Article 7
1. The following rules shall govern the utilisation of appropriations: (a) appropriations still uncommitted at the end of the financial year for which they were entered shall, as a rule, lapse; (b) 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. Notwithstanding paragraph 1, the Deputy Secretary-General of the Council may forward to the Schengen Information System Working Group, hereafter referred to as the "SIS Working Group", before 31 January, duly substantiated requests to carry over to the next financial year appropriations not committed at 31 December, when the appropriations provided for the headings concerned in the budget for the following financial year do not cover requirements. The carry-over of such appropriations may be proposed only for exceptional reasons. In exercising his powers to implement the budget, the Deputy Secretary-General shall, depending on management requirements, endeavour to use first the appropriations authorised for the current financial year and not use the appropriations carried over until the former are exhausted. The SIS Working Group shall act on such requests for carrying-over by 1 March at the latest. 3. Appropriations carried over from one financial year to the following lapse if still uncommitted at the end of the financial year to which they were carried over. 4. A list of the appropriations to be carried forward automatically pursuant to paragraph 1(b) shall be forwarded to the SIS Working Group for information before 1 March. 5. For the purpose of implementing the budget, the utilisation of appropriations carried forward shall be shown separately, for each budget item, in the accounts for the current financial year. CHAPTER II Establishment of the budget