# C_2008311EN.01013601.xml

| 5.12.2008 | EN | Official Journal of the European Union | C 311/136 |
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5.12.2008

EN

Official Journal of the European Union

C 311/136

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REPORT

REPORT

on the annual accounts of the European Police College for the financial year 2007 together with the College's replies

(2008/C 311/20)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

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

| 7-15 | OBSERVATIONS |
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7-15

Tables 1 to 3

The College's replies

The College's replies

INTRODUCTION

| 1. | The European Police College (hereinafter called the College) was established by Council Decision 2000/820/JHA, as repealed in 2005 and replaced by Council Decision 2005/681/JHA (1). The College's task is to function as a network and bring together the national police training institutes in the Member States to provide training sessions, based on common standards, for senior police officers. |
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1.

The European Police College (hereinafter called the College) was established by Council Decision 2000/820/JHA, as repealed in 2005 and replaced by Council Decision 2005/681/JHA (1). The College's task is to function as a network and bring together the national police training institutes in the Member States to provide training sessions, based on common standards, for senior police officers.

1

| 2. | Table 1 summarises the College's competences and activities. Key data taken from the financial statements drawn up by the College for the financial year 2007 are presented in Tables 2 and 3for information purposes. |
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2.

Table 1 summarises the College's competences and activities. Key data taken from the financial statements drawn up by the College for the financial year 2007 are presented in Tables 2 and 3for information purposes.

Table 1

Tables 2 and 3

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 of 25 June 2002 (2); it was drawn up following an examination of the College'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 of 25 June 2002 (2); it was drawn up following an examination of the College's accounts, as required by Article 248 of the Treaty establishing the European Community.

2

| 4. | The College's accounts for the financial year ended 31 December 2007 (3) were drawn up by its Director, pursuant to Article 11 of Council Decision 2005/681/JHA, and sent to the Court, which is required to give a Statement of Assurance on their reliability and on the legality and regularity of the underlying transactions. |
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4.

The College's accounts for the financial year ended 31 December 2007 (3) were drawn up by its Director, pursuant to Article 11 of Council Decision 2005/681/JHA, and sent to the Court, which is required to give a Statement of Assurance on their reliability and on the legality and regularity of the underlying transactions.

3

| 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.

4

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

  Reliability of the accountsExcept for the situation described in paragraphs 9 and 10, the College's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable. Furthermore, the Court draws attention to the observation in paragraph 7.Legality and regularity of the underlying transactionsExcept for the situations described in paragraphs 14 and 15, the transactions underlying the College's annual accounts, taken as a whole, are legal and regular. Furthermore, the Court draws attention to the observation in paragraph 13. |
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6.

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

Reliability of the accountsExcept for the situation described in paragraphs 9 and 10, the College's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable. Furthermore, the Court draws attention to the observation in paragraph 7.Legality and regularity of the underlying transactionsExcept for the situations described in paragraphs 14 and 15, the transactions underlying the College's annual accounts, taken as a whole, are legal and regular. Furthermore, the Court draws attention to the observation in paragraph 13.

Reliability of the accountsExcept for the situation described in paragraphs 9 and 10, the College's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable. Furthermore, the Court draws attention to the observation in paragraph 7.Legality and regularity of the underlying transactionsExcept for the situations described in paragraphs 14 and 15, the transactions underlying the College's annual accounts, taken as a whole, are legal and regular. Furthermore, the Court draws attention to the observation in paragraph 13.

OBSERVATIONS

| 7. | The 2007 College's budget amounted to 6,5 million euro, as compared to 5,1 million euro the previous year. The increase in the budget was due to the expansion of the College's activities. This budget amount did not include a contribution of 1,5 million euro received from the Commission in 2007 to implement a MEDA (5) programme. This situation was at odds with the principle of unity and accuracy of the budget. |
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7.

The 2007 College's budget amounted to 6,5 million euro, as compared to 5,1 million euro the previous year. The increase in the budget was due to the expansion of the College's activities. This budget amount did not include a contribution of 1,5 million euro received from the Commission in 2007 to implement a MEDA (5) programme. This situation was at odds with the principle of unity and accuracy of the budget.

5

| 8. | Only 5,6 million euro of the 2007 commitment appropriations (6) were used, of which 1,7 million euro were carried over. More than 20 % (0,5 million euro) of the appropriations carried over from the preceding year were cancelled. The high level of carry-overs and cancellations of appropriations shows difficulties in budget management. |
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8.

Only 5,6 million euro of the 2007 commitment appropriations (6) were used, of which 1,7 million euro were carried over. More than 20 % (0,5 million euro) of the appropriations carried over from the preceding year were cancelled. The high level of carry-overs and cancellations of appropriations shows difficulties in budget management.

6

| 9. | As in 2006, the College did not have, for most of the year, a proper commitment accounting system. For example, for operating expenditure, decisions to spend were taken by the Director on the advice of the Governing Board. Commitments were only recorded against budget lines after payments had been made. The absence of internal control standards (7) and ineffective budget monitoring led to spending in excess of the amount foreseen on some budgetary lines. This then led to either ex-post transfers to correct the overdrawn positions or the creation of new budgetary lines ex nihilo. |
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9.

As in 2006, the College did not have, for most of the year, a proper commitment accounting system. For example, for operating expenditure, decisions to spend were taken by the Director on the advice of the Governing Board. Commitments were only recorded against budget lines after payments had been made. The absence of internal control standards (7) and ineffective budget monitoring led to spending in excess of the amount foreseen on some budgetary lines. This then led to either ex-post transfers to correct the overdrawn positions or the creation of new budgetary lines ex nihilo.

7

ex nihilo

| 10. | In November 2007, a commitment accounting system was put in place for operating activities. It explicitly provided for the creation of budgetary commitments before any legal commitment or any check on the availability of appropriations. The form of the standard legal commitment in this new procedure does not provide sufficient legal guarantees. It consists of a simple sheet providing some administrative information on the project plus a breakdown of its total cost between the relevant budgetary lines. No contractual conditions are detailed. This approach is not in line with the principle of transparency. |
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10.

In November 2007, a commitment accounting system was put in place for operating activities. It explicitly provided for the creation of budgetary commitments before any legal commitment or any check on the availability of appropriations. The form of the standard legal commitment in this new procedure does not provide sufficient legal guarantees. It consists of a simple sheet providing some administrative information on the project plus a breakdown of its total cost between the relevant budgetary lines. No contractual conditions are detailed. This approach is not in line with the principle of transparency.

| 11. | Contrary to the College's Financial Regulation (8), neither the provisional accounts nor the report on the budgetary and financial management had been prepared. |
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11.

Contrary to the College's Financial Regulation (8), neither the provisional accounts nor the report on the budgetary and financial management had been prepared.

8

| 12. | The recoverable VAT for the 2007 financial year, amounting to 102 281 euro, had not been reclaimed by the year end. VAT should be recovered at regular intervals during the year. This situation is not consistent with sound financial management. |
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12.

The recoverable VAT for the 2007 financial year, amounting to 102 281 euro, had not been reclaimed by the year end. VAT should be recovered at regular intervals during the year. This situation is not consistent with sound financial management.

| 13. | The College's Financial Regulation foresees the need for detailed rules for the implementation (9) of the regulation. The College has not yet adopted any detailed implementing rules, including those ensuring the transparency of the College's procurement procedures. This had already been commented on in the 2006 audit report (10). |
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13.

The College's Financial Regulation foresees the need for detailed rules for the implementation (9) of the regulation. The College has not yet adopted any detailed implementing rules, including those ensuring the transparency of the College's procurement procedures. This had already been commented on in the 2006 audit report (10).

9

10

| 14. | The system of procurement did not comply with the provisions of the Financial Regulation. There was no documentation available to justify the need to purchase particular items and to explain recourse to a particular supplier. This had already been commented on in the 2006 audit report (11). |
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14.

The system of procurement did not comply with the provisions of the Financial Regulation. There was no documentation available to justify the need to purchase particular items and to explain recourse to a particular supplier. This had already been commented on in the 2006 audit report (11).

11

| 15. | Cases were identified where appropriations were used to finance the private expenditure of some of the College's staff. As it was not feasible for the auditors to review all payments made during the year it is not possible to quantify either the amount that was irregularly spent on private use or all the different types of private expenditure made. This use of public funds for private purposes is material by nature. Steps should be taken to ensure complete reimbursement of these funds. |
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15.

Cases were identified where appropriations were used to finance the private expenditure of some of the College's staff. As it was not feasible for the auditors to review all payments made during the year it is not possible to quantify either the amount that was irregularly spent on private use or all the different types of private expenditure made. This use of public funds for private purposes is material by nature. Steps should be taken to ensure complete reimbursement of these funds.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 9 October 2008.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

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(1)  OJ L 256, 1.10.2005, p. 63.

1

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

2

(3)  These accounts were drawn up on 31 July 2008 and received by the Court on 30 September 2008.

3

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

4

(5)  The Euro-Mediterranean Partnership.

5

(6)  Assigned revenue not included.

6

(7)  Internal control standards were adopted by the Governing Board on 28 November 2007.

7

(8)  Articles 76 and 82.

8

(9)  For example, in Article 10(3), Article 34 and Article 74.

9

(10)  Paragraph 8.

10

(11)  Paragraph 11.

11

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Table 1

European Police College (Bramshill)

| Areas of Community Competence deriving from the Treaty | Competences of the College as defined in Council Decision 2005/681/JHA | Governance | Resources made available to the College in 2007

  (data for 2006) | Main products and services supplied in 2007 |
| --- | --- | --- | --- | --- |
| Approximation of laws


  Treaty on European Union, in particular Article 30(1) and Article 34(2) thereof. | Objectives

  The aim of CEPOL shall be to help train senior police officers in the Member States by optimising cooperation between CEPOL's various components. It shall support and develop a European approach to the main problems facing Member States in the fight against crime, crime prevention and the maintenance of law and order and public security, in particular the cross-border dimensions of those problems. | Tasks







  — | To increase knowledge of the national police systems and structures of other Member States and of cross-border police cooperation within the European Union. |

Areas of Community Competence deriving from the Treaty

Competences of the College as defined in Council Decision 2005/681/JHA

Governance

Resources made available to the College in 2007

(data for 2006)

Main products and services supplied in 2007

Approximation of laws

Treaty on European Union, in particular Article 30(1) and Article 34(2) thereof.

Objectives

The aim of CEPOL shall be to help train senior police officers in the Member States by optimising cooperation between CEPOL's various components. It shall support and develop a European approach to the main problems facing Member States in the fight against crime, crime prevention and the maintenance of law and order and public security, in particular the cross-border dimensions of those problems.

Tasks

—

To increase knowledge of the national police systems and structures of other Member States and of cross-border police cooperation within the European Union.

| — | To improve knowledge of international and Union instruments, particularly in the following sectors.






  (a) | the institutions of the European Union, their functioning and role, as well as the decision-making mechanisms and legal instruments of the European Union, in particular as regards their implications for law-enforcement cooperation; |
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—

To improve knowledge of international and Union instruments, particularly in the following sectors.

(a)

the institutions of the European Union, their functioning and role, as well as the decision-making mechanisms and legal instruments of the European Union, in particular as regards their implications for law-enforcement cooperation;

| (b) | Europol's objectives, structure and functioning, as well as ways to maximise cooperation between Europol and relevant law-enforcement services in the Member States in the fight against organised crime; |
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(b)

Europol's objectives, structure and functioning, as well as ways to maximise cooperation between Europol and relevant law-enforcement services in the Member States in the fight against organised crime;

| (c) | Eurojust's objectives, structure and functioning; |
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(c)

Eurojust's objectives, structure and functioning;

| — | To provide appropriate training with regard to respect for democratic safeguards, with particular reference to the rights of defence. |
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—

To provide appropriate training with regard to respect for democratic safeguards, with particular reference to the rights of defence.

1.   Governing Board

Composed of:

One delegation from each MemberState.

Each delegation shall have one vote. Representatives of the European Commission and of the General Secretariat of the Council of the European Union and Europol shall be invited to attend meetings as non-voting observers.

2.   Director

Manages the Agency, is appointed and removed by the Governing Board.

3.   External audit

Court of Auditors.

4.   Internal Auditor

Internal Audit service of the Commission.

5.   Discharge authority

Parliament acting on a recommendation from the Council.

Final budget:

7,4 million Euro (5,0)

(100 % Community subsidy)

Staff at 31 December 2007:

Number of posts in the Establishment Plan: 22,5 (22,5)

Posts occupied: 12 (7)

Other posts: (contract staff, seconded national experts, etc.: 9 (8)

Total staff: 21 (15)

| 1. | Courses, seminars and conferences: 85 conferences |
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1.

Courses, seminars and conferences: 85 conferences

| 2. | Training and research:






  — | 2 working groups for training involving 49 tutors from all the Member States. |
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2.

Training and research:

—

2 working groups for training involving 49 tutors from all the Member States.

| — | Recommendation on trainers and course standards has been adopted. |
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—

Recommendation on trainers and course standards has been adopted.

| — | European approach for police science adopted. |
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—

European approach for police science adopted.

| — | Reference groups for the e-Network and for E-learning have been established. |
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—

Reference groups for the e-Network and for E-learning have been established.

| — | e-doc database and CEPOL's glossary have continued to be developed. |
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—

e-doc database and CEPOL's glossary have continued to be developed.

| 3. | External relations:






  — | Agreements signed with Eurojust, Frontex and Europol. |
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3.

External relations:

—

Agreements signed with Eurojust, Frontex and Europol.

| — | Organisation of two specific activities for candidate countries. |
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—

Organisation of two specific activities for candidate countries.

| — | Launch of the Euromed II project |
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—

Launch of the Euromed II project

| — | Preliminary contacts initiated for cooperation with international (OSCE, Interpol) and national organisations (Russia, European Neighbourhood Policy countries). |
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—

Preliminary contacts initiated for cooperation with international (OSCE, Interpol) and national organisations (Russia, European Neighbourhood Policy countries).

Source: Information supplied by the College.

Table 2

European Police College (Bramshill) — Economic outturn account for the financial year 2007 and 2006

| (1000 euro) |
| --- |
| | 2007 | 2006 |
| Operating revenue |
| Community subsidies | 7 165 | 4 352 |
| Total (a) | 7 165 | 4 352 |
| Operating expenditure |
| Staff expenditure | 1 954 | 1 460 |
| Other administrative expenditure | 213 | 358 |
| Operational expenditure | 4 009 | 2 454 |
| Total (b) | 6 176 | 4 272 |
| Surplus/(deficit) from operating activities (c = a – b) | 989 | 80 |
| Financial operations revenue (d) | — | — |
| Financial operations expenditure (e) | –18 | –12 |
| Surplus/(deficit) from non-operating activities (f = d + e) | –18 | –12 |
| Economic result for the year (g = c + f) | 971 | 68 |
| Source: Data supplied by the College. |

(1000 euro)

2007

2006

Operating revenue

Community subsidies

7 165

4 352

Total (a)

7 165

4 352

Operating expenditure

Staff expenditure

1 954

1 460

Other administrative expenditure

213

358

Operational expenditure

4 009

2 454

Total (b)

6 176

4 272

Surplus/(deficit) from operating activities (c = a – b)

989

80

Financial operations revenue (d)

—

—

Financial operations expenditure (e)

–18

–12

Surplus/(deficit) from non-operating activities (f = d + e)

–18

–12

Economic result for the year (g = c + f)

971

68

Source: Data supplied by the College.

Table 3

European Police College (Bramshill) — Balance Sheet at 31 December 2007 and 2006

| (1000 euro) |
| --- |
| | 2007 | 2006 |
| Non-current assets |
| Intangible fixed assets | 8 | — |
| Tangible fixed assets | 139 | 37 |
| Long-term receivables | 102 | — |
| Current assets |
| Short-term receivables | 182 | 298 |
| Cash and cash equivalents | 4 586 | 3 682 |
| Total assets | 5 017 | 4 017 |
| Non-current liabilities |
| Long-term liabilities | 1 190 | — |
| Current liabilities |
| Accounts payable | 2 788 | 3 949 |
| Total liabilities | 3 978 | 3 949 |
| Net assets | 1 039 | 68 |
| Reserve |
| Accumulated surplus/deficit | 68 | — |
| Economic result for the year | 971 | 68 |
| Total net assets | 1 039 | 68 |
| Source: Data supplied by the College. This table summarises the data provided by the College in its annual accounts: these accounts are drawn up on an accrual basis. |

(1000 euro)

2007

2006

Non-current assets

Intangible fixed assets

8

—

Tangible fixed assets

139

37

Long-term receivables

102

—

Current assets

Short-term receivables

182

298

Cash and cash equivalents

4 586

3 682

Total assets

5 017

4 017

Non-current liabilities

Long-term liabilities

1 190

—

Current liabilities

Accounts payable

2 788

3 949

Total liabilities

3 978

3 949

Net assets

1 039

68

Reserve

Accumulated surplus/deficit

68

—

Economic result for the year

971

68

Total net assets

1 039

68

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

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THE COLLEGE'S REPLIES

| 7. | The specific MEDA project was not initially included in the Budget Out-turn Report.
  Three separate entities were set up; CEPOL, AGIS and MEDA.
  The income and expenditure for each entity was correctly recorded in the accounts as of 31 December 2007. |
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7.

The specific MEDA project was not initially included in the Budget Out-turn Report.

Three separate entities were set up; CEPOL, AGIS and MEDA.

The income and expenditure for each entity was correctly recorded in the accounts as of 31 December 2007.

| 8. | The four main reasons the budget appropriations were not fully used are:






  1. | The number of participants in CEPOL activities was less than estimated and a few activities were cancelled. |
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8.

The four main reasons the budget appropriations were not fully used are:

1.

The number of participants in CEPOL activities was less than estimated and a few activities were cancelled.

| 2. | The recruitment process for new staff has taken longer time than estimated. |
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2.

The recruitment process for new staff has taken longer time than estimated.

| 3. | The new office accommodation, to be provided by NPIA, Bramshill in autumn 2007 was not available in 2007. |
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3.

The new office accommodation, to be provided by NPIA, Bramshill in autumn 2007 was not available in 2007.

| 4. | The cost for organising CEPOL activities were less than calculated due to cost effective solutions by organisers of the activities. |
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4.

The cost for organising CEPOL activities were less than calculated due to cost effective solutions by organisers of the activities.

| 9. | CEPOL did not have an accounting system in place in 2007 which complied with the Financial Regulation. A paper-based system for commitments and segregation of duties was established in December 2007 and came into force on 1 January 2008. ABAC was implemented in June 2008. New budget lines were used as a temporary measure. Internal procedures have been reviewed and amended to ensure the observed errors will not recur. |
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9.

CEPOL did not have an accounting system in place in 2007 which complied with the Financial Regulation. A paper-based system for commitments and segregation of duties was established in December 2007 and came into force on 1 January 2008. ABAC was implemented in June 2008. New budget lines were used as a temporary measure. Internal procedures have been reviewed and amended to ensure the observed errors will not recur.

| 10. | In November 2007 CEPOL Governing Board approved a system with Agreements between the National Colleges/Institutes and CEPOL, which came into force 1 January 2008, and which will be further amended in order to optimise the transparency of the agreements concluded with the colleges/institutes. A proposal is tabled to the Governing Board in September. |
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10.

In November 2007 CEPOL Governing Board approved a system with Agreements between the National Colleges/Institutes and CEPOL, which came into force 1 January 2008, and which will be further amended in order to optimise the transparency of the agreements concluded with the colleges/institutes. A proposal is tabled to the Governing Board in September.

| 11. | The draft 2007 Financial Statements were not prepared on 1 March, as specified in the Financial Regulation. The Consolidated Reporting Package was prepared and finalised in accordance with the Financial Regulation and sent to the Accounting Officer of the Commission by 18 January 2008. |
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11.

The draft 2007 Financial Statements were not prepared on 1 March, as specified in the Financial Regulation. The Consolidated Reporting Package was prepared and finalised in accordance with the Financial Regulation and sent to the Accounting Officer of the Commission by 18 January 2008.

| 12. | Following the procedures of previous years, the VAT of the fourth quarter was recovered in the first quarter of the following year. VAT for 2007 has now been recovered. |
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12.

Following the procedures of previous years, the VAT of the fourth quarter was recovered in the first quarter of the following year. VAT for 2007 has now been recovered.

| 13. | The Implementing Rules of the Financial Regulation were adopted by the Governing Board in February 2008. Internal Procurement Guidelines is adopted in September 2008. |
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13.

The Implementing Rules of the Financial Regulation were adopted by the Governing Board in February 2008. Internal Procurement Guidelines is adopted in September 2008.

| 14. | The purchase of ICT equipment was done under the ‘Catalyst Framework Agreement’ and followed the conditions as provided by UK Home Office in 2004 to CEPOL when CEPOL did not have legal personality, following the start up phase of CEPOL in 2004. |
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14.

The purchase of ICT equipment was done under the ‘Catalyst Framework Agreement’ and followed the conditions as provided by UK Home Office in 2004 to CEPOL when CEPOL did not have legal personality, following the start up phase of CEPOL in 2004.

| 15. | Cost regarding use of mobile phones and use of the CEPOL pool cars have been recovered. The recovery of the taxi/transport costs has been initiated. In order to follow up the use of CEPOL funds, an ex post control will be carried out by an external company, regarding the recovery of the costs. |
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15.

Cost regarding use of mobile phones and use of the CEPOL pool cars have been recovered. The recovery of the taxi/transport costs has been initiated. In order to follow up the use of CEPOL funds, an ex post control will be carried out by an external company, regarding the recovery of the costs.

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