Resolution (EU) 2023/1854 of the European Parliament of 10 May 2023 with observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the European Centre for the Development of Vocational Training (Cedefop) for the financial year 2021

29.9.2023 EN Official Journal of the European Union L 242/217 RESOLUTION (EU) 2023/1854 OF THE EUROPEAN PARLIAMENT of 10 May 2023 with observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the European Centre for the Development of Vocational Training

(Cedefop) for the financial year 2021 THE EUROPEAN PARLIAMENT, — having regard to its decision on discharge in respect of the implementation of the budget of the European Centre for the Development of Vocational Training (Cedefop) for the financial year 2021, — having regard to Rule 100 of and Annex V to its Rules of Procedure, — having regard to the opinion of the Committee on Employment and Social Affairs, — having regard to the report of the Committee on Budgetary Control (A9-0125/2023), A. whereas, according to its statement of revenue and expenditure(1), the final budget of the European Centre for the Development of Vocational Training (Cedefop) (the ‘Centre’) for the financial year 2021 was EUR 18 488 800, representing an increase of 1,15 % compared to 2020; whereas the Centre’s budget derives mainly from the Union budget;

B. whereas the Court of Auditors (the ‘Court’), in its report on the Centre’s annual accounts for the financial year 2021 (the ‘Court’s report’), states that it has obtained reasonable assurances that the Centre’s annual accounts are reliable and that the underlying transactions are legal and regular;

Budget and financial management

1. Notes with appreciation that the budget monitoring efforts during the financial year 2021 resulted in a budget implementation rate of current year commitment appropriations of 100 %, remaining equal compared to 2020; takes note of the fact that the target for the commitment implementation rate set for 2021 in the work programme (98 %), was achieved; notes that the current year payment appropriation rate was 80,02 %, representing an increase of 10,56 % compared to 2020;

2. Welcomes the fact that an adaptation to the calculation of associated countries’ contribution during 2021 fostered a slight increase in the contributions received from Norway and Island; notes that, as an effect of such an increase, the amending budget No 1/2021 added EUR 13 100to Title 2 of the budget, bringing the final budget from 18 488 800 to 18 501 900;

3. Notes that in 2021, the Centre integrated a new accounting system, the ABAC, also used by the Commission; notes further the Court’s observation that the final dates of implementation for budgetary commitments carried over from 2021 to 2022 were not recorded correctly in the system; regrets that, according to the Court, those commitments could have been irregularly carried over to 2022; welcomes the Centre’s quick reaction to the Court’s finding by updating the final dates of implementation for all of the budgetary commitments in question and by cancelling 11 budgetary commitments with a total value of EUR 45 923; strongly insists on the respect of the budgetary principle of annuality; underlines that the Centre should further improve its budget planning and its implementation cycles to avoid excessive delays in the implementation of work programmes or procurement plans;

(1) OJ C 114, 29.3.2022, p. 4.L 242/218 EN Official Journal of the European Union 29.9.2023 Performance

4. Notes with appreciation that the Centre fully implemented its work programme in 2021; takes note of the fact that the Centre reported that it stepped up its skills intelligence work in the context of megatrends by helping stakeholders to identify gaps and obstacles for strengthening skills intelligence; commends the launch of the new green observatory to explore trends towards a greener and more sustainable economy as well as its implications for vocational education and training (VET), the publication of a report to identify obstacles to long-term apprentice mobility, the launch of a research on microcredentials, the findings of which were presented in November 2021 at a world-spanning conference with 240 participants from 40 countries, the Centre’s support to the Commission’s initiative on individual learning accounts, and the launch in autumn 2021 of a new web-portal with stronger data visualisation capabilities and more innovative and target-group focused features;

5. Recalls the importance of the Centre’s role in ensuring that, inter alia, digital skills are integrated into VET across the Union and that the implementation and impact of relevant initiatives, such as the Council Recommendation on the Skills Agenda for Europe, VET for sustainable competitiveness, social fairness and resilience and the digital education action plan are monitored; believes that the Centre could also play a role in assessing Member States’ projects under the RRF’s digital transformation pillar; welcomes the Centre’s recent work in analysing the impact of the pandemic and digital transition on adapting business practices to the new realities in the Union labour market, for example through the COVID-19 European company survey, in conjunction with Eurofound;

6. Notes that the Centre uses a noteworthy performance measurement system that includes key performance indicators to assess the added value provided by its activities on projects, activity and organisational levels and other measures to improve its budget management; welcomes the presence of environmental indicators as well as social sustainability indicators among the performance indicators;

Staff policy

7. Notes that, on 31 December 2021, the establishment plan was 97 % implemented (as in 2020), with 78 temporary agents appointed out of 82 temporary posts and nine officials out of nine authorised under the Union budget; notes that 18 contract agents worked at the Centre in 2021;

8. Is concerned with weaknesses the Court identified in the Centre’s recruitment procedures; notes that in one case, the Centre used external consultants to screen applications on preselection criteria set out in the vacancy notice, whereas in another, the Centre did not undertake all necessary measures to establish an effective internal control mechanism to mitigate the associated risks; notes large discrepancies between the assessment performed by the Centre and the one performed by external consultants caused by a lack of clear and detailed guidelines for scoring the preselection criteria; recalls that procedural deficiencies in recruitment procedures undermine the principles of transparency and equal treatment; requests that the Centre improves its internal recruitment procedure to clarify evaluation processes and vacancy notices;

9. Notes with satisfaction the Centre’s decision to re-establish an internal legal advisor in 2021; takes note of the fact that the vacancy notice to fill the post of internal legal advisor was closed on 29 September 2022and calls on the Centre to keep reporting on any progress in this regard to the discharge authority;

10. Notes that, as regards gender balance reported for 2021, the Centre’s senior management is unevenly composed of four men (66,7 %) and of two women (33,3 %); also notes that the management board is composed of 80 men (51 %) and of 76 women (49 %); deplores the high number of members of the Board (156 composed of 84 voting members observers and alternates) which does not facilitate decision-making or simplified management; notes further that regarding its staff overall the gender breakdown is 57 % women and 43 % men; welcomes the presence of gender equality indicators among the social sustainability indicators; recalls the importance of developing a long-term human resources policy on work-life balance, lifelong guidance and the offer of specific training possibilities for career development, gender balance at all staff levels, teleworking, the right to disconnect, the enhancement of a geographical balance to ensure an appropriate representation from all Member States, and the recruitment and integration of people with disabilities as well as ensuring that they are treated equally and that their opportunities are widely promoted;29.9.2023 EN Official Journal of the European Union L 242/219

11. Stresses the importance of the geographical balance and that all Member States should be proportionally represented in order to have an appropriate representation of nationals from all Member States;

12. Notes with interest that the Centre offers its staff and family members a confidential 24/7 counselling support service; notes that, according to the dignity at work policy, annual reports are prepared by the coordinator of the network of confidential counsellors, sent to the management board and published to all staff; takes note of the fact that, according to the 2021 report, three staff members of the Centre consulted a confidential counsellor without opening an informal procedure and two members opened an informal procedure; calls on the Centre to report to the discharge authority on the follow-up to the opened informal procedures;

Procurement

13. Takes note of the fact that 23 procurement procedures were processed in 2021;

14. Notes with concern that the Court reported several non-compliance incidents in procurement contract management; notes in particular that the Centre paid EUR 180 590in respect of an order form without having received the specific declarations required from the contractor under the framework contract; regrets the fact that the omission affected all 28 order forms associated with that framework contract, with a total value of EUR 883 539; regrets further the Centre’s exposure to legal risks in relation to intellectual property rights;

15. Acknowledges that a mistake found by the Court in a 2020 procurement contract was mitigated by the Centre by the cancellation of its irregular contract with effect from 26 February 2021;

Prevention and management of conflicts of interest, and transparency

16. Notes the Centre’s existing measures and ongoing efforts to secure transparency, prevention and management of conflicts of interest and whistleblower protection;

17. Points out that the Centre’s management board consists of 94 members (including observers) and 60 alternates; recalls that, pursuant to Regulation (EU) 2019/128 of the European Parliament and of the Council(2), all members and alternates who attend management board meetings, or exercise the right to vote, must submit a declaration of interest; welcomes the fact that on 12 September 2022 all full members of the management board had submitted their declarations, with only three declarations of alternate members missing; notes, however, that, when assessing ex ante declarations of interest from members of a selection panel, one conflict of interest was identified in 2021;

observes that, following the opinion of the internal control coordinator (ICC), the executive director decided to replace a member of that selection panel;

18. Welcomes the fact that the Centre reported that it conducted in 2021 ex post controls on conflicts of interest in selection procedures and that the assessment showed that the majority of controls is in place and work effectively, with some areas for further improvement;

19. Further recalls that management board members are also invited to provide short CVs, although this is not a formal requirement; notes that on 16 September 2022, out of 94 management board members, 34 CVs were missing, and out of 60 active alternate members, 27 CVs were missing; calls on the Centre to ensure full transparency by publishing CVs and declarations of interest of all members of the management board and the external and in-house experts concerned;

(2) Regulation (EU) 2019/128 of the European Parliament and of the Council of 16 January 2019 establishing a European Centre for the Development of Vocational Training (Cedefop) and repealing Council Regulation (EEC) No 337/75 (OJ L 30, 31.1.2019, p. 90).L 242/220 EN Official Journal of the European Union 29.9.2023

20. Recalls the importance to participate in the interinstitutional agreement on a mandatory transparency register; insists on the need to put in place more systematic rules on transparency, incompatibilities, conflicts of interest, illegal lobbying and revolving doors; calls on the Centre to strengthen its internal control mechanisms, including the setting up of an internal anticorruption mechanism;

Internal control

21. Notes that the total internal control cost amounted to EUR 988 545for the year 2021 (EUR 55 461direct costs and EUR 933 084 indirect costs), which represents 5,3 % of the Centre’s budget; notes further that, in 2021, 26 non- compliance events linked to contracts and financial management were registered in the Centre’s deficiencies register;

welcomes the fact that recommendations issued by the ICC were implemented and followed up to help avoid reoccurrence;

22. Recalls that in 2020 the internal audit service (IAS) conducted remotely a full risk assessment covering the Centre’s administrative, financial, operational and information technology (IT) process; welcomes the fact that a follow-up auditing conducted by the IAS on 29 January 2021 concluded that the Centre had implemented all the recommendation adequately and effectively;

23. Acknowledges the fact that, according to its evaluation policy, the Centre carries out ex ante evaluations of procurement procedures with a value above EUR 500 000and ex post evaluations of projects or activities entailing a total expenditure of above EUR 500 000; notes that a 2021 report by the head of finance and procurement concluded that procurement procedures launched in the period examined were compliant with the requirements of ex ante evaluation; notes further that the ex post evaluation finalised in 2022 confirms that the activity was effective, efficient, coherent and brought Union added value;

24. Welcomes the Centre’s reaction to the Court’s findings in the area of procurement contract management by having adapted its internal procedures in order to prevent similar occurrences in the future; further welcomes the Centre having updated its procedures for future recruitment procedures, in light of the Court’s observations in this area; calls on the Centre to address rapidly the lack of clarity and detail with regard to its guidelines for scoring the pre-selection criteria set in vacancy notices as requested by the Court in its 2021 report on the Union agencies;

25. Notes with concern the weaknesses identified by the Court in payment management, in particular with regard to ex ante controls, which could expose the Centre to legal and reputational risks;

26. Recalls the importance of strengthening management and control systems to ensure the proper functioning of the Centre; strongly insists on the requirement of an effective management and control systems to avoid potential cases of conflicts of interest, missing ex ante or ex post controls, inadequate management of budgetary and legal commitments, and failures to report issues in the register of exceptions;

Digitalisation and the green transition

27. Notes that the Centre is pursuing the effort to improve the Centre’s cybersecurity and protection of personal data, especially through new multifactor authentication systems and training activities organised for staff; takes note of the fact that the Centre is committed to issuing a cybersecurity policy to follow up on the forthcoming cybersecurity Regulation(3); observes that, to define appropriate mitigating measures to provide the highest possible level of online information security, the Centre carried out a data protection impact assessment in early 2022;

(3) Proposal for a Regulation of the European Parliament and of the Council laying down measures for a high common level of cybersecurity at the institutions, bodies, offices and agencies of the Union (COM(2022) 122)).29.9.2023 EN Official Journal of the European Union L 242/221

28. Recalls the importance of increasing the digitalisation of the Centre in terms of internal operation and management but also in order to speed up the digitalisation of procedures; stresses the need for the Centre to continue to be proactive in this regard in order to avoid a digital gap between the Union agencies; draws attention, however, to the need to take all the necessary security measures to avoid any risk to the online security of the information processed;

encourages the Centre to work in close cooperation with European Union Agency for Cybersecurity (ENISA);

29. Acknowledges the Centre’s ongoing efforts to reduce the environmental impact and implementing the digital and green transitions; welcomes the fact that in 2021, in the context of the COVID-19 crisis, the Centre reported a reduction of 78 % of the expenses related to missions and meetings, and that it has planned to reduce its staff travels by 70 % (compared to pre-COVID-19 crisis levels) in the programming period 2023-2025; welcomes the Centre’s ambition to become carbon neutral by 2030;

30. Recalls the Centre’s longstanding commitment to environment management practices; acknowledges the Centre’s environmental management system helping to achieve its environmental targets; welcomes the presence of the environmental indicator ‘CO (ton) emissions’ as it proves the engagement of the Centre in achieving green objectives 2 and is a useful benchmark to track the evolution of post-pandemic emissions and the Centre’s CO footprint;

2

31. Notes with appreciation that in 2021 the Centre coordinated a survey within the EU Agencies Network on Scientific Advice to map activities that address the socioeconomic effects of sustainable development and demonstrate how that expertise could support the implementation of the European Green Deal;

Business continuity during the COVID-19 crisis

32. Notes with satisfaction that the Centre promptly shaped and activated a crisis management plan to deal with the COVID-19 pandemic by taking precautionary measures, such as teleworking and cancellation of physical events and missions, to ensure business continuity; notes that in 2021 all the Centre’s events continued being held virtually, but ongoing and systematic analysis of participants’ feedback showed high online participation rates and an overall satisfaction rate of 98 %;

33. Notes that, in close cooperation with Eurofound experts, the Centre released a working paper reporting first findings of the European company survey 2020 COVID-19 follow up; notes, further, that a dedicated COVID-19 response page was created on the Centre’s website to enable users to peruse more easily through the various related activities;

Other comments

34. Notes the Centre’s longstanding practice of cooperation and information exchange with other Union agencies, such as Eurofound and the European Training Foundation (ETF); recalls in particular the service level agreement signed by ENISA on 4 May 2020to share resources; points out that such resources regard, from 2021, also the Data Protection Officer; calls on the Centre to regularly report on the implementation of the agreement; notes further that a memorandum of understanding was agreed in 2022 with the European Labour Authority, and that cooperation in the context of the European Employment Service Network and Skills-OVATE has been identified as a key priority;

35. Welcomes the regular coordination and collaboration between the Centre and Eurofound, ETF and the European Agency for Safety and Health at Work; calls on the Centre to continue to develop synergies, increase cooperation, exchange good practices and push forward discussions regarding areas of mutual interest with other Union agencies, with a view to improving efficiency as regards, for instance, human resources, building management, IT services and security;L 242/222 EN Official Journal of the European Union 29.9.2023

36. Calls on the Centre to step up its efforts and report relevant performance information to Union citizens and the public in clear and accessible language; urges the Centre to ensure greater transparency and public accountability by better utilising media and social media channels;

37. Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its resolution of 10 May 2023(4)on the performance, financial management and control of the agencies.

(4) Texts adopted, P9_TA(2023)0190.