A.

whereas the Court of Auditors states that it has obtained reasonable assurances that the annual accounts for the financial year 2008 are reliable and that the underlying transactions are legal and regular,

B.

whereas the Joint Undertaking is in a start-up phase and had not fully established its internal control and financial reporting systems by the end of 2008,

C.

whereas under Article 75 of the ITER Financial Regulation the Joint Undertaking is required to have an internal audit service that complies with international audit standards,

D.

whereas the ITER Financial Regulation is based on the framework Financial Regulation, which was recently amended to bring it into line with changes made to the general Financial Regulation,

E.

whereas on 28 February 2008 the Joint Undertaking’s Director sought the Court of Auditors’ opinion on the ITER Financial Regulation,

F.

whereas in October 2008 the Court of Auditors delivered Opinion No 4/2008 on that Regulation,

1.

Notes that the Court of Auditors identified a surplus of EUR 57 600 000 in the budget outturn account, which represents 38 % of the EUR 149 700 000 of accrued revenue; stresses, in particular, that part of that surplus (EUR 32 200 000) was carried over to the 2009 financial year; notes, none the less, the Joint Undertaking’s reply to the effect that the under-spending to which the Court of Auditors refers stemmed from the fact that this was the Joint Undertaking’s first year of financial autonomy from the Commission, and from delays in the start-up of the ITER International Organisation and the Euratom fusion programme as a whole;

2.

Notes that, in six cases considered by the Court of Auditors, the Joint Undertaking made budget commitments only after it had already entered into legal obligations; calls accordingly on the Joint Undertaking to comply with the Financial Regulation in this respect as well;

3.

Welcomes the Court of Auditors’ finding that the ITER Financial Regulation is, in the main, founded on the principles laid down in the framework Financial Regulation and the general Financial Regulation; notes, none the less, that a number of specific changes need to be made, including as regards exceptions to the budgetary principles, the role of the Commission’s Internal Audit Service, late payment of members’ contributions, the rules on the award of grants and the transitional provisions set out in Article 133 of the ITER Financial Regulation;

4.

Expressly recommends that the Joint Undertaking meet the deadline agreed with the Court of Auditors for submission of its annual activity report;

5.

Expressly recommends that the Joint Undertaking carry out further work on documenting IT processes and activities and analysing IT risks;

6.

Notes that the Joint Undertaking’s internal auditor did not take up his duties until 1 July 2009; commends ITER, none the less, on having now drawn up an action plan for the implementation of internal control standards and set up a working group to coordinate and monitor the plan’s implementation; stresses, furthermore, that ITER has appointed a Data Protection Officer and the necessary steps have been taken to further develop the Business Continuity and Data Recovery Plan;

7.

Notes the Joint Undertaking’s statement to the effect that all underlying business processes are currently being mapped;

8.

Notes that the Joint Undertaking reported EUR 216 304,89 in income from interest in 2008; concludes from the financial statements and from the level of the interest payments that the Joint Undertaking has a permanently high level of cash holdings; notes that on 31 December 2008 the Joint Undertaking’s cash holdings amounted to EUR 58 980 569,87; asks the Commission to examine what scope there is for introducing needs-orientated management of cash holdings at the Joint Undertaking, and what changes of approach are necessary in order to keep the Joint Undertaking’s cash holdings permanently as low as possible.