# C_2007309EN.01012801.xml

| 19.12.2007 | EN | Official Journal of the European Union | C 309/128 |
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19.12.2007

EN

Official Journal of the European Union

C 309/128

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REPORT

REPORT

on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2006 together with the Centre's replies

(2007/C 309/22)

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 Centre's replies

The Centre's replies

INTRODUCTION

| 1. | The European Monitoring Centre for Drugs and Drug Addiction (hereinafter ‘the Centre’) was established by Council Regulation (EEC) No 302/93 of 8 February 1993 (1). Its main task is to collect data on drugs and drug addiction in order to prepare and publish information that is objective, reliable and comparable at European level. The information is intended to provide a basis for analysing the demand for drugs and ways of reducing both it and, in general, phenomena associated with the drug market. |
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1.

The European Monitoring Centre for Drugs and Drug Addiction (hereinafter ‘the Centre’) was established by Council Regulation (EEC) No 302/93 of 8 February 1993 (1). Its main task is to collect data on drugs and drug addiction in order to prepare and publish information that is objective, reliable and comparable at European level. The information is intended to provide a basis for analysing the demand for drugs and ways of reducing both it and, in general, phenomena associated with the drug market.

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 2006 is presented inTables 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 2006 is presented inTables 2, 3 and 4 for information purposes.

Table 1

Tables 2, 3

4

STATEMENT OF ASSURANCE

| 3. | This Statement of Assurance 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 of Assurance 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.

2

| 4. | The Centre's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 11 of Regulation (EEC) No 302/93, and sent to the Court, which is required to give its opinion 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 2006 (3) were drawn up by its Director, pursuant to Article 11 of Regulation (EEC) No 302/93, and sent to the Court, which is required to give its opinion 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 INTOSAI International Auditing Standards and Codes of Ethics, insofar 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 INTOSAI International Auditing Standards and Codes of Ethics, insofar 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.

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

  Reliability of the accountsThe Centre's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of 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 below.

Reliability of the accountsThe Centre's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of 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 2006 are, in all material respects, reliable.Legality and regularity of 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 utilisation rate of commitment appropriations (including assigned revenue) was 95 % (94 % in 2005) and the corresponding rate for payment appropriations improved to 87 % (85 % in 2005). The Centre reduced the level of carry-overs to 25 % in 2006 (40 % in 2005). |
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7.

The utilisation rate of commitment appropriations (including assigned revenue) was 95 % (94 % in 2005) and the corresponding rate for payment appropriations improved to 87 % (85 % in 2005). The Centre reduced the level of carry-overs to 25 % in 2006 (40 % in 2005).

| 8. | In nine cases out of 13 examined contrary to the provisions of the contracts, there were delays in making the payments to the national focal points of Reitox (European Information Network on Drugs and Drug Addiction) under the grant agreements. |
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8.

In nine cases out of 13 examined contrary to the provisions of the contracts, there were delays in making the payments to the national focal points of Reitox (European Information Network on Drugs and Drug Addiction) under the grant agreements.

| 9. | In the report on the annual accounts of the Centre for the financial year 2005 (4), the Court made an observation in respect of a member of staff who had been sent on a long-term mission to Brussels and who after the end of the mission, had been seconded to the Commission. However, since the end of the secondment, this staff member continued to be paid by the Centre without having resumed work in Lisbon. The situation remained unchanged in 2006. In 2007, this agent was declared able to work anywhere except specifically in Lisbon. |
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9.

In the report on the annual accounts of the Centre for the financial year 2005 (4), the Court made an observation in respect of a member of staff who had been sent on a long-term mission to Brussels and who after the end of the mission, had been seconded to the Commission. However, since the end of the secondment, this staff member continued to be paid by the Centre without having resumed work in Lisbon. The situation remained unchanged in 2006. In 2007, this agent was declared able to work anywhere except specifically in Lisbon.

4

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 27 September 2007.

For the Court of Auditors

Hubert WEBER

President

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(1)  OJ L 36, 12.2.1993This Regulation was amended by Regulations (EC) No 3294/94 of 22 December 1994 (OJ L 341, 30.12.1994, p. 7) and (EC) No 1651/2003 of 18 June 2003 (OJ L 245, 29.9.2003, p. 30).

1

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

2

(3)  These accounts were drawn up on 15 June 2007 and received by the Court on 13 July 2007.

3

(4)  OJ C 312 of 19.12.2006 (paragraph 12, p. 68).

4

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Table 1

European Monitoring Centre for Drugs and Drug Addiction (Lisbon)

| Areas of Community competence deriving from the Treaty | Competences of the Centre as defined in Council Regulation (EEC) No 302/93 | Governance | Resources available to the Centre in 2006

  (2005) | Products and services supplied in 2006

  (2005 data) |
| --- | --- | --- | --- | --- |
| The Community complements the Member States' action in reducing drugs-related health damage, including information and prevention.

  (Article 152 of the Treaty) | Objectives

  To provide the Union and its Member States with reliable information at European level concerning drugs and drug addiction and their consequences.
  The Monitoring Centre should give priority to analysing:






  1) | the demand and reduction of the demand for drugs; |

Areas of Community competence deriving from the Treaty

Competences of the Centre as defined in Council Regulation (EEC) No 302/93

Governance

Resources available to the Centre in 2006

(2005)

Products and services supplied in 2006

(2005 data)

The Community complements the Member States' action in reducing drugs-related health damage, including information and prevention.

(Article 152 of the Treaty)

Objectives

To provide the Union and its Member States with reliable information at European level concerning drugs and drug addiction and their consequences.

The Monitoring Centre should give priority to analysing:

1)

the demand and reduction of the demand for drugs;

| 2) | national and Community strategies and policies; |
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2)

national and Community strategies and policies;

| 3) | international cooperation and the geopolitics of supply; |
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3)

international cooperation and the geopolitics of supply;

| 4) | control of the trade in narcotics, psychotropic substances and drug precursors; |
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4)

control of the trade in narcotics, psychotropic substances and drug precursors;

| 5) | the implications of drug use for producer, consumer and transit countries, including money laundering. |
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5)

the implications of drug use for producer, consumer and transit countries, including money laundering.

Tasks

| — | To collect and analyse data. |
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—

To collect and analyse data.

| — | To make enquiries and carry out preparatory actions. |
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—

To make enquiries and carry out preparatory actions.

| — | To ensure that European-level data are more reliable. |
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—

To ensure that European-level data are more reliable.

| — | To publish reliable information. |
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—

To publish reliable information.

| — | To improve coordination between national and Community actions. |
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—

To improve coordination between national and Community actions.

| — | To promote the incorporation of drug-related data into international programmes. |
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—

To promote the incorporation of drug-related data into international programmes.

| 1. | The Management Board
  Comprises one representative from each Member State, two representatives of the Commission and two qualified scientists appointed by the European Parliament.
  It approves the work programme and general annual report and adopts the budget. |
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1.

Comprises one representative from each Member State, two representatives of the Commission and two qualified scientists appointed by the European Parliament.

It approves the work programme and general annual report and adopts the budget.

| 2. | Director: Appointed by the Management Board at the Commission's proposal. |
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2.

Director: Appointed by the Management Board at the Commission's proposal.

| 3. | Scientific Committee: Delivers opinions. It is made up of one representative from each Member State. The Management Board may also appoint a maximum of six other members on the basis of their specific qualifications. |
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3.

Scientific Committee: Delivers opinions. It is made up of one representative from each Member State. The Management Board may also appoint a maximum of six other members on the basis of their specific qualifications.

| 4. | External control: Court of Auditors |
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4.

External control: Court of Auditors

| 5. | Discharge authority: European Parliament on the Council's recommendation. |
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5.

Discharge authority: European Parliament on the Council's recommendation.

Final budget

13,12 million euro (12,8 million euro).

Community contribution: 92 % (96 %).

Staff numbers as at 31 December 2006

Number of posts in establishment plan: 77 (77)

Posts occupied: 68 (58)

+23 (25) other staff (auxiliary contracts, contract staff and temporary replacements)

Total staff: 91(83)

Assigned to the following duties:

operational: 53,5 (50,5)

administrative and IT support: 30 (25)

mixed: 7,5 (7,5)

Network

The Centre runs a computerised network for the collection and exchange of information called the ‘European Information Network on Drugs and Drug Addiction’ (Reitox); this network connects national drug information networks, specialist centres in the Member States and the information systems of international organisations working with the Centre.

Publications

| — | Annual report on the state of the drug problem in Europe (23 (22) language versions, publication and interactive website) |
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—

Annual report on the state of the drug problem in Europe (23 (22) language versions, publication and interactive website)

| — | Annual report on selected issues (EN, publication and interactive website) |
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—

Annual report on selected issues (EN, publication and interactive website)

| — | Statistical bulletin and interactive website containing over 250 (200) tables, 150 (100) graphs and PDF files |
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—

Statistical bulletin and interactive website containing over 250 (200) tables, 150 (100) graphs and PDF files

| — | General activity report (annual, EN) |
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—

General activity report (annual, EN)

| — | Drugnet Europe newsletter (4 issues, EN (two in five languages and two EN)) |
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—

Drugnet Europe newsletter (4 issues, EN (two in five languages and two EN))

| — | Technical and scientific studies and articles (21) (28) |
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—

Technical and scientific studies and articles (21) (28)

| — | articles and scientific summaries (16) |
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—

articles and scientific summaries (16)

Other websites:

Set-up/updating/content development:

| — | Country situation summaries |
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—

Country situation summaries

| — | Country data profiles |
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—

Country data profiles

| — | Drug treatment overviews |
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—

Drug treatment overviews

| — | European legal database on drugs |
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—

European legal database on drugs

| — | Evaluation instruments bank |
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—

Evaluation instruments bank

| — | Exchange on drug demand reduction action |
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—

Exchange on drug demand reduction action

Promotional brochures (4 (3) products)

Media products (174 (110) miscellaneous products)

Participation in international conferences/meetings (162 (75))

Organisation of technical and scientific meetings (27 (24))

Source: Information supplied by the Centre.

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 2

European Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Budget implementation for the financial year 2006

| (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 for the financial year | Appropriations carried over from the previous financial year |
| entered | committed | paid | carried over | cancelled | available | committed | cancelled |
| Community subsidies | 12 100 | 12 100 | Title I
  Staff (NDA) | 6 500 | 6 468 | 6 373 | 95 | 32 | 154 | 134 | 20 |
| Own revenue | 521 | 521 | Title II
  Administrations (NDA) | 1 590 | 1 482 | 1 077 | 405 | 108 | 650 | 611 | 39 |
| Other revenue | | 93 | Title III
  Operational activities (DA) | | | | | | | | |
| — CA | 4 531 | 4 486 | | | 45 | | | |
| — PA | 4 531 | | 4 163 | | 368 | | | |
| Assigned revenue (Phare) | 500 | 381 | Assigned revenue (Phare) | 500 | 224 | 28 | 472 | 0 | 284 | 171 | |
| Total | 13 121 | 13 095 | Total CA | 13 121 | 12 660 | | 972 | 45 | | | |
| Total PA | 13 121 | 12 660 | 11 641 | 972 | 508 | 1 088 | 916 | 59 |
| NDA | : | non-differentiated appropriations (commitment appropriations equal payment appropriations). |
| DA | : | differentiated appropriations (commitment appropriations and payment appropriations may differ). |
| CA | : | commitment appropriations in a system of differentiated appropriations. |
| PA | : | payment appropriations in a system of differentiated appropriations. |

(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 for the financial year

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

committed

cancelled

Community subsidies

12 100

12 100

Title I

Staff (NDA)

6 500

6 468

6 373

95

32

154

134

20

Own revenue

521

521

Title II

Administrations (NDA)

1 590

1 482

1 077

405

108

650

611

39

Other revenue

93

Title III

Operational activities (DA)

— CA

4 531

4 486

45

— PA

4 531

4 163

368

Assigned revenue (Phare)

500

381

Assigned revenue (Phare)

500

224

28

472

0

284

171

Total

13 121

13 095

Total CA

13 121

12 660

972

45

Total PA

13 121

12 660

11 641

972

508

1 088

916

59

NDA

:

non-differentiated appropriations (commitment appropriations equal payment appropriations).

DA

:

differentiated appropriations (commitment appropriations and payment appropriations may differ).

CA

:

commitment appropriations in a system of differentiated appropriations.

PA

:

payment appropriations in a system of differentiated appropriations.

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

Table 3

European Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 13 394 | 10 592 |
| Other revenues | 93 | 312 |
| Total (a) | 13 488 | 10 904 |
| Operating expenditure |
| Staff expenditure | 6 566 | 5 843 |
| Fixed asset-related expenditure | 292 | |
| Other administrative expenditure | 2 369 | 2 269 |
| Operating activities | 4 629 | 4 181 |
| Total (b) | 13 857 | 12 293 |
| Surplus/(deficit) from operating activities (c = a – b) | – 370 | –1 389 |
| Revenue from financial operations (e) | | |
| Expenditure on financial operations (f) | 16 | 35 |
| Surplus/(deficit) from non-operating activities (g = e – f) | –16 | –35 |
| Economic result for the year (h = c + g) | – 385 | –1 424 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

13 394

10 592

Other revenues

93

312

Total (a)

13 488

10 904

Operating expenditure

Staff expenditure

6 566

5 843

Fixed asset-related expenditure

292

Other administrative expenditure

2 369

2 269

Operating activities

4 629

4 181

Total (b)

13 857

12 293

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

– 370

–1 389

Revenue from financial operations (e)

Expenditure on financial operations (f)

16

35

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

–16

–35

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

– 385

–1 424

Table 4

European Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 374 | 56 |
| Tangible fixed assets | 2 809 | 2 933 |
| Current assets |
| Short-term receivables | 416 | 224 |
| Cash and cash equivalents | 1 881 | 3 005 |
| Total assets | 5 480 | 6 218 |
| Current liabilities |
| Provisions for risks and charges | 149 | 115 |
| Accounts payable | 2 843 | 3 231 |
| Total liabilities | 2 992 | 3 346 |
| Net assets |
| Accumulated surplus/deficit | 2 872 | 4 296 |
| Economic result for the year | – 385 | –1 424 |
| Total net assets | 2 488 | 2 872 |
| Total liabilities and net assets | 5 480 | 6 218 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

374

56

Tangible fixed assets

2 809

2 933

Current assets

Short-term receivables

416

224

Cash and cash equivalents

1 881

3 005

Total assets

5 480

6 218

Current liabilities

Provisions for risks and charges

149

115

Accounts payable

2 843

3 231

Total liabilities

2 992

3 346

Net assets

Accumulated surplus/deficit

2 872

4 296

Economic result for the year

– 385

–1 424

Total net assets

2 488

2 872

Total liabilities and net assets

5 480

6 218

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THE CENTRE'S REPLIES

| 7. | The Centre will continue its efforts to maintain the high rate of execution of its budget and if possible to improve it. |
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7.

The Centre will continue its efforts to maintain the high rate of execution of its budget and if possible to improve it.

| 8. | In order to improve the referred payment process the EMCDDA has taken various measures: |
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8.

In order to improve the referred payment process the EMCDDA has taken various measures:

| — | improvement of the relevant communication/notification process to the National Focal Points (NFP); |
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—

improvement of the relevant communication/notification process to the National Focal Points (NFP);

| — | provision of guidelines and specific training for NFPs on financial procedures; |
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—

provision of guidelines and specific training for NFPs on financial procedures;

| — | reinforcement of the operating capacity for the financial and administrative management of the grants; |
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—

reinforcement of the operating capacity for the financial and administrative management of the grants;

| — | streamlining of the relevant internal control processes. |
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—

streamlining of the relevant internal control processes.

| 9. | The secondment of the concerned staff member ended on 30 September 2006. As from 1 October 2006 the staff member was reinstated in the EMCDDA services. However, the concerned person took sick leave, providing evidence (by means of regular medical certificates) of being unable to carry out duties because of illness. |
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9.

The secondment of the concerned staff member ended on 30 September 2006. As from 1 October 2006 the staff member was reinstated in the EMCDDA services. However, the concerned person took sick leave, providing evidence (by means of regular medical certificates) of being unable to carry out duties because of illness.

The EMCDDA requested twice the medical service of the European Commission to carry out a medical examination to verify the grounds for the referred sick leave and the examinations have confirmed the existence of reasons justifying the absence for sickness.

The EMCDDA will continue to use all instruments provided by the relevant regulations to manage the referred case.

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