Union body shall also provide by 1 March of the following year the required accounting information for consolidation purposes to the accounting officer of the Commission, in the manner and format laid down by the latter.
Article 102
Approval of the final accounts
In accordance with Article 246 of Regulation (EU, Euratom) 2018/1046, the Court of Auditors shall, by 1 June, make its observations on the provisional accounts of the Union body.
The accounting officer of the Union body shall provide, by 15 June, the required accounting information to the accounting officer of the Commission, in the manner and format laid down by the Commission, with a view to drawing up the final consolidated accounts.
On receiving the Court of Auditors' observations on the provisional accounts of the Union body, the accounting officer shall draw up the final accounts of the Union body in accordance with Article 49 of this Regulation. The director shall send them to the management board, which shall give an opinion on these accounts.
The director shall send the final accounts, together with the opinion of the management board, to the accounting officer of the Commission, the Court of Auditors, the European Parliament and the Council, by 1 July of the following financial year.
The accounting officer of the Union body shall also send to the Court of Auditors, with a copy to the accounting officer of the Commission, a representation letter covering those final accounts. The representation letter shall be established at the same date at which the final accounts of the Union body are drawn up.
The final accounts shall be accompanied by a note drawn up by the accounting officer, in which the latter declares that the final accounts were prepared in accordance with this Title and with the applicable accounting principles, rules and methods.
A link to the pages of the website where the final accounts of the Union body are disclosed shall be published in the Official Journal of the European Union by 15 November of the following year.
The director shall send the Court of Auditors a reply to the observations made in its annual report by 30 September of the following financial year at the latest. The replies of the director shall be sent to the Commission at the same time.
CHAPTER 2
BUDGETARY AND OTHER FINANCIAL REPORTING
Article 103
Annual report on budgetary and financial management
Each Union body shall prepare a report on budgetary and financial management for the financial year.
The director shall send the report to the European Parliament, the Council, the Commission and the Court of Auditors, by 31 March of the following financial year.
The report referred to in paragraph 2 shall give an account, both in absolute terms and expressed as a percentage, at least, of the rate of implementation of appropriations together with summary information on the transfers of appropriations among the various budget items.
TITLE X
EXTERNAL AUDIT, DISCHARGE AND COMBATTING FRAUD
Article 104
External audit
An independent external auditor shall verify that the annual accounts of the Union body properly present the income, expenditure and financial position of the Union body prior to the consolidation in the final accounts of the Commission.
Unless otherwise provided for in the constituent act, the Court of Auditors shall prepare a specific annual report on the Union body in line with the requirements of Article 287(1) of the Treaty on the Functioning of the European Union.
In preparing that report, the Court of Auditors shall consider the audit work performed by the independent external auditor referred to in the first subparagraph and the action taken in response to the auditor's findings.
The Union body shall send to the Court of Auditors the budget of the Union body, as finally adopted. It shall inform the Court of Auditors, as soon as possible, of all decisions and acts adopted pursuant to Articles 10, 14, 19 and 23.
The scrutiny carried out by the Court of Auditors shall be governed by Articles 254 to 259 of Regulation (EU, Euratom) 2018/1046.
Article 105
Timetable of the discharge procedure
The European Parliament, upon a recommendation from the Council, shall, before 15 May of year N + 2 save where otherwise provided in the constituent act, give a discharge to the director in respect of the implementation of the budget for year N. The director shall inform the management board of the observations of the European Parliament contained in the resolution accompanying the discharge decision.
If the date provided for in paragraph 1 cannot be met, the European Parliament or the Council shall inform the director of the reasons for the postponement.
If the European Parliament postpones the decision giving a discharge, the director, in cooperation with the management board, shall make every effort to take measures as soon as possible to remove or facilitate removal of the obstacles to that decision.
Article 106
The discharge procedure
The discharge decision shall cover the accounts of all the revenue and expenditure of the Union body, the budget result and the assets and liabilities of the Union body shown in the financial statement.
With a view to granting the discharge, the European Parliament shall, after the Council has done so, examine the accounts and financial statements of the Union body. It shall also examine the annual report made by the Court of Auditors, together with the replies of the director of the Union body, any relevant special reports by the Court of Auditors in respect of the financial year concerned and the Court of Auditors' statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions.
The director shall submit to the European Parliament, at its request, in the same manner as provided for in Article 261(3) of Regulation (EU, Euratom) 2018/1046 any information required for the smooth application of the discharge procedure for the financial year concerned.
Article 107
Follow-up measures
The director shall take all appropriate steps to act on the observations accompanying the European Parliament's discharge decision and on the comments accompanying the recommendation for discharge adopted by the Council.
At the request of the European Parliament or the Council, the director shall report on the measures taken in the light of those observations and comments. The director shall send a copy thereof to the Commission and the Court of Auditors.
Article 108
On-the-spot checks by the Commission, the Court of Auditors and OLAF
The EU body shall grant Commission staff and other persons authorised by it, as well as the Court of Auditors, access to its sites and premises and to all the data and information, including data and information in electronic format, needed in order to conduct their audits.
The European Anti-Fraud Office may carry out investigations including on-the-spot checks and inspections, in accordance with the provisions and procedures laid down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council and Council Regulation (Euratom, EC) No 2185/96 (10) with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union.
TITLE XI
ADMINISTRATIVE APPROPRIATIONS
Article 109
Administrative appropriations
Administrative appropriations shall be non-differentiated appropriations.
Administrative expenditure arising from contracts covering periods that extend beyond the financial year, either in accordance with local practice or relating to the supply of equipment, shall be charged to the budget of the Union body of the financial year in which it is effected.
Expenditure which is to be paid in advance pursuant to legal or contractual provisions may give rise to payments from 1 December onwards to be charged to the appropriations for the following financial year. In this case, the limit referred to in Article 11(2) shall not apply.
Article 110
Specific provisions regarding building projects
Articles 266 and 267 of Regulation (EU, Euratom) 2018/1046 shall apply.
TITLE XII
TRANSITIONAL AND FINAL PROVISIONS
Article 111
Information requests by the European Parliament, the Council and the Commission
The European Parliament, the Council and the Commission shall be entitled to obtain any necessary information or explanations from the Union body regarding budgetary matters within their fields of competence.
Article 112
Adoption of the new financial regulation of the Union body
Each body referred to in Article 70 of Regulation (EC) No 2018/1046 shall adopt new financial rules at the latest by 1 July 2019 or, in any event, within six months of the date on which a body falls within the scope of Article 70 of that Regulation, following the granting of a contribution charged to the budget. Until the date of application of the new financial rules, the Union's body current financial rules shall apply. The Union body shall publish its financial rules on its website.
Article 113
Repeal
Delegated Regulation (EU) No 1271/2013 is repealed with effect from 1 January 2019. However, Articles 32 and 47 of that Regulation shall continue to apply until 31 December 2019.
Article 114
Entry into force
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union. It shall apply from 1 January 2019. However, Articles 32 and 48 shall apply from 1 January 2020.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 18 December 2018.
For the Commission The President Jean-Claude JUNCKER
(1) OJ L 193, 30.7.2018, p. 1.
(2) Commission Delegated Regulation (EU) No 1271/2013 of 30 September 2013 on the framework financial regulation for the bodies referred to in Article 208 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (OJ L 328, 7.12.2013, p. 42).
(3) Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euraom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).
(4) Regulation (EU, Euratom) 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).
(5) Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor's Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).
(6) Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (OJ L 362, 31.12.2012, p. 1).
(7) Council Regulation (EEC, Euratom) No 1182/71 of 3 June 1971 determining the rules applicable to periods, dates and time limits (OJ L 124, 8.6.1971, p. 1).
(8) Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC Text with EEA relevance (OJ L 295, 21.11.2018, p. 39).
(9) Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (Text with EEA relevance) (OJ L 119, 4.5.2016, p. 1).
(10) Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).
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