# C_2007309EN.01012201.xml

| 19.12.2007 | EN | Official Journal of the European Union | C 309/122 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/122

---

REPORT

REPORT

on the annual accounts of the the European Training Foundation for the financial year 2006 together with the Foundation's replies

(2007/C 309/21)

CONTENTS

| 1-2 | INTRODUCTION |
| --- | --- |

1-2

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

3-6

| 7-8 | OBSERVATIONS |
| --- | --- |

7-8

Tables 1 to 4

The Foundation's replies

The Foundation's replies

INTRODUCTION

| 1. | The European Training Foundation (hereinafter called ‘the Foundation’) was created by Council Regulation (EEC) No 1360/90 of 7 May 1990 (1). The Foundation's purpose is to support the reform of vocational training in the European Union's partner countries. As such, it assists the Commission in the implementation of various programmes (Phare, Tacis, CARDS and MEDA). |
| --- | --- |

1.

The European Training Foundation (hereinafter called ‘the Foundation’) was created by Council Regulation (EEC) No 1360/90 of 7 May 1990 (1). The Foundation's purpose is to support the reform of vocational training in the European Union's partner countries. As such, it assists the Commission in the implementation of various programmes (Phare, Tacis, CARDS and MEDA).

1

| 2. | Table 1 summarises the competences and activities of the Foundation. Key data summarised from the financial statements drawn up by the Foundation for the financial year 2006, is presented in Tables 2, 3 and 4 for information purposes. |
| --- | --- |

2.

Table 1 summarises the competences and activities of the Foundation. Key data summarised from the financial statements drawn up by the Foundation for the financial year 2006, is presented in Tables 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 Foundation's accounts, as required by Article 248 of the Treaty establishing the European Community. |
| --- | --- |

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 Foundation's accounts, as required by Article 248 of the Treaty establishing the European Community.

2

| 4. | The Foundation's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 11 of Regulation (EEC) No 1360/90, and sent to the Court, which is required to deliver a Statement of Assurance on the reliability and on the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The Foundation's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 11 of Regulation (EEC) No 1360/90, and sent to the Court, which is required to deliver a Statement of Assurance on the 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. |
| --- | --- |

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 obtained a reasonable basis for the Statement set out below:

  Reliability of the accountsThe Foundation'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 Foundation's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
| --- | --- |

6.

The Court has obtained a reasonable basis for the Statement set out below:

Reliability of the accountsThe Foundation'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 Foundation'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 Foundation'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 Foundation'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. | Title III appropriations are differentiated. Article 31 of the Framework Financial Regulation requires that the budget published in the Official Journal shows both commitment and payment appropriations with a payment schedule when appropriations are differentiated. The Foundation only published the commitment appropriations for its 2006 budget. This did not respect the rules for budget presentation. |
| --- | --- |

7.

Title III appropriations are differentiated. Article 31 of the Framework Financial Regulation requires that the budget published in the Official Journal shows both commitment and payment appropriations with a payment schedule when appropriations are differentiated. The Foundation only published the commitment appropriations for its 2006 budget. This did not respect the rules for budget presentation.

| 8. | In 2006, the Foundation had two ongoing MEDA and TEMPUS multi-annual contracts with the Commission, both entered into in 2004. Funds provided by these contracts are considered to be assigned revenue. The Foundation entered the total contractual amount of these revenues in its budget instead of the amounts to be received each year. |
| --- | --- |

8.

In 2006, the Foundation had two ongoing MEDA and TEMPUS multi-annual contracts with the Commission, both entered into in 2004. Funds provided by these contracts are considered to be assigned revenue. The Foundation entered the total contractual amount of these revenues in its budget instead of the amounts to be received each year.

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

---

(1)  OJ L 131, 23.5.1990, p. 1.

1

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

2

(3)  These accounts were drawn up on 26 June 2007 and received by the Court on 3 July 2007.

3

---

Table 1

European Training Foundation (Turin)

| Areas of Community competence deriving from the Treaty | Competences of the Foundation
  Council Regulation (EEC) No 1360/90 of 7 May 1990 | Governance | Resources made available to the Foundation in 2006

  (2005 data) | Products and services supplied during the financial year 2006 |
| --- | --- | --- | --- | --- |
| ‘The Community shall carry out, within its spheres of competence, economic, financial and technical cooperation measures with third countries. Such measures shall be complementary to those carried out by the Member States and consistent with the development policy of the Community’.

  (Article 181 A) | Objectives







  — | To contribute to the development of the professional training systems of Central and Eastern Europe and the independent States of the former Soviet Union benefiting from the programme to assist economic reform and recovery of the territories and non- Member Mediterranean countries benefiting from financial and technical accompanying measures for the reform of their economic and social structures. |

Areas of Community competence deriving from the Treaty

Competences of the Foundation

Council Regulation (EEC) No 1360/90 of 7 May 1990

Governance

Resources made available to the Foundation in 2006

(2005 data)

Products and services supplied during the financial year 2006

‘The Community shall carry out, within its spheres of competence, economic, financial and technical cooperation measures with third countries. Such measures shall be complementary to those carried out by the Member States and consistent with the development policy of the Community’.

(Article 181 A)

Objectives

—

To contribute to the development of the professional training systems of Central and Eastern Europe and the independent States of the former Soviet Union benefiting from the programme to assist economic reform and recovery of the territories and non- Member Mediterranean countries benefiting from financial and technical accompanying measures for the reform of their economic and social structures.

| — | To promote the coordination of the assistance given to eligible countries. |
| --- | --- |

—

To promote the coordination of the assistance given to eligible countries.

Tasks

In accordance with the general guidelines laid down by the Community, the ETF operates in the field of training, covering, professional, initial and lifelong training and the retraining of young people and adults via the following tasks:

| — | assistance in defining training needs and priorities via the implementation of technical assistance measures in the training field and via cooperation with the appropriate designated bodies in the eligible countries; |
| --- | --- |

—

assistance in defining training needs and priorities via the implementation of technical assistance measures in the training field and via cooperation with the appropriate designated bodies in the eligible countries;

| — | acts as a clearing house to provide the Community, its Member States and the non-Member States concerned information on current initiatives and future needs in the training field and provides a framework for channelling offers of assistance. |
| --- | --- |

—

acts as a clearing house to provide the Community, its Member States and the non-Member States concerned information on current initiatives and future needs in the training field and provides a framework for channelling offers of assistance.

Governing Board

| — | One representative of each Member State |
| --- | --- |

—

One representative of each Member State

| — | Three representatives of the Commission |
| --- | --- |

—

Three representatives of the Commission

| — | Chaired by the Commission |
| --- | --- |

—

Chaired by the Commission

Director

| — | Appointed by the Governing Board on a proposal from the Commission |
| --- | --- |

—

Appointed by the Governing Board on a proposal from the Commission

Advisory Forum

| — | Appointed by the Governing Board |
| --- | --- |

—

Appointed by the Governing Board

| — | Two experts from each Member State |
| --- | --- |

—

Two experts from each Member State

| — | Two experts from each eligible country |
| --- | --- |

—

Two experts from each eligible country

| — | Two experts from the social partners at European level |
| --- | --- |

—

Two experts from the social partners at European level

External audit

European Court of Auditors

Internal audit

Commission's internal audit department

Discharge

European Parliament on a recommendation from the Council

Budget

26,5 (26,3) million euro divided up into 19,5 (18,5) million euro funded by a Commission subsidy and 7,0 (7,8) million euro funded by other bodies as assigned revenue.

This sum of 7,0 million euro divides up as follows:

0,98 million euro from the Italian Ministry of foreign affairs;

4,37 million euro from DG AIDCO (Meda-ETE);

1,69 million euro from DG EAC (Tempus)

Staff numbers as at 31 December 2006

105 (104) temporary posts in the establishment plan of which 94 (97) posts occupied.

32 (22) other staff (auxiliaries, local agents, contract staff

Total staff: 126 (119), assigned to the following duties:

| — | operational tasks: 73 (68) |
| --- | --- |

—

operational tasks: 73 (68)

| — | administrative tasks: 34 (33) |
| --- | --- |

—

administrative tasks: 34 (33)

| — | mixed tasks: 19 (18). |
| --- | --- |

—

mixed tasks: 19 (18).

Activities

The assistance supplied by the Foundation covers a large range of technical fields including: initial vocational training, lifelong learning, continuing (adult) education, human resource development in companies, employment policies, training of unemployed people, poverty alleviation and social inclusion and training to encourage local development.

Support for the Commission

In 2006, 97 new requests for support were received from the Commission. The majority came from the delegations (38 %), AIDCO (21 %), DG EAC (16 %) followed by DG ELARG and EAR (7 %), DG RELEX (5 %). DG EMPL (4 %). This included 24 analyses of the situation in the ENPI countries. The Commission's rate of satisfaction with the ETF's response was 97 %. The most frequent applications were those in the field of programming, followed by policies and contributions in the preparation of European Neighbourhood Instruments, the identification of projects and follow-up.

Information and analysis

Country sector studies, statistics on education, policy advice to countries.

Innovation and development support projects.

As a centre of expertise, the ETF contributes towards the setting up of development projects in order to test innovatory approaches allowing partner countries to carry out reforms of their education and vocational training systems.

Technical assistance to DG EAC for the implementation of the Tempus programme

Assistance Conventions with CARDS, MEDA and Tacis for the Tempus programme:

This assistance covers the whole cycle of the project. It includes the selection, management and follow-up of contracts and information and communication, including general administrative support. IT tools such as online applications and report forms have greatly facilitated the administrative management of the various project cycles.

Source: Information provided by the Foundation.

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

Table 2

European Training Foundation (Turin) — Budgetary implementation for the financial year 2006

| (1000 euro) |
| --- |
| Revenue | Expenditure |
| Origin of Revenue | Revenue entered in the final budget for the financial year | Revenue collected | Allocation of expenditure | Appropriations for the financial year | Appropriations carried over from the previous financial year |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Community subsidies | 19 450 | 19 450 | Title I
  Staff (NDA) | 12 239 | 11 990 | 11 427 | 562 | 249 | 478 | 409 | 68 |
| Other revenue | 2 | 64 | Title II
  Administration (NDA) | 1 719 | 1 595 | 1 158 | 437 | 124 | 326 | 287 | 39 |
| Title III
  Operating activites (DA) | | | | | | | | |
| — CA | 5 495 | 4 970 | 0 | 1 918 | 525 | 0 | 0 | 0 |
| — PA | 5 495 | 0 | 3 052 | 0 | 2 443 | 1 925 | 1 474 | 451 |
| Earmarked revenue: Italian government | 980 | 314 | Earmarked revenue: Italian government | 980 | 544 | 500 | 480 | 0 | 356 | 0 | 356 |
| Earmarked revenue: ETE-MEDA | 4 365 (1) | 2 000 | Earmarked revenue: ETE-MEDA | 4 365 (1) | 3 114 | 1 234 | 3 131 | 0 | 2 365 | 0 | 2 365 |
| Earmarked revenue: TEMPUS | 1 686 | 624 | Earmarked revenue: TEMPUS | 1 686 | 1 616 | 822 | 864 | 0 | 1 062 | 0 | 1 062 |
| Total | 26 484 | 22 452 | Total CA | 26 484 | 23 829 | 18 193 | 7 392 | 897 | 4 587 | 696 | 3 890 |
| Total PA | 26 484 | 18 859 | 18 193 | 5 474 | 2 816 | 6 512 | 2 170 | 4 342 |
| NDA | : | non-differentiated appropriations (commitment appropriations are equal to payment appropriations). |
| DA | : | differentiated appropriations (commitment appropriations may differ from payment appropriations). |
| CA | : | commitment appropriations in a system of differentiated appropriations. |
| PA | : | payment appropriations in a system of differentiated appropriations. |

(1000 euro)

Revenue

Expenditure

Origin of Revenue

Revenue entered in the final budget for the financial year

Revenue collected

Allocation of expenditure

Appropriations for the financial year

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Community subsidies

19 450

19 450

Title I

Staff (NDA)

12 239

11 990

11 427

562

249

478

409

68

Other revenue

2

64

Title II

Administration (NDA)

1 719

1 595

1 158

437

124

326

287

39

Title III

Operating activites (DA)

— CA

5 495

4 970

0

1 918

525

0

0

0

— PA

5 495

0

3 052

0

2 443

1 925

1 474

451

Earmarked revenue: Italian government

980

314

Earmarked revenue: Italian government

980

544

500

480

0

356

0

356

Earmarked revenue: ETE-MEDA

4 365 (1)

2 000

Earmarked revenue: ETE-MEDA

4 365 (1)

3 114

1 234

3 131

0

2 365

0

2 365

Earmarked revenue: TEMPUS

1 686

624

Earmarked revenue: TEMPUS

1 686

1 616

822

864

0

1 062

0

1 062

Total

26 484

22 452

Total CA

26 484

23 829

18 193

7 392

897

4 587

696

3 890

Total PA

26 484

18 859

18 193

5 474

2 816

6 512

2 170

4 342

NDA

:

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

DA

:

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

CA

:

commitment appropriations in a system of differentiated appropriations.

PA

:

payment appropriations in a system of differentiated appropriations.

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

Table 3

European Training Foundation (Turin) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 16 052 | 18 484 |
| Other subsidies | 314 | 479 |
| Other MEDA ETE | — | 5 000 |
| Other Tempus TA 2004/05 | — | 2 363 |
| Awaiting clearance EC — ETE MED and TEMPUS TA | 2 868 | — |
| Total (a) | 19 234 | 26 326 |
| Operating expenditure |
| Staff expenditure | 11 539 | 11 785 |
| Fixed asset-related expenditure | 359 | 362 |
| Other administrative expenditure | 2 580 | 1 729 |
| Operational expenditure | 7 204 | 12 237 |
| Total (b) | 21 682 | 26 113 |
| Surplus/(deficit) from operating activities (c = a – b) | –2 448 | 214 |
| Financial operations revenue (e) | — | — |
| Financial operations expenditure (f) | 1 | 1 |
| Surplus /(deficit) from non-operating activities (g = e – f) | –1 | –1 |
| Economic result for the year (h = c + g) | –2 449 | 213 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

16 052

18 484

Other subsidies

314

479

Other MEDA ETE

—

5 000

Other Tempus TA 2004/05

—

2 363

Awaiting clearance EC — ETE MED and TEMPUS TA

2 868

—

Total (a)

19 234

26 326

Operating expenditure

Staff expenditure

11 539

11 785

Fixed asset-related expenditure

359

362

Other administrative expenditure

2 580

1 729

Operational expenditure

7 204

12 237

Total (b)

21 682

26 113

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

–2 448

214

Financial operations revenue (e)

—

—

Financial operations expenditure (f)

1

1

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

–1

–1

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

–2 449

213

Table 4

European Training Foundation (Turin) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 3 053 | 3 214 |
| Tangible fixed assets | 311 | 213 |
| Current assets |
| Stocks | 34 | 37 |
| Short-term pre-financing | 1 169 | 1 266 |
| Short-term receivables | 339 | 174 |
| Cash and cash equivalents (2) | 12 157 | 23 665 |
| Total assets | 17 063 | 28 569 |
| Non-current liabilities |
| Provisions for risks and charges | 550 | 205 |
| Current liabilities |
| Provisions for risks and charges | 157 | 132 |
| Accounts payable | 15 133 | 24 560 |
| Total liabilities | 15 840 | 24 897 |
| Net assets |
| Accumulated surplus/deficit | 3 670 | 3 458 |
| Economic result for the year | –2 448 | 213 |
| Total net assets | 1 222 | 3 671 |
| Total liabilities and net assets | 17 062 | 28 568 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

3 053

3 214

Tangible fixed assets

311

213

Current assets

Stocks

34

37

Short-term pre-financing

1 169

1 266

Short-term receivables

339

174

Cash and cash equivalents (2)

12 157

23 665

Total assets

17 063

28 569

Non-current liabilities

Provisions for risks and charges

550

205

Current liabilities

Provisions for risks and charges

157

132

Accounts payable

15 133

24 560

Total liabilities

15 840

24 897

Net assets

Accumulated surplus/deficit

3 670

3 458

Economic result for the year

–2 448

213

Total net assets

1 222

3 671

Total liabilities and net assets

17 062

28 568

---

(1)  The initial amount entered in the budget was 4 865 000 euro, of which 500 000 euro was not paid by the Commission. For clarity and accuracy the amended amount (4 365 000 euro) is shown.

| NDA | : | non-differentiated appropriations (commitment appropriations are equal to payment appropriations). |
| --- | --- | --- |
| DA | : | differentiated appropriations (commitment appropriations may differ from payment appropriations). |
| CA | : | commitment appropriations in a system of differentiated appropriations. |
| PA | : | payment appropriations in a system of differentiated appropriations. |

NDA

:

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

DA

:

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

CA

:

commitment appropriations in a system of differentiated appropriations.

PA

:

payment appropriations in a system of differentiated appropriations.

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

(2)  Reimbursement of unused funds related to Tempus grants.

---

THE FOUNDATION'S REPLIES

| 7. | ETF accepts the Court's remark and undertakes to present distinct commitment and payment appropriation budgets. This has already been prepared for the 2007 amended budget. |
| --- | --- |

7.

ETF accepts the Court's remark and undertakes to present distinct commitment and payment appropriation budgets. This has already been prepared for the 2007 amended budget.

| 8. | ETF takes good note of the Court's remark and will adopt the approach proposed for all conventions in the future. |
| --- | --- |

8.

ETF takes good note of the Court's remark and will adopt the approach proposed for all conventions in the future.

---