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Council Regulation (EC, Euratom) No 1605/2002 (repealed)Show full title

Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (repealed)

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PART TWOU.K.SPECIAL PROVISIONS

[F1TITLE I U.K. EUROPEAN AGRICULTURAL GUARANTEE FUND]

Article 148U.K.

[F11. Parts One and Three of this Regulation shall apply to expenditure effected by the authorities and bodies referred to in the rules relating to the European Agricultural Guarantee Fund (EAGF), and to revenue, save as otherwise provided in this Title.]

2.Operations managed directly by the Commission shall be implemented in accordance with the rules laid down in parts one and three.

Article 149U.K.

[F11. For each financial year, the EAGF shall include non-differentiated appropriations, with the exception of the expenditure related to the measures referred to in Article 3(2) of Regulation (EC) No 1290/2005, which shall be covered by differentiated appropriations.]

2.Payment appropriations which have been carried over but which have not been used by the end of the financial year shall be cancelled.

[F13. Non-committed appropriations relating to the actions referred to in Article 3(1) of Regulation (EC) No 1290/2005 may be carried over to the next financial year only.

Such carryover shall not exceed, within a limit of 2 % of the initial appropriations referred to in the first subparagraph, the amount of the adjustment of direct payments referred to in Article 11 of Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers (1) and which was applied during the last financial year.

Appropriations which are carried over shall be returned exclusively to the budgetary lines which cover the actions referred to in Article 3(1)(c) of Regulation (EC) No 1290/2005.

Such carryover may lead to an additional payment only to the final beneficiaries who have been subject, in the last financial year, to the adjustment of direct payments in accordance with Article 11 of Regulation (EC) No 1782/2003.

The carryover decision shall be taken, at the latest on 15 February of the year to which the carryover is being made, by the Commission, which shall inform the budgetary authority.]

Article 150U.K.

1.The Commission shall reimburse the expenditure incurred by the Member States.

[F12. The Commission decisions fixing the amounts of these payments shall constitute global provisional commitments, which may not exceed the total appropriations entered for the EAGF.

3. As from 15 November, routine management expenditure for the EAGF may be committed in advance against the appropriations provided for the following financial year. Such commitments may not, however, exceed three quarters of the total corresponding appropriations for the current financial year. They may apply only to expenditure for which the principle is laid down in an existing basic act.]

Article 151U.K.

1.[F1Expenditure effected by the authorities and bodies referred to in the rules relating to the EAGF shall, within two months following receipt of the statements sent in by Member States, be the subject of a commitment by chapter, article and item. Such commitment may be made after the elapse of that two-month period whenever a procedure for a transfer of appropriations concerning the budget lines in question is necessary. Save where payment has not yet been made by the Member States or where eligibility is in doubt, the amounts shall be charged as payments within the same two-month period].

This budgetary commitment shall be deducted from the global provisional commitment referred to in Article 150.

2.Global provisional commitments which have been made for a financial year and which have not given rise to commitment on specific lines in the budget nomenclature by 1 February of the following financial year shall be cancelled in respect of the original financial year.

3.Paragraphs 1 and 2 shall apply subject to the clearance of accounts.

[F1Article 152 U.K.

In budgetary accounting, expenditure shall be booked to the accounts for a financial year on the basis of the repayments made by the Commission to the Member States by 31 December of the year concerned at the latest, provided that the payment order has reached the accounting officer by 31 January of the following financial year at the latest.]

Article 153U.K.

[F11. Where the Commission may transfer appropriations pursuant to Article 23(1), it shall take its decision by 31 January of the following financial year at the latest and shall inform the budgetary authority as provided for in Article 23(1).]

2.In cases other than those referred to in paragraph 1, the Commission shall submit transfer proposals to the budgetary authority by 10 January of the following financial year at the latest.

The budgetary authority shall take decisions on such transfers in accordance with the procedure provided for in Article 24, but within a time limit of three weeks.

[F1Article 154 U.K.

1. Assigned revenue under this Title shall be assigned according to origin in accordance with Article 18(2).

2. The result of decisions on clearance of accounts, as referred to in Article 30 of Regulation (EC) No 1290/2005 shall be entered in a single Article.]

[F1TITLE II U.K. STRUCTURAL FUNDS, COHESION FUND, EUROPEAN FISHERIES FUND, AND EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT]

Article 155U.K.

[F11. Parts One and Three of this Regulation shall apply to expenditure effected by the authorities and bodies referred to in the Regulations governing the European Agricultural Fund for Rural Development (EAFRD) (2) , the European Regional Development Fund (ERDF) (3) , the European Social Fund (ESF) (4) , the Cohesion Fund (5) , and the European Fisheries Fund (EFF) (6) , hereinafter the Funds, and to their revenue, save as otherwise provided in this Title.]

2.Operations managed directly by the Commission shall also be implemented in accordance with the rules laid down in parts one and three of this Regulation.

F23.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 156U.K.

1.Payment by the Commission of financial contributions from the Funds shall be made in accordance with the regulations referred to in Article 155.

2.The time limit for interim payments by the Commission shall be laid down in accordance with the regulations referred to in Article 155.

3.The treatment of repayments by the Member States and the implications for the amount of contributions from the Funds shall be governed by the regulations referred to in Article 155.

Article 157U.K.

The Commission shall automatically decommit appropriations that have been committed as provided for in the regulations referred to in Article 155.

[F1The decommitted appropriations may be made available again in the event of a manifest error attributable solely to the Commission.]

To this end, the Commission shall examine decommitments made during the previous financial year and decide, by 15 February of the current year, on the basis of requirements, whether it is necessary to make the corresponding appropriations available again.

[F1Article 158 U.K.

With regard to the operational expenditure referred to in this Title, the Commission may, except in the case of the EAFRD, make transfers from one title to another, provided that the appropriations in question are for the same objective within the meaning of the Regulations governing the Funds referred to in Article 155, or are Technical Assistance expenditure.]

Article 159U.K.

Aspects concerning the management and selection of projects and audit shall be governed by the regulations referred to in Article 155.

TITLE IIIU.K.RESEARCH

Article 160U.K.

1.Parts one and three shall apply to the research and technological development appropriations, save as otherwise provided in this Title.

These appropriations shall be entered either in one of the titles of the budget relating to the policy area research by direct or indirect action or in a chapter relating to research activities in another title.

They shall be used by implementation of the actions listed in the implementing rules.

[F31a. The appropriations relating to the revenue generated by the Research Fund for Coal and Steel established by the Protocol annexed to the EC Treaty on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel shall be treated as assigned revenue within the meaning of Article 18. The commitment appropriations generated by this revenue shall be made available as soon as the amount receivable has been estimated and the payment appropriations as soon as the revenue has been received.]

2.With regard to the operational expenditure referred to in this Title, the Commission may make transfers from one title to another, provided that the appropriations are used for the same purpose.

3.Experts paid from the research and technological development appropriations shall be recruited in accordance with the procedures laid down by the Council when it adopts each research framework programme.

[F3Article 160a U.K.

1. The commitment appropriations corresponding to the amount of the commitment decommitted as a result of total or partial non-implementation of the projects relating to research for which they were earmarked may, exceptionally and in duly substantiated cases, be made available again where it is essential to carry out the programme originally planned, unless the budget for the current financial year contains funds for this purpose.

2. For the purposes of paragraph 1, the Commission shall, at the beginning of each financial year, examine decommitments made during the previous financial year and assess, in the light of the requirements, the need for making the appropriations available again.

On the basis of this assessment, the Commission may submit appropriate proposals to the budgetary authority, by 15 February of each financial year, stating for each budget item the reasons for making these appropriations available again.

3. The budgetary authority shall decide on the Commission's proposals within six weeks. Where no decision is taken within this time limit, the proposals shall be deemed to be approved.

The amount of commitment appropriations to be made available again in year n shall in no case exceed 25 % of the total amount decommitted on the same budget line in year  n-1 .

4. Commitment appropriations made available again shall not be carried over.

Legal commitments relating to the commitment appropriations which have been made available again shall be concluded by 31 December of year  n .

At the end of year  n , the unused balance of the commitment appropriations made available again shall be definitively decommitted by the authorising officer responsible.]

Article 161U.K.

1.The Joint Research Centre (JRC) may receive funding charged to appropriations entered outside the titles and the chapters referred to in Article 160(1) in respect of its participation on a competitive or negotiated basis in Community activities financed in whole or in part from the general budget.

2.The appropriations relating to the activities in which the JRC participates on a competitive basis shall be treated as assigned revenue within the meaning of Article 18. The commitment appropriations generated by this revenue shall be made available as soon as the amount receivable has been estimated.

The utilisation of these appropriations shall be shown in a set of analytical accounts in the budgetary outturn account for each category of action to which it relates; it shall be separate from revenue originating from financing by third parties (public or private) and from revenue from other services carried out by the Commission for third parties.

3.The rules on procurement in Title V of part one shall not apply to the activities of the JRC on behalf of third parties.

4.By way of derogation from Article 23, the Commission may, within the title of the budget relating to the policy area ‘Direct action research’, make transfers between chapters of up to 15 % of the appropriation in the line from which the transfer is made.

TITLE IVU.K.EXTERNAL ACTIONS

CHAPTER IU.K.General provisions

Article 162U.K.

1.Parts one and three shall apply to external actions financed from the budget, save as otherwise provided in this Title.

2.The appropriations for the actions referred to in paragraph 1 shall be used by the Commission:

(a)either within the framework of aid granted on an autonomous basis;

(b)or under agreements concluded with one or more beneficiary third countries;

(c)or under agreements with the international organisations referred to in Article 53.

CHAPTER 2U.K.Implementation of actions

Article 163U.K.

[F1The actions referred to in this Title may be implemented on a centralised basis by the Commission, by shared management, on a decentralised basis by the beneficiary third country or countries, or jointly with international organisations in compliance with the relevant provisions of Articles 53 to 57]. Appropriations for external actions may be combined with funds from other sources to achieve a joint objective.

F2Article 164U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 165U.K.

The implementation of actions by beneficiary third countries or international organisations is subject to scrutiny by the Commission. Such scrutiny shall be exercised either by prior approval, by ex post checks or by a combined procedure.

Article 166U.K.

1.Actions carried out shall give rise to:

[F1(a) a financing agreement drawn up between the Commission, acting for the Communities, and the beneficiary third country or countries or the bodies they have designated, hereinafter: the beneficiaries ;

(b) a contract or a grant agreement between the Commission and national or international public-sector bodies or between the Commission and natural or legal persons responsible for carrying out the actions.]

[F1The terms on which the external aid is given shall be laid down in the instrument by which the financing agreements or the contracts or the grants provided for in points (a) and (b) shall be managed.]

[F12. Financing agreements with the beneficiary third countries referred to in paragraph 1(a) shall be concluded by 31 December of year  n+1 at the latest, year  n being the one in which the budgetary commitment was made.

The individual contracts, grant decisions and agreements which implement such financing agreements shall be concluded or adopted no later than three years following the date of conclusion of the financing agreement.

Individual contracts and agreements relating to audit and evaluation may be concluded later.]

[F33. The provision under paragraph 2 shall not apply to the multi-annual programmes in the following cases:

  • the cross-border cooperation, regional development, human resources development and rural development components of Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession Assistance (IPA) (7) ,

  • the cross-border cooperation component of Regulation (EC) No 1638/2006 of the European Parliament and of the Council of 24 October 2006 laying down general provisions establishing a European Neighbourhood and Partnership Instrument (8) .

In these cases, the following rules shall apply:

(a)

any portion of a budget commitment for such a multi-annual programme shall be automatically decommited where, by 31 December of the third year following year n being the one in which the budget commitment was made:

(i)

it has not been used for the purpose of pre-financing; or

(ii)

it has not been used for making intermediate payments; or

(iii)

no declaration of expenditure has been presented in relation to it;

(b)

that part of budget commitments still open on 31 December 2017 for which a declaration of expenditure has not been made by 31 December 2018 shall be automatically decommitted.]

CHAPTER 3U.K.Procurement

Article 167U.K.

1.The provisions of Article 56 and of Chapter 1 of Title V of part one relating to the general provisions on procurement shall be applicable to contracts covered by this Title subject to the special provisions relating to thresholds and the arrangements for awarding external contracts laid down in the implementing rules. The contracting authorities for the purposes of this chapter shall be:

(a)the Commission on behalf of and for the account of one or more beneficiaries;

(b)the beneficiary or beneficiaries;

[F1(c) a national or international public-sector body or natural or legal persons who are beneficiaries of a grant for the implementation of an external action.]

[F12. The procurement procedures must be laid down in the financing agreements or in the grant decision or grant agreement provided for in Article 166.]

Article 168U.K.

1.Participation in tendering procedures shall be open on equal terms to all persons coming within the scope of the Treaties and, in accordance with the specific provisions in the basic instruments governing the cooperation sector concerned, to all such natural and legal persons who are nationals of the beneficiary third countries or of any other third country as are expressly mentioned in those instruments.

2.In duly substantiated exceptional cases, it may be decided, on the basis of the specific conditions laid down in the basic acts governing cooperation, to allow third-country nationals other than those referred to in paragraph 1 to tender for contracts.

3.Where an agreement on widening the market for procurement of goods or services to which the Community is party applies, the contracts for procurement financed by the budget shall also be open to third-country nationals other than those referred to in paragraphs 1 and 2, under the conditions laid down in this agreement.

[F1CHAPTER 4 U.K. Grants]

Article 169U.K.

An action may be financed in full by the budget only if this proves essential for it to be carried out.

[F3Article 169a U.K.

Grant procedures to be applied in decentralised management by beneficiary third countries shall be laid down in the financing agreements referred to in Article 166. They shall be based on the rules laid down in Title VI of Part One.]

CHAPTER 5U.K.Auditing of accounts

[F1Article 170 U.K.

Each financing agreement or grant agreement or grant decision must expressly provide for the Commission and the Court of Auditors to have the power of audit, on the basis of documents and on the spot, over all contractors and subcontractors who have received Community funds.]

TITLE VU.K.EUROPEAN OFFICES

Article 171U.K.

1.‘European offices’ for the purposes of applying this Title are the administrative structures set up by one or more institutions to perform specific cross-cutting tasks.

[F12. This Title shall apply to the operation of the European Anti-fraud Office (OLAF), with the exception of Articles 174, 174a and 175(2).]

3.Parts one and three shall apply to the operation of the European offices, save as otherwise provided in this Title.

Article 172U.K.

1.The appropriations for each European office, the total amount of which shall be entered in a specific budget line within the section of the budget relating to the Commission, shall be set out in detail in an Annex to that section.

The Annex shall take the form of a statement of revenue and expenditure, subdivided in the same way as the sections of the budget.

The appropriations entered in that Annex shall cover all the financial requirements of each European office in the performance of its duties on behalf of the institutions.

2.Each European office's establishment plan shall be annexed to that of the Commission.

3.The Director of each European office shall take decisions on transfers within the Annex provided for in paragraph 1. The Commission shall inform the budgetary authority of such transfers.

4.Each European office's accounts shall form an integral part of the Communities' accounts referred to in Article 121.

[F1Article 173 U.K.

The Commission shall, in respect of the appropriations entered in the Annex for each European office, delegate the powers of authorising officer to the Director of the European office concerned, in accordance with Article 59.]

Article 174U.K.

1.Each interinstitutional European office shall draw up analytical accounts of its expenditure, enabling the proportion of its services supplied to each of the institutions to be determined. [F1The Director of the European office concerned shall adopt, after approval by its Management Committee, the criteria on which the accounting system shall be based].

2.The remarks concerning the specific budget line in which is entered the total appropriation for each interinstitutional European office shall show an estimate of the cost of services supplied by the office to each of the institutions. This shall be based on the analytical accounts provided for in paragraph 1.

3.Each interinstitutional European office shall notify the institutions concerned of the results of the analytical accounts.

[F3Article 174a U.K.

1. Each institution may delegate authorising officer powers to the director of an interinstitutional European office for the management of appropriations entered in its section and shall set the limits and conditions for this delegation of powers.

2. The internal auditor of the Commission shall exercise all responsibilities laid down in Title IV, Chapter 8 of Part One.]

[F1Article 175 U.K.

Should the remit of a European office involve supplies to third parties for pecuniary interest, its Director shall, after approval of the Management Committee, lay down the specific provisions governing how these supplies are to be made and the keeping of the corresponding accounts.]

F2Article 176U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TITLE VIU.K.ADMINISTRATIVE APPROPRIATIONS

Article 177U.K.

Parts one and three shall apply to administrative appropriations, save as otherwise provided in this Title.

Article 178U.K.

1.As from 15 November of each year, routine administrative expenditure may be committed in advance against the appropriations provided for the following financial year. [F1Such commitments may not, however, exceed one quarter of the appropriations decided by the budgetary authority on the corresponding budget line for the current financial year]. They may not apply to new expenditure of a kind not yet approved in principle in the last budget duly adopted.

2.Expenditure which must be paid in advance pursuant to legal or contractual provisions, for example rents, may give rise to payments from 1 December onwards to be charged to the appropriations for the following financial year. [F3In this case, the limit referred to in paragraph 1 shall not apply].

Article 179U.K.

[X11. Administrative appropriations shall be non-differentiated appropriations.]

[X22. Operating expenditure arising from contracts covering periods that extend beyond the financial year, either in accordance with local practice or relating to the supply of equipment, shall be charged to the budget of the financial year in which it is effected.]

3.The institutions shall inform the two branches of the budgetary authority as soon as possible of any building project likely to have significant financial implications for the budget.

[F1If either branch of the budgetary authority intends to issue an opinion, it shall within two weeks after receipt of the information on the building project notify the institution concerned of its intention to issue such an opinion. Failing a reply, the institution concerned may proceed with the planned operation under its administrative autonomy, subject to Article 282 of the EC Treaty and Article 185 of the Euratom Treaty with regard to Community representation.

This opinion shall be forwarded to the institution concerned within two weeks of such notification.]

[F3TITLE VII U.K. EXPERTS

Article 179a U.K.

The implementing rules shall include a specific procedure for the selection of experts, to be paid on the basis of a fixed amount, for assisting the institutions, in particular in evaluating proposals and grant applications or tenders for procurement, and for providing technical assistance in the follow-up to, and final evaluation of, projects financed by the budget.]

(1)

[F1 OJ L 270, 21.10.2003, p. 1 . Regulation as last amended by Regulation (EC) No 1405/2006 ( OJ L 265, 26.9.2006, p. 1 ).]

(2)

[F1Regulation (EC) No 1290/2005.

(3)

Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund ( OJ L 210, 31.7.2006, p. 1 ).

(4)

Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund ( OJ L 210, 31.7.2006, p. 12 ).

(5)

Council Regulation (EC) No 1084/2006 of 11 July 2006 establishing a Cohesion Fund ( OJ L 210, 31.7.2006, p. 79 ).

(6)

Council Regulation (EC) No 1198/2006 of 27 July 2006 on the European Fisheries Fund ( OJ L 223, 15.8.2006, p. 1 )]

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