2. Notes that in 2003 the total portfolio overseen by the EAR was EUR 1 900 million of which 81 % was contracted and 67,5 % disbursed for assistance programmes across its four operational centres (Belgrade, Podgorica, Pristina and Skopje), and that the EAR's total budget for 2003 was EUR 358,6 million, the bulk of which was for assistance programmes, and that out of the EUR 327,8 million of new EC credits received by the EAR in 2003, EUR 62,3 million was for Kosovo, EUR 200 million for Serbia, EUR 12 million for Montenegro and EUR 33,5 million for the Former Yugoslav Republic of Macedonia;
Implementation of the budget
3.
Notes the ECA observation on the practice in the Agency's budget, as adopted by the Governing Board, which does not observe the principle of differentiated appropriations, which results in an accounting out-turn for the financial year that bears no relation to the economic reality, and in a cumulative deficit as of 31 December 2003, i.e. EUR 140,95 million, which is largely artificial;
4.
Notes in the answers of the Agency, that it has now taken steps to clarify the financial presentation of its operation, which results in a consolidated revenue and expenditure account for the whole period 2004, therefore expects that the problem will be solved for the discharge procedure 2004;
5.
Encourages the Commission and the ECA to reinforce their cooperation with the EAR in this field in order to guarantee its budget implementation efficiency;
Financial statements
6.
Notes the ECA's repeated observations on the weaknesses of the Agency's accounting system, in particular the keeping of the general accounts on a single entry basis;
7.
Welcomes the answer by the Agency, which says it has now fully overcome the weaknesses mentioned by the Court and is now using double entry general accounting system along with the budgetary tool SI2;
8.
Invites the Commission to undertake all means necessary to allow all Agencies to share as quickly as possible the Commission's new accounting system as introduced on 1 January 2005;
9.
Expresses its surprise that the ECA has still not received clarification as to the status of funds made available to specialised bodies for the financing of loan programmes in specific fields and invites the Agency to adopt the appropriate solutions as regards the way in which these funds should be recorded in the Agency's financial statements;
10.
Understands from the Agency that only a minor balance of these funds is still remaining and was almost fully expended at the end of 2004; invites the EAR Director to give a full report to the competent committee on the implementation and efficiency of such loan programmes on the earliest occasion;
11.
Notes that the Agency has in the meantime reinforced its accounting staff and instruments and hopes that the improvements undertaken in 2004 will put an end to the repetition of negative remarks by the ECA on this issue;
12.
Is pleased to note that the average time taken by the EAR to make payments for assistance programmes in 2003 was 9 days;
13.
Notes the specific conditions under which the Agency is operating and expresses its recognition for the achievements of the Agency in the fulfilment of its mandate; calls on the Commission to give the necessary support to the EAR to ensure its full adaptation to the procedures and requirements of the new position of the Agency within the Commission (following enlargement);
14.
Notes that since 2003 major changes in the tender system have been undertaken, which should guarantee the transparent treatment of each tender;
15.
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