Regulation (EEC) No 1416/76 is hereby amended as follows:
1. Article 1 (2) is replaced by the following paragraphs 2 and 3:
'2. Expenditure may not be authorized for a period extending beyond the financial year.
3. Administrative expenditure arising from:
- contracts which have been concluded, in accordance with local usage, or
- contractual provisions relating, in particular, to the supply of equipment,
for the periods extending beyond the financial year shall be charged to the statement of revenue and expenditure for the financial year in which it is effected.';
2. Article 2 is replaced by the following:
'Article 2
The budget appropriations must be used in accordance with the principles of sound financial management, and in particular those of economy and cost-effectiveness. Quantified objectives must be identified and the progress of their realization monitored.';
3. Article 3 (1) is replaced by the following:
'1. Subject to Article 22, all revenue and expenditure shall be entered in full in the statement of revenue and expenditure and in the accounts without any adjustment against each other.';
4. Article 3 (2):
(a) the first subparagraph is replaced by the following:
'2. Total revenue shall cover total expenditure.
However, certain revenues shall not be used for any other purpose, notably:
- revenue earmarked for a specific purpose, such as income from foundations, subsidies, gifts and bequests,
- revenue from third parties in respect of work carried out at their request.';
(b) the second and third subparagraphs become paragraph 3;
5. Article 4 is replaced by the following:
'Article 4
No revenue shall be collected and no expenditure effected unless credited to or charged against an article in the statement of revenue and expenditure.
No expenditure may be committed or authorized in excess of the authorized appropriations, without prejudice to Article 22.';
6. Article 6 is replaced by the following:
'Article 6
The following rules shall govern the utilization of appropriations:
1. (a) appropriations still uncommitted at the end of the financial year for which they were entered, shall, as a rule, lapse;
(b) appropriations relating to remunerations and allowances of staff may not be carried over;
(c) the appropriations not committed at 31 December may be carried over to the next financial year only;
(d) the appropriations in respect of payments still outstanding at 31 December by virtue of commitments duly entered into between 1 January and 31 December shall be carried over automatically to the next financial year only.
2. In the case of appropriations mentioned in point 1 (c), the Commission shall forward to the budgetary authority, not later than 15 February, the duly substantiated requests to carry over appropriations which the Centre has sent to it before 1 February.
The carry-over of such appropriations can be proposed only for exceptional reasons in order to cope with compelling needs which cannot be met by appropriations from the following financial year. In principle, such carry-overs are intended to cover needs normally coming under the previous financial year but which, due to delays for which the authorizing officer was not responsible, could not be used in due time.
The European Parliament shall consult the Council and shall act on these requests for carry-overs.
In the absence of a decision by the budgetary authority within a period of six weeks, the requests for carry-overs shall be deemed to be approved.
3. Unused revenue and appropriations still available on 31 December, arising out of the donations referred to in Article 3 (2), shall be carried over automatically.
4. The following appropriations shall lapse at the end of the year:
(a) appropriations from the previous financial year:
- appropriations carried over by decision under point 1 (c) which have been neither committed nor paid,
- appropriations carried over automatically under point 1 (d) which have not been paid;
(b) appropriations of the financial year which have not been carried over.
5. The Commission shall be provided, for its information, before 1 March, with a list of the appropriations to be carried forward automatically. The Commission shall forward this list to the European Parliament and the Council for their information.
6. For the purposes of implementing the statement of revenue and expenditure, the use of appropriations carried forward shall be shown separately, for each budget item, in each article in the accounts for the current financial year.';
7. the following paragraph is added to Article 7:
'Expenditure relating to rents or certain associated expenditure which is payable in advance in accordance with provisions laid down by law or contracts may give rise to payments from 20 December onwards to be charged to the appropriations for the next financial year.';
8. Article 8 is replaced by the following:
'Article 8
1. If the statement of revenue and expenditure is not finally adopted at the beginning of the financial year, Article 204 of the Treaty shall apply to commitment and payment of expenditure already approved in principle in the last statement duly adopted.
An item of expenditure shall be considered as having been approved in principle in the last statement duly adopted if it could have been charged to a specific budget heading under the financial year concerned.
2. Payments may be made monthly in respect of any chapter up to one-twelfth of the total appropriations entered in the chapter in question for the preceding financial year, account being taken of transfers, as long as this measure does not have the effect of placing at the disposal of the Centre, for any month, appropriations in excess of one-twelfth of the amount of the subsidy reserved for the Centre in the draft budget or, in the absence thereof, in the preliminary draft budget of the Communities. Commitments may be entered into in respect of any chapter for up to one-quarter of the total appropriations entered in the relevant chapter for the preceding financial year, account being taken of all transfers, plus one-twelfth for each completed month, without exceeding the amount of the subsidy reserved for the Centre in the draft budget or, in the absence thereof, in the preliminary draft budget of the Communities.
3. At the request of the Management Board, the Commission may, in the light of administrative needs, authorize simultaneously two or more provisional twelfths, provided that the amount authorized for each chapter does not exceed the maximum annual limit provided for in paragraph 2.
4. If, for a given chapter, the authorization of two or more provisional twelfths granted in the circumstances provided for in paragraph 3 does not enable the expenditure necessary to avoid a break in continuity of the Centre's activity in the area in question to be met, an overstepping of the total provided for in paragraph 3 may, exceptionally, be authorized in accordance with the same procedure, provided that the overall total of the appropriations opened in the statement of revenue and expenditure of the preceding year is not exceeded.';
9. Article 9 is deleted;
10. Article 10 is replaced by the following:
'Article 10
The statement of revenue and expenditure shall be drawn up in ecus. The value of the ecu and the arrangements for its conversion into national currencies shall be that laid down in the Financial Regulation applicable to the general budget of the European Communities.';
11. the first subparagraph of Article 11 (2) is replaced by the following:
'2. In the event of unavoidable, exceptional or unforeseen circumstances, the Management Board of the Centre may send supplementary or amending estimates to the Commission. Such estimates shall be submitted and adopted in the same form and according to the same procedure as the statement whose estimates they are amending. They must be substantiated by reference to the latter.';
12. the following paragraph is added to Article 14:
'The statement and the list of posts shall be published in the Official Journal of the European Communities, at the same time as the budget of the Communities.';
13. Article 15 is replaced by the following:
'Article 15
The statement of revenue and expenditure shall be subdivided into titles, chapters, articles and items according to the nature of the revenue or expenditure or the intended purpose thereof, following a decimal classification system.
It shall show:
1. as regards the statement of revenue:
(a) the revenue for the financial year in question;
(b) the revenue entered for the preceding financial year and the revenue established for the last financial year for which accounts have been closed;
(c) appropriate remarks on each revenue heading;
2. as regards the statement of expenditure:
(a) the appropriations made available for the financial year in question divided into titles, chapters, articles and items;
(b) the appropriations made available for the preceding financial year and the actual expenditure in the last financial year for which the accounts have been closed, increased by the amounts carried forward, using the same classification;
(c) appropriate remarks on each subdivision;
(d) in an annex, an establishment plan setting the number of permanent and temporary posts for each grade in each category and indicating the number of posts authorized for the preceding year.';
14. Aticle 16 is replaced by the following:
'Article 16
The establishment plan drawn up by the budgetary authority shall constitute an absolute limit for the Centre; no appointment may be made in excess of the limit set.
Instances of half-time work authorized by the Director in accordance with Article 29a of Council Regulation (ECSC, EEC, Euratom) No 1859/76 of 29 June 1976 laying down the conditions of employment of staff of the European Centre for the Development of Vocational Training (1) may be compensated for by the recruitment of other staff within the limits laid down by the budget authority in the budgetary procedure.
(1) OJ No L 214, 6. 8. 1976, p. 1.';
15. Article 17 is replaced by the following:
'Article 17
The statement of revenue and expenditure shall be implemented in accordance with the principle that the authorizing officers and accounting officers are different individuals.
The appropriations shall be administered by the authorizing officer who alone is empowered to enter into commitments regarding expenditure, establish entitlements to be collected and issue recovery orders and payment orders. The operations of collection or payment shall be carried out by the accounting officer. The duties of authorizing officer, financial controller and accounting officers shall be mutually incompatible.';
16. Article 18 is replaced by the following:
'Article 18
The Management Board of the Centre shall implement the statement of revenue and expenditure on its own responsibility in accordance with this Regulation and within the limits of the appropriations allotted.
With the exception of the cases provided for in Articles 23, 30, 38 and 41 involving decisions overruling the financial controller, the Management Board shall delegate its powers under conditions to be laid down by it and within the limits which it lays down in the act of delegation which shall be communicated to the delegatee, the accounting officers, the financial controller and the Court of Auditors.
Those so empowered may act only within the limits of the powers expressly conferred upon them.';
17. the following Article is inserted after Article 18:
'Article 18a
Where revenue and expenditure operations are managed by means of integrated computer systems, the provisions of Sections II and III and of Title VI shall apply with due allowance for the possibilities and requirements deriving from computerized management. To this end:
- the supporting documents may remain with the authorizing officer or the accounting officer for the purposes of checking,
- signatures and approvals may be added in appropriate computerized form.
The conditions for implementing this Article shall be determined by the implementing rules provided for in Article 76.';
18. Article 19 is replaced by the following:
'Article 19
The financial controller of the Commission shall be responsible for checking the commitment and payment of all expenditure and the establishment and recovery of all revenue of the Centre, in accordance with the principles laid down in Article 2.
Monitoring shall be carried out by that official by means of inspection of the files relating to expenditure and revenue and, if necessary, on the spot.
The financial controller may be assisted in his duties by one or more assistant financial controllers.
The financial controller must be consulted on the setting up of the accounting systems of the Centre. He shall have access to the data of such systems.';
19. in Article 20:
(a) the following paragraph is inserted after the second paragraph:
'He shall be responsible for preparing the financial statement provided for in Articles 66 and 67.';
(b) the following paragraph is added:
'The special rules applicable to the accounting officer and to assistant accounting officers shall be laid down in the implementing rules provided for in Article 76.';
20. the following paragraph is inserted in Article 21:
'4a. Appropriations may be transferred only to budget headings for which the statement of expenditure has authorized appropriations or carried a token entry.';
21. points (b) and (c) of Article 22 are replaced by the following:
'(b) the following sums may be reused under the heading to which the initial expenditure was charged:
- revenue arising from the refund of amounts paid in error against appropriations entered in the statement of revenue and expenditure,
- proceeds from the supply of goods and services to other institutions or bodies, including refunds by such institutions or bodies of mission allowances paid on their behalf,
- insurance payments received,
- revenue from payments connected with lettings,
- revenue from the sale of publications and films,
- refunds of taxes - incorporated in the price of the products or services provided to the Centre - effected by Member States pursuant to the provisions of the Protocol on the Privileges and Immunities of the European Communities,
- revenue from the supply of goods and services against payment;
- proceeds from the sale of vehicles, equipment and installations and scientific and technical apparatus, equipment and materials which are being replaced or scrapped.
Such sums must be reused before the end of the financial year following that in which the revenue was collected.
The chart of accounts shall include suspense accounts to record reuse operations in both revenue and expenditure;
QT>'(b)'(c) adjustments may be made in respect of exchange differences occurring in budget operations. The final gain or loss shall be included in the balance for the year.';
22. Article 23 is replaced by the following:
'Article 23
1. All measures which may give rise to or modify a debt due to the Centre must be preceded by a proposal from the authorizing officer. Such proposals shall be sent to the financial controller for his approval and to the accounting officer for provisional registration. They shall mention, in particular, the type of revenue, the estimated amount thereof and the item to which it is to be booked and also the name and description of the debtor. They shall be registered after approval by the financial controller. The purpose of the approval of the financial controller shall be to establish that:
(a) the revenue is booked to the correct item;
(b) the proposal is in order and conforms to the relevant provisions, in particular in the statement of revenue and expenditure, the rules applying to the Centre and all acts made in implementation of those regulations, and to the principles of sound financial management referred to in Article 2.
The financial controller may withhold his approval. The Management Board may, by a decision stating the full reasons therefor, and on its sole responsibility, overrule this refusal. This decision shall be final and binding; it shall be communicated for information to the financial controller. The Management Board shall inform the Court of Auditors of all such decisions within one month.
2. The competent authorizing officer shall draw up, in respect of every debt established, a recovery order which shall be sent with supporting documents to the financial controller for his prior approval. Such recovery orders shall, after they have received the approval of the financial controller, be registered by the accounting officer.
The purpose of the approval of the financial controller shall be to establish that:
(a) the revenue is booked to the correct item;
(b) the order is in order and conforms to the relevant provisions;
(c) the supporting documents are in order;
(d) the debtor is correctly described;
(e) the due date is indicated;
(f) the principles of sound financial management referred to in Article 2 have been applied;
(g) the amount and currency of the sum to be recovered are correct.
If the financial controller's approval is withheld, the second subparagraph of paragraph 1 shall apply.';
23. Article 24 is replaced by the following:
'Article 24
1. The accounting officer shall assume responsibility for the recovery orders duly drawn up.
He shall exercise all due diligence to ensure that the resources due to the Centre are recovered at the due dates indicated in the recovery orders, and shall ensure that the rights of the Centre are safeguarded.
The accounting officer shall inform the authorizing officer and the financial controller of any revenue not recovered within the time limits laid down.
2. If the authorizing officer waives the right to recover an established debt, he shall send beforehand a proposal for cancellation to the financial controller for his approval and to the accounting officer for information.
The purpose of the approval of the financial controller shall be to establish that the waiver is in order and conforms with the principles of sound financial management referred to in Article 2. The proposal concerned shall be registered by the accounting officer.
If approval is withheld, the Management Board may, by a decision stating the full reasons therefor, and on its sole responsibility, overrule this refusal. This decision shall be final and binding; it shall be communicated for information to the financial controller.
The Management Board shall inform the Court of Auditors of all such decisions within one month.
When the financial controller finds that a document establishing a debt has not been drawn up, or that a sum due has not been recovered, he shall inform the Management Board thereof.';
24. Article 27 (2) is replaced by the following:
'2. The implementing conditions in respect of paragraph 1 above shall be determined by the implementing rules provided for in Article 76. These conditions shall ensure that an exact account is kept of commitments and authorizations in terms of actual needs.';
25. Article 28 is replaced by the following:
'Article 28
Without prejudice to the provisions of Article 18a, proposals for commitments, accompanied by supporting documents, shall be transmitted to the financial controller and to the accounting officer; they shall show, in particular, the purpose of the expenditure, the estimated amount involved, indicating the currency where possible, the budget item to which it is to be charged and also the name and description of the creditor; they shall be registered, after approval by the financial controller, in accordance with the implementing rules provided for in Article 76.';
26. in Article 29:
(a) point (d) is replaced by the following:
'(d) the principles of sound financial management referred to in Article 2 have been applied.';
(b) the second paragraph is replaced by the following:
'Approval may not be conditional.';
27. in Article 30, the last sentence of the third paragraph is replaced by the following:
'The Management Board shall inform the Court of Auditors of all such decisions within one month.';
28. (this amendment to Article 33 does not affect the English text);
29. (a) (this amendment to Article 34 does not affect the English text);
(b) in Article 34, the third indent of the first paragraph is replaced by the following:
'- the amount to be paid (in figures and words), expressed in ecus or in national currency,';
30. (this amendment to Article 35 does not affect the English text);
31. Article 36 is replaced by the following:
'Article 36
1. For payments by instalment, the first payment order shall be accompanied by documents establishing the creditor's claim to payment of the instalment in question. Subsequent payment orders shall refer to the supporting documents already furnished, and repeat the reference number of the first payment order.
2. The authorizing officer may grant advances to personnel if a provision laid down by regulation specifically provides therefor.
The authorizing officer may grant advances to cover disbursements to be effected by a member of the staff on behalf of the Centre.
Apart from the imprest accounts referred to in Article 43, no advance may be paid unless it has been approved beforehand by the financial controller.';
32. Article 37 is replaced by the following:
'Article 37
Without prejudice to Article 18a, payment orders shall be sent for prior approval to the financial controller.
The purpose of this prior approval shall be to establish that:
(a) the payment order was properly issued;
(b) the payment order agrees with the commitment of expenditure and that the amount thereof is correct, taking account of the principles and requirements of sound financial management referred to in Article 2;
(c) the expenditure is charged to the correct item;
(d) the appropriations are available;
(e) the supporting documents are in order;
(f) the payee is correctly named and described.';
33. (this amendment to Article 39 does not affect the English text);
34. in Article 42, the second paragraph is replaced by the following:
'The procedure for opening, administering and using such accounts shall be determined by the implementing measures provided for in Article 76. These measures shall, in particular, indicate expenditure the payment of which must necessarily be effected either by cheque or by post office or bank transfer order, and shall receive the joint signature on cheques and on post office or bank transfer orders of two duly authorized officials, one signature necessarily being that of the accounting officer, an assistant accounting officer, or an administrator of an imprest account.';
35. Article 43 is replaced by the following:
'Article 43
For the payment of certain categories of expenditure, imprest accounts may be set up in accordance with the implementing measures provided for in Article 76.
Only the accounting officer may replenish the imprest accounts, save in exceptional cases defined in the implementing rules of this Regulation.
These measures shall contain specific provisions concerning in particular:
- the appointment of administrators of imprest accounts,
- the nature and maximum amount of each item of expenditure to be incurred,
- the maximum amount of the imprest which may be advanced,
- the time within which supporting documents must be produced,
- the responsibility of the administrators of imprest accounts.';
36. the following section is inserted after Article 43:
'SECTION IIIa
MANAGEMENT OF POSTS