# C_2007309EN.01009901.xml

| 19.12.2007 | EN | Official Journal of the European Union | C 309/99 |
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19.12.2007

EN

Official Journal of the European Union

C 309/99

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REPORT

REPORT

on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2006 together with the Centre's replies

(2007/C 309/17)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

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

| 7-11 | OBSERVATIONS |
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7-11

Tables 1 to 4

The Centre's replies

The Centre's replies

INTRODUCTION

| 1. | The European Centre for Disease Prevention and Control (hereinafter referred to as ‘the Centre’) was set up by Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 (1). Its main tasks are to collect and disseminate data on the prevention and control of human diseases and to provide scientific opinions on this subject. It is also required to coordinate the European network of bodies operating in this field. |
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1.

The European Centre for Disease Prevention and Control (hereinafter referred to as ‘the Centre’) was set up by Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 (1). Its main tasks are to collect and disseminate data on the prevention and control of human diseases and to provide scientific opinions on this subject. It is also required to coordinate the European network of bodies operating in this field.

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 in Tables 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 in Tables 2, 3 and 4 for information purposes.

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 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 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 23 of Regulation (EC) No 851/2004, 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 Centre's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 23 of Regulation (EC) No 851/2004, 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 Centre'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 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 set out 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 the 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 the 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. | Nearly 45 % of the commitments entered into during the year were carried over. Moreover, during the second half of 2006, numerous transfers were made, due mainly to imprecise estimates of staffing needs (4). These transfers were made without the Centre's Governing Board having been informed in due time. Thus, the budgetary principles of annuality and specification were not strictly observed. |
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7.

Nearly 45 % of the commitments entered into during the year were carried over. Moreover, during the second half of 2006, numerous transfers were made, due mainly to imprecise estimates of staffing needs (4). These transfers were made without the Centre's Governing Board having been informed in due time. Thus, the budgetary principles of annuality and specification were not strictly observed.

4

| 8. | Legal commitments (5) were entered into in the absence of prior budgetary commitments, in breach of the financial regulation. |
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8.

Legal commitments (5) were entered into in the absence of prior budgetary commitments, in breach of the financial regulation.

5

| 9. | During the year, pre-financing items were booked as budget expenditure, and not as advance payments. No procedure existed to highlight these items. At the year-end, during the closure-of-accounts procedure, the accounting officer searched manually for any outstanding pre-financing items. This led to an increased risk of errors (6) in the derivation of the amount. |
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9.

During the year, pre-financing items were booked as budget expenditure, and not as advance payments. No procedure existed to highlight these items. At the year-end, during the closure-of-accounts procedure, the accounting officer searched manually for any outstanding pre-financing items. This led to an increased risk of errors (6) in the derivation of the amount.

6

| 10. | Rights of access to the computerised budget management system were not always consistent with the authorisations granted by the Director. The accounting officer has not yet validated the main commitment and payment procedures. |
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10.

Rights of access to the computerised budget management system were not always consistent with the authorisations granted by the Director. The accounting officer has not yet validated the main commitment and payment procedures.

| 11. | The rules on procurement procedures are not strictly enforced. The following anomalies (7) were observed: lack of clear selection criteria, incorrect choice of the procedure, non respect of the procedure described in the tender notice and insufficient documentation of the procedure. |
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11.

The rules on procurement procedures are not strictly enforced. The following anomalies (7) were observed: lack of clear selection criteria, incorrect choice of the procedure, non respect of the procedure described in the tender notice and insufficient documentation of the procedure.

7

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 142, 30.4.2004, p. 1.

1

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

2

(3)  These accounts were drawn up on 12 June 2007 and received by the Court on 2 July 2007.

3

(4)  Appropriations under Title I reduced by 1,6 million euro.

4

(5)  Three cases of an approximate total value 320 000 euro.

5

(6)  One 40 000 euro error was detected and corrected during the audit.

6

(7)  Three cases of an approximate total value of 230 000 euro.

7

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Table 1

European Centre for Disease Prevention and Control (Stockholm)

| Area of Community competence deriving from the Treaty | Competences of the Centre as specified in Council Regulation (EC) No 851/2004 | Governance | Resources available to the Centre | Products and services supplied in 2006 |
| --- | --- | --- | --- | --- |
| A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education.

  (Article 152 of the Treaty) | Objectives

  Strengthen Europe's defences against infectious diseases; specifically, to identify, assess and communicate current and emerging threats to human health from communicable diseases.
  Therefore the Centre shall operate dedicated surveillance networks, provide scientific opinions, operate the early warning and response system (EWRS) and provide scientific and technical assistance and training. | Tasks







  — | Operate dedicated disease surveillance networks and enhance networking activities. The Centre has a specific role in data collection, validation, analysis and dissemination. |

Area of Community competence deriving from the Treaty

Competences of the Centre as specified in Council Regulation (EC) No 851/2004

Governance

Resources available to the Centre

Products and services supplied in 2006

A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education.

(Article 152 of the Treaty)

Objectives

Strengthen Europe's defences against infectious diseases; specifically, to identify, assess and communicate current and emerging threats to human health from communicable diseases.

Therefore the Centre shall operate dedicated surveillance networks, provide scientific opinions, operate the early warning and response system (EWRS) and provide scientific and technical assistance and training.

Tasks

—

Operate dedicated disease surveillance networks and enhance networking activities. The Centre has a specific role in data collection, validation, analysis and dissemination.

| — | Provide authoritative expert advice and scientific opinions and studies on communicable diseases. |
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—

Provide authoritative expert advice and scientific opinions and studies on communicable diseases.

| — | Operate the EWRS. Develop procedures for identifying emerging health threats. |
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—

Operate the EWRS. Develop procedures for identifying emerging health threats.

| — | Strengthen Member States' capacity in preparedness planning and in training. |
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—

Strengthen Member States' capacity in preparedness planning and in training.

| — | Inform the general public and interested parties of its work. |
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—

Inform the general public and interested parties of its work.

1.   Management Board

One member designated by each Member State, two members designated by the European Parliament and three representatives of the Commission.

The Board adopts the Centre's annual programme and budget and monitors their implementation.

2.   Director

Appointed by the Management Board on the basis of a list of candidates proposed by the Commission.

3.   Advisory Forum

A representative of each Member State and three non-voting representatives of the Commission.

The Forum is to assure the scientific excellence of the work and the independence of the activities and opinions of the Centre.

4.   External Audit

Court of Auditors.

5.   Discharge authority

Parliament on a recommendation from the Council.

2006 final budget

17,146 million euro, including a Community subsidy of 98 %

Staff numbers

Posts in the establishment plan: 50

posts occupied: 48

+36 other posts

Total staff: 84

assigned to the following duties:

| — | operational: 49 |
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—

operational: 49

| — | administrative: 35 |
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—

administrative: 35

| — | Several guidelines, recommendations and risk assessments were produced, many focusing on influenza. |
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—

Several guidelines, recommendations and risk assessments were produced, many focusing on influenza.

| — | Evaluation and assessment of some surveillance networks. |
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—

Evaluation and assessment of some surveillance networks.

| — | Development of the database for routine surveillance with a core set of variables for all diseases set out for surveillance at European level (Commission Decisions 2002/253/EC and 2003/534/EC). |
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—

Development of the database for routine surveillance with a core set of variables for all diseases set out for surveillance at European level (Commission Decisions 2002/253/EC and 2003/534/EC).

| — | Epidemiological information from ECDC published in weekly electronic journal. |
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—

Epidemiological information from ECDC published in weekly electronic journal.

| — | In application of EC Regulation No 851/2004 and following an agreement between the ECDC and DG SANCO, the takeover of the EWRS by ECDC was organised. |
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—

In application of EC Regulation No 851/2004 and following an agreement between the ECDC and DG SANCO, the takeover of the EWRS by ECDC was organised.

| — | The EPIET field epidemiological training programme, initiated by the Commission, has been taken over by ECDC. |
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—

The EPIET field epidemiological training programme, initiated by the Commission, has been taken over by ECDC.

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 Centre for Disease Prevention and Control (Stockholm) — 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 | cancelled |
| Community subsidies (1) | 17 146 | 17 018 | Title I
  Staff | 6 084 | 6 068 | 5 664 | 404 | 16 | 362 | 362 | 312 | 50 |
| | | | Title II
  Administration | 3 731 | 3 588 | 1 968 | 1 620 | 143 | 535 | 535 | 402 | 133 |
| | | | Title III
  Operating activities | 7 331 | 7 216 | 2 143 | 5 073 | 115 | 541 | 541 | 408 | 133 |
| Total | 17 146 | 17 018 | Total | 17 146 | 16 872 | 9 775 | 7 097 | 274 | 1 438 | 1 438 | 1 122 | 316 |
| NB: Variations in totals are due to the effects of rounding.

  Source: Data supplied by the Centre. This table summarises the data supplied by the Centre in its own financial statements. 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

cancelled

Community subsidies (1)

17 146

17 018

Title I

Staff

6 084

6 068

5 664

404

16

362

362

312

50

Title II

Administration

3 731

3 588

1 968

1 620

143

535

535

402

133

Title III

Operating activities

7 331

7 216

2 143

5 073

115

541

541

408

133

Total

17 146

17 018

Total

17 146

16 872

9 775

7 097

274

1 438

1 438

1 122

316

NB: Variations in totals are due to the effects of rounding.

Source: Data supplied by the Centre. This table summarises the data supplied by the Centre in its own financial statements. Revenue collected and payments are estimated on a cash basis.

Table 3

European centre for disease prevention and control (Stockholm) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 15 806 | 2 646 |
| Total (a) | 15 806 | 2 646 |
| Operating expenditure |
| Staff expenditure | 4 536 | 170 |
| Fixed asset-related expenditure | 305 | 107 |
| Other administrative expenditure | 2 893 | 1 079 |
| Operational expenditure | 2 623 | 326 |
| Total (b) | 10 357 | 1 682 |
| Surplus/(deficit) from operating activities (c = a – b) | 5 449 | 964 |
| Financial operations revenue (e) | | 0 |
| Financial operations expenditure (f) | 64 | 11 |
| Surplus/(deficit) from non-operating activities (g = e – f) | –64 | –11 |
| Economic result for the year (h = c + g) | 5 385 | 954 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

15 806

2 646

Total (a)

15 806

2 646

Operating expenditure

Staff expenditure

4 536

170

Fixed asset-related expenditure

305

107

Other administrative expenditure

2 893

1 079

Operational expenditure

2 623

326

Total (b)

10 357

1 682

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

5 449

964

Financial operations revenue (e)

0

Financial operations expenditure (f)

64

11

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

–64

–11

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

5 385

954

Table 4

European centre for disease prevention and control (Stockholm) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible assets | 111 | 37 |
| Tangible fixed assets | 936 | 207 |
| Current assets |
| Short-term prefinancing | 400 | |
| Stocks | 7 | |
| Short-term receivables | 387 | 320 |
| Cash and cash equivalents | 7 223 | 2 059 |
| Total assets | 9 064 | 2 624 |
| Current liabilities |
| Provision for risks and charges | 70 | |
| Accounts payable | 2 655 | 1 671 |
| Total liabilities | 2 725 | 1 671 |
| Net assets |
| Accumulated surplus/deficit | 954 | |
| Economic result for the year | 5 385 | 954 |
| Total net assets | 6 339 | 954 |
| Total liabilities and net assets | 9 064 | 2 624 |

(1000 euro)

2006

2005

Non-current assets

Intangible assets

111

37

Tangible fixed assets

936

207

Current assets

Short-term prefinancing

400

Stocks

7

Short-term receivables

387

320

Cash and cash equivalents

7 223

2 059

Total assets

9 064

2 624

Current liabilities

Provision for risks and charges

70

Accounts payable

2 655

1 671

Total liabilities

2 725

1 671

Net assets

Accumulated surplus/deficit

954

Economic result for the year

5 385

954

Total net assets

6 339

954

Total liabilities and net assets

9 064

2 624

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(1)  Including the appropriations managed by the Commission.

NB: Variations in totals are due to the effects of rounding.

Source: Data supplied by the Centre. This table summarises the data supplied by the Centre in its own financial statements. Revenue collected and payments are estimated on a cash basis.

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THE CENTRE'S REPLIES

| 7. | The year 2006 was the first full year of operation of the Centre. The unpredictability of certain developments, especially in recruitment, resulted in required budget transfers. Planning and monitoring of workplans and budgets is getting strong management attention in 2007 to limit the appropriations that are carried over.
  The Management Board was informed on the transfers executed by the Director at its meeting of 12-13 December 2006. It will be kept up to date on a continuous basis through an extranet. |
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7.

The year 2006 was the first full year of operation of the Centre. The unpredictability of certain developments, especially in recruitment, resulted in required budget transfers. Planning and monitoring of workplans and budgets is getting strong management attention in 2007 to limit the appropriations that are carried over.

The Management Board was informed on the transfers executed by the Director at its meeting of 12-13 December 2006. It will be kept up to date on a continuous basis through an extranet.

| 8. | Internal capacities have been established and measures were taken as to address the identified weaknesses as well as to improve the internal control systems (e.g. internal procedures, new workflows, training of staff). |
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8.

Internal capacities have been established and measures were taken as to address the identified weaknesses as well as to improve the internal control systems (e.g. internal procedures, new workflows, training of staff).

| 9. | The Centre agrees with the observation of the Court and that the manual detection of prefinancing increases the possibility of errors. Since the beginning of 2007, all prefinancing are directly booked as advance payment. |
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9.

The Centre agrees with the observation of the Court and that the manual detection of prefinancing increases the possibility of errors. Since the beginning of 2007, all prefinancing are directly booked as advance payment.

| 10. | The Centre has appointed a financial systems (SI2) security officer. In early 2007 the Centre has reassessed its financial circuits and new workflows were approved by the Director in May 2007. Following this consolidation phase the accountant will proceed with the evaluation and subsequent validation of the systems as required by the Financial Regulation. |
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10.

The Centre has appointed a financial systems (SI2) security officer. In early 2007 the Centre has reassessed its financial circuits and new workflows were approved by the Director in May 2007. Following this consolidation phase the accountant will proceed with the evaluation and subsequent validation of the systems as required by the Financial Regulation.

| 11. | The referred anomalies relate to the first full year of operation and since then substantial progress has been made in strengthening the financial/procurement area (e.g. financial officers in the operational units, internal audit capability being set up, financial circuits reassessed, financial procedures adopted, training of staff, review contracts). |
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11.

The referred anomalies relate to the first full year of operation and since then substantial progress has been made in strengthening the financial/procurement area (e.g. financial officers in the operational units, internal audit capability being set up, financial circuits reassessed, financial procedures adopted, training of staff, review contracts).

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