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having regard to the final annual accounts of the European Training Foundation for the financial year 2010,

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having regard to the Court of Auditors’ report on the annual accounts of the European Training Foundation for the financial year 2010, together with the Foundation’s replies (1),

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having regard to the Council’s recommendation of 21 February 2012 (06083/2012 – C7-0051/2012),

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having regard to Article 319 of the Treaty on the Functioning of the European Union,

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having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

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having regard to Regulation (EC) No 1339/2008 of the European Parliament and of the Council of 16 December 2008 establishing a European Training Foundation (3), and in particular Article 17 thereof,

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having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (4), and in particular Article 94 thereof,

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having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

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having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Employment and Social Affairs (A7-0135/2012),

A.

whereas the Court of Auditors has stated that it has obtained reasonable assurances that the annual accounts for the financial year 2010 are reliable and that the underlying transactions are legal and regular,

B.

whereas on 10 May 2011 Parliament granted the Director of the European Training Foundation discharge for implementation of the Foundation’s budget for the financial year 2009 (5), and in its resolution accompanying the discharge decision, inter alia:

C.

whereas the overall budget of the Foundation for the year 2010 was EUR 19 300 000, compared with EUR 20 200 000 in 2009, which represents a decrease of 4,46 %,

D.

whereas the initial contribution of the Union to the budget of the Foundation for 2010 was EUR 18 282 000 compared with EUR 14 772 000 in 2009 (6),

1.

Notes that the Union contribution for 2009 amounted to a total of EUR 19 872 000 and that this amount was made up of the initial contribution of the Union, i.e. EUR 14 772 000, and EUR 5 100 000, coming from the recovery of surplus from previous years; recalls moreover that the initial Union contribution to the Foundation for 2010 amounted to EUR 18 282 000; notes however that EUR 1 178 000, coming from the recovery of surplus, was added to it which, as a result, makes a total Union contribution of EUR 19 460 000 for 2010 (7);

2.

Takes note that the Foundation’s Annual Financial Statements mention that the contribution of the Union for 2010 amounted in fact EUR 19 196 840,29; acknowledges the Foundation’s statement that the actual contribution granted by the Union in 2010 totalled EUR 19 297 822, i.e. EUR 19 460 000 minus EUR 162 178 which represents the Union contribution in kind; also takes note from the Foundation that, of the amount received from the Union, it used EUR 19 196 840,29 and returned the remaining EUR 100 981,71 to the Commission;

3.

Establishes from the Foundation’s Annual Financial Statements that its budget for 2010 was amended in November 2010 to partially offset the unforeseen reduction in the Foundation’s revenue;

4.

Observes from the Foundation’s Annual Activity Report that it achieved a commitment rate of 99,9 %, compared with 99,8 % in 2009 and 98,5 % in 2008 and a payment execution rate of 96,5 %, compared with approximately 90 % in 2009 and 2008;

5.

Notes from the Foundation’s Annual Activity Report that it has reduced the number of budgetary transfers to 15 in 2010, compared with 33 in 2009, and carried forward only 12,8 % of the 2010 amount committed, compared with 17 % in 2009, 15 % in 2008;

6.

Notes from the Foundation’s Annual Activity Report that 10 exceptions were registered on the Register of Exceptions in 2010, compared with 12 in 2009;

7.

Notes that none of them involve a financial risk higher than EUR 50 000; notes in particular that these exceptions have a total financial value of EUR 100 183, which represents 0,53 % of the total Foundation budget in 2010;

8.

Acknowledges from the Foundation’s Annual Activity Report that it stipulated 8 direct agreements with external contractors, none of which has a financial exposure higher or equal to EUR 50 000; notes that the total value of direct agreements is EUR 93 575, which represented 0,50 % of the total Foundation budget in 2010;

9.

Notes from the Annual Activity Report that at the end of 2010 the Foundation had 4 vacant posts in its establishment plan, compared to 10 at the end of 2009;

10.

Observes also that the number of staff at the Foundation now stands at 128, with 15 staff members joining the Foundation and 10 leaving in 2010;

11.

Takes note from the Annual Activity Report that the number of posts available for the implementation of the Foundation mandate are:

12.

Observes from the Annual Activity Report that the Foundation developed a revised list of Corporate Performance Indicators with the aim of enhancing the relevance and measurability of its objectives and to provide data on how the Foundation performs at an aggregated level in relation to its core business and its functioning;

13.

Notes, in addition, that the Foundation developed the ‘dashboard’ project which aims to ensure key live data for daily monitoring of its activities and notably for management and reporting;

14.

Observes moreover that a risk based differentiation of payment circuits was successfully implemented in early 2010, introducing simplified circuits for low risk transactions;

15.

Welcomes the fact that the Foundation successfully implemented the first year of the Torino Process, which provides a concise, documented, comprehensive analysis of vocational education and training reform in each country, including identification of key policy trends, challenges, constraints, as well as good practice and opportunities;

16.

Notes that, in November 2009, the cooperation agreement between the Foundation and Cedefop was renewed for the period 2010-2013; acknowledges that each year the Foundation and Cedefop draft, in the context of the cooperation framework, a joint work programme which is annexed to the work programmes of both agencies; welcomes the Foundation’s intention to devote further space to reporting on the implementation of this joint work programme in future Annual Activity Reports;

17.

Acknowledges that the Internal Audit Service (IAS) undertook an audit of planning and monitoring in 2010; notes in particular that the IAS made eight recommendations, one of which was rated as ‘very important’ and concerns the need for the Foundation to clearly define and describe the utility of its annual planning approach;

18.

Urges, in this context, the Foundation to focus on cost effective reporting relevant to the Foundation’s Governing Board and key stakeholders, allowing them to check the performance of the Foundation;

19.

Calls also on the Foundation to implement the remaining recommendations of the IAS from the previous audits;

20.

Acknowledges from the Foundation’s Annual Activity Report that it adopted the revised 16 standards for effective management as set out in the internal control standards framework;

21.

Draws attention to its recommendations from previous discharge reports, as set out in the Annex to this resolution;

22.

Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its resolution of 10 May 2012 (8) on the performance, financial management and control of the agencies.