# C_2007309EN.01001301.xml

| 19.12.2007 | EN | Official Journal of the European Union | C 309/13 |
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19.12.2007

EN

Official Journal of the European Union

C 309/13

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REPORT

REPORT

on the annual accounts of the Education, Audiovisual and Culture Executive Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/03)

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 Education, Audiovisual and Culture Executive Agency (hereinafter referred to as ‘the Agency’) was set up by Commission Decision 2005/56/EC of 14 January 2005 (1). The Agency was established for a period beginning on 1 January 2005 and ending on 31 December 2008. The Agency's aim is to manage programmes to be decided by the Commission in the fields of education, audiovisual and culture, involving implementation of technical projects. The Agency became fully autonomous in 2006. |
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1.

The Education, Audiovisual and Culture Executive Agency (hereinafter referred to as ‘the Agency’) was set up by Commission Decision 2005/56/EC of 14 January 2005 (1). The Agency was established for a period beginning on 1 January 2005 and ending on 31 December 2008. The Agency's aim is to manage programmes to be decided by the Commission in the fields of education, audiovisual and culture, involving implementation of technical projects. The Agency became fully autonomous in 2006.

1

| 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 presented 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 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 14 of Council Regulation (EC) No 58 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 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 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 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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| 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 main feature of the budgetary implementation was the cancellation of nearly 10 % of the appropriations for the year. Carryovers for administrative expenditure exceed 50 %. |
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7.

The main feature of the budgetary implementation was the cancellation of nearly 10 % of the appropriations for the year. Carryovers for administrative expenditure exceed 50 %.

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 24, 27.1.2005, p. 35.

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

2

(3)  These accounts were drawn up on 29 June 2007 and received by the Court on 17 July 2007.

3

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Table 1

Education, Audiovisual and Culture Executive Agency (EACEA), Brussels

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Commission Decision (2005/56/EC) of 14 January 2005 (1) | Governance | Resources made available to the Agency in 2006 | Products and services supplied in 2006 |
| --- | --- | --- | --- | --- |
| The Community shall contribute to the development of quality education.

  [Article 149(1)]

  The Community shall implement a vocational training policy.

  [Article 150(1)]

  The Community shall contribute to the flowering of the cultures of the Member States.

  [Article 151(1)]

  The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community's industry exist.

  [Article 157(1)] | Objectives

  In the framework of the education, culture and industry policies, numerous measures have been taken to promote education, vocational training, audiovisual, culture, youth and active citizenship in the European Union. The main objectives of these measures are to reinforce social cohesion and to contribute to competitiveness, economic growth and a closer union amongst the people of Europe.
  These measures include a variety of Community programmes.
  The Agency is responsible for managing certain strands of these programmes (‘Socrates’, ‘e-Learning’, ‘Leonardo da Vinci’, ‘Jean Monnet, Study and research centres’, ‘Erasmus Mundus’, ‘Culture’, ‘Youth’, ‘Citizenship’, ‘Media Training’ and ‘Media Plus’). | Tasks

  To manage the specific projects entrusted to the Agency;
  To adopt the instruments of budget implementation for revenue and expenditure and to carry out, where the Commission has empowered it to do so, the operations necessary for the management of the Community programmes and, in particular, those linked to the award of grants and contracts;
  To gather, analyse and pass on to the Commission all the information needed to guide the implementation of the Community programmes. | 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
  The European Court of Auditors.
  4.   Discharge Authority
  The European Parliament following a recommendation from the Council. | Final budget:






  (1) | 310,2 million euro for the management of Community programmes and projects delegated to the Agency and implemented by the Agency on the Commission's responsibility wholly funded by the General Budget of the EU). |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Commission Decision (2005/56/EC) of 14 January 2005 (1)

Governance

Resources made available to the Agency in 2006

Products and services supplied in 2006

The Community shall contribute to the development of quality education.

[Article 149(1)]

The Community shall implement a vocational training policy.

[Article 150(1)]

The Community shall contribute to the flowering of the cultures of the Member States.

[Article 151(1)]

The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community's industry exist.

[Article 157(1)]

Objectives

In the framework of the education, culture and industry policies, numerous measures have been taken to promote education, vocational training, audiovisual, culture, youth and active citizenship in the European Union. The main objectives of these measures are to reinforce social cohesion and to contribute to competitiveness, economic growth and a closer union amongst the people of Europe.

These measures include a variety of Community programmes.

The Agency is responsible for managing certain strands of these programmes (‘Socrates’, ‘e-Learning’, ‘Leonardo da Vinci’, ‘Jean Monnet, Study and research centres’, ‘Erasmus Mundus’, ‘Culture’, ‘Youth’, ‘Citizenship’, ‘Media Training’ and ‘Media Plus’).

Tasks

To manage the specific projects entrusted to the Agency;

To adopt the instruments of budget implementation for revenue and expenditure and to carry out, where the Commission has empowered it to do so, the operations necessary for the management of the Community programmes and, in particular, those linked to the award of grants and contracts;

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

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

The European Court of Auditors.

4.   Discharge Authority

The European Parliament following a recommendation from the Council.

Final budget:

(1)

310,2 million euro for the management of Community programmes and projects delegated to the Agency and implemented by the Agency on the Commission's responsibility wholly funded by the General Budget of the EU).

| (2) | 29,2 million euro for operating the Agency as an independent body (100 % subsidy entered in the General Budget of the European Communities). |
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(2)

29,2 million euro for operating the Agency as an independent body (100 % subsidy entered in the General Budget of the European Communities).

Staff numbers at 31 December 2006

75 posts for temporary staff in the establishment plan

Posts occupied: 64

Other posts:

(contract and auxiliary staff): 221 contract staff

Posts occupied: 214

Total staff numbers at 31.12.2006: 278

assigned to the following tasks:

| — | operational: 227 |
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—

operational: 227

| — | administrative: 49 |
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—

administrative: 49

| — | mixed: 2 |
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mixed: 2

On 1 January 2006, the Agency took over the management of certain strands of Community programmes in the fields of education, vocational training, culture, audiovisual, citizenship and youth in accordance with the objectives laid down in the Decision establishing the Agency, the act of delegation and its management plan for 2006.

As regards pre-2006 projects, the Agency took over the management of a total of 10 655 unclosed projects that had been transferred from the DGs originally responsible for them (DG EAC and DG INFSO) and for the most part dating from the years 2002 to 2005, except for the MEDIA programme (2001) and the Jean Monnet Project (1999 to 2001). As at 31 December 2006, the Agency had carried out the closure of 3 155 (decommitted) projects dating from before 2006, i.e. 30 % of all the transferred projects.

During 2006, the Agency made 114 monitoring visits to projects in progress.

The Agency also took over 183 unfinished audits that had been initiated by DG EAC, and closed 46 of them in 2006 (25 %).

As regards the projects for 2006, the Agency organised the selection work, which led to the selection of 4 813 projects, virtually all of which resulted in a contract by the end of 2006.

The Agency drew up an audit plan in 2006 scheduling 99 audits, for which 84 on-the-spot audit visits were made in 2006.

The Agency drew up and published 20 calls for proposals in 2006.

During the last quarter of 2006, the Agency helped to draw up and finalise calls for proposals concerning the new generation of programmes for 2007-2013.

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

Education, Audiovisual and Culture 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 collected | Allocation of expenditure | Final budget appropriations |
| entered | committed | paid | carried over | cancelled |
| Community subsidies (2) | 29 199 | 27 749 | Title I
  Staff | 17 498 | 16 311 | 14 806 | 1 220 | 1 472 |
| Title II
  Administration | 11 701 | 10 371 | 4 903 | 5 468 | 1 330 |
| Total | 29 199 | 27 749 | Total | 29 199 | 26 682 | 19 709 | 6 688 | 2 802 |
| 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 collected

Allocation of expenditure

Final budget appropriations

entered

committed

paid

carried over

cancelled

Community subsidies (2)

29 199

27 749

Title I

Staff

17 498

16 311

14 806

1 220

1 472

Title II

Administration

11 701

10 371

4 903

5 468

1 330

Total

29 199

27 749

Total

29 199

26 682

19 709

6 688

2 802

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

Education, Audiovisual and Culture Executive Agency (Brussels) — Economic outturn account for the financial year 2006

| (1000 euro) |
| --- |
| | 2006 |
| Operating revenue |
| Community subsidies | 26 397 |
| Total (a) | 26 397 |
| Operating expenses |
| Staff expenses (3) | 13 071 |
| Fixed asset related expenses | 57 |
| Other administrative expenses | 9 724 |
| Total (b) | 22 852 |
| Economic result for the year (c = a – b) | 3 545 |

(1000 euro)

2006

Operating revenue

Community subsidies

26 397

Total (a)

26 397

Operating expenses

Staff expenses (3)

13 071

Fixed asset related expenses

57

Other administrative expenses

9 724

Total (b)

22 852

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

3 545

Table 4

Education, Audiovisual and Culture Executive Agency (Brussels) — Balance sheet at 31 December 2006

| (1000 euro) |
| --- |
| | 2006 |
| Non-current assets |
| Intangible fixed assets | 159 |
| Tangible fixed assets | 243 |
| Current assets |
| Short-term receivables | 1 253 |
| Cash and cash equivalents | 7 886 |
| Total assets | 9 541 |
| Current liabilities |
| Provisions for risks and charges | 310 |
| Accounts payables | 5 686 |
| Total liabilities | 5 996 |
| Net assets |
| Economic result of the year | 3 545 |
| Total net assets | 3 545 |
| Total liabilities and net assets | 9 541 |

(1000 euro)

2006

Non-current assets

Intangible fixed assets

159

Tangible fixed assets

243

Current assets

Short-term receivables

1 253

Cash and cash equivalents

7 886

Total assets

9 541

Current liabilities

Provisions for risks and charges

310

Accounts payables

5 686

Total liabilities

5 996

Net assets

Economic result of the year

3 545

Total net assets

3 545

Total liabilities and net assets

9 541

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(1)  This Decision has been amended by Commission Decision 2007/114/EC of 8 February 2007.

Source: Information submitted by the Agency.

(2)  Including European Economic Area subsidies.

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.

(3)  Staff expenses have been less than expected.

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THE AGENCY'S REPLIES

| 7. | When seen against the background of the refunds of appropriations effected by the Agency during the course of the year, the cancellation of appropriations as at 31 December 2006 was limited. It can be explained by the large number of Service Level Agreements and contracts which could not be concluded before the end of 2006, entailing a significant carryover of appropriations to ensure that invoices which had not [yet] been received could be paid in accordance with Article 9(4) of the Financial Regulation. This authorises payment of administrative expenditure up to the end of year N + 1. |
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7.

When seen against the background of the refunds of appropriations effected by the Agency during the course of the year, the cancellation of appropriations as at 31 December 2006 was limited. It can be explained by the large number of Service Level Agreements and contracts which could not be concluded before the end of 2006, entailing a significant carryover of appropriations to ensure that invoices which had not [yet] been received could be paid in accordance with Article 9(4) of the Financial Regulation. This authorises payment of administrative expenditure up to the end of year N + 1.

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