WRITTEN QUESTION E-0790/99

by Graham Mather (PPE) to the Commission

(6 April 1999)

Subject: The Intervention Board Executive Agency (UK) - CAP funds

The Intervention Board Executive Agency accounts to the UK Parliament for the cost of implementing, in the United Kingdom, the market regulations and agricultural support measures of the common agricultural policy, together with association administration costs.

In response to my Question E-3331/98(1) about the 1996/97 financial year, the Commission stated it was not fully satisfied with the administration of CAP funds in the UK.

1. Is the Commission satisfied with the Intervention Board's administration of funds in the 1997/98 financial year?

2. Did the Commission find it necessary, through the clearance of accounts procedure, to refuse the reimbursement of expenditure made by the Intervention Board Executive Agency for this period, and how much expenditure was involved?

3. Will the Commission publish a summary report of the clearance of accounts procedure in relation to the UK for the 1997/98 and subsequent financial years?

Answer given by Mr Fischler on behalf of the Commission

(27 April 1999)

The reform of the clearance of accounts foresees that the procedure for the clearance of accounts is separated into two parts as from the 1996 financial year: a first decision on the clearance of accounts concerns the truth, completeness and accuracy of the annual accounts received (Article 5(2)b of Council Regulation (EEC) 729/70 of 21 April 1970 on the financial of the common agricultural policy(2) - the "accounting clearance"), and a second aims to exclude from Community financing all expenditure which has not been executed in compliance with Community regulations (Article 5(2)c of Council Regulation (EEC) 729/70 - the "compliance clearance").

1. Under the accounting clearance the Commission is generally satisfied with the administration of funds in the 1997/1998 financial year. There has been a noticeable improvement over the previous year and the National audit office, the certifying body for the United Kingdom, has given an unqualified opinion on the accounts of the paying agency.

2. The accounting clearance decision for the 1997/1998 financial year has not yet been taken. It should be taken by the Commission before 30 April 1999, and will be published. The work on the compliance clearance for the 1997/1998 financial year has now begun, but any decision will not be taken for some time. Once decisions are taken they will be published.

3. A summary report is produced to accompany each clearance of accounts decision. The reports are systematically transmitted to the commission de contrôle budgétaire (Cocobu) of the Parliament. The summary report for the accounting clearance of the 1997/1998 financial exercise will be produced at the time of the clearance. In the meantime, a copy of the summary report for the 1996/1997 accounting clearance (Article 5.2.b) is being sent separately to the Honourable Member and to Parliament's Secretariat.

(1) OJ C 207, 21.7.1999, p. 53.

(2) OJ L 94, 28.4.1970.