# C_2007309EN.01001801.xml

| 19.12.2007 | EN | Official Journal of the European Union | C 309/18 |
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19.12.2007

EN

Official Journal of the European Union

C 309/18

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REPORT

REPORT

on the annual accounts of the Intelligent Energy Executive Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/04)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

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

| 7 | OBSERVATION |
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7

Tables 1 to 4

The Agency's replies

The Agency's replies

INTRODUCTION

| 1. | The Intelligent Energy Executive Agency (hereinafter referred to as ‘the Agency’) was set up by Commission Decision 2004/20/EC of 23 December 2003 (1). The Agency was established for a period beginning on 1 January 2004 and ending on 31 December 2008 for the management of Community actions in the field of energy. The Agency acquired its financial independence on 1 January 2006. |
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1.

The Intelligent Energy Executive Agency (hereinafter referred to as ‘the Agency’) was set up by Commission Decision 2004/20/EC of 23 December 2003 (1). The Agency was established for a period beginning on 1 January 2004 and ending on 31 December 2008 for the management of Community actions in the field of energy. The Agency acquired its financial independence on 1 January 2006.

1

| 2. | Table 1 summarises the Agency's competences and activities. Key information taken from the financial statements drawn up by the Agency for the financial year 2006 is presented in Tables 2, 3 and4. |
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2.

Table 1 summarises the Agency's competences and activities. Key information taken from the financial statements drawn up by the Agency for the financial year 2006 is presented in Tables 2, 3 and4.

Table 1

Tables 2, 3

4

STATEMENT OF ASSURANCE

| 3. | This Statement is addressed to the European Parliament and the Council in accordance with Article 14 of Council Regulation (EC) No 58/2003 of 19 December 2002 (2); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community. |
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3.

This Statement is addressed to the European Parliament and the Council in accordance with Article 14 of Council Regulation (EC) No 58/2003 of 19 December 2002 (2); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

2

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 14 of Council Regulation (EC) No 58/2003, 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 Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 14 of Council Regulation (EC) No 58/2003, 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 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 observation which follows does 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 observation which follows does 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 observation which follows does not call the Court's Statement into question.

OBSERVATION

| 7. | The utilisation rate for 2006 of commitment appropriations was 97 %. However, the cancellation rate was 8 % and more than 20 % of 2006 commitment appropriations were carried forward. More than 48 % of appropriations for operating activities (Title III) were committed in December, so 43 % of the commitments had to be carried forward to 2007, and 32 % of carry-overs from 2005 were cancelled in 2006. Several budget lines for administrative support were not used at all during 2006 and about 94 000 euro were carried over without adequate justification (4). Thus, the budgetary principle of annuality was not strictly observed. |
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7.

The utilisation rate for 2006 of commitment appropriations was 97 %. However, the cancellation rate was 8 % and more than 20 % of 2006 commitment appropriations were carried forward. More than 48 % of appropriations for operating activities (Title III) were committed in December, so 43 % of the commitments had to be carried forward to 2007, and 32 % of carry-overs from 2005 were cancelled in 2006. Several budget lines for administrative support were not used at all during 2006 and about 94 000 euro were carried over without adequate justification (4). Thus, the budgetary principle of annuality was not strictly observed.

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 5, 9.1.2004, p. 85.

1

(2)  OJ L 11, 16.1.2003, p. 5.

2

(3)  These accounts were drawn up on 21 June 2007 and received by the Court on 5 July 2007.

3

(4)  Article 9 of Financial Regulation.

4

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Table 1

Intelligent Energy Executive Agency (Brussels)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Commission Decision 2004/20/EC of 23 December 2003 | Governance | Resources available to the Agency in 2006

  (2005 n/a) | Activities and services provided in 2006 |
| --- | --- | --- | --- | --- |
| The Community policy on the environment shall contribute to preserving, protecting and improving the quality of the environment; protecting human health; prudent and rational utilisation of natural resources; and promoting measures at international level to deal with regional or worldwide environmental problems.

  (Article 174(1)) | Objectives

  In the framework of the sustainable development strategy, the European Union has taken measures to promote and develop renewable energy and energy efficiency. The objective is to contribute in a balanced way to security of energy supply, competitiveness and environmental protection. The areas of action are the development of renewable energy and energy efficiency, including in the transport sector, and their promotion in developing countries.
  These measures include a multi-annual programme for action in the field of energy: ‘Intelligent Energy — Europe’ 2003-2006 — IEE 1 (decision no 1230/2003/EC of the European Parliament and of the Council of 26 June 2003).
  Under this Community programme, the Agency is responsible for implementing the tasks concerning Community aid, except for programme evaluation, monitoring of legislation and strategic studies, or any other action which comes under the exclusive competence of the European Commission. | Tasks

  In the context of implementing the Community programme IEE 1:






  — | To manage all phases in the lifetime of specific projects; |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Commission Decision 2004/20/EC of 23 December 2003

Governance

Resources available to the Agency in 2006

(2005 n/a)

Activities and services provided in 2006

The Community policy on the environment shall contribute to preserving, protecting and improving the quality of the environment; protecting human health; prudent and rational utilisation of natural resources; and promoting measures at international level to deal with regional or worldwide environmental problems.

(Article 174(1))

Objectives

In the framework of the sustainable development strategy, the European Union has taken measures to promote and develop renewable energy and energy efficiency. The objective is to contribute in a balanced way to security of energy supply, competitiveness and environmental protection. The areas of action are the development of renewable energy and energy efficiency, including in the transport sector, and their promotion in developing countries.

These measures include a multi-annual programme for action in the field of energy: ‘Intelligent Energy — Europe’ 2003-2006 — IEE 1 (decision no 1230/2003/EC of the European Parliament and of the Council of 26 June 2003).

Under this Community programme, the Agency is responsible for implementing the tasks concerning Community aid, except for programme evaluation, monitoring of legislation and strategic studies, or any other action which comes under the exclusive competence of the European Commission.

Tasks

In the context of implementing the Community programme IEE 1:

—

To manage all phases in the lifetime of specific projects;

| — | To adopt the instruments of budget implementation and to carry out, where the Commission has empowered it to do so, all the operations necessary to manage the Community programme and, in particular, those linked to the award of contracts and grants; |
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—

To adopt the instruments of budget implementation and to carry out, where the Commission has empowered it to do so, all the operations necessary to manage the Community programme and, in particular, those linked to the award of contracts and grants;

| — | To gather, analyse and pass on to the Commission all the information needed to guide the implementation of the programme. |
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—

To gather, analyse and pass on to the Commission all the information needed to guide the implementation of the programme.

1.   Steering Committee

Comprises five members appointed by the European Commission.

It adopts the Agency's annual work programme after approval by the European Commission. In addition, it adopts the administrative budget of the Agency and its annual activity report.

2.   Director

Appointed by the European Commission.

3.   External Audit control

The European Court of Auditors.

4.   Discharge Authority

The European Parliament following a recommendation from the Council.

Final Budget

| A) | 53,2 million euro (100 % general budget of the European Union) for the budget of the programme IEE 1 that the Agency implements under the responsibility of the Commission; |
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A)

53,2 million euro (100 % general budget of the European Union) for the budget of the programme IEE 1 that the Agency implements under the responsibility of the Commission;

| B) | 5,2 million euro (100 % Community subsidy) for the administrative budget for which the Agency is autonomous. |
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B)

5,2 million euro (100 % Community subsidy) for the administrative budget for which the Agency is autonomous.

Staff at 31 December 2006

16 TA posts listed in the establishment plan.

TA posts occupied: 16

Other posts:

Contract staff: 30 posts planned, of which 25 were occupied.

Total staff at 31.12.2006: 41

Responsible for

| — | Operational tasks: 31 |
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—

Operational tasks: 31

| — | Administrative tasks: 10 |
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—

Administrative tasks: 10

| — | Monitored 218 on-going projects for which grants were awarded under the 2003 and 2004 IEE Call for proposals. In total, 168 progress reports and 36 interim and 20 final reports were approved and payments made to beneficiaries accordingly. Furthermore, the Agency participated in more than 100 project meetings. It also organised 14 project co-ordinator workshops with the participation of the parent DG and other relevant Commission programmes. |
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Monitored 218 on-going projects for which grants were awarded under the 2003 and 2004 IEE Call for proposals. In total, 168 progress reports and 36 interim and 20 final reports were approved and payments made to beneficiaries accordingly. Furthermore, the Agency participated in more than 100 project meetings. It also organised 14 project co-ordinator workshops with the participation of the parent DG and other relevant Commission programmes.

| — | Managed the 2005 Call for proposals for the IEE programme (published in 2005 with submission deadlines in early 2006): in total, the IEEA received 265 proposals from 29 countries and about 2000 organisations. As in the preceding year, external experts assisted the IEEA during the evaluation. In total 125 grant agreements were concluded. |
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Managed the 2005 Call for proposals for the IEE programme (published in 2005 with submission deadlines in early 2006): in total, the IEEA received 265 proposals from 29 countries and about 2000 organisations. As in the preceding year, external experts assisted the IEEA during the evaluation. In total 125 grant agreements were concluded.

| — | Managed the 2006 Call for proposals for the IEE programme: the Call was published in late May 2006 with a submission deadline of 31st October 2006. Substantial efforts were undertaken to promote the call to relevant target groups across Europe, including the organisation of a European Info Day (Brussels, 31 May 2006, 450 participants, live broadcast by internet), support of more than 40 national info days, circulation of Email alerts, and regular web updates. In total, the IEEA received 351 proposals in response to the 2006 Call. Evaluations with external experts took place in early 2007. |
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—

Managed the 2006 Call for proposals for the IEE programme: the Call was published in late May 2006 with a submission deadline of 31st October 2006. Substantial efforts were undertaken to promote the call to relevant target groups across Europe, including the organisation of a European Info Day (Brussels, 31 May 2006, 450 participants, live broadcast by internet), support of more than 40 national info days, circulation of Email alerts, and regular web updates. In total, the IEEA received 351 proposals in response to the 2006 Call. Evaluations with external experts took place in early 2007.

| — | Published and disseminated information about the IEE programme and the Agency: in 2006, the programme website registered more than 500 000 downloads and 1 million page views.
  Regular News Alerts were sent to the IEE contact database, which included more than 5 000 contacts by the end of 2006.
  Information and updates on IEE projects were provided through three issues of the ‘Intelligent Energy News’ newsletter (44 000 downloads during 2006) and individual project fact sheets (100 000 downloads). |
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—

Published and disseminated information about the IEE programme and the Agency: in 2006, the programme website registered more than 500 000 downloads and 1 million page views.

Regular News Alerts were sent to the IEE contact database, which included more than 5 000 contacts by the end of 2006.

Information and updates on IEE projects were provided through three issues of the ‘Intelligent Energy News’ newsletter (44 000 downloads during 2006) and individual project fact sheets (100 000 downloads).

| — | Initiated feedback from project results in key policy areas of the parent DG in form of round tables and the participation of project representatives in key conferences |
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—

Initiated feedback from project results in key policy areas of the parent DG in form of round tables and the participation of project representatives in key conferences

| — | Put recommendations to the Commission to guide the implementation of the IEE programme and the preparation of the follow-up programme IEE II (2007-2013): at the invitation of the parent DG, the Agency participated in a task force in charge of preparing a draft work programme for IEE II. The activities included an analysis of experiences and statistical data related to the participation rules, proposals for future thematic themes, and the organisation and analysis of a public enquiry. Likewise, and at the invitation of the parent DG, the Agency brought its lessons learned from managing the external IEE strand (COOPENER) into the design phase of the DEV/AIDCO Energy Facility and the successor programme COOPENER II. |
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—

Put recommendations to the Commission to guide the implementation of the IEE programme and the preparation of the follow-up programme IEE II (2007-2013): at the invitation of the parent DG, the Agency participated in a task force in charge of preparing a draft work programme for IEE II. The activities included an analysis of experiences and statistical data related to the participation rules, proposals for future thematic themes, and the organisation and analysis of a public enquiry. Likewise, and at the invitation of the parent DG, the Agency brought its lessons learned from managing the external IEE strand (COOPENER) into the design phase of the DEV/AIDCO Energy Facility and the successor programme COOPENER II.

Source: Information submitted 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

Intelligent Energy Executive Agency (Brussels) — Implementation of the budget for the financial year 2006

| (1000 euro) |
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| Revenue | Expenditure |
| Source of revenue | Revenue entered in the final budget for the financial year | Revenue received | Allocation of expenditure | Appropriations under the final budget | Appropriations carried over from the previous financial year(s) (1) |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Community subsidies | 5 168 | 5 168 | Title I
  Staff | 2 959 | 2 944 | 2 561 | 118 | 280 | 66 | 2 | 64 |
| Other subsidies (2) | | 461 | Title II
  Administration | 784 | 718 | 651 | 67 | 66 | 324 | 309 | 15 |
| | | | Title III
  Operating activities (3) | 1 425 | 1 346 | 549 | 797 | 79 | 70 | 1 | 69 |
| Total | 5 168 | 5 629 | Total | 5 168 | 5 008 | 3 762 | 982 | 425 | 461 | 313 | 148 |
| Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis. |

(1000 euro)

Revenue

Expenditure

Source of revenue

Revenue entered in the final budget for the financial year

Revenue received

Allocation of expenditure

Appropriations under the final budget

Appropriations carried over from the previous financial year(s) (1)

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Community subsidies

5 168

5 168

Title I

Staff

2 959

2 944

2 561

118

280

66

2

64

Other subsidies (2)

461

Title II

Administration

784

718

651

67

66

324

309

15

Title III

Operating activities (3)

1 425

1 346

549

797

79

70

1

69

Total

5 168

5 629

Total

5 168

5 008

3 762

982

425

461

313

148

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

Table 3

Intelligent Energy Executive Agency (Brussels) — Economic outturn account for the financial year 2006

| (1000 euro) |
| --- |
| | 2006 |
| Operating revenue |
| Community subsidies | 5 057 |
| Other revenues | 105 |
| Total (a) | 5 162 |
| Operating expenses |
| Staff expenses | 2 616 |
| Fixed asset related expenses | 38 |
| Other administrative expenses | 1 305 |
| Total (b) | 3 959 |
| Surplus/(deficit) from operating activities (c = a – b) | 1 203 |
| Charges 2005 (d) | 273 |
| Economic result for the year (e = c – d) | 930 |

(1000 euro)

2006

Operating revenue

Community subsidies

5 057

Other revenues

105

Total (a)

5 162

Operating expenses

Staff expenses

2 616

Fixed asset related expenses

38

Other administrative expenses

1 305

Total (b)

3 959

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

1 203

Charges 2005 (d)

273

Economic result for the year (e = c – d)

930

Table 4

Intelligent Energy Executive Agency (Brussels) — Balance sheet at 31 December 2006

| (1000 euro) |
| --- |
| | 2006 |
| Non-current assets |
| Intangible fixed assets | 13 |
| Tangible fixed assets | 88 |
| Current assets |
| Short-term receivables | 95 |
| Cash and cash equivalents | 1 509 |
| Total assets | 1 705 |
| Current liabilities |
| Provisions for risks and charges | 48 |
| Accounts payable | 727 |
| Total liabilities | 775 |
| Net assets |
| Economic result for the year | 930 |
| Total net assets | 930 |
| Total liabilities and net assets | 1 705 |

(1000 euro)

2006

Non-current assets

Intangible fixed assets

13

Tangible fixed assets

88

Current assets

Short-term receivables

95

Cash and cash equivalents

1 509

Total assets

1 705

Current liabilities

Provisions for risks and charges

48

Accounts payable

727

Total liabilities

775

Net assets

Economic result for the year

930

Total net assets

930

Total liabilities and net assets

1 705

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(1)  Appropriations remaining from 2005 transferred by the Commission to the Agency.

(2)  Subsidy received from the European Commission to cover the commitments carried over from 2005 to 2006.

(3)  Expenditure on experts' meetings connected with the implementation of projects.

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

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THE AGENCY'S REPLIES

| 7. | The Agency will implement a year-end procedure ensuring that only justified appropriations are carried over. |
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7.

The Agency will implement a year-end procedure ensuring that only justified appropriations are carried over.

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