In order to ensure the necessary simplification in the management, administration and control of operations receiving an ESF grant, particularly when linked to a result-based reimbursement system, it is appropriate to add two additional forms of eligible costs, namely, lump sums and flat-rate standard scales of unit cost.

K. whereas in paragraph 2.10 of its annual report for 2005, in connection with the establishment of an integrated internal control framework, the Court of Auditors stresses that 'one of the most important objectives approved by the Commission is represented by the proportionality and cost-effectiveness of controls', stating that in this context, the process of simplification (e.g. greater use of flat-rate and lump-sum payments, simplified rules on procurement and grants) and the use of audit certificates and assurance declarations from third parties responsible for budget implementation tasks could play a significant role,

K. whereas in paragraph 2.10 of its annual report for 2005, in connection with the establishment of an integrated internal control framework, the Court of Auditors stresses that 'one of the most important objectives approved by the Commission is represented by the proportionality and cost-effectiveness of controls', stating that in this context, the process of simplification (e.g. greater use of flat-rate and lump-sum payments, simplified rules on procurement and grants) and the use of audit certificates and assurance declarations from third parties responsible for budget implementation tasks could play a significant role,

On the contrary, if the individual employee has to conclude an insurance contract directly with the insurer without involvement of the employer, for example to convert a lump sum into an annuity, the situation will fall within the scope of the Directive.

23. Notes the proposal of the Commission to provide the budgetary compensation through a lump sum on the expenditure side of the budget, which should be temporary and degressive, and is easier to manage than the reduction of the own resources from the new Member States; stresses that the payment of lump sums on the expenditure side reduces significantly the margin for the payments entered in the financial perspective as available for accession, while a reduction on the revenue side would not reduce this margin;

23. Notes the proposal of the Commission to provide the budgetary compensation through a lump sum on the expenditure side of the budget, which should be temporary and degressive, and is easier to manage than the reduction of the own resources from the new Member States; stresses that the payment of lump sums on the expenditure side reduces significantly the margin for the payments entered in the financial perspective as available for accession, while a reduction on the revenue side would not reduce this margin; therefore, proposes that consideration should be given to entering budgetary compensation as negative revenue in the EU budget ...[+++] in order to guarantee that enlargement will be a successful process;