# C_2008311EN.01012201.xml

| 5.12.2008 | EN | Official Journal of the European Union | C 311/122 |
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5.12.2008

EN

Official Journal of the European Union

C 311/122

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REPORT

REPORT

on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2007 together with the Centre's replies

(2008/C 311/18)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

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

| 7-10 | OBSERVATIONS |
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7-10

Tables 1 to 4

The Centre's replies

The Centre's replies

INTRODUCTION

| 1. | The European Centre for Disease Prevention and Control (hereinafter referred to as ‘the Centre’) was set up by Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 (1). Its main tasks are to collect and disseminate data on the prevention and control of human diseases and to provide scientific opinions on this subject. It is also required to coordinate the European network of bodies operating in this field. |
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1.

The European Centre for Disease Prevention and Control (hereinafter referred to as ‘the Centre’) was set up by Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 (1). Its main tasks are to collect and disseminate data on the prevention and control of human diseases and to provide scientific opinions on this subject. It is also required to coordinate the European network of bodies operating in this field.

1

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

Table 1 summarises the Centre's competences and activities. Key data summarised from the financial statements drawn up by the Centre for the financial year 2007 are presented 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 Centre'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 Centre's accounts, as required by Article 248 of the Treaty establishing the European Community.

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| 4. | The Centre's accounts for the financial year ended 31 December 2007 (3) were drawn up by its Director, pursuant to Article 23 of Regulation (EC) No 851/2004, 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 Centre's accounts for the financial year ended 31 December 2007 (3) were drawn up by its Director, pursuant to Article 23 of Regulation (EC) No 851/2004, 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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| 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 accountsThe Centre'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 Centre'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 Centre'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 Centre'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 Centre'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 Centre'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 Centre's 2007 budget amounted to 28,9 million euro, as compared with 17,1 million euro the previous year. The budget increase is mainly due to the development of the Centre's activities as laid down in its multiannual programme. 28,3 million euro of the 2007 commitment appropriations were used up, of which 16,3 million euro were paid and 12,0 million euro carried over. The low level of payments is an indicator of difficulties in implementing the 2007 activities. This low level is partly explained by additional funds (1,8 million euro) made available by the Commission at the end of the year. Moreover, the level of budget amendments (5) reveals weaknesses in the monitoring of the implementation of the budget. This situation was at odds with the principles of annuality and specification. |
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7.

The Centre's 2007 budget amounted to 28,9 million euro, as compared with 17,1 million euro the previous year. The budget increase is mainly due to the development of the Centre's activities as laid down in its multiannual programme. 28,3 million euro of the 2007 commitment appropriations were used up, of which 16,3 million euro were paid and 12,0 million euro carried over. The low level of payments is an indicator of difficulties in implementing the 2007 activities. This low level is partly explained by additional funds (1,8 million euro) made available by the Commission at the end of the year. Moreover, the level of budget amendments (5) reveals weaknesses in the monitoring of the implementation of the budget. This situation was at odds with the principles of annuality and specification.

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| 8. | The inventory of fixed assets (gross amount 3,5 million euro) was managed using a spreadsheet, which did not guarantee the integrity of the data, and no exhaustive physical inventory of fixed assets has been made since the Centre was set up. |
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8.

The inventory of fixed assets (gross amount 3,5 million euro) was managed using a spreadsheet, which did not guarantee the integrity of the data, and no exhaustive physical inventory of fixed assets has been made since the Centre was set up.

| 9. | The Centre's 2007 work programme is activity-based and the initial budget follows the structure of the work programme. However, when budget amendments were decided, no evaluation was made of their impact on the work programme and the achievement of the objectives. |
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9.

The Centre's 2007 work programme is activity-based and the initial budget follows the structure of the work programme. However, when budget amendments were decided, no evaluation was made of their impact on the work programme and the achievement of the objectives.

| 10. | In 2007, the Centre has disbursed 0,5 million euro on various renovation works on the building rented for its premises. As in 2006, these works were decided by direct agreement between the Centre and the owner without specifying the nature of the works to be done as well as deadlines and payment conditions. This situation did not comply with the Financial Regulation and was at odds with the principle of economy. |
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10.

In 2007, the Centre has disbursed 0,5 million euro on various renovation works on the building rented for its premises. As in 2006, these works were decided by direct agreement between the Centre and the owner without specifying the nature of the works to be done as well as deadlines and payment conditions. This situation did not comply with the Financial Regulation and was at odds with the principle of economy.

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 142, 30.4.2004, p. 1.

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

2

(3)  These accounts were drawn up on 18 June 2008 and received by the Court on 30 June 2008.

3

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

4

(5)  Title I and Title III appropriations decreased respectively by 0,9 and 1,3 million euro to increase the Title II.

5

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Table 1

European Centre for Disease Prevention and Control (Stockholm)

| Area of Community competence deriving from the Treaty | Competences of the Centre as specified in Regulation (EC) No 851/2004 | Governance | Resources available to the Centre

  (Data for 2006) | Products and services supplied in 2007 |
| --- | --- | --- | --- | --- |
| A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education.

  (Article 152 of the Treaty) | Objectives

  To strengthen Europe's defences against infectious diseases; specifically, to identify, assess and communicate current and emerging threats to human health from communicable diseases.
  Therefore the Centre shall operate dedicated surveillance networks, provide scientific opinions, operate the early warning and response system (EWRS) and provide scientific and technical assistance and training. | Tasks







  — | To operate dedicated disease surveillance networks and enhance networking activities. The Centre has a specific role in data collection, validation, analysis and dissemination. |

Area of Community competence deriving from the Treaty

Competences of the Centre as specified in Regulation (EC) No 851/2004

Governance

Resources available to the Centre

(Data for 2006)

Products and services supplied in 2007

A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education.

(Article 152 of the Treaty)

Objectives

To strengthen Europe's defences against infectious diseases; specifically, to identify, assess and communicate current and emerging threats to human health from communicable diseases.

Therefore the Centre shall operate dedicated surveillance networks, provide scientific opinions, operate the early warning and response system (EWRS) and provide scientific and technical assistance and training.

Tasks

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To operate dedicated disease surveillance networks and enhance networking activities. The Centre has a specific role in data collection, validation, analysis and dissemination.

| — | To provide authoritative expert advice and scientific opinions and studies on communicable diseases. |
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To provide authoritative expert advice and scientific opinions and studies on communicable diseases.

| — | To operate the EWRS. Develop procedures for identifying emerging health threats. |
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To operate the EWRS. Develop procedures for identifying emerging health threats.

| — | To strengthen Member States' capacity in preparedness planning and in training. |
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—

To strengthen Member States' capacity in preparedness planning and in training.

| — | To inform the general public and interested parties of its work. |
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—

To inform the general public and interested parties of its work.

1.   Management Board

One member designated by each MemberState, two members designated by the European Parliament and three representatives of the Commission.

The Board adopts the Centre's annual programme and budget and monitors their implementation.

2.   Director

Appointed by the Management Board on the basis of a list of candidates proposed by the Commission.

3.   Advisory Forum

A representative of each MemberState and three non-voting representatives of the Commission.

The Forum is to assure the scientific excellence of the work and the independence of the activities and opinions of the Centre.

4.   External audit

Court of Auditors.

5.   Discharge authority

Parliament acting on a recommendation by the Council.

2007 Final Budget

28,9 (17,1) million euro, including a community subsidy of 98 % and 2 % of EFTA funds

Staff Numbers

Posts in the establishment plan: 90 (50)

Posts occupied: 80 (48)

+42 (36) other posts

Total staff: 122 (84)

assigned to the following duties:

| — | operational: 75 (49) |
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operational: 75 (49)

| — | administrative:47 (35) |
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—

administrative:47 (35)

| — | A communicable disease threat database (Threat Tracking Tool, TTT) was developed and implemented in 2007. |
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A communicable disease threat database (Threat Tracking Tool, TTT) was developed and implemented in 2007.

| — | ECDC completed the transfer of the EWRS operations in 2007, and also initiated the development of standard operating procedures for outbreak investigation and response. |
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ECDC completed the transfer of the EWRS operations in 2007, and also initiated the development of standard operating procedures for outbreak investigation and response.

| — | Two simulation exercises were conducted in 2007: test of internal procedures and equipment and test of procedures regarding risk assessment and Member States support for contact tracing activities. |
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Two simulation exercises were conducted in 2007: test of internal procedures and equipment and test of procedures regarding risk assessment and Member States support for contact tracing activities.

| — | Launch of the European Surveillance System in late autumn 2007, collecting data for the DSNs migrating to ECDC. |
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Launch of the European Surveillance System in late autumn 2007, collecting data for the DSNs migrating to ECDC.

| — | Publication of the First European Epidemiological Report and of the EU Zoonoses Report in close collaboration with membersStates and EFSA. |
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Publication of the First European Epidemiological Report and of the EU Zoonoses Report in close collaboration with membersStates and EFSA.

| — | Integration of the scientific journal Eurosurveillance into ECDC. |
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Integration of the scientific journal Eurosurveillance into ECDC.

| — | Organisation of five training sessions on outbreak investigation in partnership with ASPHER. Additionally, a module on management of public health crises was organised, gathering senior epidemiologists from all Member States. A training manual on applied epidemiology was further developed. |
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Organisation of five training sessions on outbreak investigation in partnership with ASPHER. Additionally, a module on management of public health crises was organised, gathering senior epidemiologists from all Member States. A training manual on applied epidemiology was further developed.

| — | Influenza Pandemic Preparedness Self-Assessment visits to all thirty EU/EEA Member States were completed. In the area of HIV and STI surveillance and prevention, the Centre prepared the ground for taking responsibility for the surveillance of HIV/AIDS in Europe, performed two country visits to review programmes for prevention, control and surveillance, and carried out EU-wide studies to evaluate prevention interventions. In the context of the TB disease specific activities, an Action Plan to fight TB in the EU was developed. |
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Influenza Pandemic Preparedness Self-Assessment visits to all thirty EU/EEA Member States were completed. In the area of HIV and STI surveillance and prevention, the Centre prepared the ground for taking responsibility for the surveillance of HIV/AIDS in Europe, performed two country visits to review programmes for prevention, control and surveillance, and carried out EU-wide studies to evaluate prevention interventions. In the context of the TB disease specific activities, an Action Plan to fight TB in the EU was developed.

| — | A Scientific Consultation Group of EU-wide Learned Societies was created. |
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A Scientific Consultation Group of EU-wide Learned Societies was created.

| — | The first European Scientific Conference on Applied Infectious Disease Epidemiology (ESCAIDE) was organised and hosted by The Centre. |
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The first European Scientific Conference on Applied Infectious Disease Epidemiology (ESCAIDE) was organised and hosted by The Centre.

Source: Information supplied by the Centre.

Table 2

European Centre for Disease Prevention and Control (Stockholm) — Implementation of the budget for the financial year 2007

| (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 | 28 898 | 28 614 | Title I
  Staff | 9 598 | 9 528 | 8 825 | 703 | 70 | 404 | 330 | 74 |
| | | | Title II
  Administration | 6 268 | 5 915 | 3 498 | 2 417 | 353 | 1 620 | 1 505 | 115 |
| | | | Title III
  Operating activities | 13 032 | 12 866 | 3 928 | 8 938 | 166 | 5 073 | 3 956 | 1 117 |
| Total | 28 898 | 28 614 | Total | 28 898 | 28 309 | 16 251 | 12 058 | 590 | 7 097 | 5 791 | 1 306 |
| NB: Variations in totals are due to the effects of rounding.

  Source: Data supplied by the Centre. This table summarises the data supplied by the Centre in its own financial statements. 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

28 898

28 614

Title I

Staff

9 598

9 528

8 825

703

70

404

330

74

Title II

Administration

6 268

5 915

3 498

2 417

353

1 620

1 505

115

Title III

Operating activities

13 032

12 866

3 928

8 938

166

5 073

3 956

1 117

Total

28 898

28 614

Total

28 898

28 309

16 251

12 058

590

7 097

5 791

1 306

NB: Variations in totals are due to the effects of rounding.

Source: Data supplied by the Centre. This table summarises the data supplied by the Centre in its own financial statements. Revenue collected and payments are estimated on a cash basis.

Table 3

European Centre for Disease Prevention and Control (Stockholm) — Economic outturn account for the financial years 2007 and 2006

| (1000 euro) |
| --- |
| | 2007 | 2006 |
| Operating revenue |
| Community subsidies | 26 980 | 15 806 |
| Total (a) | 26 980 | 15 806 |
| Operating expenditure |
| Staff expenditure | 8 252 | 4 536 |
| Fixed asset related expenditure | 612 | 305 |
| Other administrative expenditure | 4 395 | 2 893 |
| Operational expenditure | 8 699 | 2 623 |
| Total (b) | 21 958 | 10 357 |
| Surplus/(deficit) from operating activities (c = a – b) | 5 022 | 5 449 |
| Financial operations revenue (e) | 22 | 0 |
| Financial operations expenditure (f) | 4 | 64 |
| Surplus/(deficit) from non-operating activities (g = e – f) | 18 | –64 |
| Economic result for the year (h = c + g) | 5 040 | 5 385 |
| Source: Data supplied by the Centre. This table summarises the data provided by the Centre in its annual accounts: these accounts are drawn up on an accrual basis. |

(1000 euro)

2007

2006

Operating revenue

Community subsidies

26 980

15 806

Total (a)

26 980

15 806

Operating expenditure

Staff expenditure

8 252

4 536

Fixed asset related expenditure

612

305

Other administrative expenditure

4 395

2 893

Operational expenditure

8 699

2 623

Total (b)

21 958

10 357

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

5 022

5 449

Financial operations revenue (e)

22

0

Financial operations expenditure (f)

4

64

Surplus/(deficit) from non-operating activities (g = e – f)

18

–64

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

5 040

5 385

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

Table 4

European Centre for Disease Prevention and Control (Stockholm) — Balance Sheet at 31 December 2007 and 2006

| (1000 euro) |
| --- |
| | 2007 | 2006 |
| Non-current assets |
| Intangible assets | 324 | 111 |
| Tangible fixed assets | 2 414 | 936 |
| Current assets |
| Short-term prefinancing | 461 | 400 |
| Stocks | 2 | 7 |
| Short-term receivables | 787 | 387 |
| Cash and cash equivalents | 13 420 | 7 223 |
| Total assets | 17 408 | 9 064 |
| Current liabilities |
| Provision for risks and charges | 136 | 70 |
| Accounts payable | 5 893 | 2 655 |
| Total liabilities | 6 029 | 2 725 |
| Net assets | 11 379 | 6 339 |
| Reserve |
| Accumulated surplus/deficit | 6 339 | 954 |
| Economic result for the year | 5 040 | 5 385 |
| Net capital | 11 379 | 6 339 |
| Source: Data supplied by the Centre. This table summarises the data provided by the Centre in its annual accounts: these accounts are drawn up on an accrual basis. |

(1000 euro)

2007

2006

Non-current assets

Intangible assets

324

111

Tangible fixed assets

2 414

936

Current assets

Short-term prefinancing

461

400

Stocks

2

7

Short-term receivables

787

387

Cash and cash equivalents

13 420

7 223

Total assets

17 408

9 064

Current liabilities

Provision for risks and charges

136

70

Accounts payable

5 893

2 655

Total liabilities

6 029

2 725

Net assets

11 379

6 339

Reserve

Accumulated surplus/deficit

6 339

954

Economic result for the year

5 040

5 385

Net capital

11 379

6 339

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

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THE CENTRE'S REPLIES

| 7. | As the Court noted the Centre is still in a growth phase which makes it more challenging to have high payment execution rates. Nevertheless, the management has already increased the payment execution, and has put forward as an objective to approach 70 % of payment execution by 2010.
  The Centre carefully considers the needs for budgetary amendments and is committed to further improve its monitoring on the basis of acquired experience in order to reduce further the volume of transfers. |
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7.

As the Court noted the Centre is still in a growth phase which makes it more challenging to have high payment execution rates. Nevertheless, the management has already increased the payment execution, and has put forward as an objective to approach 70 % of payment execution by 2010.

The Centre carefully considers the needs for budgetary amendments and is committed to further improve its monitoring on the basis of acquired experience in order to reduce further the volume of transfers.

| 8. | The Centre is aware of the limited reliability of a spreadsheed based inventory register and to remedy this, regular verifications of the data have taken place. A new asset inventory system has been developed and is expected to be functional at the end of 2008. In addition the Logistics unit has been reinforced to track deliveries and verify physically the Centre's assets. |
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8.

The Centre is aware of the limited reliability of a spreadsheed based inventory register and to remedy this, regular verifications of the data have taken place. A new asset inventory system has been developed and is expected to be functional at the end of 2008. In addition the Logistics unit has been reinforced to track deliveries and verify physically the Centre's assets.

| 9. | All the transfers affecting the operational title of the budget were done in view of dynamic prioritisation of the Centre's objectives. However, the Centre agrees with the observation and starting from 2008 it will update its work programme together with any budgetary amendment. |
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9.

All the transfers affecting the operational title of the budget were done in view of dynamic prioritisation of the Centre's objectives. However, the Centre agrees with the observation and starting from 2008 it will update its work programme together with any budgetary amendment.

| 10. | The Centre monitors closely the works made in order to implement the economy principle. The Centre is currently concluding on a framework agreement specifying the conditions for specific works that are to be carried out. |
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10.

The Centre monitors closely the works made in order to implement the economy principle. The Centre is currently concluding on a framework agreement specifying the conditions for specific works that are to be carried out.

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