# C_2007309EN.01000601.xml

| 19.12.2007 | EN | Official Journal of the European Union | C 309/6 |
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19.12.2007

EN

Official Journal of the European Union

C 309/6

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REPORT

REPORT

on the annual accounts of the European Union Fundamental Rights Agency (formerly the European Monitoring Centre on Racism and Xenophobia) for the financial year 2006 together with the Agency's replies

(2007/C 309/02)

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 Agency's replies

The Agency's replies

INTRODUCTION

| 1. | The European Union Fundamental Rights Agency (formerly the European Monitoring Centre on Racism and Xenophobia hereinafter ‘the Agency’) was established by Council Regulation (EC) No 1035/97 of 2 June 1997 (1) and modified by Council Regulation (EC) No 168/2007 of 15 February 2007 (2), which extended its competencies. The Agency's primary tasks are to provide the Union and the Member States with reliable information on racism, xenophobia and anti-semitism in the Union and to cooperate with the Council of Europe in these areas. |
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1.

The European Union Fundamental Rights Agency (formerly the European Monitoring Centre on Racism and Xenophobia hereinafter ‘the Agency’) was established by Council Regulation (EC) No 1035/97 of 2 June 1997 (1) and modified by Council Regulation (EC) No 168/2007 of 15 February 2007 (2), which extended its competencies. The Agency's primary tasks are to provide the Union and the Member States with reliable information on racism, xenophobia and anti-semitism in the Union and to cooperate with the Council of Europe in these areas.

1

2

| 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 2006 is 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 2006 is 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 (3); 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 (3); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

3

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (4) were drawn up by its Director, pursuant to Article 12 of Regulation (EC) No 1035/97, 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 2006 (4) were drawn up by its Director, pursuant to Article 12 of Regulation (EC) No 1035/97, 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.

4

| 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 set out below.

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 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 2006 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 2006 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 transferred 235 000 euro from the operational reserve (Title III) to Title I (staff expenditure) to cover increased costs for temporary staff. The justification for this transfer was not documented as required by article 23(3) of the Agency's Financial Regulation. |
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7.

The Agency transferred 235 000 euro from the operational reserve (Title III) to Title I (staff expenditure) to cover increased costs for temporary staff. The justification for this transfer was not documented as required by article 23(3) of the Agency's Financial Regulation.

| 8. | In 2006, the Agency decided to bear in their entirety the costs of providing schooling for its staff's children without applying Article 3 of Annex VII to the Staff Regulations. Payments were made in 2006 although the decision had not been adopted by the Management Board and no formal agreements had been signed with suitable local schools (5). |
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8.

In 2006, the Agency decided to bear in their entirety the costs of providing schooling for its staff's children without applying Article 3 of Annex VII to the Staff Regulations. Payments were made in 2006 although the decision had not been adopted by the Management Board and no formal agreements had been signed with suitable local schools (5).

5

| 9. | In May 2006, the Director approved procedures governing the recruitment of staff for the Agency. On several points, these procedures were not in line with the rules and objectives of the Staff Regulations: non respect of the principle of parity in the composition of the selection board; establishment of the reserve list in alphabetical order; no effective possibility to appeal given to rejected candidates during the preliminary evaluation phase. |
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9.

In May 2006, the Director approved procedures governing the recruitment of staff for the Agency. On several points, these procedures were not in line with the rules and objectives of the Staff Regulations: non respect of the principle of parity in the composition of the selection board; establishment of the reserve list in alphabetical order; no effective possibility to appeal given to rejected candidates during the preliminary evaluation phase.

| 10. | In one procurement procedure for a framework contract (6), the Agency received two tenders. One was rejected by the opening committee on the basis that its reception was late whereas it was not. The contract was awarded to the second tender received, even though it obtained a very low score for the quality evaluation. |
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10.

In one procurement procedure for a framework contract (6), the Agency received two tenders. One was rejected by the opening committee on the basis that its reception was late whereas it was not. The contract was awarded to the second tender received, even though it obtained a very low score for the quality evaluation.

6

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 151, 10.6.1997, p. 6.

1

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

2

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

3

(4)  These accounts were drawn up on 11 May 2007 and received by the Court on 1 July 2007.

4

(5)  Amount of school fees (school year 2006/2007) accepted for reimbursement in 2006: 31 340 euro.

5

(6)  Estimated value for 4 years: 400 000 euro.

6

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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 1035/97 of 2 June 1997 | Gouvernance | Resources made available to the Centre in 2006

  (2005) | Products and services supplied during the financial year 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) | Objectives







  — | To provide the Community and its Member States with objective, reliable and comparable data at European level on the phenomena of racism, xenophobia and anti-Semitism. |

Areas of Community competence deriving from the Treaty

Competences of the Agency as specified in Council Regulation (EC) No 1035/97 of 2 June 1997

Gouvernance

Resources made available to the Centre in 2006

(2005)

Products and services supplied during the financial year 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)

Objectives

—

To provide the Community and its Member States with objective, reliable and comparable data at European level on the phenomena of racism, xenophobia and anti-Semitism.

| — | Close cooperation with the Council of Europe in order to avoid duplication and obtain added value. |
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—

Close cooperation with the Council of Europe in order to avoid duplication and obtain added value.

Tasks

| — | To study the extent and development of the phenomena of racism and xenophobia; |
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—

To study the extent and development of the phenomena of racism and xenophobia;

| — | To collect and analyse information, via the European Racism and Xenophobia Information Network (RAXEN); |
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—

To collect and analyse information, via the European Racism and Xenophobia Information Network (RAXEN);

| — | To carry out scientific surveys; |
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—

To carry out scientific surveys;

| — | To encourage widespread dissemination of such information; |
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—

To encourage widespread dissemination of such information;

| — | To formulate opinions for the Community and its Member States; |
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—

To formulate opinions for the Community and its Member States;

| — | To develop indicators and criteria to improve the comparability of data; |
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—

To develop indicators and criteria to improve the comparability of data;

| — | To publish an annual report on the situation regarding racism and xenophobia. |
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—

To publish an annual report on the situation regarding racism and xenophobia.

1.   Management Board

Composition

One independent person appointed by each Member State, one independent person appointed by the European Parliament, one independent person appointed by the Council of Europe and a representative of the Commission.

Duties

To adopt the work programme and the general annual report. To adopt the final budget and the establishment plan. To give an opinion on the final accounts.

2.   Executive Board

Composition

| — | Chairman of the Management Board |
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—

Chairman of the Management Board

| — | One representative of the uncil of Europe |
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—

One representative of the uncil of Europe

| — | 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.

4.   External audit

Court of Auditors

5.   Internal control

The Commission's Internal Audit Service

6.   Discharge authority

Parliament on a recommendation from the Council.

Final budget:

9,5 million euro (8,3 million euro) including Community contribution: 100 % (100%):

Staff numbers at 31 December 2006:

37 (37) posts in the establishment plan,

posts occupied: 35 (35)

+10 (4) other staff (auxiliary contracts, seconded national experts, local and employment-agency staff)

Total staff: 47 (41)

assigned to the following duties

| — | operational: 28 (24) |
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—

operational: 28 (24)

| — | administrative: 15 (13) |
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—

administrative: 15 (13)

| — | mixed: 4 (4) |
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—

mixed: 4 (4)

Raxen:

Number of contributions through the 25 national focal points: 375

Number of meetings: 2

Research reports:

Number of reports: 9

Number of meetings: 5

Annual reports: 2

EUMC Bulletin: 6

Equal Voices: 3

Cooperation with the Member States and the other institutions

(number of events organised jointly):

| — | Member States: 15 |
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—

Member States: 15

| — | Commission: 29 |
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—

Commission: 29

| — | European Parliament: 7 |
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—

European Parliament: 7

| — | COR: 2 |
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—

COR: 2

| — | EESC: 1 |
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—

EESC: 1

| — | Council of Europe: 10 |
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—

Council of Europe: 10

| — | OSCE: 4 |
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—

OSCE: 4

| — | UN: 1 |
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—

UN: 1

| — | Inter-agency: 4 |
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—

Inter-agency: 4

| — | NRT: 4 |
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—

NRT: 4

| — | ERT: 1 |
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—

ERT: 1

Source: Information supplied by the Agency.

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 2

European Union Fundamental Rights Agency (Vienna) — Implementation of the budget 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 | Appropriations carried over from previous financial year(s) |
| entered | committed | paid | carried over | cancelled | entered | committed | paid | to be carried over | cancelled |
| Own revenue | 0 | 0 | Title I
  Staff | 3 923 | 3 743 | 3 693 | 50 | 180 | 70 | 70 | 53 | 0 | 17 |
| Community subsidies | 8 800 | 8 800 | Title II
  Administration | 969 | 923 | 640 | 283 | 46 | 581 | 581 | 570 | 0 | 11 |
| Allocated revenue (Phare) (1) | 484 | 484 | Title III
  Operating activities | 3 908 | 3 695 | 2 753 | 942 | 213 | 667 | 667 | 647 | 0 | 20 |
| Other revenue | 0 | 132 | Allocated revenue
  (Phare and others) (1) | 484 | 325 | 239 | 245 | 0 | 90 | 90 | 90 | 0 | 0 |
| Total | 9 284 | 9 416 | Total | 9 284 | 8 686 | 7 325 | 1 520 | 439 | 1 408 | 1 408 | 1 360 | 0 | 48 |
| Source: Data supplied by the Agency. This table summarise 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

entered

committed

paid

to be carried over

cancelled

Own revenue

0

0

Title I

Staff

3 923

3 743

3 693

50

180

70

70

53

0

17

Community subsidies

8 800

8 800

Title II

Administration

969

923

640

283

46

581

581

570

0

11

Allocated revenue (Phare) (1)

484

484

Title III

Operating activities

3 908

3 695

2 753

942

213

667

667

647

0

20

Other revenue

0

132

Allocated revenue

(Phare and others) (1)

484

325

239

245

0

90

90

90

0

0

Total

9 284

9 416

Total

9 284

8 686

7 325

1 520

439

1 408

1 408

1 360

0

48

Source: Data supplied by the Agency. This table summarise 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 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 8 609 | 7 466 |
| Other revenues | 8 | 14 |
| Total (a) | 8 618 | 7 480 |
| Operating expenses |
| Staff expenses | 3 051 | 2 729 |
| Fixed asset related expenses | 52 | 52 |
| Other administrative expenses | 1 403 | 977 |
| Operational expenses | 3 556 | 3 304 |
| Total (b) | 8 061 | 7 062 |
| Economic result for the year (c = a – b) | 556 | 418 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

8 609

7 466

Other revenues

8

14

Total (a)

8 618

7 480

Operating expenses

Staff expenses

3 051

2 729

Fixed asset related expenses

52

52

Other administrative expenses

1 403

977

Operational expenses

3 556

3 304

Total (b)

8 061

7 062

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

556

418

Table 4

European Union Fundamental Rights Agency (Vienna) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 84 | 25 |
| Tangible fixed assets | 388 | 128 |
| Current assets |
| Short-term pre-financing | 70 | |
| Short-term receivables | 453 | 360 |
| Cash and cash equivalents | 2 288 | 2 832 |
| Total assets | 3 282 | 3 345 |
| Current liabilities |
| Provisions for risks and charges | 48 | 56 |
| Accounts payable | 1 535 | 2 146 |
| Total liabilities | 1 582 | 2 202 |
| Net assets |
| Accumulated surplus/deficit | 1 143 | 725 |
| Economic result for the year | 556 | 418 |
| Total net assets | 1 700 | 1 143 |
| Total liabilities and net assets | 3 282 | 3 345 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

84

25

Tangible fixed assets

388

128

Current assets

Short-term pre-financing

70

Short-term receivables

453

360

Cash and cash equivalents

2 288

2 832

Total assets

3 282

3 345

Current liabilities

Provisions for risks and charges

48

56

Accounts payable

1 535

2 146

Total liabilities

1 582

2 202

Net assets

Accumulated surplus/deficit

1 143

725

Economic result for the year

556

418

Total net assets

1 700

1 143

Total liabilities and net assets

3 282

3 345

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(1)  The amount initially entered in the budget was 648 000 euro, of which the Commission did not pay 164 000 euro. For the sake of clarity and accuracy, the corrected amount of 484 000 euro is shown.

Source: Data supplied by the Agency. This table summarise 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 reserve was included in Title III and intended to have a general purpose. The Agency specified the allocation of the reserve between the various budgetary Titles in its 2007 budget. The Agency will, however, devote particular efforts to provide more complete justification and documentation of transfers made. |
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7.

The reserve was included in Title III and intended to have a general purpose. The Agency specified the allocation of the reserve between the various budgetary Titles in its 2007 budget. The Agency will, however, devote particular efforts to provide more complete justification and documentation of transfers made.

| 8. | The Agency will proceed with the signature of agreements with suitable local schools. The decision shall be submitted to the Management Board, in October 2007, for adoption. |
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8.

The Agency will proceed with the signature of agreements with suitable local schools. The decision shall be submitted to the Management Board, in October 2007, for adoption.

| 9. | Although Annex III of the Staff Regulation is not applicable to other servants of the European Communities, the Agency will propose, if the consultation with the Commission's services is finished in due time, to its Management Board to adopt, during its October 2007 meeting, new implementing rules of the Staff Regulations which will take into account the Court's observations to the maximum possible extent. |
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9.

Although Annex III of the Staff Regulation is not applicable to other servants of the European Communities, the Agency will propose, if the consultation with the Commission's services is finished in due time, to its Management Board to adopt, during its October 2007 meeting, new implementing rules of the Staff Regulations which will take into account the Court's observations to the maximum possible extent.

| 10. | The Agency will take measures to avoid the repetition of the situation described by the Court. |
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10.

The Agency will take measures to avoid the repetition of the situation described by the Court.

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