Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Respect for budgetary principles
The budget of the PPP body shall be established and implemented in accordance with the principles of unity, budgetary accuracy, annuality, equilibrium, unit of account, universality, specification, sound financial management and transparency as set out in this Regulation.
Principles of unity and of budgetary accuracy
1. All revenue and expenditure shall be booked to a budget line in the budget of the PPP body. 2. No expenditure may be committed or authorised in excess of the appropriations authorised by the budget of the PPP body. 3. An appropriation may be entered in the budget of the PPP body only if it is for an item of expenditure considered necessary. 4. Interests generated by pre-financing payments made from the budget of the PPP body shall not be due to the PPP body.
Principle of annuality
1. The appropriations entered in the budget of the PPP body shall be authorised for a financial year which shall run from 1 January to 31 December. 2. Commitment appropriations shall cover the total cost of the legal commitments entered into during the financial year. 3. Payment appropriations shall cover payments made to honour the legal commitments entered into in the financial year or preceding financial years. 4. For administrative appropriations, expenditure shall not exceed the revenue expected for the year as referred in Article 3(a)(i). 5. Given the needs of the PPP body, the unused appropriations may be entered in the estimate of revenue and expenditure of up to the following three financial years. These appropriations must be used first. 6. Paragraphs 1 to 5 shall not prevent budget commitments for actions extending over more than one financial year being broken down over several years into annual instalments where the constituent act so provides or where they relate to administrative expenditure.
Commitment of appropriations
1. The appropriations entered in the budget may be committed with effect from 1 January, once the budget of the PPP body has been definitively adopted. 2. As of 15 October of the financial year, routine administrative expenditure may be committed in advance against the appropriations provided for the following financial year, provided that such expenditure has been approved in the last budget of the PPP body duly adopted, and only up to a maximum of one quarter of the total corresponding appropriations decided upon by the governing board for the current financial year.
Principle of equilibrium
1. Revenue and payment appropriations shall be in balance. 2. Commitment appropriations shall not exceed the relevant annual Union contribution as set out in the annual transfer of funds agreement with the Commission, plus annual contributions from other members than the Union, any other revenue referred to in Article 3 and the amount of the unused appropriations referred to in Article 6(5). 3. The PPP body shall not raise loans within the framework of the budget of the PPP body. 4. If the budget result is positive, it shall be entered in the budget of the following financial year as revenue. If the budget result is negative, it shall be entered in the budget for the following financial year as payment appropriations.
Principle of unit of account
The budget of the PPP body shall be drawn up and implemented in euro and the accounts shall be presented in euro. However, for cash-flow purposes, the accounting officer shall be authorised to carry out operations in other currencies as laid down in the financial rules of the PPP body.
Principle of universality
1. Without prejudice to paragraph 2, total revenue shall cover total payment appropriations. All revenue and expenditure shall be entered in full without any adjustment against each other, subject to any specific provision in the financial rules of the PPP body on cases where certain deductions may be made from payment requests, which shall then be passed for payment of the net amount. 2. Revenue earmarked for a specific purpose, such as income from foundations, subsidies, gifts and bequests, shall be used to finance specific items of expenditure. 3. The director may accept any donation made to the PPP body, such as income from foundations, subsidies, gifts and bequests. Acceptance of donations which may involve a significant financial charge shall be subject to the prior authorisation of the governing board, which shall take a decision within two months of the date on which the request is submitted to it. If the governing board fails to take a decision within that period, the donation shall be deemed to be accepted. The amount above which the financial charge involved is considered significant shall be set by a decision of the governing board.
Corporate sponsoring
Article 26 of Regulation (EU, Euratom) 2018/1046 shall not apply to the PPP bodies.
Principle of specification
1. Appropriations shall be earmarked for specific purposes at least by title and chapter. 2. The director may transfer appropriations: (a) from one title to another up to a maximum of 10 % of the appropriations for the year shown on the line from which the transfer is made; (b) from one chapter to another and within each chapter without limit. 3. Beyond the limits referred to in paragraph 2, the director may propose transfers of appropriations from one title to another to the governing board. The governing board shall have three weeks to oppose the proposed transfers. After that time limit the proposed transfers shall be deemed to be adopted. 4. The director shall inform the governing board as soon as possible of all transfers carried out under paragraph 2.
Principle of sound financial management and performance
1. Appropriations shall be used in accordance with the principle of sound financial management, and thus be implemented respecting the following principles: (a) the principle of economy which requires that the resources used by the PPP body in the pursuit of its activities shall be made available in due time, in appropriate quantity and quality and at the best price; (b) the principle of efficiency which concerns the best relationship between the resources employed, the activities undertaken and the achievement of objectives; (c) the principle of effectiveness which concerns the extent to which the objectives pursued are achieved through the activities undertaken. 2. In line with the principle of sound financial management, the use of appropriations shall focus on performance and for that purpose: (a) objectives for activities shall be established ex-ante ; (b) progress in the achievement of objectives shall be monitored with performance indicators; (c) progress in, and problems with, the achievements of those objectives shall be reported to the European Parliament and the Council in accordance with point (d) of Article 16(2) and with Article 23(2). 3. Specific, measurable, attainable, relevant and time-bound objectives referred to in paragraphs 1 and 2 shall be set for all sectors of activity covered by the budget of the PPP body and relevant, accepted, credible, easy and robust indicators shall be defined where relevant. Information on the indicators shall be provided annually by the director to the governing board, at the latest when submitting the documents accompanying the draft budget of the PPP body. 4. Unless the constituent act provides for evaluations to be conducted by the Commission, the PPP body, in order to improve decision-making, shall undertake evaluations, including retrospective evaluations, which shall be proportionate to the objectives and expenditure. Evaluation results shall be sent to the governing board. 5. Retrospective evaluations shall assess the performance of the activity, including aspects such as effectiveness, efficiency, coherence, relevance and EU added value. Retrospective evaluations shall be based on the information generated by the monitoring arrangements and indicators established for the action concerned. They shall be undertaken at least once every multiannual financial framework and where possible in sufficient time for the findings to be taken into account in ex-ante evaluations or impact assessments which support the preparation of related programmes and activities.
Internal control of budget implementation
1. Pursuant to the principle of sound financial management, the budget of the PPP body shall be implemented in compliance with effective and efficient internal control. 2. For the purposes of the implementation of the budget of the PPP body, internal control shall be applied at all levels of management and shall be designed to provide reasonable assurance of achieving the following objectives: (a) effectiveness, efficiency and economy of operations; (b) reliability of reporting; (c) safeguarding of assets and information; (d) prevention, detection, correction and follow-up of fraud and irregularities; (e) adequate management of the risks relating to the legality and regularity of the underlying transactions, taking into account the multi-annual character of programmes as well as the nature of the payments concerned. 3. Effective and efficient internal control shall be based on best international practices and on the Internal Control Framework laid down by the Commission for its own departments, and shall include, in particular, the elements laid down in Article 36(3) and (4) of Regulation (EU, Euratom) 2018/1046.
Principle of transparency
1. The budget of the PPP body shall be established and implemented and the accounts presented in accordance with the principle of transparency. 2. The budget of the PPP body including the establishment plan and any amending budgets, as adopted, including any adaptations as provided in Article 17(1), shall be published on the internet site of the PPP body within four weeks of their adoption and shall be transmitted to the Commission and the Court of Auditors. 3. The PPP body shall make available on its website no later than 30 June of the year following the financial year in which the funds were legally committed, information on the recipients of funds financed from the budget of the PPP body, including the experts contracted pursuant to Article 44 of this Regulation, in accordance with Article 38 of Regulation (EU, Euratom) 2018/1046, and following a standard presentation, subject to any specific procedure laid down in the basic act of the programme the implementation of which is entrusted to the PPP body. The published information shall be easily accessible, transparent and comprehensive. The information shall be made available with due observance of the requirements of confidentiality and security, in particular the protection of personal data laid down in Regulation (EU) 2018/1725 of the European Parliament and of the Council ( 10 ) .
Articles on this page are reproduced verbatim from official open data. See the attribution line.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.