Parliamentary questions
WRITTEN QUESTION E-2313/00
by Maurizio Turco (TDI) to the Commission
(11 July 2000)

Subject: The White Paper "Reforming the Commission"

With regard to the White Paper "Reforming the Commission" (COM(2000) 200), in particular Annex 4 to Part I (Timetable for Action Plan) and the deadlines mentioned in Part II, can the Commission say whether all the measures scheduled for June 2000 have been carried out, which have yet to be completed and what the timetable for implementation is?

In particular, as regards the reform of financial control, can the Commission answer the following questions:

- What transitional measures are envisaged? Have they all been carried out? If not, what is the timetable for implementation?
- What internal and external audits were carried out by each unit in the first half of this year and last year?
- What are the recruitment procedures for the Internal Audit Service (IAS) set up at the beginning of May? What is its hierarchical structure?
- What specific experience does the chairman of the committee selecting the IAS audits, Claude Chene, have?

E-2313/00EN
Answer given by Mrs Schreyer
on behalf of the Commission
(13 October 2000)

With regard to the implementation of the actions in Part II of the white paper "Reforming the Commission"(1), the Commission invites the Honourable Member to refer to the document concerning the progress report on the reform actions as at 10 July 2000, adopted by the Commission on 26 July 2000(2).

The reform foresees that the current system of centralised ex ante financial control be replaced by a system in which the operational departments, specifically strengthened for the purpose and benefiting from the advice of a central financial service, take full responsibility for proper financial management and internal control. Their performance will be examined by an independent internal audit service. The strengthening of the operational departments, through the range of measures foreseen in the white paper, is in hand, and the Commission has proposed that the responsibility for internal audit should be separated as quickly as possible from the responsibility for centralised ex ante financial control. This latter function will continue until completion of the major revision of the Financial Regulation of 21 December 1977 applicable to the general budget of the Communities(3) currently in hand.

The following table shows the audits completed by the Financial control Directorate general during the periods mentioned by the Honourable Member.

Activity 1st Semester
1999 1st Semester
2000

Directorate A
- Internal Policies and Administrative expenditure	13	6
Total A	13	6
Directorate B
- Fisheries	2	1
- European agricultural guidance and guarantee fund (EAGGF)-Orientation	4	8
- Social Fund and Social policies	14	15
- Regional Fund	9	9
- Cohesion Fund	3	1
- CECA Funds	3	2
- Other	6	5
Total B	41	41
Direction C
- EAGGF-Guarantee	21	10
- Own Resources	8	11
- External Policies	11	15
- Internal Market	3	6
Total C	43	42
Other
- Internal Audit (all units)	9	13
Total	106	102

The initial staffing of the Internal audit service (IAS) was organised by means of an internal call for expressions of interest from Commission staff having the necessary experience, skills and professional qualifications. This procedure was used in order to enable an early start to be made on the selection process before specific posts could be identified. An ad hoc selection panel, including qualified and experienced senior auditors, made the selections and, as a result, 18 staff were transferred to the service. A further 11 posts for audit staff have now been published within the Commission and interinstitutionally. These will be filled according to the normal procedures.

As regards management structure, the post of head of the service (A1) was published in the Official journal on 12 July 2000, the post of deputy head of the service (A2) was filled by the Commission's decision of 26 July to appoint Mr Tony Wright, the first two audit supervisors (A3) took up their functions on 1 September 2000; and the remaining three supervisors will be selected after the appointment of the head of service.

Mr Claude Chêne, head of the Commission's administrative reform task force, was chosen to chair the panel because of his in-depth knowledge of the context, the challenges and the objectives of the Commission's reform programme. The audit expertise was provided by three assessors, all highly qualified as professional auditors: the chief internal auditor of the European Investment Bank, the head of the audit unit of Directorate general for Employment and an auditor of the European Court of auditors specialising in methodology.


(1) COM(2000) 200 final.
(2) SEC(2000) 1305.
(3) OJ L 356, 31.12.1977.