|
|
|
|
Each Union institution appoints an accounting officer responsible for
As a general rule, the accounting officer is alone empowered to manage monies and other assets. He or she shall be responsible for their safekeeping. (after Financial Regulation Article 61 OJ 16.9.2002 L 248).
Where is it mentioned on this website?
Accrual accounting recognizes revenue when earned, rather than when collected. Expenses are recognized when incurred rather than when paid. This is contrasted with cash basis accounting that recognizes transactions and other events only when cash is received or paid.
Where is it mentioned on this website?
Organisation of the budget appropriations and resources by purpose so as to allow people to see what policies are pursued, and within them, what activities make up the policies, how much money is spent on each of them, and how many people work on them.
Where is it mentioned on this website?
A number of EU agencies have been established, with two main types:
Where is it mentioned on this website?
Mainly customs duties on imports of certain agricultural produce from non-EU countries (produce covered by an EU support regime ("common organisation of the market"), as well as levies (paid by producers) on sugar, isoglucose and inulin syrup.
Where is it mentioned on this website?
Instrument adopted during the budget year to amend aspects of the adopted budget of that year.
Where is it mentioned on this website?
Before the budget for the coming year is adopted, and ordinarily before Parliament's first reading of the draft budget, the Commission may present a letter of amendment to the draft budget on the basis of new information which was not available at the time that the draft budget was drawn up.
Since the 2001 budget exercise for the Commission, and since 2003 for all Community institutions, the authorising officer by delegation must report to his/her institution on the performance of his/her duties in the form of an annual activity report together with financial and management information. This report indicates the results of the operations by reference to the objectives set, the risks associated with these operations and the way the internal control functions.
Where is it mentioned on this website?
Budget funding. The budget forecasts both
Where is it mentioned on this website?
Where is it mentioned on this website?
is responsible in each institution for implementing revenue and expenditure in accordance with the principles of sound financial management and for ensuring that the requirements of legality and regularity are complied with.
Where is it mentioned on this website?
A balance of payments (BoP) is a document that summarises the economic transactions of a country with the rest of the world during a particular period of time. The economic transactions involve goods, services and income. Any transaction that makes money to flow into a country is a credit to its BoP account, while any transaction that makes money to flow out of a country is a debit. Transactions are operated by individuals, businesses and government agencies in that country and those in the rest of the world.
Act of secondary law (regulation, directive or decision) laying down the objectives and conditions for budget implementation.
Where is it mentioned on this website?
Annual financial plan, drawn up according to budgetary principles, that provides forecasts and authorises, for each financial year, an estimate of future costs and revenue and expenditures and their detailed description and justification, the latter included in budgetary remarks.
Institutions with decisional powers on budgetary matters: the European Parliament and the Council of Ministers
Where is it mentioned on this website?
The difference between what a country receives from and pays into the EU budget.
There are many possible methods of calculating budgetary balances. In its annual report on allocated expenditure, the Commission uses a method based on the same principles as the calculation of the correction of budgetary imbalances granted to the United Kingdom (the UK rebate).
It is, however, important to point out that constructing estimates of budgetary balances is merely an accounting exercise of the purely financial costs and benefits that each Member State derives from the Union and it gives no indication of many of the other benefits gained from EU policies such as those relating to the internal market and economic integration, not to mention political stability and security.
Where is it mentioned on this website?
principles according to which the budget is to be implemented.
budgetary principles in detail:
Percentage used as a basis for calculating national contributions to the budget
Where is it mentioned on this website?
Limits of expenditure or revenue fixed by law or by agreement, such as in the own resources decision or in the multiannual financial framework. The latter defines an annual ceiling for each expenditure heading in commitment appropriations and an annual global ceiling for payment appropriations.
Where is it mentioned on this website?
Process designed to provide reasonable assurance regarding achievement of various management objectives, such as the fulfilment of legal acts, or reliability of financial actions and reports.
Where is it mentioned on this website?
The decision by which the European Parliament, on the basis of the recommendation from the Council and the declaration of assurance provided by the Court of Auditors, closes the life of an annual budget exercise. It covers the accounts of all the Communities' revenue and expenditure, the resulting balance and the assets and liabilities of the Communities shown in the balance sheet.
Where is it mentioned on this website?
emergency aid reserve funding foreseen in a blocked reserve in the budget that can be called upon by transfer when duly justified for emergencies or crises, and used if the budgetary authority agrees. A second reserve for Community loans and loan guarantees is also foreseen in the Financial Regulation.
Where is it mentioned on this website?
EU-27 means the EU as constituted in 2007: Belgium (BE), Bulgaria (BG), Czech Republic (CZ), Denmark (DK), Germany (DE), Estonia (EE), Greece (EL), Spain (ES), France (FR), Ireland (IE), Italy (IT), Cyprus (CY), Latvia (LV), Lithuania (LT), Luxembourg (LU), Hungary (HU), Malta (MT), Netherlands (NL), Austria (AT), Poland (PL), Portugal (PT), Romania (RO), Slovenia (SI), Slovakia (SK), Finland (FI), Sweden (SE), United Kingdom (UK)
EU-25 means the EU as constituted in 2004: BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK
EU-15 means the EU as constituted in 1995: BE DK DE EL ES FR IE IT LU NL AT PT FI SE UK
EU-12 means the EU as constituted in 1986: BE DK DE EL ES FR IE IT LU NL PT UK
EU-10 means the EU as constituted in 1981: BE DK DE EL FR IE IT LU NL UK
EU-9 means the EU as constituted in 1973: BE DK DE FR IE IT LU NL UK
EU-6 means the EU as constituted in 1957: BE DE FR IT LU NL
EDF is the main instrument for Community aid for development cooperation in the African, Caribbean and Pacific (ACP) countries and the Overseas Countries and Territories (OCT). The EDF is governed by its own Financial Regulation and is managed outside the General Budget. The EDF is funded from direct contributions from Member States. The rates of contributions differ from those of the General Budget and are agreed in negotiations.
Where is it mentioned on this website?
In the EU context, "financial assistance" means financial support (grants, loans etc) provided by the European institutions to help:
Multiannual spending plan that translates into financial terms the Union's policy priorities. It sets
The financial framework is now set in the Interinstitutional agreement, adjusted each year to take account of the movements of gross national income and may also be revised by agreement between the signatories. The Lisbon Treaty envisages the Council Regulation laying down the Multiannual Financial Framework It should not be confused with the financial framework included in legislative co-decisions, fixing an amount for the programme concerned during the life of that programme.
Where is it mentioned on this website?
Another term, most commonly used over 1988-2006, for the financial framework.
Where is it mentioned on this website?
Established in the interinstitutional agreement of 17 May 2006, the flexibility instrument permits the budgetisation of 200 million € each year for matters that could not otherwise be financed in each budget year. The portion of this amount which is not used during a year may be used in the following two years
Where is it mentioned on this website?
Sets out the operating principles and basic rules governing the EU budget. Deals thoroughly with budget implementation and control issues, which are not fully covered in the EU treaties.
Where is it mentioned on this website?
Database of beneficiaries of the roughly €10bn paid out each year by the Commission in the form of grants and other aid.
Where is it mentioned on this website?
General accounts are used to prepare the balance sheet and economic outturn.
Where is it mentioned on this website?
Direct financial contributions, by way of donation, from the budget in order to finance either an action intended to help achieve an objective part of a EU policy or the functioning of a body which pursues an aim of general European interest or has an objective forming part of a EU policy.
Where is it mentioned on this website?
Final result of the production activity of resident producer units. It corresponds to the economy's total output of goods and services, less intermediate consumption, plus taxes less subsidies on products.
Represents total primary income receivable by resident institutional units: compensation of employees, taxes on production and imports less subsidies, property income (receivable less payable), operating surplus and mixed income. Gross national income equals GDP (see above) minus primary income payable by resident units to non-resident units plus primary income receivable by resident units from the rest of the world.
GNI has widely replaced Gross National Product (GNP) as an indicator of income. In the area of the EU budget this change took effect as from the year 2002. In order to maintain unchanged the cash value of the ceiling of EU revenue, referred to as the 'own resources ceiling,' the ceiling had to be recalculated in percentage terms. It is now established at 1.23 % of GNI.
Headings in the financial framework are groups of EU activities in broad categories of expenditure
Where is it mentioned on this website?
Implementing rules lay down detailed rules for the implementation of the Financial Regulation. They are set out in a Commission Regulation adopted after consulting all institutions and cannot alter the Financial Regulation upon which they depend.
Where is it mentioned on this website?
Interinstitutional Agreement (IIA) on budgetary discipline and sound financial management: the IIA is adopted by common agreement of the European Parliament, the Council and the Commission and contains the table of the financial framework, as well as the rules to implement it.
Where is it mentioned on this website?
Irregularities mean any infringement of a provision of Community law resulting from an act or omission by an economic operator, which has, or would have, the effect of prejudicing the general budget of the Communities or budgets managed by them, either by reducing or losing revenue accruing from own resources collected directly on behalf of the Communities, or by an unjustified item of expenditure.
Legal base or basis is, as a general rule, a law based on an article in the Treaty giving competence to the Community for a specific policy area and setting out the conditions for fulfilling that competence including budget implementation. Certain Treaty articles authorise the Commission to undertake certain actions, which imply spending, without there being a further legal act
Where is it mentioned on this website?
See Treaty of Lisbon
Before the budget for the coming year is adopted, and ordinarily before Parliament's first reading of the draft budget, the Commission may present a letter of amendment to the draft budget on the basis of new information which was not available at the time that the draft budget was drawn up.
Revenue flowing automatically to the European Union budget, pursuant to the treaties and implementing legislation, without the need for any subsequent decision by national authorities.
Where is it mentioned on this website?
Organisation of the budget appropriations and resources by purpose so as to allow people to see what policies are pursued, and within them, what activities make up the policies, how much money is spent on each of them, and how many people work on them (see also "activity based budgeting")
Where is it mentioned on this website?
"Public Internal Financial Control" is an overall and comprehensive internal control system performed by the Government, aiming to ensure that the financial management and control environment of its national budget centres (including foreign funds) complies with the relevant legislation, budget descriptions, transparency, and the principles of sound financial management: efficiency, effectiveness and economy. PIFC comprises all measures to control all government income, expenditure, assets, and liabilities. It includes decentralised functionally independent internal audit as a management tool and centralised coordination and harmonisation of financial management and control as well as internal audit systems.
Where is it mentioned on this website?
Rules governing the award of contracts by public administration. The principles of Public procurement Directive that Member States must transpose into national law are also applicable to the contracts of the Community institutions
Where is it mentioned on this website?
Entitlements vis-à-vis the Community's debtors. Authorising Officers establish third parties' debts towards the Community and instruct the accounting officer to recover money due. Actual recovery of amounts due to the Community may take different forms: voluntary payment by the debtor, offsetting of mutual debts, resort to a financial guarantee or enforcement action (either directly through a Community decision in accordance with Art 256 ECT or following an enforcement title obtained before the competent jurisdiction).
Where is it mentioned on this website?
Apart from the emergency aid reserve and the reserve relating to Community loans and loan guarantees to third countries, the budgetary authority may place funding in reserve which may be released by transfer upon the fulfilment of conditions, such as the adoption of a legal base.
Where is it mentioned on this website?
Income from all sources that finances the budget.
Almost all revenue into the EU budget is in the form of own resources, of three kinds:
The budget also receives other revenue, such as income from third countries for participating in EU programmes, the unused balance from the previous year, taxes paid by EU staff, competition fines, interest on late payments, and so on.
Where is it mentioned on this website?
Budgetary principle according to which budget appropriations must be used according to economy, efficiency and effectiveness.
Where is it mentioned on this website?
The European Court of Auditors provides the European Parliament and the Council each year with a statement of assurance (DAS - from "Déclaration d'Assurance", in French) as to the reliability of the accounts of all revenue and expenditure of the Community and the legality and regularity of the underlying transactions.
Where is it mentioned on this website?
Mainly customs duties on imports of certain agricultural produce from non-EU countries (produce covered by an EU support regime ("common organisation of the market"), as well as levies (paid by producers) on sugar, isoglucose and inulin syrup.
Where is it mentioned on this website?
The budgetary principle of transparency was established in the Financial Regulation adopted in 2002 to stress several publication obligations on the part of the Commission. The adopted budget must be published without delay on its website, in the Official Journal, consolidated financial statements & financial management reports of the institutions to be published in the Official Journal.
Where is it mentioned on this website?
The Commission has bank accounts with Member State Treasuries, Central Banks and commercial banks and these make up the treasury.
Where is it mentioned on this website?
The Treaty of Lisbon amends the EU's two core treaties, the Treaty on European Union and the Treaty establishing the European Community. The latter is renamed the Treaty on the Functioning of the European Union. In addition, several Protocols and Declarations are attached to the Treaty.
Where is it mentioned on this website?
Want to know more?
Indirect tax, expressed as a percentage applied to the selling price of most goods and services. At each stage of the commercial chain, the seller charges VAT on sales but owes the administration this amount of tax minus the VAT paid on purchases made in the course of business. This process continues until the final consumer, who pays VAT on the whole value of what is purchased. VAT is broadly harmonized in the European Union but Member States may fix their own rates of tax, within parameters set at Community level, and also enjoy a limited option to tax or not to tax certain goods and services.
Where is it mentioned on this website?
