PURPOSE: to grant discharge to the European Data Protection Supervisor for the 2004 financial year. LEGISLATIVE ACT: Decision 2006/817/EC of the European Parliament on the discharge for implementation of the European Union general budget for the financial year 2004 (Section VIIIB - European Data Protection Supervisor).

CONTENT: with the present decision, the European Parliament grants the European Data Protection Supervisor discharge in respect of the implementation of the budget for the financial year 2004.

This decision is in line with the European Parliament’s resolution adopted on 27 April 2006 and comprises a series of observations that form an integral part of the discharge decision (please refer to the summary of the opinion of 27/04/2006).

The European Parliament adopted a resolution drafted by Nils LUNDGREN (IND/DEM, SE) and granted the European Data Protection Supervisor discharge in respect of the implementation of the budget for the financial year 2004. (Please see the summary of 21/03/2006 for Parliament’s remarks in the accompanying statement.) Parliament noted that in 2004, the European Data Protection Supervisor (EDPS) administered a budget of EUR 1 942 279 with an utilisation rate of 54.67 %.

The committee adopted the report by Nils LUNDGREN (IND/DEM, SE) proposing that discharge be granted to the European Data Protection Supervisor (EDPS) for 2004. In its accompanying comments, the committee noted that in 2004 the EDPS signed an administrative cooperation agreement with the Secretaries-General of the Commission, Parliament and Council involving assistance for a start-up period of three years, under which the Commission's Accounting Officer and Internal Auditor would also fulfil these functions for the EDPS and the Parliament would supply premises and material support. MEPs said that a renewal of the cooperation agreement would be desirable considering the small size of the EDPS administration. They called on the EDPS to "continue the setting-up of the institution with full respect for the basic principles of legality, regularity and sound financial management".

PURPOSE : to present the Council recommendation on the discharge to be given to the other institutions in respect of the implementation of the general budget of the European Communities for the financial year 2004.

CONTENT : having regard to the observations made by the Court of Auditors, the Council calls on the European Parliament to give a discharge to all of the other EU institutions (other than the Commission).

If overall the observations made by the Council are positive as regards expenditure, the Council believes that the implementation of the budget calls for a series of comments on the discharge which should be followed up.

The Council welcomes the fact that the errors identified by the Court did not materially affect the legality and regularity of administrative expenditure as a whole.

It notes with satisfaction the efforts and the progress made by the Institutions to adapt their supervisory systems and controls to the new Financial Regulation, but underlines that they have not fully implemented the Internal Control Standards.

The Council takes note that the 2004 financial year has introduced specific risks resulting from the adoption of the new staff regulations, the introduction of a new system for calculating staff remuneration and the implementation of the new system in the framework of the new Financial Regulation at the same time.

In this context, the Council shares the Court's view that particular attention should be paid to the various technical weaknesses detected in the implementation of the NAP (new payroll system), to an accurate application of the staff regulations in respect of travel allowances, to the improvement of the control systems concerning the transfer of part of the staff.

PURPOSE : presentation of the final annual accounts of the European Community for the financial year 2004 – Other institutions : Section VIII (B) - European Data Protection Supervisor (EDPS).

CONTENT : this document sets out the amount of expenditure and the financial statement of the EDPS for 2004 and presents an analysis of its financial management. The available appropriations set out in the Supervisor’s 2004 budget amounted to roughly EUR 2 million, with a 77,5% utilisation rate.

Main axes of 2004 expenditure : the 1 st institution’s budget : to recall, the EDPS was appointed for a 5 year mandate and has a threefold mission:

consultation : to give advice to community bodies on all issues relating to data protection; monitoring : to monitor the processing of personal data while protecting the individuals and to examine complaints and carry out investigations; cooperation : to cooperate with national monitoring authorities and bodies to improve the coherence of data protection.

The main issues of the 2004 budget implementation can be summarised as follows:

setting up the EDPS in the European Parliament and the secondment of a head of unit from the Commission to set up the Secretariat; establishment of a work programme and the recruitment of staff; signature of an interinstitutional cooperation and administrative agreement (3 years, renewable for 2 years), with a view to setting out the terms of assistance provided by the European Parliament (essentially material), negotiation of an agreement with the Council for assistance with translation and general guidelines with the Commission for assistance in the field of human resources and budgetary execution. It is the Commission who carries out the accounting tasks of the EDPS.

DETAILED SYNTHESIS OF 2004 EXPENDITURE : this detailed synthesis analyses the breakdown of the EDPS’s expenditure for the financial year 2004. The figures mentioned can also be found in the “Final annual accounts of the European Communities - Financial year 2004 – Volume III”.

Implementation rate in 2004 :

Appropriations available in 2004 via 2 amending budgets (2/2004 + 10/2004) : EUR 1.942.279; Appropriations committed amounted to EUR 1.505.353, a 77,5% utilisation rate; Appropriations paid amounted to EUR 1.061.783,61.

Note : only 54,67% of the budget was paid in 2004 due to delayed decisions concerning the budget (the 2 nd amending budget showing the final budget for the institution was adopted on 14 October 2004) which made it difficult to commit appropriations (in particular for meeting costs, training costs, studies and publications).

PURPOSE : presentation of the final annual accounts of the European Community for the financial year 2004 – Other institutions : Section VIII (B) - European Data Protection Supervisor (EDPS).

CONTENT : this document sets out the amount of expenditure and the financial statement of the EDPS for 2004 and presents an analysis of its financial management. The available appropriations set out in the Supervisor’s 2004 budget amounted to roughly EUR 2 million, with a 77,5% utilisation rate.

Main axes of 2004 expenditure : the 1 st institution’s budget : to recall, the EDPS was appointed for a 5 year mandate and has a threefold mission:

consultation : to give advice to community bodies on all issues relating to data protection; monitoring : to monitor the processing of personal data while protecting the individuals and to examine complaints and carry out investigations; cooperation : to cooperate with national monitoring authorities and bodies to improve the coherence of data protection.

The main issues of the 2004 budget implementation can be summarised as follows:

setting up the EDPS in the European Parliament and the secondment of a head of unit from the Commission to set up the Secretariat; establishment of a work programme and the recruitment of staff; signature of an interinstitutional cooperation and administrative agreement (3 years, renewable for 2 years), with a view to setting out the terms of assistance provided by the European Parliament (essentially material), negotiation of an agreement with the Council for assistance with translation and general guidelines with the Commission for assistance in the field of human resources and budgetary execution. It is the Commission who carries out the accounting tasks of the EDPS.

DETAILED SYNTHESIS OF 2004 EXPENDITURE : this detailed synthesis analyses the breakdown of the EDPS’s expenditure for the financial year 2004. The figures mentioned can also be found in the “Final annual accounts of the European Communities - Financial year 2004 – Volume III”.

Implementation rate in 2004 :

Appropriations available in 2004 via 2 amending budgets (2/2004 + 10/2004) : EUR 1.942.279; Appropriations committed amounted to EUR 1.505.353, a 77,5% utilisation rate; Appropriations paid amounted to EUR 1.061.783,61.

Note : only 54,67% of the budget was paid in 2004 due to delayed decisions concerning the budget (the 2 nd amending budget showing the final budget for the institution was adopted on 14 October 2004) which made it difficult to commit appropriations (in particular for meeting costs, training costs, studies and publications).