Report on budgetary and financial management

accompanying the European Institute of

Innovation and Technology’s annual accounts

Financial year: 2017

EIT report pursuant to Article 93 of the EIT Financial Regulation

European Institute of Innovation and Technology (EIT)

Budapest | 31 March 2018

www.eit.europa.eu

The EIT is a body of the European Union

1

Contents Introduction .................................................................................................................................................. 2

Part A – Overview: Budget 2017 .................................................................................................................... 5

A.1 Establishment of the initial budget .......................................................................................................... 6

A.2 Budget amendments ................................................................................................................................ 6

A.3 Transfers made during the financial year ................................................................................................ 7

A.4 Implementation overview ........................................................................................................................ 8

A.4.1 Implementation of revenue (IC1, IC4) .............................................................................................. 8

A.4.2 Implementation of authorised appropriations (C1, C4) .................................................................. 8

A.4.4 Carry-over/re-entry from previous financial year(s) ...................................................................... 10

A.4.5 RAL situation at the end of the financial year ................................................................................ 14

A.4.6 Appropriations carried over/re-entered from 2017 on decision .................................................. 19

Part B – Detailed overview of the implementation of the budget 2017 ....................................................... 20

B.1 Revenue 21

B.2 Expenditure ............................................................................................................................................. 22

B.2.1 Title 1 — Staff expenditure ............................................................................................................. 22

B.2.2 Title 2 —Infrastructure and operating expenditure ...................................................................... 25

B.2.3 Title 3 — Operational expenditure ................................................................................................. 27

Annexes....................................................................................................................................................... 30

Annex I: Transfers and budget amendments ............................................................................................... 31

2

Introduction

Legal basis

Article 93(1) of the European Institute of Innovation and Technology (EIT) Financial Regulation1 stipulates that the “EIT shall prepare a report on budgetary and financial management for the financial year.”

The present report analyses the appropriations managed by the EIT in 2017. These appropriations consist

of Title 1 – Staff expenditure, Title 2 – Infrastructure and operating expenditure, and Title 3 – Operational

expenditure.

The analysis follows the Accounting Rule 162 on the presentation of budget information in annual accounts.

According to this rule, the comparison of budget and actual amounts shall present separately, for each area

of activity, the original and final budget amounts explaining all changes approved by the EIT Governing

Board to revise the original budget and the actual implemented amounts on a comparable basis.

Content of the report

Part A of the report analyses the year including:

- a summary of the various stages of the budgetary procedure for 2017, explaining how the

appropriations for the 2017 financial year were arrived at during the process of budgetary

negotiation and the establishment of the budget;

- a description of the main adjustments to the budget during the financial year (carry-overs, re-

entry, budget amendments, transfers) and the reasons for these adjustments, leading to the final

appropriations of the year;

- an overview of the implementation of revenue and expenditure;

- an assessment of the unused amounts carried forward and the evolution of the outstanding

commitments3.

Part B of the report is a detailed analysis of budget implementation by chapter, including tables and text

setting out the appropriations made available and their implementation.

The report contains the following annex:

Annex I: Detailed report on transfers and budget amendments

1 EIT Governing Board Decision of 27 December 2013 and its amendment of 5 March 2015

2 Accounting Rule 16 adopted by the Accounting Officer of the Commission to be applied by all the institutions and Agencies.

3 RAL - reste à liquider

3

Definitions of terms used in this report

Total appropriations of the year:

Initial budget: appropriations voted by the Budget Authority 4 (BA) and adopted by the EIT

Governing Board (GB).

Amending budgets (AB): an increase or a decrease in the EIT’s initial adopted budget.

EIT transfers: transfers decided by the EIT Director on his own authority in accordance with Article

27(1) of the EIT Financial Regulation

GB transfers: transfers decided by the EIT Governing Board in accordance with Article 27(2) of EIT

Financial Regulation

Carry-over from 2016: budgetary appropriations carried over automatically or by a decision of the

EIT Governing Board in accordance with Article 14 of the EIT Financial Regulation.

Re-entry from 2015 and 2016: budgetary appropriations re-entered by a decision of the EIT

Governing Board in accordance with Article 14 of the EIT Financial Regulation.

Assigned revenue: appropriations also include appropriations carried over from the previous year.

­ appropriations made available again (C4) as a result of repayment of payments on account:

These are mainly EIT grants which have been repaid by the EIT’s Knowledge and Innovation

Communities (KICs).

Table 1: The terminology is shown in the schematic table on types of appropriation below:

Fund source

code

Found source description Presentation in this report

C1 Initial budget + Amending budget + Transfers Voted budget

C2 Carry-over/re-entry of payment appropriations on

decision to be used before 31/12

Re-entry from 2016 to 2017

C3 Carry-over/re-entry of commitment appropriations on

decision

Re-entry from 2015, 2016 to

2017

C4 Refunds Belongs to assigned revenue

C5 Carry-over of appropriations arising from assigned

revenue

Belongs to assigned revenue

C8 Automatic carry-over of payment appropriations

corresponding to commitments of non-differentiated

appropriations

Carry-over from 2016 to 2017

IC1 Income voted in the budget Income voted in the budget

IC4 Internal assigned revenue Belongs to assigned revenue

4 European Parliament and Council

4

Date of extraction

The implementation data is based on the preliminary data serving as a basis for the provisional accounts

on 1 March 2018. Unless otherwise stated, amounts are provided in Euro.

Management information system

The EIT used the following software during the financial year:

- BLUEBELL for budgetary planning and monitoring;

- ABAC Workflow for budget management, budgetary accounting and contract management;

- SAP for financial accounting (general accounting);

- SPEEDWELL for electronic payment workflow

- Datawarehouse for financial reporting;

- ABAC Assets for fixed asset management;

- MiMa for mission management;

- EIT collaboration platform “DUNA” for submission of KICs business plans and reports;

Budget and financial management Since June 2011, the EIT has been partially financially autonomous, which means that the EIT’s partner

Directorate General at the European Commission (DG Education and Culture) continued providing

consultation and ex-ante verification in two areas: 1) KIC 5 grant management and 2) high-value

procurement procedures.

In 2017, the EIT achieved a very high implementation rate for payment appropriations (99.5%) owing to

certain efficiency gains in the workflows and tools installed. The authorised budget for commitment

appropriation was implemented at 91.0% that was slightly lower compared to 2016 (94.9%). In 2018, the

EIT intends to further improve and make its budgetary planning, monitoring and implementation processes

more effective and efficient by 1) further simplifying the existing procedures and systems making them

more appropriate to the needs of management and staff (e.g. introducing regular meetings, reporting and

simplification workflows) and 2) providing more guidance and practical trainings for staff members. In

overall these measures should contribute to an implementation rate converging to 97%.

NOTE: The information contained in this report is without prejudice to the content of the official EIT

documents on the closure of the accounts. Readers should refer in particular to the final revenue and

expenditure account for the official figures on the 2017 budget outturn.

5 Knowledge and Innovation Communities

5

Part A – Overview: Budget 2017

6

A.1 Establishment of the initial budget

The EIT Governing Board adopted the draft estimate of revenue and expenditure for the year 2017 on

3 December 2015 6 as part of EIT’s draft single programming document 2017-2019. Commitment

appropriations were set at EUR 325.0 million (20167: EUR 285.0 million), 14.0% more than in the 2016 final

budget. The level of payment appropriations proposed increased by 20.5%, to a total of EUR 341.1 million.

Based on this version, 2.2% of the total commitment appropriations (EUR 7.0 million) was allocated to

administrative expenses and 97.8% of the total commitment appropriations (EUR 318.0 million) was

allocated to operational expenditure.

Following the adoption of the European Union’s general budget, the EIT Governing Board adopted the final

budget for year 2017 on 8 December8 2016 by setting commitment appropriations at EUR 337.2 million.

The total payment appropriations were set at EUR 335.4 million.

A.2 Budget amendments

Two budget amendments were adopted during the 2017 financial year.

Table 2 - List of budget amendments including their grounds and financial impact

AB

No

Date of

adoption

Ground of the budget amendment Official

Journal

Impact (EUR)

19 14

February

2017

Budget amendment No 1/2017

reflects the result of the decrease of

appropriations made available for the

EIT in the EU budget. It contains the

budget result of 2016 and the decision

on re-entry of appropriations. In

addition, this amendment reflects the

actual and foreseen implementation

of the budget and the annual work

programme.

OJ C 524,

24.5.2017, p.

4-7

CA: EUR 1,279,783.08

PA: EUR 1,609,273.88

210 17

November

2017

Budget amendment No 2/2017

comprises the correction of income

and payment appropriations to reflect

the amounts collected during the

financial year as well as the review of

the implementation of both the

budget and Annual Work Programme.

OJ C11 CA: EUR 627,236.12

PA: - EUR 26,448,173.48

6 02732.EIT.2015.I.GB38 7 2016 budget figure contains initial budget and its modifications. 8 Decision 32/2016, 06166.EIT.2016.I.GB44

9 Decision 3/2017, 00055.EIT.2017.I.GB.WP 10 Decision 23/2017, 11523.EIT.2017.I.GB.WP

11 At the time of preparation of this report it is under publication.

7

A.3 Transfers made during the financial year

There are two types of transfers:

- EIT transfers: transfers decided upon by the EIT Director on his own authority in accordance with

Article 27(1) of the EIT’s Financial Regulation (transfers from one chapter to another without limit and

transfers from one title to another below 10% of the adopted budget)

- EIT Governing Board transfers: transfers decided upon by the Governing Board (GB) in accordance with

Article 27(2) of EIT Financial Regulation (transfer from one title to another above 10% of the adopted

budget)

In 2017, three transfers were approved by the EIT Director which was below the limit established by the

EIT Financial Regulation.

Table 3 - List of transfers including their grounds and financial impact

Transfer

No

Date of

adoption

Ground of the transfer Impact on CA

(EUR)

Impact on

PA (EUR)

112 31 August

2017

The commitment and payment appropriations on the following budget lines were not sufficient to cover the needs of the rest of the year: 2004 Cleaning 2005 Security and surveillance 2520 Internal meetings

2,200.00

15,440.00

5,000.00

2,200.00

15,440.00

5,000.00

213 27 October

2017

The commitment and payment appropriations on the following budget lines were not sufficient to cover the needs of the rest of the year: 1600 Agency staff 1300 Mission expenses

20,100.00

25,000.00

20,100.00

25,000.00

314 8 December

2017

The commitment and payment appropriations on the following budget lines were not sufficient to cover the needs of the rest of the year: 1100 Basic salary 1102 Employer’s charges 1402 Early childhood centre 2100 Acquisition, renting of ICT equipment and software

82,960.00

890.00

1,200.00

3,000.00

82,960.00

890.00

1,200.00

3,000.00

12 Decision 22/2017, 09727.EIT.2017.I.HG

13 Decision 27/2017, 11216.EIT.2017.I.HG 14 Decision 52/2017, 12248.EIT.2017.I.HG

8

A.4 Implementation overview

A.4.1 Implementation of revenue (IC1, IC4) 100.0% of the forecasted revenue were received in 2017. The revenue increased by 14.6% compared to

2016 since EIT’s expenditure increased as well. Section 1 of Part B provides further explanation by revenue

items.

Table 4 – EIT revenue collected, EUR

A.4.2 Implementation of authorised appropriations (C1, C4) For commitments, the EIT reached an implementation rate of 91.0%, which was a slight decrease compared

to 2016 (2016: 94.9%, 2015: 90.6%). This is mainly owing to the decrease of rate on Title 2 and Title 3. On

Title 1, the execution rate increased from 96.4% to 98.1%. On Title 2, the appropriations were implemented

at a lower rate compared to 2016, namely at 84.5% (2016: 89.0%). The low implementation rate of

commitment appropriations on Title 2 is mainly owing to the nature of the expense where it is difficult to

estimate the cost, like transport, legal expense, other administrative expense, internal meetings, editing of

EIT official documents, costs of publication in the Official Journal. The low implementation rate of

commitment appropriations on Title 3 is mainly owing to KIC grants, expert contracts and the events.

Chart 1 – Comparison of budget execution rates for commitments, %

303 311 492.98 263 554 082.96 227 017 581.00 15.1%

0 0.00 1 560 000.00

12 172.25 4 583.70 7 547.64 165.6%

6 147 275.69 7 065 708.31 1 564 522.98 -13.0%

1 058 890.90 431 827.42 263 239.16 145.2%

TOTAL 310 529 831.82 271 056 202.39 230 412 890.78 14.6%

Surplus, balances

Repayment of KICs grants incurred as a

result of an ex-post audit

2015Var. 2017/2016,

%

European Union subsidy, EFTA and third

party contribution

Contribution by the Host Member State

Other revenue from administrative

operations

Income line header 20162017

9

Table 5 – Comparison of budget execution for commitments, EUR

The implementation rate of payment appropriations, representing 99.5%, was very high. There was a slight

increase compared to 2016 (99.0%). This achievement comes from a better budget implementation on all

Titles.

The low implementation rate of payment appropriations for infrastructure and operating expenditure (Title

2) is due to the fact that there are certain expense types that typical incur during the final months of a year

therefore must be paid in the following year, such as cleaning services, catering, telecommunications, travel

or expenses related to Governing Board meetings in December

Chart 2 – Comparison of budget execution rates for payments, %

Budget Title 2017 2016 2015

1 Staff expenditure 4 537 165.82 4 164 316.62 3 776 915.96

2 Infrastructure and

operating expenditure710 563.51 973 458.87 807 497.27

3 Operational expenditure283 242 645.71 244 774 789.20 238 536 397.71

TOTAL 288 490 375.04 249 912 564.69 243 120 810.94

10

Table 6 – Comparison of budget execution for payments, EUR

A.4.4 Carry-over/re-entry from previous financial year(s)

Carry-over of appropriations from 2016 to 2017 on decision (C2, C3)

The EIT Governing Board decided to re-enter appropriations cancelled in 2015 and 2016 instead of carrying

them over.

Re-entry of appropriations from 2015 and 2016 to 2017 on decision (C2, C3)

In its decisions on budget amendment No 1 and No 2, the EIT Governing Board decided to re-enter

appropriations, which were cancelled in 2015 and 2016, for the financial year 2017.

The decision by the EIT Governing Board, concerned the re-entry of commitment and payment

appropriations cancelled. Both commitment and payment appropriations re-entered were fully consumed.

Part of the appropriations cancelled in 2015 and 2016 was re-entered in 2017. The remaining part of

appropriations cancelled in 2016 was booked on Title 4, where EIT collects cancelled appropriations not

needed in the financial year. Title 4 allows to monitor the use of cancelled appropriation and be in line with

the derogation for following the three-year rule15.

Table 7a – Implementation of commitment appropriations re-entered from 2015 and 2016 to 2017 (C2,

C3)

15 According to Art 14 (1) of EIT FR: “Appropriations which have not been used by the end of the financial year for which they were entered shall be

cancelled. Given the needs of the EIT, the cancelled appropriations may be re-entered in the estimate of revenue and expenditure up to the following

three financial years, in accordance with Article 33”.

Budget Title 2017 2016 2015

1 Staff expenditure 4 368 993.07 3 968 571.84 3 634 394.83

2 Infrastructure and

operating expenditure458 545.07 580 353.18 453 778.62

3 Operational expenditure297 645 870.91 256 803 096.75 218 206 460.23

TOTAL 302 473 409.05 261 352 021.77 222 294 633.68

from 2015 from 2016 total

B3-000 KIC grants 9 012 879.42 11 338 321.58 20 351 201.00 20 351 201.00 100.00%

Total 9 012 879.42 11 338 321.58 20 351 201.00 20 351 201.00 100.00%

B4-001Cancelled appropriations for year n-1

not used in year n- 1 459 123.92 1 459 123.92 - 0.00%

Total - 1 459 123.92 1 459 123.92 - 0.00%

GRAND TOTAL 9 012 879.42 12 797 445.50 21 810 324.92 20 351 201.00 93.31%

% Committed

(2/1)

Commitment appropriations, EUR (1)Budget

lineBudget Item Description

Commitments

made, EUR (2)

11

Table 7b – Implementation of payment appropriations re-entered from 2015 to 2017 (C2, C3)

Automatic carryover of appropriations, corresponding to obligations duly contracted (C8)

Pursuant to Article 14(5) of the EIT Financial Regulation, non-differentiated appropriations, corresponding

to obligations duly contracted at the close of the financial year, must be carried over automatically to the

following year.

83.7% of the non-differentiated appropriations, namely the administrative appropriations carried over

from 2016 to 2017 were paid, which represents an adequate level of execution, taking into account the

nature of these expenses. However, the estimation of amounts to be carried over has to be further

improved.

On Title 1 budget lines, 91.6% of appropriations carried over were paid. The low implementation rate on

Title 2 appropriations (79.9%) primarily derives from expenses related to telecommunication costs and

travel costs of EIT Governing Board members, which by nature are difficult to estimate.

from 2015 from 2016 total

B3-000 KIC grants 2 965 301.48 2 965 301.48 2 965 301.48 100.00%

Total 2 965 301.48 - 2 965 301.48 2 965 301.48 100.00%

B4-001Cancelled appropriations for year n-1

not used in year n1 564 179.79 1 617 794.42 3 181 974.21 - 0.00%

Total 1 564 179.79 1 617 794.42 3 181 974.21 - 0.00%

GRAND TOTAL 4 529 481.27 1 617 794.42 6 147 275.69 2 965 301.48 48.24%

Budget

lineBudget Item Description

Payments made,

EUR (4) % Paid (4/3)

Payment appropriations, EUR (3)

12

Table 8a – Implementation of appropriations carried over automatically from 2016 to 2017 (C8)

Budget

l ineBudget Item Description

Commitment

appropriations,

EUR (1)

Commitments

made, EUR (2)

% Committed

(2/1)

Payment

appropriations,

EUR (3)

Payments made,

EUR (4)

% Paid

(4/3) R A L (2-4)

A-1130 Schooling 9.81 0.00% 9.81 - 0.00% -

Total 9.81 - 0.00% 9.81 - 0.00% -

A-1300 Mission expenses 20 783.13 20 783.13 100.00% 20 783.13 20 783.13 100.00% -

Total 20 783.13 20 783.13 100.00% 20 783.13 20 783.13 100.00% -

A-1402 Childhood centre 5 972.28 5 972.28 100.00% 5 972.28 5 972.28 100.00% -

A-1403 Social contacts 2 729.00 1 807.25 66.22% 2 729.00 1 807.25 66.22% -

Total 8 701.28 7 779.53 89.41% 8 701.28 7 779.53 89.41% -

A-1500 Training 20 515.40 20 111.42 98.03% 20 515.40 20 111.42 98.03% -

Total 20 515.40 20 111.42 98.03% 20 515.40 20 111.42 98.03% -

A-1600 Agency staff 67 894.46 64 544.60 95.07% 67 894.46 64 544.60 95.07% -

A-1603 IT support 60 369.00 49 304.00 81.67% 60 369.00 49 304.00 81.67% -

A-1604 Administrative assistance 17 471.70 16 730.97 95.76% 17 471.70 16 730.97 95.76% -

Total 145 735.16 130 579.57 89.60% 145 735.16 130 579.57 89.60% -

TOTAL - Title 1 195 744.78 179 253.65 91.58% 195 744.78 179 253.65 91.58% -

A-2000 Renting 300.00 300.00 100.00% 300.00 300.00 100.00% -

A-2003Water gas electricity and

heating20 000.00 11 603.64 58.02% 20 000.00 11 603.64 58.02% -

A-2004 Cleaning and maintenance 5 720.00 5 520.00 96.50% 5 720.00 5 520.00 96.50% -

A-2005 Security and surveillance 3 570.00 3 209.05 89.89% 3 570.00 3 209.05 89.89% -

Total 29 590.00 20 632.69 69.73% 29 590.00 20 632.69 69.73% -

A-2100Acquisition renting of

equipments and software103 074.90 103 074.90 100.00% 103 074.90 103 074.90 100.00% -

A-2101Maintenance and repair of

equipments58 734.00 58 358.00 99.36% 58 734.00 58 358.00 99.36% -

Total 161 808.90 161 432.90 99.77% 161 808.90 161 432.90 99.77% -

A-2200Acquisition, rental of general

and technical equipment3 096.00 2 802.42 90.52% 3 096.00 2 802.42 90.52% -

A-2300 Stationery 9 647.90 8 723.62 90.42% 9 647.90 8 723.62 90.42% -

A-2301 Postage and delivery charges 123.95 59.34 47.87% 123.95 59.34 47.87% -

A-2302 Telecommunication charges 18 152.33 10 094.03 55.61% 18 152.33 10 094.03 55.61% -

A-2303 Legal expenses and damages 6 247.87 0.00% 6 247.87 0.00% -

A-2305 Bank charges 1 075.83 1 075.83 100.00% 1 075.83 1 075.83 100.00% -

A-2306 Honoraria for GB members 4 000.00 4 000.00 100.00% 4 000.00 4 000.00 100.00%

Total 42 343.88 26 755.24 63.19% 42 343.88 26 755.24 65.30% -

A-2400 Official Journal 520.00 335.24 64.47% 520.00 335.24 64.47% -

A-2403 Studies and surveys 8 905.00 8 905.00 100.00% 8 905.00 8 905.00 100.00% -

Total 9 425.00 9 240.24 98.04% 9 425.00 9 240.24 98.04% -

A-2500

Organisation and travel

expense of Governing Board

meetings

149 937.91 95 814.34 63.90% 149 937.91 95 814.34 63.90% -

Total 149 937.91 95 814.34 63.90% 149 937.91 95 814.34 63.90% -

Total - Title 2 393 105.69 313 875.41 79.85% 393 105.69 313 875.41 79.85% -

588 850.47 493 129.06 83.74% 588 850.47 493 129.06 83.74% - TOTAL - Title 1 and Title 2

13

Budgetary commitments on Title 3 budget lines corresponding to obligations duly contracted and not or

only partially paid at the closure of the financial year were carried forward from 2016 to 2017. The

execution rate of 74.7% for operational expenses was mainly due to the following: KICs could not fully

absorb the 2016 grants.

Table 8b - Implementation of appropriations carried over automatically from 2016 to 2017 (C8)

* The outstanding commitments on operational budget lines, namely on Title 3 budget lines are paid from payment appropriations

adopted by the EIT Governing Board for the financial year in line with Article 14 of the EIT Financial Regulation. (C1)

Carryover of assigned revenue appropriations from 2016 to 2017 (C5)

In 2016, a payment appropriation from an assigned revenue of EUR 431,827.42 was not consumed,

therefore it was carried over to 2017 since the KICs have to send their final reports for year N in the year

N+1. The payment appropriation carried over from 2016 was fully consumed.

Table 9 – Execution of assigned revenue appropriations carried over from 2016 to 2017 (C5)

Budget

l ineBudget Item Description

Commitment

appropriations,

EUR (1)

Commitments

made, EUR (2)

% Committed

(2/1)

Payment

appropriations,

EUR (3)

Payments

made, EUR (4)

% Paid

(4/3)

R A L

(2-4)

B3-000 KIC Grants 96 262 281.74 71 395 638.99 74.17% 71 395 638.99 -

Total 96 262 281.74 71 395 638.99 74.17% - 71 395 638.99 -

B3-111Planning, reporting and

audits1 105 419.99 1 044 149.53 94.46% 1 022 843.53 21 306.00

B3-112Knowledge Triangle

Integration21 248.99 20 383.15 95.93% 17 831.97

B3-114 New KICs 50 191.61 46 388.43 92.42% 46 388.43 -

Total 1 176 860.59 1 110 921.11 94.40% 1 087 063.93 23 857.18

B3-202Communications and

Dissemination1 256 688.18 1 192 903.81 94.92% 442 932.20 749 971.61

B3-203 Alumni 101 801.66 101 801.66 100.00% 65 824.28 35 977.38

Total 1 358 489.84 1 294 705.47 95.30% 508 756.48 785 948.99

B3-301 EIT-KIC relations 37 735.48 1 125.00 2.98% 1 125.00 -

B3-303 Monitoring and evaluation 245 230.70 214 643.38 87.53% - 209 997.82 4 645.56

Total 282 966.18 215 768.38 76.25% 211 122.82 4 645.56

99 080 598.35 74 017 033.95 74.70% - 73 202 582.22 814 451.73 TOTAL

Budget

lineBudget Item Description

Commitment

appropriations,

EUR (1)

Commitments

made, EUR (2)

% Committed

(2/1)

Payment

appropriations,

EUR (3)

Payments made, EUR

(4) % Paid (4/3)

B3-000 KIC Grants 431 827.42 431 827.42 100.00% 431 827.42 431 827.42 100.00%

Total 431 827.42 431 827.42 100.00% 431 827.42 431 827.42 100.00%

14

A.4.5 RAL situation at the end of the financial year

RAL volumes vary considerably. This is a consequence of the time lag between commitment and payment

rather than a problem specifically relating to a particular EIT activity. The amount of outstanding

commitments as of 31 December 2017 was EUR 77.4 million, which represents a decrease of 22.3%

compared to 2016. The decrease comes from better planning and implementation of activities as well as

better monitoring of execution of contracts.

Table 10 – Evolution of RAL, EUR

The high amount of RAL is the result of the budget increase for KIC grants. Due to the nature of these

grants, and the fact that payment of final balance (an average of 30% of the grant amount) is executed in

year N+1, the amount of RAL is, and will always remain, very high.

Chart 3 – Comparison of committed and RAL amounts for financial years 2015, 2016 and 2017, EUR

In 2017, the highest share of outstanding commitments for Title 1 concerned external staff (68.3%, EUR

114,779.45) owing to several contracts that implementation will be completed in 2018.

15

Table 11 – RAL on Title 1 budget lines, EUR

Chart 4 – RAL on Title 1 budget lines, %

Organisation of GB meetings (43.7%, EUR 110,087.78), Information and communication technology

expenditure (18.0%, EUR 45,459.31) as well as current administrative expenditure (18.0%, EUR 45,204.36)

represents the highest share of outstanding commitments on Title 2 budget lines.

Budget line Budget Item Description RAL, EUR

A-1200 Recruitment expenses 5 112.49

Total 5 112.49

A-1300 Mission expenses 31 081.68

Total 31 081.68

A-1401 Medical expense 496.21

A-1403 Social contacts 200.00

Total 696.21

A-1500 Training 16 502.92

Total 16 502.92

A-1600 Agency staff 45 480.15

A-1602 Trainees 14 210.00

A-1603 IT support 35 200.00

A-1604 AdminAssistance 11 039.40

A-1611 Translation 8 849.90

Total 114 779.45

TOTAL - Title 1 168 172.75

16

The new contractor for organising events such as GB meetings issues the invoices with significant delay

despite the fact of several reminders.

The EIT concluded contract for hardware acquisition that was submitted with slight delay. In addition EIT

had to conclude a contract for secured line in 2017 for covering the period starting on the first day of 2018.

As to current administrative expenditure, the telecommunication company have not send the invoices for

the last three months despite of several reminders. The other cost concerns bank charges that EIT have to

pay one month later.

Table 12 – Outstanding commitments on Title 2 budget lines, EUR

Budget line Budget Item Description RAL, EUR

A-2000 Renting 300.00

A-2003 WaterGasElectricityHeating 20 000.00

A-2004 Cleaning Maintenance 5 580.23

A-2005 Security and surveillance 6 049.70

Total 31 929.93

A-2100 ICT equipment acquisition 37 014.51

A-2101 Maintenance ICT 8 444.80

Total 45 459.31

A-2200 Acquisition technical equipment 4 600.00

A-2220 Acquisition, rental of furniture 14 051.06

Total 18 651.06

A-2300 Stationery 845.01

A-2301 Postage and delivery 800.73

A-2302 Telecommunication 11 316.73

A-2303 Legal expenses and damages 5 280.00

A-2305 Bank charges 26 997.89

Total 45 240.36

A-2400 Official Journal 650.00

Total 650.00

A-2500 Organisation of Governing Board meetings 110 087.78

Total 110 087.78

TOTAL - Title 2 252 018.44

17

Chart 5 – Outstanding commitments on Title 2 budget lines, %

As regards outstanding commitments on Title 3 budget lines, EUR 73.1 million out of the EUR 77.0 million

concerns the KIC grants, which represent 95.0% of the RAL on Title 3 and 94.5% of the overall RAL at the

end of 2017. Due to the nature of the grants, namely the payment of the final balance (an average of 30%

of the grant amount) is executed in N+1, the amount of RAL is and will be always very high.

The outstanding amounts for Planning, reporting and audits concern mainly the cost of ex-post audit of

cost reports related to 2016 KIC grant agreement and the cost of certificate of financial statements.

The high rate of RAL for communication and dissemination covers a contract concluded for the 2017 EIT

Communications Campaign covering the entire year 2017 and a contract for revising the EIT

Communications Strategy.

18

Table 13 – Outstanding commitments on Title 3 budget lines, EUR

Chart 6 – Outstanding commitments on Title 3 budget lines,%

Budget line Budget Item Description RAL, EUR

B3-000 KIC Grants 73 146 374.68

Total 73 146 374.68

B3-111 Planning, reporting and audits 1 144 957.56

B3-112 Knowledge Triangle Integration 68 320.15

B3-114 New KICs 166 555.79

Total 1 379 833.50

B3-202 Communications and Dissemination 1 693 050.86

B3-203 Alumni 174 202.59

B3-204 Stakeholder relations 367 055.70

B3-205 Awards 116 747.80

Total 2 351 056.95

B3-301 EIT-KIC relations 30 000.00

B3-303 Monitoring and evaluation 92 443.14

Total 122 443.14

TOTAL - Title 3 76 999 708.27

Chapter 30 Grants95%

Chapter 31 KICs2%

Chapter 32 EIT's impact

3%

Chapter 33 Simplification,

monitoring0%

19

A.4.6 Appropriations carried over/re-entered from 2017 on decision

Automatic carryover of appropriations, corresponding to obligations duly contracted

Pursuant to Article 14(5) of the EIT Financial Regulation, non-differentiated appropriations, corresponding

to obligations duly contracted at the close of the financial year, must be carried over automatically to the

following year. 8.0% of the non-differentiated appropriations, namely the administrative appropriations

carried over from 2017 to 2018, which represents an adequate level of carry over, taking into account the

nature of these expenses. 27.2% of differentiated appropriations (operational expenses) carried over from

2017 owing to particularly KIC grants to be paid in 2018. Please refer details under chapter 4.5.

Appropriations carried over from 2017 to 2018 or re-entered Commitment appropriations amounting to EUR 27.7 million has not been committed at the end of the financial year, out of which 27.5 million will be re-entered in 2020 to cover KIC grants.

Table 14 – Commitment appropriations cancelled in 2017, EUR

At the end of the year 2017, the amount of cancelled payment appropriations amounted to EUR 1.5 million,

out of which EUR 1.0 million is re-entered in 2018.

Table 15 – Payment appropriations cancelled in 2017, EUR

Appropriations from assigned revenue carried over from 2017 to 2018 Pursuant to Article 15 of the EIT Financial Regulation, unused appropriations from assigned revenue must

be carried over for one year only. At the end of 2017, an amount of EUR 627,063.48 for commitment

appropriations from assigned revenue related to recoveries from KICs had not been consumed; therefore,

the entire amount was automatically carried over to 2018.

Table 16 – Automatic carry-over of commitment appropriations from assigned revenue, EUR (C4)

Budget Title cancelled, EURcarried over,

EUR

re-entered in

2018, EUR

re-entered in

2019, EUR

re-entered in

2020, EUR

1 Staff expenditure 88 524.18 0.00 0.00 0.00 0.00

2 Infrastructure and operating expenditure 130 106.49 0.00 0.00 0.00 0.00

3 Operational expenditure 27 514 196.51 0.00 0.00 0.00 27 514 196.51

TOTAL 27 732 827.18 0.00 0.00 0.00 27 514 196.51

Budget Title cancelled, EURcarried over,

EUR

re-entered in

2018, EUR

re-entered in

2019, EUR

re-entered in

2020, EUR

1 Staff expenditure 256 696.93 168 172.75 88 524.18 0.00 0.00

2 Infrastructure and operating expenditure 382 124.93 252 018.44 130 106.49 0.00 0.00

3 Operational expenditure 826 498.19 0.00 826 498.19 0.00 0.00

TOTAL 1 465 320.05 420 191.19 1 045 128.86 0.00 0.00

Budget lineBudget Item

Description

Cancelled

commitment

appropriation,

EUR

Cancelled

payment

appropriation,

EUR

B3-000 KIC Grants 627 063.48 -

Total 627 063.48 -

20

Part B – Detailed overview of the

implementation of the budget

2017

21

B.1 Revenue

The EIT budget is financed by an EU subsidy and other revenue.

In 2017, the EU subsidy to the EIT including the EFTA and third party (H2020) contribution amounted to

EUR 303.3 million (97,7%), and EUR 7.2 million (2.3%) corresponded to other revenue.

In 2017, other revenue comprised

- repayments of KIC grants following ex-post audits,

- surplus for 2016 and

- other revenue from administrative operations.

Surplus of EUR 3.0 million out of EUR 6.1 million was re-entered in 2017, which was fully consumed. The

remaining amount will be used in 2018 and 2019 in accordance with Article 14 of the EIT decision.

Table 17 – Revenue collected in 2016

Implementation of internal assigned revenue (IC4)

In 2017, EIT received EUR 627,063.48 arising from the repayment of grants as a result of an ex-post audit

of final cost reports related to the 2016 grant agreements.

Table 18 – Internal assigned revenue collected in 2017

200 European Union subsidy 288 715 509.28 288 072 391.98 288 072 391.98 0.00

300Contributions by the EFTA

member states7 024 662.70 7 667 780.00 7 667 780.00 0.00

310 Contributions by third countries 7 571 321.00 7 571 321.00 7 571 321.00 0.00

570Revenue arising from repayment

of amounts wrongly paid0.00

590Other revenue from administrative

operations172.64 12 172.25 12 172.25 0.00

600 Surplus, balances 6 147 275.69 6 147 275.69 0.00

701

Repayment of KICs grants incurred

as a result of an ex-post audit

(assigned revenue)

1 058 890.90 431 827.42 627 063.48 431 827.42 627 063.48 0.00

TOTAL 310 517 832.21 431 827.42 303 950 728.71 6 579 103.11 303 950 728.71 0.00

Outstanding

amounts, EUR

(1+2-3-4)

Income

appropriation,

EUR

Entitlements

established in

2017, EUR (2)

Revenue

received in

2017, EUR (4)

Entitlements

established in

2016, EUR (1)

Revenue carried

over from 2016,

EUR (3)

Income

lineIncome line header

701Repayment of KICs grants incurred

as a result of an ex-post audit627 063.48 627 063.48 627 063.48 0.00

TOTAL 627 063.48 627 063.48 627 063.48 0.00

Outstanding

amounts, EUR

Income

lineIncome line header

Income

appropriation,

EUR

Entitlements

established,

EUR

Revenue

received, EUR

22

Table 19 – Repayment of grants following ex-post audits, EUR

Outstanding debit notes

At the end of the financial year there was no outstanding debit note.

B.2 Expenditure

B.2.1 Title 1 — Staff expenditure

Chapter 11 - Staff in active employment

Appropriations on salary budget lines were adjusted to reflect the actual financial need of the filled and to

be filled posts until the end of the financial year. Budget item 1130 ‘Schooling’ was slightly overestimated

owing to its nature.

Table 21 – Execution of Chapter 11 – Staff in active employment

Name of the KICRecovered

amount, EUR

KIC INNOENERGY SE* 104 816.90

EIT DIGITAL 75 120.88

ASSOCIATION CLIMATE-KIC* 447 125.70

TOTAL 627 063.48

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-1100 C1 1 812 960.00 1 812 958.59 100.00 % 1 812 960.00 1 812 958.59 100.00 %

A-1101 C1 661 500.00 661 467.76 100.00 % 661 500.00 661 467.76 100.00 %

A-1102 C1 101 890.00 101 885.86 100.00 % 101 890.00 101 885.86 100.00 %

A-1110 C1 797 560.00 797 552.63 100.00 % 797 560.00 797 552.63 100.00 %

A-1120 C1 18 000.00 0.00 0.00 % 18 000.00 0.00 0.00 %

A-1121 C1 131 400.00 130 082.62 99.00 % 131 400.00 130 082.62 99.00 %

A-1130 C1 270 000.00 257 893.19 95.52 % 270 000.00 257 893.19 95.52 %

TOTAL C1 3 793 310.00 3 761 840.65 99.17% 3 793 310.00 3 761 840.65 99.17%

23

Chapter 12 - Recruitment expenses

The low implementation rate of recruitment budget comes from its nature but all claims for reimbursement

of travel of expenses were paid before the end of the financial year.

Table 22 – Execution of Chapter 12 Recruitment expenses

Chapter 13 - Mission

Budget item A-1300 was also modified to reflect the actual financial need related to staff missions that

resulted in a commitment implementation rate of 100%. The lower execution rate for payments is due to

the fact that several missions took place in December 2017.

Table 23 – Execution of Chapter 13 Mission expenses

Chapter 14 - Socio-medical infrastructure

The last social event for staff members (budget item 1430) was organised in December 2017, which

affected the execution rate of payment appropriations. 2017 was the first year when EIT started

contributing to establishment of sport clubs and sport events that has an impact on the execution.

Table 24 – Execution of Chapter 14 Socio-medical infrastructure

Chapter 15 - Training

The low implementation rate of commitment appropriations (76.0%) is due to the fact that staff members

were unable to attend training courses as initially planned, given that training plans had to be adjusted to

reflect the changes in priorities and workload. The low execution rate of payments against commitment

(50.9%) is owing to the payment method set out in the Service Level Agreements (SLA) concluded with the

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-1200 C1 30 000.00 30 000.00 100.00 % 30 000.00 24 887.51 82.96 %

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-1300 C1 245 000.00 245 000.00 100.00 % 245 000.00 213 918.32 87.31 %

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-1400 C1 880.00 811.11 92.17 % 880.00 811.11 92.17 %

A-1401 C1 10 000.00 10 000.00 100.00 % 10 000.00 9 503.79 95.04 %

A-1402 C1 76 200.00 76 200.00 100.00 % 76 200.00 76 200.00 100.00 %

A-1403 C1 7 000.00 5 816.72 83.10 % 7 000.00 5 616.72 80.24 %

A-1404 C1 2 400.00 1 256.75 52.36 % 2 400.00 1 256.75 52.36 %

TOTAL C1 96 480.00 94 084.58 97.52% 96 480.00 93 388.37 96.80%

24

European Commission for training. According to the SLA, the request for final payment must be submitted

to the EIT in N+1. In addition, some training was arranged to take place at the beginning of the following

financial year.

Table 25 – Execution of Chapter 15 Training

Chapter 16 - External staff and linguistic support

Contract with interim agents as well as trainees went beyond the financial year which effected the

execution rate of payments on budget item 1600 ‘Agency staff’ and 1602 ‘Trainees’.

As to budget item 1603, an IT contract for first level support to be provided in 2018 was made in December,

thus the corresponding payment will be executed in 2018.

The execution rate of payments against commitments for budget item 1604 ‘administrative assistance’

arises from the fact that contract for certification of the annual accounts 2017 could not be completed by

the end of the financial year.

The translation needs (budget item1611) was overestimated for translation of procurement documents

and vacancy notices.

Table 26 – Execution of Chapter 16 External staff and linguistic support

Chapter 17 - Representation

Due to the nature of budget item 1700, it is difficult to estimate the final funds required for representation

expenses.

Table 27 – Execution of Chapter 17 Representation

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-1500 C1 65 700.00 49 926.50 75.99 % 65 700.00 33 423.58 50.87 %

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-1600 C1 110 100.00 110 100.00 100.00 % 110 100.00 64 619.85 58.69 %

A-1601 C1 80 000.00 78 946.16 98.68 % 80 000.00 78 946.16 98.68 %

A-1602 C1 40 000.00 38 824.27 97.06 % 40 000.00 24 614.27 61.54 %

A-1603 C1 35 200.00 35 200.00 100.00 % 35 200.00 0.00 0.00 %

A-1604 C1 72 000.00 63 996.81 88.88 % 72 000.00 52 957.41 73.55 %

A-1611 C1 54 000.00 28 924.72 53.56 % 54 000.00 20 074.82 37.18 %

TOTAL C1 391 300.00 355 991.96 90.98% 391 300.00 241 212.51 61.64%

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-1700 C1 3 900.00 322.13 8.26 % 3 900.00 322.13 8.26 %

25

B.2.2 Title 2 —Infrastructure and operating expenditure

Chapter 20 - Building and associated costs

In accordance with the Host Agreement concluded between the EIT and Hungary, the Hungarian

Government rents the office space and covers the associated utility costs except for water and electricity

(budget item 2003). The landlord submits its final invoice for utilities to the Hungarian Government a year

after the cost incurred, following which it is then invoiced to the EIT. For this reason, the whole committed

amount needs to be carried over to the following financial year.

EIT outsources cleaning, for which expenses incurred in the final months of 2017 must be paid in the

following year. (budget item 2004)

On budget item 2005 ‘Security’ EIT has conclude a contract for replacement of batteries of the UPS unit

and its maintenance. The replacement of the batteries will take place in 2018, thus the payment will be in

2018 only.

Table 28 – Execution of Chapter 20 Building and associated costs

Chapter 21 - Information and communication technology

The EIT concluded several contracts (e.g. contract for secured line, leasing of printers) where the execution

of the contracts starts on the 1st of January 2018.

There was unforeseen delay in introduce Sysper for HR management as well as overestimation of other

maintenance costs that resulted in low implementation rate.

Table 29 – Execution of Chapter 21 Information and Communication Technology

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-2000 C1 6 000.00 6 000.00 100.00 % 6 000.00 5 700.00 95.00 %

A-2003 C1 20 000.00 20 000.00 100.00 % 20 000.00 0.00 0.00 %

A-2004 C1 16 200.00 14 367.66 88.69 % 16 200.00 8 787.43 54.24 %

A-2005 C1 18 540.00 17 262.51 93.11 % 18 540.00 11 212.81 60.48 %

A-2006 C1 32 500.00 31 817.96 97.90 % 32 500.00 31 817.96 97.90 %

A-2009 C1 500.00 92.99 18.60 % 500.00 92.99 18.60 %

TOTAL C1 93 740.00 89 541.12 95.52% 93 740.00 57 611.19 61.46%

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-2100 C1 120 380.00 109 601.45 91.05 % 120 380.00 72 586.94 60.30 %

A-2101 C1 116 150.00 73 556.47 63.33 % 116 150.00 65 111.67 56.06 %

TOTAL C1 236 530.00 183 157.92 77.44% 236 530.00 137 698.61 58.22%

26

Chapter 22 - Movable property and associated costs

The cost of design plan for audio-visual equipment to be placed in the largest meeting room was less and

the execution of the contract started in 2018 only. (budget item 2200)

Due to the nature of transport expenses (budget item 2212), it is difficult to estimate their final funds

required.

EIT ordered office furniture that was not delivered in the financial year, thus the implementation rate of

payments on budget item 2220 was very low.

Table 30 – Execution of Chapter 22 Movable property and associated costs

Chapter 23 - Current administrative expenditure

Consumption under the new telecommunication contract was lower than expected. (budget item 2302)

Due to the nature of legal expenses, it is difficult to estimate their final amount. In addition the EIT legal

procedure on this item was not completed in 2016 nor in 2017, thus had an effect on the payments (budget

item 2303).

Due to the nature of bank charges (budget item 2305) and other administrative expense (budget item

2309), which do not fit into any budget line, it is difficult to estimate their final amount.

Table 31 – Execution of Chapter 23 Current administrative expenditure

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-2200 C1 6 500.00 4 600.00 70.77 % 6 500.00 0.00 0.00 %

A-2212 C1 500.00 156.60 31.32 % 500.00 156.60 31.32 %

A-2220 C1 15 500.00 15 442.41 99.63 % 15 500.00 1 391.35 8.98 %

TOTAL C1 22 500.00 20 199.01 89.77% 22 500.00 1 547.95 6.88%

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-2300 C1 7 500.00 7 470.29 99.60 % 7 500.00 6 625.28 88.34 %

A-2301 C1 3 000.00 3 000.00 100.00 % 3 000.00 2 199.27 73.31 %

A-2302 C1 39 600.00 32 615.65 82.36 % 39 600.00 21 298.92 53.79 %

A-2303 C1 22 500.00 8 880.00 39.47 % 22 500.00 3 600.00 16.00 %

A-2304 C1 2 000.00 1 544.73 77.24 % 2 000.00 1 544.73 77.24 %

A-2305 C1 50 000.00 50 000.00 100.00 % 50 000.00 23 002.11 46.00 %

A-2306 C1 170 300.00 141 100.00 82.85 % 170 300.00 141 100.00 82.85 %

A-2309 C1 500.00 80.00 16.00 % 500.00 80.00 16.00 %

TOTAL C1 295 400.00 244 690.67 82.83% 295 400.00 199 450.31 67.52%

27

Chapter 24 - Publications, information, studies and surveys

The cost of publication in the Official Journal (budget item 2400) and editing of EIT publications (budget

item 2401) were less than expected. No payment is due to the payment method set out in the Service Level

Agreements (SLA) concluded with the Publication office. According to the SLA, the request for final payment

must be submitted to the EIT in N+1.

Table 32 – Execution of Chapter 24 Publication, information, studies and surveys

Chapter 25 - Meeting expenses

The organisational cost including the travel expenses related to the EIT Governing Board meeting were not

issued by the contractor in 2017.

The expenses related to internal meetings (budget item 2520) was overestimated.

Table 33 – Execution of Chapter 25 Meeting expenses

B.2.3 Title 3 — Operational expenditure

Chapter - 30 Grants

The implementation rate of commitment appropriations for 2017 grants stands at 91.2% owing to the

revision exercise performed by the KICs during the implementation of the annual Business Plans, which

resulted in a decrease of requested EIT contribution. Due to the nature of KIC grant activities, it is difficult

to estimate their final funds required. Therefore EIT has been granted a derogation to the Financial

Regulation that allows re-entering of unused appropriations.

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-2400 C1 2 000.00 650.00 32.50 % 2 000.00 0.00 0.00 %

A-2401 C1 500.00 0.00 0.00 % 500.00 0.00 0.00 %

TOTAL C1 2 500.00 650.00 26.00% 2 500.00 0.00 0.00%

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

A-2500 C1 180 000.00 165 463.48 91.92 % 180 000.00 55 375.70 30.76 %

A-2520 C1 10 000.00 6 861.31 68.61 % 10 000.00 6 861.31 68.61 %

TOTAL C1 190 000.00 172 324.79 90.70% 190 000.00 62 237.01 32.76%

28

Table 34 – Execution of Chapter 30 Grants

Chapter 31 - Knowledge and Innovation Communities

The cost of the external experts to support the assessment of KIC business plans as well the cost of ex-post

and CFS audit were over-estimated, which effected commitment appropriations (budget item 3111).

The execution rate for budget item 3112 ‘Knowledge Triangle Integration’ was significantly low (77.4%)

owing to lower cost for pilot project to support refugees integration as well as education review related to

existing EIT label programme.

The final amount of communication activities linked to EIT’s 2018 call for KICs proposal was lower than

expected. (budget item 3114)

Table 35 – Execution of Chapter 31 Knowledge and Innovation Communities

Chapter 32 – EIT’s IMPACT

The cost of external experts for assisting the drafting of EIT Strategic Innovation Agenda 2021-2027 was

lower than expected.

Low payment execution rate on budget lines for Alumni (3203) relates to contracts concluded in 2016 and

on budget line for Stakeholder Relations (3204) concerns contracts concluded at the end of the year.

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

C1 306 056 004.22 279 154 770.64 91.21 % 294 162 877.62 294 162 870.99 100.00 %

C2 2 965 301.48 2 965 301.48 100.00 %

C3 20 351 201.00 20 351 201.00 100.00 %

C4 627 063.48 0.00 0.00 % 627 063.48 0.00 0.00 %

C5 431 827.42 431 827.42 100.00 % 431 827.42 431 827.42 100.00 %

327 466 096.12 299 937 799.06 91.59 % 298 187 070.00 297 559 999.89 99.79 %

B3-000

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

B3-111 C1 2 009 000.00 1 702 144.72 84.73 % 1 700 000.00 1 601 336.69 94.20 %

B3-112 C1 309 000.00 239 064.12 77.37 % 284 090.00 191 127.12 67.28 %

B3-114 C1 224 088.00 183 874.51 82.05 % 152 088.00 63 707.15 41.89 %

TOTAL C1 2 542 088.00 2 125 083.35 83.60% 2 136 178.00 1 856 170.96 86.89%

29

Table 36 – Execution of Chapter 32 EIT’s impact

Chapter 33 – SIMPLIFICATION, MONITORING AND EVALUATION

Very low payment implementation rate on budget item 3301 EIT-KIC relations relates to expert contracts

concluded for supporting EIT in the development of its growth and impact fund which is still continue in

2018.

Table 37 – Execution of Chapter 33 Simplification, monitoring and evaluation

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

B3-201 C1 60 000.00 43 200.00 72.00 % 60 000.00 43 200.00 72.00 %

B3-202 C1 990 000.00 949 728.82 95.93 % 635 000.00 449 581.77 70.80 %

B3-203 C1 142 000.00 139 134.48 97.98 % 196 000.00 66 733.55 34.05 %

B3-204 C1 458 750.00 380 728.83 82.99 % 103 750.00 13 673.13 13.18 %

B3-205 C1 265 000.00 231 747.80 87.45 % 128 000.00 115 000.00 89.84 %

TOTAL C1 1 915 750.00 1 744 539.93 91.06% 1 122 750.00 688 188.45 61.29%

Official Budget

Item

Fund

Source

Commitment

appropriation,

EUR

Commitments made

EUR% Committed

Payment

appropriation,

EUR

Payments made,

EUR% Paid

B3-301 C1 30 000.00 30 000.00 100.00 % 60 000.00 1 125.00 1.88 %

B3-303 C1 213 000.00 188 251.79 88.38 % 363 500.00 310 452.03 85.41 %

TOTAL C1 243 000.00 218 251.79 89.82% 423 500.00 311 577.03 73.57%

30

Annex

31

Annex I: Transfers and budget amendments

Initial Ab1 Ab2 Tr1 Tr2 Tr3Carried over/Re-

entered, EUR

Assigned revenue,

EURTotal, EUR

A-1100 C1 2 130 000.00 - 400 000.00 82 960.00 1 812 960.00

A-1101 C1 750 000.00 - 80 000.00 - 8 500.00 661 500.00

A-1102 C1 210 000.00 - 109 000.00 890.00 101 890.00

A-1110 C1 825 000.00 - 27 440.00 797 560.00

A-1120 C1 20 000.00 - 2 000.00 18 000.00

A-1121 C1 252 000.00 - 80 800.00 - 25 200.00 - 14 600.00 131 400.00

A-1130 C1 270 000.00 270 000.00

A-1200 C1 35 000.00 - 5 000.00 30 000.00

A-1300 C1 220 000.00 25 000.00 245 000.00

A-1400 C1 880.00 880.00

A-1401 C1 35 000.00 - 21 600.00 - 3 400.00 10 000.00

A-1402 C1 105 000.00 - 30 000.00 1 200.00 76 200.00

A-1403 C1 7 000.00 7 000.00

A-1404 C1 2 400.00

A-1500 C1 80 000.00 - 7 000.00 - 7 300.00 65 700.00

A-1600 C1 90 000.00 20 100.00 110 100.00

A-1601 C1 80 000.00 80 000.00

A-1602 C1 43 000.00 - 3 000.00 40 000.00

A-1603 C1 45 000.00 - 9 800.00 35 200.00

A-1604 C1 68 000.00 9 800.00 - 5 800.00 72 000.00

A-1611 C1 95 000.00 - 25 500.00 - 9 500.00 - 6 000.00 54 000.00

A-1700 C1 3 900.00 3 900.00

A-2000 C1 6 100.00 - 100.00 6 000.00

A-2002 C1 2 000.00 - 2 000.00 -

A-2003 C1 20 000.00 20 000.00

A-2004 C1 14 000.00 2 200.00 16 200.00

A-2005 C1 3 100.00 15 440.00 18 540.00

A-2006 C1 67 150.00 - 31 750.00 - 2 900.00 32 500.00

A-2009 C1 500.00 500.00

A-2100 C1 102 450.00 14 930.00 3 000.00 120 380.00

A-2101 C1 115 150.00 1 000.00 116 150.00

A-2200 C1 44 000.00 - 37 500.00 6 500.00

A-2212 C1 8 000.00 - 7 500.00 500.00

A-2220 C1 31 200.00 - 15 700.00 15 500.00

A-2221 C1 300.00 - 300.00 -

A-2300 C1 7 500.00 7 500.00

A-2301 C1 3 000.00 3 000.00

A-2302 C1 44 000.00 - 4 400.00 39 600.00

A-2303 C1 50 000.00 - 25 000.00 - 2 500.00 22 500.00

A-2304 C1 1 600.00 400.00 2 000.00

A-2305 C1 3 000.00 47 000.00 50 000.00

A-2306 C1 170 300.00 170 300.00

A-2309 C1 1 000.00 - 500.00 500.00

A-2400 C1 2 000.00 2 000.00

A-2401 C1 5 000.00 - 4 500.00 500.00

A-2500 C1 322 190.00 - 119 550.00 - 22 640.00 180 000.00

A-2520 C1 5 000.00 5 000.00 10 000.00

B3-000 C1 303 258 722.00 - 41 750.42 2 851 442.64 - 12 410.00 306 056 004.22

B3-000 C3 20 351 201.00 20 351 201.00

B3-000 C4 627 063.48 627 063.48

B3-000 C5 431 827.42 431 827.42

B3-111 C1 2 050 000.00 - 41 000.00 2 009 000.00

B3-112 C1 380 000.00 - 71 000.00 309 000.00

B3-114 C1 260 000.00 24 088.00 - 60 000.00 224 088.00

B3-201 C1 60 000.00 60 000.00

B3-202 C1 990 000.00 990 000.00

B3-203 C1 265 000.00 - 123 000.00 142 000.00

B3-204 C1 508 750.00 - 50 000.00 458 750.00

B3-205 C1 265 000.00 265 000.00

B3-301 C1 1 680 000.00 - 1 650 000.00 30 000.00

B3-302 C1 20 000.00 - 20 000.00 -

B3-303 C1 107 500.00 105 500.00 213 000.00

B4-001 C3 - 1 459 123.92 1 459 123.92

B4-002 C3 - -

B4-003 C3 - -

Sum: 316 240 692.00 1 441 461.50 172.64 - - - 20 783 028.42 627 063.48 339 092 418.04

COMMITMENT

32

Initial Ab1 Ab2 Tr1 Tr2 Tr3Carried over/Re-

entered, EUR

Assigned revenue,

EURTotal, EUR

A-1100 C1 2 130 000.00 - 400 000.00 82 960.00 1 812 960.00

A-1101 C1 750 000.00 - 80 000.00 - 8 500.00 661 500.00

A-1102 C1 210 000.00 - 109 000.00 890.00 101 890.00

A-1110 C1 825 000.00 - 27 440.00 797 560.00

A-1120 C1 20 000.00 - 2 000.00 18 000.00

A-1121 C1 252 000.00 - 80 800.00 - 25 200.00 - 14 600.00 131 400.00

A-1130 C1 270 000.00 270 000.00

A-1200 C1 35 000.00 - 5 000.00 30 000.00

A-1300 C1 220 000.00 25 000.00 245 000.00

A-1400 C1 880.00 880.00

A-1401 C1 35 000.00 - 21 600.00 - 3 400.00 10 000.00

A-1402 C1 105 000.00 - 30 000.00 1 200.00 76 200.00

A-1403 C1 7 000.00 7 000.00

A-1404 C1 2 400.00

A-1500 C1 80 000.00 - 7 000.00 - 7 300.00 65 700.00

A-1600 C1 90 000.00 20 100.00 110 100.00

A-1601 C1 80 000.00 80 000.00

A-1602 C1 43 000.00 - 3 000.00 40 000.00

A-1603 C1 45 000.00 - 9 800.00 35 200.00

A-1604 C1 68 000.00 9 800.00 - 5 800.00 72 000.00

A-1611 C1 95 000.00 - 25 500.00 - 9 500.00 - 6 000.00 54 000.00

A-1700 C1 3 900.00 3 900.00

A-2000 C1 6 100.00 - 100.00 6 000.00

A-2002 C1 2 000.00 - 2 000.00 -

A-2003 C1 20 000.00 20 000.00

A-2004 C1 14 000.00 2 200.00 16 200.00

A-2005 C1 3 100.00 15 440.00 18 540.00

A-2006 C1 67 150.00 - 31 750.00 - 2 900.00 32 500.00

A-2009 C1 500.00 500.00

A-2100 C1 102 450.00 14 930.00 3 000.00 120 380.00

A-2101 C1 115 150.00 1 000.00 116 150.00

A-2200 C1 44 000.00 - 37 500.00 6 500.00

A-2212 C1 8 000.00 - 7 500.00 500.00

A-2220 C1 31 200.00 - 15 700.00 15 500.00

A-2221 C1 300.00 - 300.00 -

A-2300 C1 7 500.00 7 500.00

A-2301 C1 3 000.00 3 000.00

A-2302 C1 44 000.00 - 4 400.00 39 600.00

A-2303 C1 50 000.00 - 25 000.00 - 2 500.00 22 500.00

A-2304 C1 1 600.00 400.00 2 000.00

A-2305 C1 3 000.00 47 000.00 50 000.00

A-2306 C1 170 300.00 170 300.00

A-2309 C1 1 000.00 - 500.00 500.00

A-2400 C1 2 000.00 2 000.00

A-2401 C1 5 000.00 - 4 500.00 500.00

A-2500 C1 322 190.00 - 119 550.00 - 22 640.00 180 000.00

A-2520 C1 5 000.00 5 000.00 10 000.00

B3-000 C1 318 647 095.00 - 41 750.42 - 24 442 466.96 294 162 877.62

B3-000 C2 2 965 301.48 2 965 301.48

B3-000 C4 627 063.48 627 063.48

B3-000 C5 431 827.42 431 827.42

B3-111 C1 2 244 000.00 - 544 000.00 1 700 000.00

B3-112 C1 396 500.00 - 100 000.00 - 12 410.00 284 090.00

B3-114 C1 298 000.00 24 088.00 - 170 000.00 152 088.00

B3-201 C1 60 000.00 60 000.00

B3-202 C1 1 335 000.00 - 700 000.00 635 000.00

B3-203 C1 196 000.00 196 000.00

B3-204 C1 103 750.00 103 750.00

B3-205 C1 128 000.00 128 000.00

B3-301 C1 217 000.00 - 157 000.00 60 000.00

B3-302 C1 20 000.00 - 20 000.00 -

B3-303 C1 363 500.00 363 500.00

B4-001 C3 4 520 339.39 - 2 902 544.97 1 617 794.42

B4-002 C3 - 4 529 481.27 - 2 965 301.48 1 564 179.79

B4-003 C3 - -

Sum: 334 924 904.39 1 609 273.88 - 30 040 538.44 - - - 3 397 128.90 627 063.48 310 517 832.21

PAYMENT