Annex 4 - report on compliance with and suspension of time-limits for making payments to creditors of the institution

• Author: Court of Justice of the European Union
• Pages: 102-103

ANNEX 4

REPORT ON COMPLIANCE WITH AND SUSPENSION

OF TIME-LIMITS FOR MAKING PAYMENTS

TO CREDITORS OF THE INSTITUTION

Article 116(1) 2 of the Financial Reg ulation establishes the p ayment periods for expendi ture operations.

Ar tic le 116 (5) s pec ie s th e cir cum st ance s in whic h cr edi tor s pai d la te ar e en tit led to re cei ve d efa ult i nte res t

charged to the line from which the principal was paid. 3 n a ddit ion, A rti cle 116(6 ) lay s down the ob liga tion

for each instit ution to submit to the budgetar y authority a repor t on compliance with and suspension of

the time-li mits for paying its credi tors. 4

The administrat ion of the Court pays particular atten tion to compliance with those regulatory prov isions

regarding payme nt delays and ensures careful o versight and monitoring of the ir application.

To t hat en d, the SA P i nte gr at ed  na nc ial an d bu dg et ar y m ana ge men t s ys te m (d ev el ope d o n an in te rin st it ut io nal

basis by the Council, the Cou rt of Auditors and the Court) has spe cic features that enable the follow ing:

2| Article 116 of Re gulation (EU, Euratom) 2018/104 6 of the Europ ean Parliamen t and of the Council of 18 J uly 2018 on the nancial

rul es a ppl ic abl e to the gen era l bu dge t of the Uni on, ame ndi ng R egu la tio ns ( EU) No 12 96/ 20 13, ( EU) No 13 01/ 2013 , (E U) N o 130 3/ 2013 ,

(EU) No 1304/2 013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223 /2014, (EU) No 283/2014 , and Decision No 541/2014/EU an d

repealing Re gulation (EU, Eur atom) No 966/2012 (OJ L 193, 30 .7.2018, p. 1).

3| Article 116(5) of R egulation (EU , Euratom) 2018/1046 : ... on the expir y of the time limits l aid down in paragra ph 1, the creditor shall b e

entitled to i nterest in accord ance with the fo llowing condi tions: (a) the inte rest rates shal l be those referr ed to in Articl e 99(2); (b) the in terest

shall be paya ble for the period el apsing from the cal endar day follow ing expiry of th e time limit for pay ment laid down in pa ragraph 1 up

to the day of pa yment. Howev er, in the event that t he interest calc ulated in accordan ce with the rst subparagraph is l ower than or equa l

to EUR 200, i t shall be paid t o the creditor on ly on a request s ubmitted wit hin two month s of receiving la te payment.

4| Article 116(6) of Regulatio n (EU, Eurato m) 2018/1046: ‘E ach Union institut ion shall submit to the Euro pean Parliament and Cou ncil a

report on th e compliance with and the su spension of the time limi ts laid down in paragra phs 1 to 4 of this Article . The report of the

Commission sh all be annexed to the su mmary of the annu al activit y reports referr ed to in Article 74(9) .’

102 Annual m anagement report - 2 018