# C_2008311EN.01000701.xml

| 5.12.2008 | EN | Official Journal of the European Union | C 311/7 |
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5.12.2008

EN

Official Journal of the European Union

C 311/7

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REPORT

REPORT

on the annual accounts of the European Union Fundamental Rights Agency for the financial year 2007 together with the Agency's replies

(2008/C 311/02)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

| 3-6 | STATEMENT OF ASSURANCE |
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3-6

| 7-9 | OBSERVATIONS |
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7-9

Tables 1 to 4

The Agency's replies

The Agency's replies

INTRODUCTION

| 1. | The European Union Fundamental Rights Agency (hereinafter ‘the Agency’), which succeeded to the European Monitoring Centre on Racism and Xenophobia (EUMC) and extended its competencies, was established by Council Regulation (EC) No 168/2007 of 15 February 2007 (1). The objective of the Agency is to provide the relevant institutions and authorities of the Community and its MemberStates when implementing Community law with assistance and expertise relating to fundamental rights in order to support them when they take measures to fully respect fundamental rights. |
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1.

The European Union Fundamental Rights Agency (hereinafter ‘the Agency’), which succeeded to the European Monitoring Centre on Racism and Xenophobia (EUMC) and extended its competencies, was established by Council Regulation (EC) No 168/2007 of 15 February 2007 (1). The objective of the Agency is to provide the relevant institutions and authorities of the Community and its MemberStates when implementing Community law with assistance and expertise relating to fundamental rights in order to support them when they take measures to fully respect fundamental rights.

1

| 2. | Table 1 summarises the Agency's competences and activities. Key data summarised from the financial statements drawn up by the Agency for the financial year 2007 are shown in Tables 2, 3 and 4 for information purposes. |
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2.

Table 1 summarises the Agency's competences and activities. Key data summarised from the financial statements drawn up by the Agency for the financial year 2007 are shown in Tables 2, 3 and 4 for information purposes.

Table 1

Tables 2, 3 and 4

STATEMENT OF ASSURANCE

| 3. | This Statement is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community. |
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3.

This Statement is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

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| 4. | The Agency's accounts for the financial year ended 31 December 2007 (3) were drawn up by its Director, pursuant to Article 21 of Council Regulation (EC) No 168/2007, and sent to the Court, which is required to provide a statement of assurance on their reliability and on the legality and regularity of the underlying transactions. |
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4.

The Agency's accounts for the financial year ended 31 December 2007 (3) were drawn up by its Director, pursuant to Article 21 of Council Regulation (EC) No 168/2007, and sent to the Court, which is required to provide a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

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| 5. | The Court conducted its audit in accordance with the IFAC and ISSAI (4) International Auditing Standards and Codes of Ethics, in so far as these are applicable in the European Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and that the underlying transactions are legal and regular. |
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5.

The Court conducted its audit in accordance with the IFAC and ISSAI (4) International Auditing Standards and Codes of Ethics, in so far as these are applicable in the European Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and that the underlying transactions are legal and regular.

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| 6. | The Court has thus obtained a reasonable basis for the Statement set out below:

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
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6.

The Court has thus obtained a reasonable basis for the Statement set out below:

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

OBSERVATIONS

| 7. | The Agency's final budget for 2007 amounted to 14,2 million euro as compared with 9,3 million euro allocated to the EUMC the previous year. Almost all the budget was committed (13,9 million euro) but 7,5 million euro were carried over. The high level of carry-overs was due to the extension of the mandate of the Agency in March 2007. This extension delayed the adoption of the Agency's new work programme and the nomination of a new director and consequently the implementation of the activities planned for 2007. |
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7.

The Agency's final budget for 2007 amounted to 14,2 million euro as compared with 9,3 million euro allocated to the EUMC the previous year. Almost all the budget was committed (13,9 million euro) but 7,5 million euro were carried over. The high level of carry-overs was due to the extension of the mandate of the Agency in March 2007. This extension delayed the adoption of the Agency's new work programme and the nomination of a new director and consequently the implementation of the activities planned for 2007.

| 8. | Due to the extension of its mandate the Agency, through amendments to its budget and various transfers, decreased by 798 000 euro the staff expenditure budget lines, avoiding cancellations of unused appropriations for staff expenditure at the year end. |
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8.

Due to the extension of its mandate the Agency, through amendments to its budget and various transfers, decreased by 798 000 euro the staff expenditure budget lines, avoiding cancellations of unused appropriations for staff expenditure at the year end.

| 9. | With regard to procurement procedures, in one case, the published financial evaluation method indirectly decreased the relative importance of the price criterion. This may have deterred some potential bidders and was not in line with the principle of sound financial management. |
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9.

With regard to procurement procedures, in one case, the published financial evaluation method indirectly decreased the relative importance of the price criterion. This may have deterred some potential bidders and was not in line with the principle of sound financial management.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 24 and 25 September 2008.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

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(1)  OJ L 53, 22.2.2007, p. 1.

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(2)  OJ L 248, 16.9.2002, p. 1.

2

(3)  These accounts were drawn up on 4 June 2008 and received by the Court on 11 June 2008.

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(4)  International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

4

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Table 1

European Union Fundamental Rights Agency (Vienna)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as specified in Council Regulation (EC) No 168/2007 | Governance | Resources made available to the Agency in 2007

  (Data for 2006) | Products and services supplied during the financial year 2007

  (Data for 2006) |
| --- | --- | --- | --- | --- |
| Collection of information

  The Commission may, within the limits and under conditions laid down by the Council in accordance with the provisions of this Treaty, collect any information and carry out any checks required for the performance of the tasks entrusted to it.

  (Article 284 of the Treaty) | Objectives

  To provide the relevant institutions, bodies, offices and agencies of the Community and its MemberStates when implementing Community law with assistance and expertise relating to fundamental rights in order to support them when they take measures or formulate courses of action within their respective spheres of competence to fully respect fundamental rights. | Tasks







  — | To collect, analyse and disseminate relevant, objective, reliable and comparable information including results from research and monitoring communicated to it by Member States, Union institutions as well as bodies, offices and agencies of the Community and the Union, research centres, national bodies, non-governmental organisations, third countries and international organisations and in particular by the competent bodies of the Council of Europe. |

Areas of Community competence deriving from the Treaty

Competences of the Agency as specified in Council Regulation (EC) No 168/2007

Governance

Resources made available to the Agency in 2007

(Data for 2006)

Products and services supplied during the financial year 2007

(Data for 2006)

Collection of information

The Commission may, within the limits and under conditions laid down by the Council in accordance with the provisions of this Treaty, collect any information and carry out any checks required for the performance of the tasks entrusted to it.

(Article 284 of the Treaty)

Objectives

To provide the relevant institutions, bodies, offices and agencies of the Community and its MemberStates when implementing Community law with assistance and expertise relating to fundamental rights in order to support them when they take measures or formulate courses of action within their respective spheres of competence to fully respect fundamental rights.

Tasks

—

To collect, analyse and disseminate relevant, objective, reliable and comparable information including results from research and monitoring communicated to it by Member States, Union institutions as well as bodies, offices and agencies of the Community and the Union, research centres, national bodies, non-governmental organisations, third countries and international organisations and in particular by the competent bodies of the Council of Europe.

| — | To develop methods to improve the comparability, objectivity and reliability of data at European level. |
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—

To develop methods to improve the comparability, objectivity and reliability of data at European level.

| — | To carry out and to cooperate with or encourage scientific research and studies including, where appropriate and compatible with its priorities and its annual work programme, at the request of the European Parliament, the Council or the Commission. |
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—

To carry out and to cooperate with or encourage scientific research and studies including, where appropriate and compatible with its priorities and its annual work programme, at the request of the European Parliament, the Council or the Commission.

| — | To publish conclusions and opinions on specific thematic topics, for the Union institutions and the Member States when implementing Community law, either on its own initiative or at the request of the European Parliament, the Council or the Commission. |
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—

To publish conclusions and opinions on specific thematic topics, for the Union institutions and the Member States when implementing Community law, either on its own initiative or at the request of the European Parliament, the Council or the Commission.

| — | To publish an annual report on fundamental rights issues covered by the areas of the Agency's activity and thematic reports as will as an annual report on its activities. |
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—

To publish an annual report on fundamental rights issues covered by the areas of the Agency's activity and thematic reports as will as an annual report on its activities.

| — | To develop a communication strategy and promote dialogue with civil society, in order to raise public awareness of fundamental rights. |
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—

To develop a communication strategy and promote dialogue with civil society, in order to raise public awareness of fundamental rights.

1.   Management Board

Composition

One independent person appointed by each MemberState, one independent person appointed by the Council of Europe and two representatives of the Commission.

Duties

| — | To adopt the work programme and the general annual report. |
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—

To adopt the work programme and the general annual report.

| — | To adopt the final budget and the establishment plan. |
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—

To adopt the final budget and the establishment plan.

| — | To give an opinion on the final accounts. |
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—

To give an opinion on the final accounts.

2.   Executive Board

Composition

| — | Chairman and Deputy Chairman of the Management Board. |
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—

Chairman and Deputy Chairman of the Management Board.

| — | The person appointed by the Council of Europe in the Management Board may participate in the meetings of the Executive Board. |
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—

The person appointed by the Council of Europe in the Management Board may participate in the meetings of the Executive Board.

| — | One representative of the Commission. |
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—

One representative of the Commission.

| — | Two other members of the Management Board. |
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—

Two other members of the Management Board.

3.   Director

Appointed by the Management Board on a proposal from the Commission and after opinions of the European Parliament and of the Council.

4.   External audit

Court of Auditors.

5.   Internal control

The Commission's internal audit service.

6.   Discharge authority

Parliament acting on a recommendation of the Council.

Final budget

14,2 million euro

(9,3 million euro)

of which the Community subsidy is 98 % (100 %)

Staff as at 31 December 2007

46 (37) posts in the establishment plan,

of which posts occupied: 34 (35)

+11 (10) other staff (contract agents, seconded national experts, employment agency staff)

Total staff: 57 (47)

undertaking the following tasks:

operational: 31 (28)

administrative: 21 (15)

mixed: 5 (4)

RAXEN network

Number of contributions by the 25 national focal points: 245 (375)

Number of contributions in the context of the PHARE Croatia/Turkey project: 6

Number of meetings: 1 (2)

Research reports

Number of reports: 4 (9)

Number of meetings: 6 (5)

Annual Reports: 2 (2)

Non-research materials

Various FRA publications: 15 (9)

Cooperation with MemberStates and other institutions

Member States: 7 (15)

European Commission: 8 (29)

European Parliament: 6 (7)

Committee of the Regions: 1 (2)

European Economic and Social Committee: 3 (1)

Council of Europe: 4 (10)

OSCE: 5 (4)

Inter-Agency: 2 (4)

United Nations: 2 (1)

Other meetings and round tables: 23 (5)

Source: Information supplied by the Agency.

Table 2

European Union Fundamental Rights Agency (Vienna) — Implementation of the budget for the financial year 2007

| (1000 euro) |
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| Revenue | Expenditure |
| Source of revenue | Revenue entered in the final budget for the financial year | Revenue received | Allocation of expenditure | Final budget appropriations | Appropriations carried over from previous financial year(s) |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Community subsidies | 14 000 | 14 000 | Title I
  Staff | 4 085 | 4 012 | 3 903 | 109 | 73 | 50 | 37 | 13 |
| Other assigned revenue | 0 | 240 | Title II
  Administration | 2 375 | 2 337 | 750 | 1 587 | 38 | 283 | 273 | 10 |
| | | | Title III
  Operating activities | 7 540 | 7 430 | 1 810 | 5 620 | 110 | 942 | 881 | 61 |
| Phare 2005 (1) | 0 | 90 | Phare 2005 (1) | 0 | 0 | 0 | 0 | 0 | 90 | 90 | 0 |
| Phare 2006 (1) | 191 | 191 | Phare 2006 (1) | 191 | 168 | 53 | 138 | 0 | 245 | 245 | 0 |
| Total | 14 191 | 14 521 | Total | 14 191 | 13 947 | 6 516 | 7 454 | 221 | 1 610 | 1 526 | 84 |
| Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis. |

(1000 euro)

Revenue

Expenditure

Source of revenue

Revenue entered in the final budget for the financial year

Revenue received

Allocation of expenditure

Final budget appropriations

Appropriations carried over from previous financial year(s)

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Community subsidies

14 000

14 000

Title I

Staff

4 085

4 012

3 903

109

73

50

37

13

Other assigned revenue

0

240

Title II

Administration

2 375

2 337

750

1 587

38

283

273

10

Title III

Operating activities

7 540

7 430

1 810

5 620

110

942

881

61

Phare 2005 (1)

0

90

Phare 2005 (1)

0

0

0

0

0

90

90

0

Phare 2006 (1)

191

191

Phare 2006 (1)

191

168

53

138

0

245

245

0

Total

14 191

14 521

Total

14 191

13 947

6 516

7 454

221

1 610

1 526

84

Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

European Union Fundamental Rights Agency (Vienna) — Economic outturn account for the financial years 2007 and 2006

| (1000 euro) |
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| | 2007 | 2006 |
| Operating revenue |
| Community subsidies | 14 074 | 8 609 |
| Other revenues | 207 | 8 |
| Total (a) | 14 281 | 8 617 |
| Operating expenses |
| Staff expenses | 3 532 | 3 051 |
| Fixed asset related expenses | 168 | 52 |
| Other administrative expenses | 1 538 | 1 403 |
| Operational expenses | 3 450 | 3 556 |
| Total (b) | 8 688 | 8 061 |
| Economic result for the year (c = a – b) | 5 593 | 556 |
| Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis. |

(1000 euro)

2007

2006

Operating revenue

Community subsidies

14 074

8 609

Other revenues

207

8

Total (a)

14 281

8 617

Operating expenses

Staff expenses

3 532

3 051

Fixed asset related expenses

168

52

Other administrative expenses

1 538

1 403

Operational expenses

3 450

3 556

Total (b)

8 688

8 061

Economic result for the year (c = a – b)

5 593

556

Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis.

Table 4

European Union Fundamental Rights Agency (Vienna) — Balance sheet at 31 December 2007 and 2006

| (1000 euro) |
| --- |
| | 2007 | 2006 |
| Non-current assets |
| Intangible fixed assets | 109 | 84 |
| Tangible fixed assets | 333 | 388 |
| Current assets |
| Short-term pre-financing | 0 | 70 |
| Short-term receivables | 291 | 453 |
| Cash and cash equivalents | 8 196 | 2 288 |
| Total assets | 8 929 | 3 282 |
| Current liabilities |
| Provisions for risks and charges | 48 | 48 |
| Accounts payable | 1 588 | 1 535 |
| Total liabilities | 1 636 | 1 582 |
| Net assets | 7 293 | 1 700 |
| Reserve |
| Accumulated surplus/deficit | 1 700 | 1 143 |
| Economic result for the year | 5 593 | 556 |
| Net capital | 7 293 | 1 700 |
| Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis. |

(1000 euro)

2007

2006

Non-current assets

Intangible fixed assets

109

84

Tangible fixed assets

333

388

Current assets

Short-term pre-financing

0

70

Short-term receivables

291

453

Cash and cash equivalents

8 196

2 288

Total assets

8 929

3 282

Current liabilities

Provisions for risks and charges

48

48

Accounts payable

1 588

1 535

Total liabilities

1 636

1 582

Net assets

7 293

1 700

Reserve

Accumulated surplus/deficit

1 700

1 143

Economic result for the year

5 593

556

Net capital

7 293

1 700

Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis.

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(1)  Assigned revenue.

Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

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THE AGENCY'S REPLIES

| 7. | The Agency has taken all the necessary measures to make up these delays in order to minimise cancellations of carried-over appropriations. The objective to cancel less than 10 % of carry-overs shall be closely monitored during 2008. |
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7.

The Agency has taken all the necessary measures to make up these delays in order to minimise cancellations of carried-over appropriations. The objective to cancel less than 10 % of carry-overs shall be closely monitored during 2008.

| 8. | The transfers and the amending budgets were necessary because of the difficulties linked to the extension of the Agency's mandate which impaired the implementation of the initially foreseen activities. In the future, the Agency will continue to improve the programming of its activities. |
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8.

The transfers and the amending budgets were necessary because of the difficulties linked to the extension of the Agency's mandate which impaired the implementation of the initially foreseen activities. In the future, the Agency will continue to improve the programming of its activities.

| 9. | The method used was fully compliant with the Financial Regulation. However, to ensure that the best value for money is obtained, the Agency will introduce the evaluation method now proposed by the Commission services. |
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9.

The method used was fully compliant with the Financial Regulation. However, to ensure that the best value for money is obtained, the Agency will introduce the evaluation method now proposed by the Commission services.

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