# Official Journal C 309/2007

| | ISSN 1725-2423 |
| --- | --- |
| Official Journal
  of the European Union | C 309 |
| | |
| English edition | Information and Notices | Volume 5019 December 2007 |

ISSN 1725-2423

Official Journal

of the European Union

C 309

English edition

Information and Notices

Volume 5019 December 2007

---

| Notice No | Contents | page |
| --- | --- | --- |
| | IV   Notices |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES |
| | Court of Auditors |
| 2007/C 309/01 | Report on the annual accounts of the European Network and Information Security Agency for the financial year 2006 together with the Agency's replies | 1 |
| 2007/C 309/02 | Report on the annual accounts of the European Union Fundamental Rights Agency (formerly the European Monitoring Centre on Racism and Xenophobia) for the financial year 2006 together with the Agency's replies | 6 |
| 2007/C 309/03 | Report on the annual accounts of the Education, Audiovisual and Culture Executive Agency for the financial year 2006 together with the Agency's replies | 13 |
| 2007/C 309/04 | Report on the annual accounts of the Intelligent Energy Executive Agency for the financial year 2006 together with the Agency's replies | 18 |
| 2007/C 309/05 | Report on the annual accounts of the European Environment Agency for the financial year 2006 together with the Agency's replies | 24 |
| 2007/C 309/06 | Report on the annual accounts of the European Agency for the Management of Operational Cooperation at the External Borders of the Member States for the financial year 2006 together with the Agency's replies | 29 |
| 2007/C 309/07 | Report on the annual accounts of the European Medicines Agency for the financial year 2006 together with the Agency's replies | 34 |
| 2007/C 309/08 | Report on the annual accounts of the European Agency for Reconstruction for the financial year 2006 together with the Agency's replies | 40 |
| 2007/C 309/09 | Report on the annual accounts of the European Aviation Safety Agency for the financial year 2006 together with the Agency's replies | 47 |
| 2007/C 309/10 | Report on the annual accounts of the European Maritime Safety Agency for the financial year 2006 together with the Agency's replies | 55 |
| 2007/C 309/11 | Report on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2006 together with the Agency's replies | 62 |
| 2007/C 309/12 | Report on the annual accounts of the European Railway Agency for the financial year 2006 together with the Agency's replies | 67 |
| 2007/C 309/13 | Report on the annual accounts of the European GNSS Supervisory Authority for the financial year 2006 together with the Authority's replies | 72 |
| 2007/C 309/14 | Report on the annual accounts of the European Food Safety Authority for the financial year 2006 together with the Authority's replies | 80 |
| 2007/C 309/15 | Report on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2006 together with the Centre's replies | 86 |
| 2007/C 309/16 | Report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2006 together with the Centre's replies | 94 |
| 2007/C 309/17 | 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 | 99 |
| 2007/C 309/18 | Report on the annual accounts of the European Police College for the financial year 2006 together with the College's replies | 105 |
| 2007/C 309/19 | Report on the annual accounts of Eurojust for the financial year 2006 together with the Eurojust's replies | 111 |
| 2007/C 309/20 | Report on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2006 together with the Foundation's replies | 116 |
| 2007/C 309/21 | Report on the annual accounts of the the European Training Foundation for the financial year 2006 together with the Foundation's replies | 122 |
| 2007/C 309/22 | Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2006 together with the Centre's replies | 128 |
| 2007/C 309/23 | Report on the annual accounts of the Community Plant Variety Office for the financial year 2006 together with the Office's replies | 135 |
| 2007/C 309/24 | Report on the annual accounts of the Office for Harmonisation in the Internal Market for the financial year 2006 together with the Office's replies | 141 |

Notice No

Contents

page

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Court of Auditors

2007/C 309/01

Report on the annual accounts of the European Network and Information Security Agency for the financial year 2006 together with the Agency's replies

1

2007/C 309/02

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

6

2007/C 309/03

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

13

2007/C 309/04

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

18

2007/C 309/05

Report on the annual accounts of the European Environment Agency for the financial year 2006 together with the Agency's replies

24

2007/C 309/06

Report on the annual accounts of the European Agency for the Management of Operational Cooperation at the External Borders of the Member States for the financial year 2006 together with the Agency's replies

29

2007/C 309/07

Report on the annual accounts of the European Medicines Agency for the financial year 2006 together with the Agency's replies

34

2007/C 309/08

Report on the annual accounts of the European Agency for Reconstruction for the financial year 2006 together with the Agency's replies

40

2007/C 309/09

Report on the annual accounts of the European Aviation Safety Agency for the financial year 2006 together with the Agency's replies

47

2007/C 309/10

Report on the annual accounts of the European Maritime Safety Agency for the financial year 2006 together with the Agency's replies

55

2007/C 309/11

Report on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2006 together with the Agency's replies

62

2007/C 309/12

Report on the annual accounts of the European Railway Agency for the financial year 2006 together with the Agency's replies

67

2007/C 309/13

Report on the annual accounts of the European GNSS Supervisory Authority for the financial year 2006 together with the Authority's replies

72

2007/C 309/14

Report on the annual accounts of the European Food Safety Authority for the financial year 2006 together with the Authority's replies

80

2007/C 309/15

Report on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2006 together with the Centre's replies

86

2007/C 309/16

Report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2006 together with the Centre's replies

94

2007/C 309/17

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

99

2007/C 309/18

Report on the annual accounts of the European Police College for the financial year 2006 together with the College's replies

105

2007/C 309/19

Report on the annual accounts of Eurojust for the financial year 2006 together with the Eurojust's replies

111

2007/C 309/20

Report on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2006 together with the Foundation's replies

116

2007/C 309/21

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

122

2007/C 309/22

Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2006 together with the Centre's replies

128

2007/C 309/23

Report on the annual accounts of the Community Plant Variety Office for the financial year 2006 together with the Office's replies

135

2007/C 309/24

Report on the annual accounts of the Office for Harmonisation in the Internal Market for the financial year 2006 together with the Office's replies

141

| | Corrigenda |
| --- | --- |
| 2007/C 309/25 | Corrigendum to the Annual Report of the Court of Auditors on the implementation of the budget concerning the financial year 2006, together with the institutions' replies (OJ C 273, 15.11.2007) | 147 |

Corrigenda

2007/C 309/25

Corrigendum to the Annual Report of the Court of Auditors on the implementation of the budget concerning the financial year 2006, together with the institutions' replies (OJ C 273, 15.11.2007)

147

| EN | |
| --- | --- |

EN

---

IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Court of Auditors

| 19.12.2007 | EN | Official Journal of the European Union | C 309/1 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/1

---

REPORT

on the annual accounts of the European Network and Information Security Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/01)

CONTENTS

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

1-2

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

3-6

| 7-9 | OBSERVATIONS |
| --- | --- |

7-9

Tables 1 to 4

The Agency's replies

INTRODUCTION

| 1. | The European Network and Information Security Agency (hereinafter ‘the Agency’) was created by Regulation (EC) No 460/2004 of the European Parliament and of the Council of 10 March 2004 (1). The Agency's main task is to enhance the capability of the Community to prevent and respond to network and information security problems by building on national and Community efforts. |
| --- | --- |

1.

The European Network and Information Security Agency (hereinafter ‘the Agency’) was created by Regulation (EC) No 460/2004 of the European Parliament and of the Council of 10 March 2004 (1). The Agency's main task is to enhance the capability of the Community to prevent and respond to network and information security problems by building on national and Community efforts.

| 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. |
| --- | --- |

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.

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 of 25 June 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. |
| --- | --- |

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 of 25 June 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.

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 17 of Regulation (EC) No 460/2004, 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. |
| --- | --- |

4.

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 17 of Regulation (EC) No 460/2004, 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.

| 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 thus obtained a reasonable basis for the Statement set out below:

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
| --- | --- |

6.

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

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

OBSERVATIONS

| 7. | The implementation of the Agency's budget for the financial year 2006 shows a utilisation rate of 90 % of commitment appropriations and 76 % of payment appropriations. There was a concentration of transactions in the last quarter of the year. Furthermore, the weaknesses of the procedures for establishing the budget, led to a high number of transfers (4). Thus, the budgetary principles of annuality and specification were not strictly observed. |
| --- | --- |

7.

The implementation of the Agency's budget for the financial year 2006 shows a utilisation rate of 90 % of commitment appropriations and 76 % of payment appropriations. There was a concentration of transactions in the last quarter of the year. Furthermore, the weaknesses of the procedures for establishing the budget, led to a high number of transfers (4). Thus, the budgetary principles of annuality and specification were not strictly observed.

| 8. | The general accounting software used by the Agency makes it possible to amend entries without leaving an audit trail. Furthermore, a system for recording invoices that ensures the accuracy of the financial information in the final accounts, has not been established. |
| --- | --- |

8.

The general accounting software used by the Agency makes it possible to amend entries without leaving an audit trail. Furthermore, a system for recording invoices that ensures the accuracy of the financial information in the final accounts, has not been established.

| 9. | The internal control procedures required by the Financial Regulation to ensure transparency and sound financial management have not yet all been documented. The Management Board did not formally adopt standards for internal control and the code of professional ethics. Written instructions for archiving supporting documentation of transactions were missing. A financial irregularities panel was not established. |
| --- | --- |

9.

The internal control procedures required by the Financial Regulation to ensure transparency and sound financial management have not yet all been documented. The Management Board did not formally adopt standards for internal control and the code of professional ethics. Written instructions for archiving supporting documentation of transactions were missing. A financial irregularities panel was not established.

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 77, 13.3.2004, p. 1.

1

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

2

(3)  These accounts were drawn up on 1st July 2007 and received by the Court on 5th July 2007.

3

(4)  During 2006, more than 45 transfers were made.

4

---

Table 1

European Network and Information Security Agency (Heraklion)

| Areas of Community competence | Competences of the Agency
  (Council Regulation (EC) No 460/2004 of 10 March 2004) | Governance | Resources made available to the Agency | Products and services supplied |
| --- | --- | --- | --- | --- |
| The representatives of the Member State governments have, by common agreement, adopted a statement on the creation of a European Network and Information Security Agency. The Agency should operate as a point of reference and establish confidence by virtue of its independence, the quality of the advice it delivers and the information it disseminates, the transparency of its procedures and methods of operating, and its diligence in performing the tasks assigned to it.

  (Council Decision of 19 February 2004, taken on the basis of Article 251 of the Treaty). | Objectives







  1. | The Agency enhances the capability of the Community, the Member States and the business community to prevent, address and respond to network and information security problems. |

Areas of Community competence

Competences of the Agency

(Council Regulation (EC) No 460/2004 of 10 March 2004)

Governance

Resources made available to the Agency

Products and services supplied

The representatives of the Member State governments have, by common agreement, adopted a statement on the creation of a European Network and Information Security Agency. The Agency should operate as a point of reference and establish confidence by virtue of its independence, the quality of the advice it delivers and the information it disseminates, the transparency of its procedures and methods of operating, and its diligence in performing the tasks assigned to it.

(Council Decision of 19 February 2004, taken on the basis of Article 251 of the Treaty).

Objectives

1.

The Agency enhances the capability of the Community, the Member States and the business community to prevent, address and respond to network and information security problems.

| 2. | The Agency provides assistance and delivers advice to the Commission and the Member States on issues related to network and information security falling within its competencies. |
| --- | --- |

2.

The Agency provides assistance and delivers advice to the Commission and the Member States on issues related to network and information security falling within its competencies.

| 3. | The Agency develops a high level of expertise and uses this expertise to stimulate broad cooperation between actors from the public and private sectors. |
| --- | --- |

3.

The Agency develops a high level of expertise and uses this expertise to stimulate broad cooperation between actors from the public and private sectors.

| 4. | The Agency assists the Commission, when called upon, in developing Community legislation in the field of network and information security. |
| --- | --- |

4.

The Agency assists the Commission, when called upon, in developing Community legislation in the field of network and information security.

Tasks

The Agency:

| (a) | collects information on current and emerging risks that could produce an impact on electronic communications networks; |
| --- | --- |

(a)

collects information on current and emerging risks that could produce an impact on electronic communications networks;

| (b) | provides the European Parliament, the Commission and European bodies or competent national bodies with advice and assistance; |
| --- | --- |

(b)

provides the European Parliament, the Commission and European bodies or competent national bodies with advice and assistance;

| (c) | enhances cooperation between actors in its field; |
| --- | --- |

(c)

enhances cooperation between actors in its field;

| (d) | facilitates cooperation on common methodologies to address network and information security issues; |
| --- | --- |

(d)

facilitates cooperation on common methodologies to address network and information security issues;

| (e) | contributes to awareness raising on network and information security issues for all users; |
| --- | --- |

(e)

contributes to awareness raising on network and information security issues for all users;

| (f) | assists the Commission and the Member States in relations with industry; |
| --- | --- |

(f)

assists the Commission and the Member States in relations with industry;

| (g) | tracks standards; |
| --- | --- |

(g)

tracks standards;

| (h) | advises the Commission on research in the area of network and information; |
| --- | --- |

(h)

advises the Commission on research in the area of network and information;

| (i) | promotes risk assessment activities, on prevention solutions; |
| --- | --- |

(i)

promotes risk assessment activities, on prevention solutions;

| (j) | contributes to cooperation with third countries. |
| --- | --- |

(j)

contributes to cooperation with third countries.

1.   Management Board

| 1. | It is composed of one representative of each Member State, three representatives appointed by the Commission, and three representatives, without the right to vote, each of whom represents one of the following groups:






  (a) | information and communication technologies industry; |
| --- | --- | --- |

1.

It is composed of one representative of each Member State, three representatives appointed by the Commission, and three representatives, without the right to vote, each of whom represents one of the following groups:

(a)

information and communication technologies industry;

| (b) | consumer groups; |
| --- | --- |

(b)

consumer groups;

| (c) | academic experts. |
| --- | --- |

(c)

academic experts.

| 2. | Board members may be replaced by alternates. |
| --- | --- |

2.

Board members may be replaced by alternates.

2.   Executive Director

| 1. | The Agency is managed by its Executive Director, who is independent in the performance of his duties. |
| --- | --- |

1.

The Agency is managed by its Executive Director, who is independent in the performance of his duties.

| 2. | The Executive Director is appointed for a term of office of up to five years. |
| --- | --- |

2.

The Executive Director is appointed for a term of office of up to five years.

3.   External audit

Court of Auditors.

4.   Internal audit

The Commission's Internal Auditor.

5.   Discharge authority

Parliament on a recommendation from the Council.

2006 final budget:

6,9 (6,3) million euro (100 % Community subsidy).

Staff figures on 31 December 2006:

44 (38) posts according to the establishment plan

posts occupied: 38 (35)

8 (15) other staff

Total staff: 46 (50)

assigned to the following duties:

operational: 24 (22)

administrative: 22 (28)

Working groups

Three Working Groups on (a) Risk management/Risk Assessment, (b) CERTS and (c) Regulatory Aspects of Network & Information Security (RANIS).

Publications

Annual report,

ENISA Quarterly (four Issues)

| — | Who's Who on NIS database. |
| --- | --- |

—

Who's Who on NIS database.

| — | 1 CD-ROM ‘ENISA inventory of CERT activities in Europe’ |
| --- | --- |

—

1 CD-ROM ‘ENISA inventory of CERT activities in Europe’

| — | 1 CD-ROM ‘Raising Awareness in Information Security, Insight and Guidance for Member States’ |
| --- | --- |

—

1 CD-ROM ‘Raising Awareness in Information Security, Insight and Guidance for Member States’

| — | Six Fact Sheets on ENISA and its activities |
| --- | --- |

—

Six Fact Sheets on ENISA and its activities

| — | 30 press releases |
| --- | --- |

—

30 press releases

| — | The Permanent Stakeholders Group's (PSG) ‘Vision for ENISA’ –document |
| --- | --- |

—

The Permanent Stakeholders Group's (PSG) ‘Vision for ENISA’ –document

| — | The Draft ENISA Strategy 2008-2011 processed by the PSG and Management Board |
| --- | --- |

—

The Draft ENISA Strategy 2008-2011 processed by the PSG and Management Board

| — | A Guide on how to set up a CERT |
| --- | --- |

—

A Guide on how to set up a CERT

| — | A report on CERT co-operation |
| --- | --- |

—

A report on CERT co-operation

| — | ‘A Users' Guide: How to Raise Information Security Awareness’ |
| --- | --- |

—

‘A Users' Guide: How to Raise Information Security Awareness’

| — | Package ‘Information Security Awareness Programmes in the EU — Insight and Guidance for Member States’ |
| --- | --- |

—

Package ‘Information Security Awareness Programmes in the EU — Insight and Guidance for Member States’

| — | Collection of Best Practices — the ‘ENISA Knowledgebase’ |
| --- | --- |

—

Collection of Best Practices — the ‘ENISA Knowledgebase’

| — | Study on security and anti-spam measures of providers |
| --- | --- |

—

Study on security and anti-spam measures of providers

Cooperation with Member States and other institutions

| — | 15 joint events with Member States |
| --- | --- |

—

15 joint events with Member States

| — | eight responses to requests by Member States and Institutions |
| --- | --- |

—

eight responses to requests by Member States and Institutions

Source: Information supplied by the Agency.

Source: Data supplied by the Agency — These tables summarise the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis.

Table 2

European Network and Information Security Agency (Heraklion) — 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 collected | 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 | 6 940 | 6 600 | Title I
  Staff | 4 249 | 3 989 | 3 728 | 253 | 268 | 257 | 257 | 178 | 79 |
| Other revenue | 12 | 12 | Title II
  Administration | 859 | 779 | 653 | 126 | 80 | 1 065 | 1 065 | 863 | 202 |
| | | | Title III
  Operating activities | 1 844 | 1 542 | 989 | 538 | 317 | 790 | 790 | 271 | 519 |
| Total | 6 952 | 6 612 | Total | 6 952 | 6 310 | 5 370 | 917 | 665 | 2 112 | 2 112 | 1 312 | 800 |
| Source: Data supplied by the Agency — These tables summarise the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis. |

(1000 euro)

Revenue

Expenditure

Source of revenue

Revenue entered in the final budget for the financial year

Revenue collected

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

6 940

6 600

Title I

Staff

4 249

3 989

3 728

253

268

257

257

178

79

Other revenue

12

12

Title II

Administration

859

779

653

126

80

1 065

1 065

863

202

Title III

Operating activities

1 844

1 542

989

538

317

790

790

271

519

Total

6 952

6 612

Total

6 952

6 310

5 370

917

665

2 112

2 112

1 312

800

Source: Data supplied by the Agency — These tables summarise the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

European Network and Information Security Agency (Heraklion) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 5 476 | 4 251 |
| Other revenues | 12 | — |
| Total (a) | 5 488 | 4 251 |
| Operating expenditure |
| Staff expenditure | 3 100 | 1 040 |
| Fixed asset related expenditure | 103 | 31 |
| Other administrative expenditure | 1 515 | 1 563 |
| Operational expenditure | 1 236 | 518 |
| Total (b) | 5 954 | 3 152 |
| Surplus /(deficit) from operating activities (c = a – b) | – 466 | 1 099 |
| Financial operations revenue (e) | — | — |
| Financial operations expenditure (f) | –2 | –1 |
| Surplus /(deficit) from non-operating activities (g = e – f) | –2 | –1 |
| Economic result for the year (h = c + g) | – 468 | 1 098 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

5 476

4 251

Other revenues

12

—

Total (a)

5 488

4 251

Operating expenditure

Staff expenditure

3 100

1 040

Fixed asset related expenditure

103

31

Other administrative expenditure

1 515

1 563

Operational expenditure

1 236

518

Total (b)

5 954

3 152

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

– 466

1 099

Financial operations revenue (e)

—

—

Financial operations expenditure (f)

–2

–1

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

–2

–1

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

– 468

1 098

Table 4

European Network and Information Security Agency (Heraklion) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 33 | 12 |
| Tangible fixed assets | 312 | 332 |
| Current assets |
| Short-term receivables | 56 | 13 |
| Cash and cash equivalents | 2 519 | 2 510 |
| Total assets | 2 920 | 2 867 |
| Current liabilities |
| Provisions for risks and charges | 66 | 45 |
| Accounts payable | 2 224 | 1 724 |
| Total liabilities | 2 290 | 1 769 |
| Net assets |
| Accumulated surplus/deficit | 1 098 | — |
| Economic result for the year | – 468 | 1 098 |
| Total net assets | 630 | 1 098 |
| Total liabilities and net assets | 2 920 | 2 867 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

33

12

Tangible fixed assets

312

332

Current assets

Short-term receivables

56

13

Cash and cash equivalents

2 519

2 510

Total assets

2 920

2 867

Current liabilities

Provisions for risks and charges

66

45

Accounts payable

2 224

1 724

Total liabilities

2 290

1 769

Net assets

Accumulated surplus/deficit

1 098

—

Economic result for the year

– 468

1 098

Total net assets

630

1 098

Total liabilities and net assets

2 920

2 867

---

THE AGENCY'S REPLIES

| 7. | Being in its first full year of operation, the Agency intensified its activity in the second half of the year resulting in having many transactions in the last quarter. Also, in 2006, the position of budget officer remained vacant for more than five months which affected the ability of the Agency to optimise planning and minimize the transfers for the year. |
| --- | --- |

7.

Being in its first full year of operation, the Agency intensified its activity in the second half of the year resulting in having many transactions in the last quarter. Also, in 2006, the position of budget officer remained vacant for more than five months which affected the ability of the Agency to optimise planning and minimize the transfers for the year.

| 8. | ENISA has already applied for ABAC, the Commission's accounting software since 2005. Based on the schedule of the Commission the project will be launched early in 2008. The system for recording invoices was revised before the preparation of the final accounts and is being applied since. |
| --- | --- |

8.

ENISA has already applied for ABAC, the Commission's accounting software since 2005. Based on the schedule of the Commission the project will be launched early in 2008. The system for recording invoices was revised before the preparation of the final accounts and is being applied since.

| 9. | ENISA will present to its Management Board for adoption standards for internal control as well as a code of ethics. The executive director will put in place the organisational structure and all the procedures and controls necessary to their implementation. |
| --- | --- |

9.

ENISA will present to its Management Board for adoption standards for internal control as well as a code of ethics. The executive director will put in place the organisational structure and all the procedures and controls necessary to their implementation.

---

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

19.12.2007

EN

Official Journal of the European Union

C 309/6

---

REPORT

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

(2007/C 309/02)

CONTENTS

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

1-2

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

3-6

| 7-10 | OBSERVATIONS |
| --- | --- |

7-10

Tables 1 to 4

The Agency's replies

INTRODUCTION

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

1.

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

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

2.

Table 1 summarises the Agency's competences and activities. Key data summarised from the financial statements drawn up by the Agency for the financial year 2006 is shown in Tables 2, 3 and 4 for information purposes.

STATEMENT OF ASSURANCE

| 3. | This Statement is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (3); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community. |
| --- | --- |

3.

This Statement is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (3); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (4) were drawn up by its Director, pursuant to Article 12 of Regulation (EC) No 1035/97, and sent to the Court, which is required to provide a statement of assurance on their reliability and on the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The Agency's accounts for the financial year ended 31 December 2006 (4) were drawn up by its Director, pursuant to Article 12 of Regulation (EC) No 1035/97, and sent to the Court, which is required to provide a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

| 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 thus obtained a reasonable basis for the Statement set out below.

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
| --- | --- |

6.

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

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

OBSERVATIONS

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

7.

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

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

8.

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

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

9.

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

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

10.

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

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 151, 10.6.1997, p. 6.

1

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

2

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

3

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

4

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

5

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

6

---

Table 1

European Union Fundamental Rights Agency (Vienna)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as specified in Council Regulation (EC) No 1035/97 of 2 June 1997 | Gouvernance | Resources made available to the Centre in 2006

  (2005) | Products and services supplied during the financial year 2006 |
| --- | --- | --- | --- | --- |
| Collection of information

  The Commission may, within the limits and under conditions laid down by the Council in accordance with the provisions of this Treaty, collect any information and carry out any checks required for the performance of the tasks entrusted to it.

  (Article 284) | Objectives







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

Areas of Community competence deriving from the Treaty

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

Gouvernance

Resources made available to the Centre in 2006

(2005)

Products and services supplied during the financial year 2006

Collection of information

The Commission may, within the limits and under conditions laid down by the Council in accordance with the provisions of this Treaty, collect any information and carry out any checks required for the performance of the tasks entrusted to it.

(Article 284)

Objectives

—

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

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

—

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

Tasks

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

—

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

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

—

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

| — | To carry out scientific surveys; |
| --- | --- |

—

To carry out scientific surveys;

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

—

To encourage widespread dissemination of such information;

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

—

To formulate opinions for the Community and its Member States;

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

—

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

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

—

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

1.   Management Board

Composition

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

Duties

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

2.   Executive Board

Composition

| — | Chairman of the Management Board |
| --- | --- |

—

Chairman of the Management Board

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

—

One representative of the uncil of Europe

| — | One representative of the Commission |
| --- | --- |

—

One representative of the Commission

| — | Two other members of the Management Board |
| --- | --- |

—

Two other members of the Management Board

3.   Director

Appointed by the Management Board on a proposal from the Commission.

4.   External audit

Court of Auditors

5.   Internal control

The Commission's Internal Audit Service

6.   Discharge authority

Parliament on a recommendation from the Council.

Final budget:

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

Staff numbers at 31 December 2006:

37 (37) posts in the establishment plan,

posts occupied: 35 (35)

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

Total staff: 47 (41)

assigned to the following duties

| — | operational: 28 (24) |
| --- | --- |

—

operational: 28 (24)

| — | administrative: 15 (13) |
| --- | --- |

—

administrative: 15 (13)

| — | mixed: 4 (4) |
| --- | --- |

—

mixed: 4 (4)

Raxen:

Number of contributions through the 25 national focal points: 375

Number of meetings: 2

Research reports:

Number of reports: 9

Number of meetings: 5

Annual reports: 2

EUMC Bulletin: 6

Equal Voices: 3

Cooperation with the Member States and the other institutions

(number of events organised jointly):

| — | Member States: 15 |
| --- | --- |

—

Member States: 15

| — | Commission: 29 |
| --- | --- |

—

Commission: 29

| — | European Parliament: 7 |
| --- | --- |

—

European Parliament: 7

| — | COR: 2 |
| --- | --- |

—

COR: 2

| — | EESC: 1 |
| --- | --- |

—

EESC: 1

| — | Council of Europe: 10 |
| --- | --- |

—

Council of Europe: 10

| — | OSCE: 4 |
| --- | --- |

—

OSCE: 4

| — | UN: 1 |
| --- | --- |

—

UN: 1

| — | Inter-agency: 4 |
| --- | --- |

—

Inter-agency: 4

| — | NRT: 4 |
| --- | --- |

—

NRT: 4

| — | ERT: 1 |
| --- | --- |

—

ERT: 1

Source: Information supplied by the Agency.

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

Table 2

European Union Fundamental Rights Agency (Vienna) — Implementation of the budget for the financial year 2006

| (1000 euro) |
| --- |
| Revenue | Expenditure |
| Source of revenue | Revenue entered in the final budget for the financial year | Revenue received | Allocation of expenditure | Final budget appropriations | Appropriations carried over from previous financial year(s) |
| entered | committed | paid | carried over | cancelled | entered | committed | paid | to be carried over | cancelled |
| Own revenue | 0 | 0 | Title I
  Staff | 3 923 | 3 743 | 3 693 | 50 | 180 | 70 | 70 | 53 | 0 | 17 |
| Community subsidies | 8 800 | 8 800 | Title II
  Administration | 969 | 923 | 640 | 283 | 46 | 581 | 581 | 570 | 0 | 11 |
| Allocated revenue (Phare) (1) | 484 | 484 | Title III
  Operating activities | 3 908 | 3 695 | 2 753 | 942 | 213 | 667 | 667 | 647 | 0 | 20 |
| Other revenue | 0 | 132 | Allocated revenue
  (Phare and others) (1) | 484 | 325 | 239 | 245 | 0 | 90 | 90 | 90 | 0 | 0 |
| Total | 9 284 | 9 416 | Total | 9 284 | 8 686 | 7 325 | 1 520 | 439 | 1 408 | 1 408 | 1 360 | 0 | 48 |
| Source: Data supplied by the Agency. This table summarise the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis. |

(1000 euro)

Revenue

Expenditure

Source of revenue

Revenue entered in the final budget for the financial year

Revenue received

Allocation of expenditure

Final budget appropriations

Appropriations carried over from previous financial year(s)

entered

committed

paid

carried over

cancelled

entered

committed

paid

to be carried over

cancelled

Own revenue

0

0

Title I

Staff

3 923

3 743

3 693

50

180

70

70

53

0

17

Community subsidies

8 800

8 800

Title II

Administration

969

923

640

283

46

581

581

570

0

11

Allocated revenue (Phare) (1)

484

484

Title III

Operating activities

3 908

3 695

2 753

942

213

667

667

647

0

20

Other revenue

0

132

Allocated revenue

(Phare and others) (1)

484

325

239

245

0

90

90

90

0

0

Total

9 284

9 416

Total

9 284

8 686

7 325

1 520

439

1 408

1 408

1 360

0

48

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

Table 3

European Union Fundamental Rights Agency (Vienna) — Economic outturn account for the financial years 2006 and 2005

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

(1000 euro)

2006

2005

Operating revenue

Community subsidies

8 609

7 466

Other revenues

8

14

Total (a)

8 618

7 480

Operating expenses

Staff expenses

3 051

2 729

Fixed asset related expenses

52

52

Other administrative expenses

1 403

977

Operational expenses

3 556

3 304

Total (b)

8 061

7 062

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

556

418

Table 4

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

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

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

84

25

Tangible fixed assets

388

128

Current assets

Short-term pre-financing

70

Short-term receivables

453

360

Cash and cash equivalents

2 288

2 832

Total assets

3 282

3 345

Current liabilities

Provisions for risks and charges

48

56

Accounts payable

1 535

2 146

Total liabilities

1 582

2 202

Net assets

Accumulated surplus/deficit

1 143

725

Economic result for the year

556

418

Total net assets

1 700

1 143

Total liabilities and net assets

3 282

3 345

---

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

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

---

THE AGENCY'S REPLIES

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

7.

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

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

8.

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

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

9.

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

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

10.

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

---

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

19.12.2007

EN

Official Journal of the European Union

C 309/13

---

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 |
| --- | --- |

1-2

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

3-6

| 7 | OBSERVATION |
| --- | --- |

7

Tables 1 to 4

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. |
| --- | --- |

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.

| 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. |
| --- | --- |

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.

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. |
| --- | --- |

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.

| 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. |
| --- | --- |

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.

| 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 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. |
| --- | --- |

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.

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 %. |
| --- | --- |

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

---

(1)  OJ L 24, 27.1.2005, p. 35.

1

(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

---

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). |
| --- | --- |

(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 |
| --- | --- |

—

operational: 227

| — | administrative: 49 |
| --- | --- |

—

administrative: 49

| — | mixed: 2 |
| --- | --- |

—

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) |
| --- |
| 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

---

(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.

---

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. |
| --- | --- |

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.

---

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

19.12.2007

EN

Official Journal of the European Union

C 309/18

---

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 |
| --- | --- |

1-2

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

3-6

| 7 | OBSERVATION |
| --- | --- |

7

Tables 1 to 4

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. |
| --- | --- |

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.

| 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. |
| --- | --- |

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.

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. |
| --- | --- |

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.

| 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. |
| --- | --- |

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.

| 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 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. |
| --- | --- |

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.

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. |
| --- | --- |

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.

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 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

---

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; |
| --- | --- |

—

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. |
| --- | --- |

—

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; |
| --- | --- |

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. |
| --- | --- |

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 |
| --- | --- |

—

Operational tasks: 31

| — | Administrative tasks: 10 |
| --- | --- |

—

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. |
| --- | --- |

—

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. |
| --- | --- |

—

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. |
| --- | --- |

—

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). |
| --- | --- |

—

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 |
| --- | --- |

—

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. |
| --- | --- |

—

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) |
| --- |
| 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

---

(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.

---

THE AGENCY'S REPLIES

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

7.

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

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/24 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/24

---

REPORT

on the annual accounts of the European Environment Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/05)

CONTENTS

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

1-2

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

3-6

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

7-8

Tables 1 to 4

The Agency's replies

INTRODUCTION

| 1. | The European Environment Agency (hereinafter called ‘the Agency’) was established by Council Regulation (EEC) No 1210/90 of 7 May 1990 (1). It is responsible for setting up an observation network that provides the Commission, the Member States and, more generally, the public with reliable information on the state of the environment. This information should, in particular, enable the European Union and the Member States to take action to safeguard the environment and assess the effectiveness of such action. |
| --- | --- |

1.

The European Environment Agency (hereinafter called ‘the Agency’) was established by Council Regulation (EEC) No 1210/90 of 7 May 1990 (1). It is responsible for setting up an observation network that provides the Commission, the Member States and, more generally, the public with reliable information on the state of the environment. This information should, in particular, enable the European Union and the Member States to take action to safeguard the environment and assess the effectiveness of such action.

| 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. |
| --- | --- |

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.

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

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 13 of Regulation (EEC) No 1210/90, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 13 of Regulation (EEC) No 1210/90, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions.

| 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 thus obtained a reasonable basis for the Statement set out below:

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
| --- | --- |

6.

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

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

OBSERVATIONS

| 7. | More than 30 % of the commitments for the year had to be carried forward. This proportion reached more than 50 % for operational expenditure (Title III and assigned revenue). Some of the carryovers were not justified: during the last two months of 2006, the Agency made commitments of 1,3 million euro for which the corresponding payment appropriations were carried forward to 2007. An audit of a sample (4) of these carryovers showed that all of them concerned activities to be performed in 2007. Thus, the budgetary principle of annuality was not strictly applied. |
| --- | --- |

7.

More than 30 % of the commitments for the year had to be carried forward. This proportion reached more than 50 % for operational expenditure (Title III and assigned revenue). Some of the carryovers were not justified: during the last two months of 2006, the Agency made commitments of 1,3 million euro for which the corresponding payment appropriations were carried forward to 2007. An audit of a sample (4) of these carryovers showed that all of them concerned activities to be performed in 2007. Thus, the budgetary principle of annuality was not strictly applied.

| 8. | In breach of the principle of segregation of duties, the same authorising officer by sub delegation not only performed ex-ante checks but also managed access rights to the IT system for budgetary accounting. |
| --- | --- |

8.

In breach of the principle of segregation of duties, the same authorising officer by sub delegation not only performed ex-ante checks but also managed access rights to the IT system for budgetary accounting.

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 120, 11.5.1990

1

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

2

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

3

(4)  Value of the sample: approximately 500 000 euro.

4

---

Table 1

European Environment Agency (Copenhagen)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Council Regulation (EEC) No 1210/90 of 7 May 1990 | Governance | Resources made available to the Agency

  (2005) | Main products and services supplied in 2006 |
| --- | --- | --- | --- | --- |
| Environment policy

  Community policy on the environment shall aim at a high level of protection taking into account the diversity of situations in the various regions of the Community. It shall be based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source and that the polluter should pay. (...) In preparing its policy (...), the Community shall take account of available scientific and technical data (...).

  (Article 174 of the Treaty) | Objectives

  To set up a European environment information and observation network to provide the Community and the Member States with objective, reliable and comparable information at European level enabling them to:






  (a) | take the requisite measures to protect the environment; |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Council Regulation (EEC) No 1210/90 of 7 May 1990

Governance

Resources made available to the Agency

(2005)

Main products and services supplied in 2006

Environment policy

Community policy on the environment shall aim at a high level of protection taking into account the diversity of situations in the various regions of the Community. It shall be based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source and that the polluter should pay. (...) In preparing its policy (...), the Community shall take account of available scientific and technical data (...).

(Article 174 of the Treaty)

Objectives

To set up a European environment information and observation network to provide the Community and the Member States with objective, reliable and comparable information at European level enabling them to:

(a)

take the requisite measures to protect the environment;

| (b) | assess the results of such measures; |
| --- | --- |

(b)

assess the results of such measures;

| (c) | ensure that the public is properly informed about the state of the environment. |
| --- | --- |

(c)

ensure that the public is properly informed about the state of the environment.

Tasks

| — | To provide the Community and the Member States with the objective information necessary for framing and implementing sound and effective environmental policies; |
| --- | --- |

—

To provide the Community and the Member States with the objective information necessary for framing and implementing sound and effective environmental policies;

| — | to record, collate and assess data on the state of the environment and to report on the quality of and pressures on the environment within the territory of the Community; |
| --- | --- |

—

to record, collate and assess data on the state of the environment and to report on the quality of and pressures on the environment within the territory of the Community;

| — | to help ensure that environmental data at European level are comparable and, if necessary, to encourage by appropriate means improved harmonisation of methods of measurement; |
| --- | --- |

—

to help ensure that environmental data at European level are comparable and, if necessary, to encourage by appropriate means improved harmonisation of methods of measurement;

| — | to promote the incorporation of European environmental data into international programmes; |
| --- | --- |

—

to promote the incorporation of European environmental data into international programmes;

| — | to publish a report on the state of, trends in and prospects for the environment every five years; |
| --- | --- |

—

to publish a report on the state of, trends in and prospects for the environment every five years;

| — | to stimulate the development of environmental forecasting techniques, methods of assessing the cost of damage to the environment and the exchange of information on damage-prevention technology; |
| --- | --- |

—

to stimulate the development of environmental forecasting techniques, methods of assessing the cost of damage to the environment and the exchange of information on damage-prevention technology;

| — | to stimulate the development of methods of assessing the cost of damage to the environment and the costs of environmental preventive, protection and restoration policies. |
| --- | --- |

—

to stimulate the development of methods of assessing the cost of damage to the environment and the costs of environmental preventive, protection and restoration policies.

1.   Management Board

Consisting of:

| — | one representative per Member State, |
| --- | --- |

—

one representative per Member State,

| — | two representatives of the Commission, |
| --- | --- |

—

two representatives of the Commission,

| — | two scientists appointed by the European Parliament. |
| --- | --- |

—

two scientists appointed by the European Parliament.

Tasks

To adopt the work programme and ensure it is implemented.

2.   Executive Director

Appointed by the Management Board on a proposal from the Commission.

3.   Advisory Forum

Consisting of one representative per Member State, it advises the Executive Director.

4.   Scientific Committee

Consisting of qualified figures in the field of the environment.

5.   External audit

European Court of Auditors.

6.   Discharge Authority

Parliament on a recommendation by the Council.

Final budget

37,1 million euro (32,1 million euro)

Community subsidy: 75 % (84 %).

Staff numbers at 31 December 2006

Number of posts in the establishment plan: 115 (115)

Posts occupied: 110 (107)

+47 (34) other posts (auxiliary contracts, seconded national experts, local and employment-agency staff)

Total staff numbers: 115 (115)

assigned to the following tasks:

| — | operational: 72 (72) |
| --- | --- |

—

operational: 72 (72)

| — | administrative: 42 (42) |
| --- | --- |

—

administrative: 42 (42)

| — | mixed: 1 (1) |
| --- | --- |

—

mixed: 1 (1)

Launch of Prelude (PRospective Environmental analysis of Land Use Development in Europe).

Update of the European Pollutant Emission Register (EPER).

Publication of reports on, inter alia, transport and the environment, agriculture and the environment, energy and the environment, bioenergy, air quality, greenhouse gas emissions, the state of Europe's coasts, urban spread and the management of natural resources.

Seminars organised under the Presidency of the Council.

Assistance with data harmonisation.

Management of the Eionet (European Environment Information and Observation Network).

Source: Information supplied by the Agency.

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

Table 2

European Environment Agency (Copenhagen) — Implementation of the budget 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 under the final budget | Appropriations carried over from the previous financial year |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Community subsidies | 27 650 | 27 650 | Title I
  Staff | 16 013 | 16 013 | 15 692 | 308 | 13 | 508 | 386 | 122 |
| Other subsidies | 5 264 | 5 115 | Title II
  Administration | 2 926 | 2 912 | 2 623 | 283 | 19 | 895 | 836 | 59 |
| Other revenue | 4 200 | 1 798 | Title III
  Operating activities | 13 975 | 13 971 | 8 681 | 5 290 | 4 | 4 069 | 3 671 | 398 |
| Earmarked revenue | 4 200 | 781 | 356 | 3 844 | — | 2 167 | 931 | 115 |
| Total | 37 114 | 34 563 | Total | 37 114 | 33 677 | 27 352 | 9 725 | 36 | 7 639 | 5 824 | 694 |
| 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

Origin of revenue

Revenue entered in the final budget for the financial year

Revenue collected

Allocation of expenditure

Appropriations under the final budget

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Community subsidies

27 650

27 650

Title I

Staff

16 013

16 013

15 692

308

13

508

386

122

Other subsidies

5 264

5 115

Title II

Administration

2 926

2 912

2 623

283

19

895

836

59

Other revenue

4 200

1 798

Title III

Operating activities

13 975

13 971

8 681

5 290

4

4 069

3 671

398

Earmarked revenue

4 200

781

356

3 844

—

2 167

931

115

Total

37 114

34 563

Total

37 114

33 677

27 352

9 725

36

7 639

5 824

694

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

European Environment Agency (Copenhagen) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 27 650 | 26 900 |
| Other subsidies | 5 673 | 5 633 |
| Other revenue (1) | 2 277 | 0 |
| Total (a) | 35 601 | 32 533 |
| Operating expenditure |
| Staff expenditure | 14 500 | 13 423 |
| Fixed asset-related expenditure | 795 | 621 |
| Other administrative expenditure | 4 843 | 4 700 |
| Operational expenditure | 15 000 | 15 618 |
| Total (b) | 35 138 | 34 363 |
| Surplus/deficit from operating activities (c = a – b) | 462 | –1 830 |
| Financial operations income (e) | 72 | 29 |
| Financial operations expenditure (f) | 7 | 7 |
| Surplus/(deficit) from non-operating activities (g = e – f) | 66 | 22 |
| Economic result for the year (h = c + g) | 528 | –1 808 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

27 650

26 900

Other subsidies

5 673

5 633

Other revenue (1)

2 277

0

Total (a)

35 601

32 533

Operating expenditure

Staff expenditure

14 500

13 423

Fixed asset-related expenditure

795

621

Other administrative expenditure

4 843

4 700

Operational expenditure

15 000

15 618

Total (b)

35 138

34 363

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

462

–1 830

Financial operations income (e)

72

29

Financial operations expenditure (f)

7

7

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

66

22

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

528

–1 808

Table 4

European Environment Agency (Copenhagen) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 330 | 456 |
| Tangible fixed assets | 1 866 | 1 649 |
| Current assets |
| Short-term pre-financing (2) | 1 151 | 598 |
| Short-term receivables | 2 611 | 1 581 |
| Long-term receivables | 494 | 482 |
| Cash and cash equivalents (3) | 6 097 | 4 491 |
| Total assets | 12 548 | 9 258 |
| Current liabilities |
| Accounts payable | 7 779 | 5 016 |
| Total liabilities | 7 779 | 5 016 |
| Net assets |
| Accumulated surplus/deficit | 4 242 | 6 050 |
| Economic result for the year | 528 | –1 808 |
| Total net assets | 4 770 | 4 242 |
| Total liabilities and net assets | 12 548 | 9 258 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

330

456

Tangible fixed assets

1 866

1 649

Current assets

Short-term pre-financing (2)

1 151

598

Short-term receivables

2 611

1 581

Long-term receivables

494

482

Cash and cash equivalents (3)

6 097

4 491

Total assets

12 548

9 258

Current liabilities

Accounts payable

7 779

5 016

Total liabilities

7 779

5 016

Net assets

Accumulated surplus/deficit

4 242

6 050

Economic result for the year

528

–1 808

Total net assets

4 770

4 242

Total liabilities and net assets

12 548

9 258

---

(1)  Recovery of building taxes 2000-2004 (905 000 euro).

(2)  Primarily pre-financing given to European Topic Centres.

(3)  Recovery of building taxes 2000-2004 (905 000 euro).

---

THE AGENCY 'S REPLIES

The higher carry-over rate into 2007 was mainly caused by extraordinary events in 2006 which required us to delay interim payments to topic centres until we were satisfied with deliveries. The late commitments mentioned were due to the obligation to have license agreements in place before 1 January each year to maintain continuity and to the time required to define and negotiate costs and time schedules for complex, new work. The Agency will continue its efforts to reduce the carry-over rate in this context.

The risks linked to the situation described have been evaluated by the management and mitigating controls put in place. The remaining risk level is considered as acceptable. This situation will be re-evaluated within a review of sensitive posts to be performed in mid-2007.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/29 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/29

---

REPORT

on the annual accounts of the European Agency for the Management of Operational Cooperation at the External Borders of the Member States for the financial year 2006 together with the Agency's replies

(2007/C 309/06)

CONTENTS

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

1-2

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

3-6

| 7-9 | OBSERVATIONS |
| --- | --- |

7-9

Tables 1 to 4

The Agency' replies

INTRODUCTION

| 1. | The European Agency for the Management of Operational Cooperation at the External Borders of the Members States (hereinafter referred to as ‘the Agency’) was created by Regulation (EC) No 2007/2004 of the Council of 26 October 2004 (1). It became fully autonomous on 1 January 2006 (2). The Agency's main task is to coordinate Member States' activities in the field of management of external borders (support for operational cooperation, technical and operational assistance, risk analysis). |
| --- | --- |

1.

The European Agency for the Management of Operational Cooperation at the External Borders of the Members States (hereinafter referred to as ‘the Agency’) was created by Regulation (EC) No 2007/2004 of the Council of 26 October 2004 (1). It became fully autonomous on 1 January 2006 (2). The Agency's main task is to coordinate Member States' activities in the field of management of external borders (support for operational cooperation, technical and operational assistance, risk analysis).

| 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. |
| --- | --- |

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.

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 of 25 June 2002 (3); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community. |
| --- | --- |

3.

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 of 25 June 2002 (3); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (4) were drawn up by its Executive Director, pursuant to Article 30 of Regulation (EC) No 2007/2004, 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. |
| --- | --- |

4.

The Agency's accounts for the financial year ended 31 December 2006 (4) were drawn up by its Executive Director, pursuant to Article 30 of Regulation (EC) No 2007/2004, 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.

| 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 thus obtained a reasonable basis for the Statement set out below.

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
| --- | --- |

6.

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

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

OBSERVATIONS

| 7. | For the financial year 2006, the rate of commitment was 85 %. The rate of carry-over was more than 70 % overall and nearly 85 % for operating expenditure. Transfers of appropriations between chapters or titles during the year exceeded the total ceiling of 10 % provided for in the Financial Regulation. Thus, the budgetary principles of annuality and specification were not strictly observed. |
| --- | --- |

7.

For the financial year 2006, the rate of commitment was 85 %. The rate of carry-over was more than 70 % overall and nearly 85 % for operating expenditure. Transfers of appropriations between chapters or titles during the year exceeded the total ceiling of 10 % provided for in the Financial Regulation. Thus, the budgetary principles of annuality and specification were not strictly observed.

| 8. | Legal commitments (5) were entered into before budgetary commitments, contrary to the Agency's financial regulation. |
| --- | --- |

8.

Legal commitments (5) were entered into before budgetary commitments, contrary to the Agency's financial regulation.

| 9. | The criteria and procedures used for recruiting staff were not in line with the general provisions for implementing the Staff Regulations: breaches mainly concerned the minimum experience required for a given grade, the reduced role of the Selection Committee and the documentation of the preselection process. |
| --- | --- |

9.

The criteria and procedures used for recruiting staff were not in line with the general provisions for implementing the Staff Regulations: breaches mainly concerned the minimum experience required for a given grade, the reduced role of the Selection Committee and the documentation of the preselection process.

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 349, 25.11.2004, p. 1.

1

(2)  Up to 1 September 2006, salaries were paid by the Commission.

2

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

3

(4)  These accounts were drawn up on 25 May 2007 and received by the Court on 11 July 2007.

4

(5)  Six cases of an approximate total value of 30 000 euro.

5

---

Table 1

The European Agency for the Management of Operational Cooperation at the External Borders — Frontex (Warsaw)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Council Regulation (EEC) No 2007/2004 of 26 October 2004 | Governance | Resources made available to the Agency | Products and services supplied in 2006 |
| --- | --- | --- | --- | --- |
| The Community policy in this area aims at developing common standards and procedures with regard to carrying out checks on persons crossing the external borders of the Member States; furthermore measures shall be taken to ensure cooperation between the relevant departments of the administrations of the Member States in the areas covered by this title, as well as between the Member States and the Commission.

  (Articles 62(2)(a) and 66 of the Treaty) | Objectives

  Frontex was established with a view to improving the integrated management of the external borders of the Member States of the EU.
  Frontex shall:






  (a) | Facilitate and render more effective the application of existing and future Community measures relating to the management of external borders. |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Council Regulation (EEC) No 2007/2004 of 26 October 2004

Governance

Resources made available to the Agency

Products and services supplied in 2006

The Community policy in this area aims at developing common standards and procedures with regard to carrying out checks on persons crossing the external borders of the Member States; furthermore measures shall be taken to ensure cooperation between the relevant departments of the administrations of the Member States in the areas covered by this title, as well as between the Member States and the Commission.

(Articles 62(2)(a) and 66 of the Treaty)

Objectives

Frontex was established with a view to improving the integrated management of the external borders of the Member States of the EU.

Frontex shall:

(a)

Facilitate and render more effective the application of existing and future Community measures relating to the management of external borders.

| (b) | Ensure the coordination of Member States' actions in the implementation of those measures, thereby contributing to an efficient, high and uniform level of control on persons and surveillance of the external borders of the Member States. |
| --- | --- |

(b)

Ensure the coordination of Member States' actions in the implementation of those measures, thereby contributing to an efficient, high and uniform level of control on persons and surveillance of the external borders of the Member States.

| (c) | Provide the Commission and the Member States with the necessary technical support and expertise in the management of the external borders and promote solidarity between Member States. |
| --- | --- |

(c)

Provide the Commission and the Member States with the necessary technical support and expertise in the management of the external borders and promote solidarity between Member States.

Main tasks

| (1) | coordinate operational cooperation between Member States in the field of management of external borders; |
| --- | --- |

(1)

coordinate operational cooperation between Member States in the field of management of external borders;

| (2) | assist Member States on training of national border guards and establish common training standards; |
| --- | --- |

(2)

assist Member States on training of national border guards and establish common training standards;

| (3) | carry out risk analysis; |
| --- | --- |

(3)

carry out risk analysis;

| (4) | follow up on the development of research in control and surveillance; |
| --- | --- |

(4)

follow up on the development of research in control and surveillance;

| (5) | assist Member States in circumstances requiring increased technical and operational assistance; |
| --- | --- |

(5)

assist Member States in circumstances requiring increased technical and operational assistance;

| (6) | provide Member States with the necessary support in organising joint return operations. |
| --- | --- |

(6)

provide Member States with the necessary support in organising joint return operations.

1.   Management Board

Composed of:

| — | one representative of each Member State; |
| --- | --- |

—

one representative of each Member State;

| — | two representatives of the Commission; |
| --- | --- |

—

two representatives of the Commission;

| — | one representative per Schengen associated country (Norway, Iceland) with a limited right to vote. |
| --- | --- |

—

one representative per Schengen associated country (Norway, Iceland) with a limited right to vote.

2.   Executive Director

Appointed, on a proposal by the Commission, by the Management Board.

3.   External audit

European Court of Auditors.

4.   Discharge Authority

Parliament on a recommendation by the Council.

Final Budget for 2006

Total budget:

19,2 million euro

Community contribution:

18,9 million euro (98,8 %)

Contribution from the UK:

0,2 million euro (1,2 %)

Staff figures at 31 December 2006

Number of posts in the Establishment Plan for 2006: 28

Total staff numbers: 72

25 Temporary Agents

+47 other agents (seconded national experts, contract staff, auxiliaries)

Assigned to the following tasks:

| — | operational: 43 |
| --- | --- |

—

operational: 43

| — | administrative: 29 |
| --- | --- |

—

administrative: 29

Operational cooperation:

15 Frontex-coordinated joint operations implemented, seven pilot projects launched.

Training:

the Common Core Curriculum revised and developed; establishment of a network of partnership academies and training coordinators; training programme for 3rd countries and ‘falsified documents’ tool developed; training standards for joint return operations and tactical training for helicopter pilots developed, European Training Day co-organised.

Risk analysis:

five risk analysis reports issued; one public law enforcement bulletin published, the common integrated risk analysis model updated; Frontex Risk analysis network (MS' experts) established.

Research & development:

two reports published, four bulletins issued, one joint workshop with Joint Research Centre.

Assistance to the MS:

coordination of two assistance operations.

Assistance to return operations:

three joint return operations.

Source: Information supplied by the Agency.

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

Table 2

Frontex — The European Agency for the Management of Operational Cooperation at the External Borders (Warsaw) — Implementation of the budget for the financial year 2006

| (1000 euro) |
| --- |
| Revenue | Expenditure (1) |
| 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 | 18 940 | 19 504 | Title I
  Staff | 2 685 | 2 173 | 1 017 | 1 065 | 603 |
| Other subsidies | 226 | 226 | Title II
  Administration | 1 275 | 363 | 69 | 931 | 275 |
| | | | Title III
  Operating activities | 13 135 | 11 687 | 1 856 | 9 936 | 831 |
| Total | 19 166 | 19 730 | Total | 17 095 | 14 223 | 2 942 | 11 932 | 1 709 |
| Source: Data supplied by the Agency. This table summarise the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis. |

(1000 euro)

Revenue

Expenditure (1)

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

18 940

19 504

Title I

Staff

2 685

2 173

1 017

1 065

603

Other subsidies

226

226

Title II

Administration

1 275

363

69

931

275

Title III

Operating activities

13 135

11 687

1 856

9 936

831

Total

19 166

19 730

Total

17 095

14 223

2 942

11 932

1 709

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

Table 3

The European Agency for the Management of Operational Cooperation at the External Borders (Warsaw) — Economic outturn account for the financial year 2006

| (1000 euro) |
| --- |
| | 2006 |
| Operating revenue |
| Community subsidies | 15 129 |
| Other revenue | 253 |
| Total (a) | 15 382 |
| Operating expenditure |
| Staff expenditure | 860 |
| Fixed asset-related expenditure | 7 |
| Other administrative expenditure | 615 |
| Operational expenditure | 4 348 |
| Total (b) | 5 830 |
| Surplus/(deficit) from operating activities (c = a – b) | 9 552 |
| Financial operations expenditure (d) | 5 |
| Surplus/(deficit) from non-operating activities (e = – d) | –5 |
| Economic result for the year (f = c + e) | 9 547 |
| This table covers the period October — December 2006 during which the Agency was financially independant. |

(1000 euro)

2006

Operating revenue

Community subsidies

15 129

Other revenue

253

Total (a)

15 382

Operating expenditure

Staff expenditure

860

Fixed asset-related expenditure

7

Other administrative expenditure

615

Operational expenditure

4 348

Total (b)

5 830

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

9 552

Financial operations expenditure (d)

5

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

–5

Economic result for the year (f = c + e)

9 547

This table covers the period October — December 2006 during which the Agency was financially independant.

Table 4

The European Agency for the Management of Operational Cooperation at the External Borders (Warsaw) — Balance sheet at 31 December 2006

| (1000 euro) |
| --- |
| | 2006 |
| Non-current assets |
| Tangible fixed assets | 31 |
| Current assets |
| Short-term receivables | 75 |
| Cash and cash equivalents | 14 236 |
| Total assets | 14 342 |
| Current liabilities |
| Provisions for risks and charges | 84 |
| Accounts payable | 4 711 |
| Total liabilities | 4 795 |
| Net assets |
| Economic result for the year | 9 547 |
| Total net assets | 9 547 |
| Total liabilities and net assets | 14 342 |

(1000 euro)

2006

Non-current assets

Tangible fixed assets

31

Current assets

Short-term receivables

75

Cash and cash equivalents

14 236

Total assets

14 342

Current liabilities

Provisions for risks and charges

84

Accounts payable

4 711

Total liabilities

4 795

Net assets

Economic result for the year

9 547

Total net assets

9 547

Total liabilities and net assets

14 342

---

(1)  The expenditure figures concern only the one for which the Agency was responsible for (October — December 2006 for Titles I and II, the whole year for Title III), the Commission being responsible for the remaining expenditure.

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

---

THE AGENCY'S REPLIES

| 7. | The rate of carry-over to 2007 is due to the inherent difficulties to the start-up period of the Agency and to the fact that important resources were made available only very late in the year 2006. Concerning the transfers, the Agency has taken note of the Court's remark and has implemented since April 2007 a strict interpretation of the rules concerning transfers. |
| --- | --- |

7.

The rate of carry-over to 2007 is due to the inherent difficulties to the start-up period of the Agency and to the fact that important resources were made available only very late in the year 2006. Concerning the transfers, the Agency has taken note of the Court's remark and has implemented since April 2007 a strict interpretation of the rules concerning transfers.

| 8. | The Agency was aware of the situation described by the Court and had already taken corrective measures. The Agency has launched multiple actions to remind its financial actors the necessity to strictly respect the procedures; a register of exceptions was introduced and its content is presented on a monthly basis to the Executive Director. |
| --- | --- |

8.

The Agency was aware of the situation described by the Court and had already taken corrective measures. The Agency has launched multiple actions to remind its financial actors the necessity to strictly respect the procedures; a register of exceptions was introduced and its content is presented on a monthly basis to the Executive Director.

| 9. | Due to the lack of resources in the start-up period, due to the difficulties of attracting potential staff and due to the necessity to make the Agency as rapidly as possible operational, the Agency was not able to fully implement normal procedures for most of the recruitment procedures launched during the year 2006. In 2007, the situation has been gradually normalised. |
| --- | --- |

9.

Due to the lack of resources in the start-up period, due to the difficulties of attracting potential staff and due to the necessity to make the Agency as rapidly as possible operational, the Agency was not able to fully implement normal procedures for most of the recruitment procedures launched during the year 2006. In 2007, the situation has been gradually normalised.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/34 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/34

---

REPORT

on the annual accounts of the European Medicines Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/07)

CONTENTS

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

1-2

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

3-6

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

7-8

Tables 1 to 4

The Agency's replies

INTRODUCTION

| 1. | The European Medicines Agency (hereinafter ‘the Agency’) was created by Council Regulation (EEC) No 2309/93 of 22 July 1993, which was replaced by Regulation (EC) No 726/2004 of the European Parliament and of the Council of 31 March 2004 (1). The Agency operates through a network and coordinates the scientific resources made available by the national authorities in order to ensure the evaluation and supervision of medicinal products for human or veterinary use. |
| --- | --- |

1.

The European Medicines Agency (hereinafter ‘the Agency’) was created by Council Regulation (EEC) No 2309/93 of 22 July 1993, which was replaced by Regulation (EC) No 726/2004 of the European Parliament and of the Council of 31 March 2004 (1). The Agency operates through a network and coordinates the scientific resources made available by the national authorities in order to ensure the evaluation and supervision of medicinal products for human or veterinary use.

| 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 inTables 2, 3 and 4 for information purposes. |
| --- | --- |

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 inTables 2, 3 and 4 for information purposes.

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

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

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 68 of Regulation (EC) No 726/2004, 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. |
| --- | --- |

4.

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 68 of Regulation (EC) No 726/2004, 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.

| 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 thus obtained a reasonable basis for the Statement set out below.

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
| --- | --- |

6.

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

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

OBSERVATIONS

| 7. | As regards the implementation of the budget for administrative expenditure (Title II), the utilisation rate for commitment appropriations was less than 60 %. More than 40 % of the commitments, in particular in the area of Information Technology, were carried over to the financial year 2007. Thus, the budgetary principle of annuality was not strictly observed. |
| --- | --- |

7.

As regards the implementation of the budget for administrative expenditure (Title II), the utilisation rate for commitment appropriations was less than 60 %. More than 40 % of the commitments, in particular in the area of Information Technology, were carried over to the financial year 2007. Thus, the budgetary principle of annuality was not strictly observed.

| 8. | Article 12(4) of the Fee Regulation (4) states ‘Any review of the fees shall be based on an evaluation of the Agency's costs and on the basis of the related costs of the services provided for by the Member States. Those costs shall be calculated in accordance with generally accepted international costing methods, which shall be adopted in accordance with Article 11(2).’ Up to now, the Agency's customers are billed an amount which is divided into two parts: one part covers the Agency's costs and the other is repaid to the Member States' rapporteurs to cover their own. As the Member States' rapporteurs did never provide full evidence or documentation of their real costs, this situation was in breach of the Fee Regulation. The Agency has not been in a position to make a comprehensive analysis of the costs incurred by Member States' rapporteurs in order to obtain an objective and documented basis on which to adapt its payments to them and, consequently, the fees charged to its customers. |
| --- | --- |

8.

Article 12(4) of the Fee Regulation (4) states ‘Any review of the fees shall be based on an evaluation of the Agency's costs and on the basis of the related costs of the services provided for by the Member States. Those costs shall be calculated in accordance with generally accepted international costing methods, which shall be adopted in accordance with Article 11(2).’ Up to now, the Agency's customers are billed an amount which is divided into two parts: one part covers the Agency's costs and the other is repaid to the Member States' rapporteurs to cover their own. As the Member States' rapporteurs did never provide full evidence or documentation of their real costs, this situation was in breach of the Fee Regulation. The Agency has not been in a position to make a comprehensive analysis of the costs incurred by Member States' rapporteurs in order to obtain an objective and documented basis on which to adapt its payments to them and, consequently, the fees charged to its customers.

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 214, 24.8.1993, p. 18 and OJ L 136, 30.4.2004, p. 1. Pursuant to the latter Regulation the Agency's original name, the European Agency for the Evaluation of Medicinal Products, was changed to the European Medicines Agency.

1

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

2

(3)  These accounts were drawn up on 21 June 2007 and received by the Court on 17 July 2007.

3

(4)  As amended by Council Regulation (EC) No 1905/2005 amending Council Regulation (EC) No 297/95 (OJ L 304, 23.11.2005, p. 1).

4

---

Table 1

European Medicines Agency (London)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Regulation (EC) No 726/2004 and Regulation (EC) No 141/2000 | Governance | Resources made available to the Agency in 2006

  (2005) | Products and Services in 2006

  (2005) |
| --- | --- | --- | --- | --- |
| 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. (...)

  (Article 152 of the Treaty) | Objectives







  — | To coordinate the scientific resources that the Member States' authorities make available to the Agency for the authorisation and supervision of medicinal products for human and veterinary use; |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 726/2004 and Regulation (EC) No 141/2000

Governance

Resources made available to the Agency in 2006

(2005)

Products and Services in 2006

(2005)

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. (...)

(Article 152 of the Treaty)

Objectives

—

To coordinate the scientific resources that the Member States' authorities make available to the Agency for the authorisation and supervision of medicinal products for human and veterinary use;

| — | To provide the Member States and the institutions of the European Union with scientific advice on medicinal products for human or veterinary use. |
| --- | --- |

—

To provide the Member States and the institutions of the European Union with scientific advice on medicinal products for human or veterinary use.

Tasks

| — | To coordinate the scientific evaluation of medicinal products which are subject to Community marketing authorisation procedures; |
| --- | --- |

—

To coordinate the scientific evaluation of medicinal products which are subject to Community marketing authorisation procedures;

| — | To coordinate the supervision of medicinal products which have been authorised within the Community (pharmacovigilance); |
| --- | --- |

—

To coordinate the supervision of medicinal products which have been authorised within the Community (pharmacovigilance);

| — | To advise on the maximum limits for residues of veterinary medicinal products which may be accepted in foodstuffs of animal origin; |
| --- | --- |

—

To advise on the maximum limits for residues of veterinary medicinal products which may be accepted in foodstuffs of animal origin;

| — | To coordinate verification of compliance with the principles of good manufacturing practice, good laboratory practice and good clinical practice; |
| --- | --- |

—

To coordinate verification of compliance with the principles of good manufacturing practice, good laboratory practice and good clinical practice;

| — | To record the status of marketing authorisations granted for medicinal products. |
| --- | --- |

—

To record the status of marketing authorisations granted for medicinal products.

| 1. | The Committee for Medicinal Products for Human Use, consisting of one member and one alternate from each Member State, advises on any question relating to the evaluation of medicinal products for human use. |
| --- | --- |

1.

The Committee for Medicinal Products for Human Use, consisting of one member and one alternate from each Member State, advises on any question relating to the evaluation of medicinal products for human use.

| 2. | The Committee for Medicinal Products for Veterinary Use, consisting of one member and one alternate from each Member State, advises on any question relating to the evaluation of veterinary medicinal products. |
| --- | --- |

2.

The Committee for Medicinal Products for Veterinary Use, consisting of one member and one alternate from each Member State, advises on any question relating to the evaluation of veterinary medicinal products.

| 3. | The Committee for Orphan Medicinal Products, consisting of one member and one alternate from each Member State, advises on any question relating to the evaluation of orphan medicinal products. |
| --- | --- |

3.

The Committee for Orphan Medicinal Products, consisting of one member and one alternate from each Member State, advises on any question relating to the evaluation of orphan medicinal products.

| 4. | The Committee on Herbal Medicinal Products, consisting of one member and one alternate from each Member State, advises on any question relating to the evaluation of herbal medicinal products. |
| --- | --- |

4.

The Committee on Herbal Medicinal Products, consisting of one member and one alternate from each Member State, advises on any question relating to the evaluation of herbal medicinal products.

| 5. | The Management Board consists of one member and one alternate from each Member State, two representatives of the Commission, two representatives appointed by the European Parliament, two representatives from patients' organisations, one representative from doctors' organisations and one representative from veterinarians' organisations. The Board adopts the work programme and the annual report. |
| --- | --- |

5.

The Management Board consists of one member and one alternate from each Member State, two representatives of the Commission, two representatives appointed by the European Parliament, two representatives from patients' organisations, one representative from doctors' organisations and one representative from veterinarians' organisations. The Board adopts the work programme and the annual report.

| 6. | The Executive Director is appointed by the Management Board on a proposal from the Commission. |
| --- | --- |

6.

The Executive Director is appointed by the Management Board on a proposal from the Commission.

| 7. | External audit: European Court of Auditors |
| --- | --- |

7.

External audit: European Court of Auditors

| 8. | Discharge authority: Parliament on a recommendation from the Council. |
| --- | --- |

8.

Discharge authority: Parliament on a recommendation from the Council.

Final budget for 2006:

138,7 (111,8) million euro

Community contribution (excluding subsidy for orphan medicines): 21,63 % (22,7 %)

Staff numbers at 31 December 2006:

424 (379) posts provided for in the establishment plan

Posts occupied: 395 (337,5)

+77 (34) other staff (auxiliary staff, contract staff, seconded national experts, employment-agency staff)

Total staff: 472 (371,5)

Assigned to the following duties:

| — | Operational: 406 (302,5) |
| --- | --- |

—

Operational: 406 (302,5)

| — | Administrative: 66 (69) |
| --- | --- |

—

Administrative: 66 (69)

Medicinal Products for Human Use

| — | Applications for marketing authorisations: 79 (43) |
| --- | --- |

—

Applications for marketing authorisations: 79 (43)

| — | Favourable opinions: 51 (24) |
| --- | --- |

—

Favourable opinions: 51 (24)

| — | Average evaluation time: 171 days (203 days) |
| --- | --- |

—

Average evaluation time: 171 days (203 days)

| — | Opinions after authorisation: 1 380 (1 148) |
| --- | --- |

—

Opinions after authorisation: 1 380 (1 148)

| — | Pharmacovigilance: 94 081 reports (91 565 reports) |
| --- | --- |

—

Pharmacovigilance: 94 081 reports (91 565 reports)

| — | Periodic safety update reports: 273 (279) |
| --- | --- |

—

Periodic safety update reports: 273 (279)

| — | Scientific opinions: 193 (135) |
| --- | --- |

—

Scientific opinions: 193 (135)

| — | Procedures for mutual recognition: 9 241 (8 451) |
| --- | --- |

—

Procedures for mutual recognition: 9 241 (8 451)

Medicinal Products for Veterinary Use

| — | New applications: 5 (11) |
| --- | --- |

—

New applications: 5 (11)

| — | Applications in respect of variants: 56 (40) |
| --- | --- |

—

Applications in respect of variants: 56 (40)

| — | Inspections: 128 (114) |
| --- | --- |

—

Inspections: 128 (114)

Orphan Medicinal Products

| — | Applications: 104 (118) |
| --- | --- |

—

Applications: 104 (118)

| — | Favourable opinions: 81 (88) |
| --- | --- |

—

Favourable opinions: 81 (88)

Source: Information supplied by the Agency.

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

Table 2

European Medicines Agency (London) — 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 collected | Allocation of expenditure | Final budget appropriations | Appropriations carried over from previous year(s) |
| entered | committed | paid | carried over | cancelled | entered | paid | cancelled |
| Own revenue | 92 580 | 94 556 | Title I
  Staff | 44 921 | 43 709 | 42 941 | 768 | 1 212 | 700 | 563 | 136 |
| Community subsidies | 30 650 | 32 551 |
| Other subsidies | 8 160 | 7 374 | Title II
  Administration | 34 454 | 34 007 | 18 946 | 15 061 | 447 | 10 041 | 8 535 | 1 505 |
| Other revenue | 7 286 | 6 820 | Title III
  Operating activities | 59 301 | 58 431 | 44 846 | 13 585 | 870 | 8 092 | 7 603 | 490 |
| Total | 138 676 | 141 301 | Total | 138 676 | 136 147 | 106 733 | 29 414 | 2 529 | 18 833 | 16 701 | 2 131 |
| NB: Any discrepancies in totals are due to the effects of rounding.

  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

Appropriations carried over from previous year(s)

entered

committed

paid

carried over

cancelled

entered

paid

cancelled

Own revenue

92 580

94 556

Title I

Staff

44 921

43 709

42 941

768

1 212

700

563

136

Community subsidies

30 650

32 551

Other subsidies

8 160

7 374

Title II

Administration

34 454

34 007

18 946

15 061

447

10 041

8 535

1 505

Other revenue

7 286

6 820

Title III

Operating activities

59 301

58 431

44 846

13 585

870

8 092

7 603

490

Total

138 676

141 301

Total

138 676

136 147

106 733

29 414

2 529

18 833

16 701

2 131

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

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

European Medicines Agency (London) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 (1) |
| Operating revenue |
| Fees and other revenue | 119 039 | 72 979 |
| Community subsidies | 31 503 | 28 957 |
| Total (a) | 150 542 | 101 936 |
| Operating expenses |
| Staff expenses | 45 150 | 40 057 |
| Other administrative expenses | 26 607 | 22 459 |
| Operational expenses | 63 437 | 37 849 |
| Total (b) | 135 194 | 100 365 |
| Surplus/(deficit) from operating activities (c = a – b) | 15 348 | 1 571 |
| Financial operations revenue (e) | 1 433 | 2 257 |
| Surplus/(deficit) from non-operating activities (f = e) | 1 433 | 2 257 |
| Economic result for the year (g = c + f) | 16 781 | 3 828 |

(1000 euro)

2006

2005 (1)

Operating revenue

Fees and other revenue

119 039

72 979

Community subsidies

31 503

28 957

Total (a)

150 542

101 936

Operating expenses

Staff expenses

45 150

40 057

Other administrative expenses

26 607

22 459

Operational expenses

63 437

37 849

Total (b)

135 194

100 365

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

15 348

1 571

Financial operations revenue (e)

1 433

2 257

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

1 433

2 257

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

16 781

3 828

Table 4

European Medicines Agency (London) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 (1) |
| Non-current assets |
| Intangible fixed assets | 14 889 | 10 492 |
| Tangible fixed assets | 6 695 | 6 945 |
| Current assets |
| Short-term receivables | 26 045 | 14 490 |
| Cash and cash equivalents | 37 508 | 29 934 |
| Total assets | 85 138 | 61 861 |
| Current liabilities |
| Provisions for risks and charges | 2 699 | 1 214 |
| Accounts payable | 38 550 | 33 539 |
| Total liabilities | 41 249 | 34 753 |
| Net assets |
| Accumulated surplus/deficit | 27 108 | 23 280 |
| Economic result for the year | 16 781 | 3 828 |
| Total net assets | 43 889 | 27 108 |
| Total liabilities and net assets | 85 138 | 61 861 |

(1000 euro)

2006

2005 (1)

Non-current assets

Intangible fixed assets

14 889

10 492

Tangible fixed assets

6 695

6 945

Current assets

Short-term receivables

26 045

14 490

Cash and cash equivalents

37 508

29 934

Total assets

85 138

61 861

Current liabilities

Provisions for risks and charges

2 699

1 214

Accounts payable

38 550

33 539

Total liabilities

41 249

34 753

Net assets

Accumulated surplus/deficit

27 108

23 280

Economic result for the year

16 781

3 828

Total net assets

43 889

27 108

Total liabilities and net assets

85 138

61 861

---

(1)  For the 2005 published accounts, the accrual accounting had not been fully implemented.

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.

---

THE AGENCY'S REPLIES

| 7. | The total automatic carry over to 2007 on Title 2 amounted to 15 million euro, of which 8 million euro was for Information Technology (Chapter 21). The Agency is in the process to develop and implement a multi-annual programme of EU Telematics for the regulation of medicinal products. The governance process and the nature of the projects makes it dificult to strictly observe the annuality principle, especially as many governance steps are outside the control of the EMEA. Every effort is made to bring down the level of automatic carry overs in the future. |
| --- | --- |

7.

The total automatic carry over to 2007 on Title 2 amounted to 15 million euro, of which 8 million euro was for Information Technology (Chapter 21). The Agency is in the process to develop and implement a multi-annual programme of EU Telematics for the regulation of medicinal products. The governance process and the nature of the projects makes it dificult to strictly observe the annuality principle, especially as many governance steps are outside the control of the EMEA. Every effort is made to bring down the level of automatic carry overs in the future.

| 8. | The Agency has together with the national competent authorities made long efforts to assess the costs incurred by the Member States' rapporteurs. At its December 2006 meeting the Management Board of the agency ‘took the decision in principle to revise the scale of fees system’ and decided to establish a costing group in order to ‘... to prepare and agree on generally accepted international costing methods referred to in Article 12 of the fee Regulation ... Representatives from all national competent authorities will be invited to participate in this work.’ |
| --- | --- |

8.

The Agency has together with the national competent authorities made long efforts to assess the costs incurred by the Member States' rapporteurs. At its December 2006 meeting the Management Board of the agency ‘took the decision in principle to revise the scale of fees system’ and decided to establish a costing group in order to ‘... to prepare and agree on generally accepted international costing methods referred to in Article 12 of the fee Regulation ... Representatives from all national competent authorities will be invited to participate in this work.’

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/40 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/40

---

REPORT

on the annual accounts of the European Agency for Reconstruction for the financial year 2006 together with the Agency's replies

(2007/C 309/08)

CONTENTS

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

1-2

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

3-6

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

7-8

Tables 1 to 4

The Agency's replies

INTRODUCTION

| 1. | The European Agency for Reconstruction (hereinafter ‘the Agency’) was established by Council Regulation (EC) No 1628/96 (1), as last amended by Council Regulation (EC) No 756/2006 of 28 November 2006 (2). When it was set up in 2000, the Agency was responsible for managing the EU's aid programmes in Kosovo. Its mandate was later extended to Serbia and Montenegro and the former Yugoslav Republic of Macedonia. The Agency's head office is in Thessaloniki and it has operational centres in Belgrade, Podgorica, Pristina and Skopje. It implements programmes to foster institution-building and good governance, to promote the development of a market economy and essential infrastructure and to consolidate civil society. Its mandate is scheduled to end on 31 December 2008. |
| --- | --- |

1.

The European Agency for Reconstruction (hereinafter ‘the Agency’) was established by Council Regulation (EC) No 1628/96 (1), as last amended by Council Regulation (EC) No 756/2006 of 28 November 2006 (2). When it was set up in 2000, the Agency was responsible for managing the EU's aid programmes in Kosovo. Its mandate was later extended to Serbia and Montenegro and the former Yugoslav Republic of Macedonia. The Agency's head office is in Thessaloniki and it has operational centres in Belgrade, Podgorica, Pristina and Skopje. It implements programmes to foster institution-building and good governance, to promote the development of a market economy and essential infrastructure and to consolidate civil society. Its mandate is scheduled to end on 31 December 2008.

| 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 inTables 2, 3 and 4 for information purposes. |
| --- | --- |

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 inTables 2, 3 and 4 for information purposes.

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

3.

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

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (4) were drawn up by its Director, pursuant to Article 8(2) of Council Regulation (EC) No 2667/2000 (5), and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The Agency's accounts for the financial year ended 31 December 2006 (4) were drawn up by its Director, pursuant to Article 8(2) of Council Regulation (EC) No 2667/2000 (5), and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions.

| 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 thus obtained a reasonable basis for the Statement set out below.

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
| --- | --- |

6.

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

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

OBSERVATIONS

| 7. | The rate of implementation of the budget was satisfactory. The Agency's attention is however drawn to the level of appropriations yet to be committed, which will require particular monitoring of its programmes given that its mandate expires at the end of 2008. |
| --- | --- |

7.

The rate of implementation of the budget was satisfactory. The Agency's attention is however drawn to the level of appropriations yet to be committed, which will require particular monitoring of its programmes given that its mandate expires at the end of 2008.

| 8. | The Court noted that the accounting system and the internal control system had improved in comparison with the preceding years, in particular regarding the monitoring of the funds managed by external bodies and the implementation of procurement procedures. The audit of the Court does not call for observations of a significant nature in those fields. |
| --- | --- |

8.

The Court noted that the accounting system and the internal control system had improved in comparison with the preceding years, in particular regarding the monitoring of the funds managed by external bodies and the implementation of procurement procedures. The audit of the Court does not call for observations of a significant nature in those fields.

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 204, 14.8.1996, p. 1.

1

(2)  OJ L 332, 30.11.2006, p. 18.

2

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

3

(4)  These accounts were drawn up on 13 June 2007 and received by the Court on 6 July 2007.

4

(5)  OJ L 306, 7.12.2000, p. 7.

5

---

Table 1

European Agency for Reconstruction (Thessaloniki)

| Areas of Community competence deriving from the Treaty | The Agency's powers as defined in Council Regulation (EC) No 2667/2000 | Governance | Resources made available to the Agency

  (data for2005 in brackets) | Activities and services provided in 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 181a) | Objectives

  To provide EU assistance:






  (i) | For reconstruction, the return of refugees and displaced persons; |

Areas of Community competence deriving from the Treaty

The Agency's powers as defined in Council Regulation (EC) No 2667/2000

Governance

Resources made available to the Agency

(data for2005 in brackets)

Activities and services provided in 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 181a)

Objectives

To provide EU assistance:

(i)

For reconstruction, the return of refugees and displaced persons;

| (ii) | To promote sound administration, stronger institutions and the rule of law; |
| --- | --- |

(ii)

To promote sound administration, stronger institutions and the rule of law;

| (iii) | To support the development of a market economy and investment in essential physical infrastructure and environmental measures; |
| --- | --- |

(iii)

To support the development of a market economy and investment in essential physical infrastructure and environmental measures;

| (iv) | To support social development and consolidate civil society. |
| --- | --- |

(iv)

To support social development and consolidate civil society.

Application

The agency manages the principal aid programmes in Serbia and Montenegro (Republic of Serbia, Kosovo, and Republic of Montenegro) and in the Former Yugoslav Republic of Macedonia (FYROM). Beneficiaries may include States, bodies under UN administration, federated regional and local bodies, public and semi-public bodies, both sides of industry, business support organisations, cooperatives, mutual companies, charities, foundations and NGOs.

Tasks:

| — | To advise the Commission on priority needs; |
| --- | --- |

—

To advise the Commission on priority needs;

| — | to devise programmes for reconstruction and the return of refugees and displaced persons; |
| --- | --- |

—

to devise programmes for reconstruction and the return of refugees and displaced persons;

| — | to take every possible step to implement EU assistance. |
| --- | --- |

—

to take every possible step to implement EU assistance.

Governing Board:

Comprises one representative from each Member State, two representatives from the Commission and an observer from the European Investment Bank.

Director:

Appointed by the Governing Board on a proposal from the Commission.

Operational Centres in Belgrade, Pristina, Podgorica and Skopje with a high level of management autonomy.

External control:

European Court of Auditors.

Discharge Authority:

The Parliament following a recommendation from the Council.

Final budget:

268,8 million euro (318,9 million euro) including an EU grant

Staff at 31 December 2006:

108 (114) TA posts listed in the establishment plan

TA posts occupied: 90 (88)

Other posts:

Local staff: 164 (170) posts Posts occupied: 157 (162)

Contract staff: 29 (28) posts Posts occupied: 26 (26)

Total staff: 273 (276)

Responsible for

Operational tasks: 171 (169)

Administrative tasks: 102 (107)

By operational centre (main developments):

KOSOVO: a) Start-up grants, loans, training and business advice to small businesses of minorities and returnees; b) Support to privatisation; c) Rehabilitation of district heating (in north) and waste and water utility buildings in (south) Mitrovica; d) Improving border/boundary management; e) Setting up a new system for public investment programming; f) Expert advice and training to the Kosovo Assembly; g) Support to Justice and Internal Affairs ministries and Statistical Office; h) Environmental upgrades, including construction of Pristina regional landfill; i) Support to drafting of Kosovo Rural Development Plan.

SERBIA: a) Draft laws in public administration reform; b) Supply of equipment to border police; c) Completion of state-of-the-art DNA laboratory; d) Rehabilitation and supply of equipment to courts; e) Rehabilitation programme for hospitals; f) New jobs created due to loans from the Revolving Credit Fund; g) Training support to enterprises; h) Regional training centres for adults; i) Economic development programmes for poorest municipalities; j) Handover of new border crossings with Hungary and Croatia; k) Renovation of municipal infrastructure; l) Reform of the statistics office; m) Support to Foreign Direct Investment management; n) Support to vulnerable groups including refugees and displaced persons; o) Completion of power plant rehabilitation projects; p) Air filter installed at Kostolac power plant.

MONTENEGRO: a) Construction of Podgorica international airport and refurbishment of Tivat airport; b) Central IT database of the Ministry of the Interior; c) Support for Human Resources Management Agency; d) New Roads Directorate and transport laws; e) Electricity utility unbundling/restructuring, energy efficiency strategy; f) Establishing an Environmental Protection Agency; g) Providing management expertise to companies; h) Supporting Judicial Training Centre; i) Prison reform; j) Support to drafting of strategy for agriculture and rural development

FORMER YUGOSLAV REPUBLIC OF MACEDONIA: a) Assistance in strengthening and creating new institutions in the public administration (e.g. State Statistical Office, Civil Society Unit in the General Secretariat; Public Procurement Bureau); b) Support to development of electronic communications market; c) Support to police reform including refurbishment of Police Academy; d) Support to money laundering prevention and refurbishment of Skopje Basic Court; e) Opening of new state phytosanitary laboratory; f) Construction of National Border Management Coordination Centre; g) Assistance to municipalities in decentralisation; h) Upgrading of municipal infrastructure; i) Training of civil servants from non-majority communities; k) Management training for SMEs.

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

European Agency for Reconstruction (Thessaloniki) — 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 the previous financial years | Appropriations available
  (from financial year plus previous years) |
| entered | committed | paid | carried over | cancelled | available | committed | paid | carried over | cancelled | entered | committed | paid | carried over | cancelled |
| Community subsidies | 24 795 | 20 200 | Title I
  Staff | 18 540 | 17 304 | 17 117 | 187 | 1 236 | 495 | | 385 | | 109 | 19 035 | 17 304 | 17 502 | 187 | 1 345 |
| Other revenue | p.m. | 877 | Title II
  Administration | 6 255 | 4 705 | 4 198 | 507 | 1 550 | 500 | | 453 | | 47 | 6 755 | 4 705 | 4 651 | 507 | 1 597 |
| Earmarked revenue | 244 000 | 256 008 | Title III
  Operating activities | 244 000 | 32 760 | 4 007 | 239 992 | 0 | 701 681 | 153 923 | 249 952 | 438 814 | 12 915 | 945 681 | 186 683 | 253 959 | 678 806 | 12 915 |
| Total | 268 795 | 277 085 | Total | 268 795 | 54 769 | 25 322 | 240 686 | 2 786 | 702 676 | 153 923 | 250 790 | 438 814 | 13 071 | 971 471 | 208 692 | 276 112 | 679 500 | 15 857 |
| NB: The amount available for commitment at the end of the year is 746 922 euro (of which 211 240 euro from 2006 appropriations and 535 682 euro from previous years).

  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

Final budget appropriations

Appropriations carried over from the previous financial years

Appropriations available

(from financial year plus previous years)

entered

committed

paid

carried over

cancelled

available

committed

paid

carried over

cancelled

entered

committed

paid

carried over

cancelled

Community subsidies

24 795

20 200

Title I

Staff

18 540

17 304

17 117

187

1 236

495

385

109

19 035

17 304

17 502

187

1 345

Other revenue

p.m.

877

Title II

Administration

6 255

4 705

4 198

507

1 550

500

453

47

6 755

4 705

4 651

507

1 597

Earmarked revenue

244 000

256 008

Title III

Operating activities

244 000

32 760

4 007

239 992

0

701 681

153 923

249 952

438 814

12 915

945 681

186 683

253 959

678 806

12 915

Total

268 795

277 085

Total

268 795

54 769

25 322

240 686

2 786

702 676

153 923

250 790

438 814

13 071

971 471

208 692

276 112

679 500

15 857

NB: The amount available for commitment at the end of the year is 746 922 euro (of which 211 240 euro from 2006 appropriations and 535 682 euro from previous years).

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

European Agency for Reconstruction (Thessaloniki) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 273 192 | 261 009 |
| Other revenue | 239 | 1 832 |
| Total (a) | 273 432 | 262 841 |
| Operating expenses |
| Staff expenses | 16 164 | 15 727 |
| Fixed asset related expenses | 581 | 703 |
| Other administrative expenses | 5 510 | 6 509 |
| Operational expenses | 247 509 | 243 442 |
| Total (b) | 269 764 | 266 381 |
| Surplus/(deficit) from operating activities (c = a – b) | 3 668 | 3 540 |
| Financial operations revenue (e) | — | — |
| Financial operations expenses (f) | 25 | — |
| Surplus/(deficit) from non-operating activities (g = e – f) | –25 | — |
| Economic result for the year (h = c + g) | 3 643 | –3 540 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

273 192

261 009

Other revenue

239

1 832

Total (a)

273 432

262 841

Operating expenses

Staff expenses

16 164

15 727

Fixed asset related expenses

581

703

Other administrative expenses

5 510

6 509

Operational expenses

247 509

243 442

Total (b)

269 764

266 381

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

3 668

3 540

Financial operations revenue (e)

—

—

Financial operations expenses (f)

25

—

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

–25

—

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

3 643

–3 540

Table 4

European Agency for Reconstruction (Thessaloniki) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 70 | 84 |
| Tangible fixed assets | 743 | 1 192 |
| Long-term receivables | 10 175 | 40 002 |
| Current assets |
| Short-term pre-financing | 166 885 | 135 285 |
| Short-term receivables | 24 562 | 29 574 |
| Cash and cash equivalents | 51 991 | 57 917 |
| Total assets | 254 425 | 264 055 |
| Current liabilities |
| Provisions for risks and charges | 1 986 | 2 100 |
| Accounts payable | 85 496 | 98 655 |
| Total liabilities | 87 482 | 100 755 |
| Net assets |
| Accumulated surplus/deficit | 163 300 | 166 840 |
| Economic result for the year | 3 643 | –3 540 |
| Total net assets | 166 943 | 163 300 |
| Total liabilities and net assets | 254 425 | 264 055 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

70

84

Tangible fixed assets

743

1 192

Long-term receivables

10 175

40 002

Current assets

Short-term pre-financing

166 885

135 285

Short-term receivables

24 562

29 574

Cash and cash equivalents

51 991

57 917

Total assets

254 425

264 055

Current liabilities

Provisions for risks and charges

1 986

2 100

Accounts payable

85 496

98 655

Total liabilities

87 482

100 755

Net assets

Accumulated surplus/deficit

163 300

166 840

Economic result for the year

3 643

–3 540

Total net assets

166 943

163 300

Total liabilities and net assets

254 425

264 055

---

THE EUROPEAN AGENCY FOR RECONSTRUCTION REPLIES

| 7. | The Agency has a very fast track implementing assistance programmes. The last allocation to the Agency for assistance amounted to €250 million in 2006 to be contracted over three years, hence until 2009. In the first six months of 2007 the Agency contracted € 185 million which represents 74 % of an annual allocation. Therefore, at the end of its mandate, the residual amount to be contracted is likely to be small. |
| --- | --- |

7.

The Agency has a very fast track implementing assistance programmes. The last allocation to the Agency for assistance amounted to €250 million in 2006 to be contracted over three years, hence until 2009. In the first six months of 2007 the Agency contracted € 185 million which represents 74 % of an annual allocation. Therefore, at the end of its mandate, the residual amount to be contracted is likely to be small.

| 8. | The Agency acknowledges the Court's comments. |
| --- | --- |

8.

The Agency acknowledges the Court's comments.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/47 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/47

---

REPORT

on the annual accounts of the European Aviation Safety Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/09)

CONTENTS

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

1-2

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

3-6

| 7-10 | OBSERVATIONS |
| --- | --- |

7-10

Tables 1 to 4

The Agency's replies

INTRODUCTION

| 1. | The European Aviation Safety Agency (hereinafter called ‘the Agency’) was established by Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002 (1). The Agency's tasks are to maintain a high level of civil aviation safety, to ensure the proper development of civil aviation safety, to establish certification specifications and to provide certification of aeronautical products. |
| --- | --- |

1.

The European Aviation Safety Agency (hereinafter called ‘the Agency’) was established by Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002 (1). The Agency's tasks are to maintain a high level of civil aviation safety, to ensure the proper development of civil aviation safety, to establish certification specifications and to provide certification of aeronautical products.

| 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. |
| --- | --- |

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.

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

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 49 of Regulation (EC) No 1592/2002, 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. |
| --- | --- |

4.

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 49 of Regulation (EC) No 1592/2002, 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.

| 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 thus obtained a reasonable basis for the Statement set out below.

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
| --- | --- |

6.

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

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

OBSERVATIONS

| 7. | At the end of 2006, the appropriations carried over for title II (administrative expenditure) were about 40 % of the commitments and for title III (non-differentiated operational expenditure) were about 50 %. For the same titles, more than 15 % of the appropriations were cancelled. Contrary to its financial regulation, the Agency used its differentiated payment appropriations carried over from 2005 despite the fact that it had enough payment appropriations for 2006. Thus, the budgetary principle of annuality was not strictly observed. |
| --- | --- |

7.

At the end of 2006, the appropriations carried over for title II (administrative expenditure) were about 40 % of the commitments and for title III (non-differentiated operational expenditure) were about 50 %. For the same titles, more than 15 % of the appropriations were cancelled. Contrary to its financial regulation, the Agency used its differentiated payment appropriations carried over from 2005 despite the fact that it had enough payment appropriations for 2006. Thus, the budgetary principle of annuality was not strictly observed.

| 8. | For its 2006 certification activities, the Agency's cost analysis system showed costs of about 48 million euro versus revenue of about 35 million euro. The Agency, in cooperation with the Commission (4), must review the current fees scheme in order to ensure that the Agency's costs for the certification activities are justified and covered by its fees. |
| --- | --- |

8.

For its 2006 certification activities, the Agency's cost analysis system showed costs of about 48 million euro versus revenue of about 35 million euro. The Agency, in cooperation with the Commission (4), must review the current fees scheme in order to ensure that the Agency's costs for the certification activities are justified and covered by its fees.

| 9. | In the Agency's balance sheet, short-term receivables amounted to approximately 14 million euro, of which 20 % were more than three months old. The Agency has not yet implemented an effective claim management system, possibly including interest on late payment. |
| --- | --- |

9.

In the Agency's balance sheet, short-term receivables amounted to approximately 14 million euro, of which 20 % were more than three months old. The Agency has not yet implemented an effective claim management system, possibly including interest on late payment.

| 10. | For a contract with an external consultant (221 000 euro) and for the renewal of an agreement for travel services signed in 2004 (annual market value of approximately 1,5 million euro), the Agency had recourse to the negotiated procedure for reasons of urgency (5) which were not justified and rather reflected insufficient programming. |
| --- | --- |

10.

For a contract with an external consultant (221 000 euro) and for the renewal of an agreement for travel services signed in 2004 (annual market value of approximately 1,5 million euro), the Agency had recourse to the negotiated procedure for reasons of urgency (5) which were not justified and rather reflected insufficient programming.

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 240, 7.9.2002, p. 1.

1

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

2

(3)  These accounts were drawn up on 29 June 2007 and received by the Court on 11 July 2007.

3

(4)  Fees and charges are fixed by an ad-hoc Commission Regulation.

4

ad-hoc

(5)  Article 126 (1) (c) of the implementing rules of the Financial Regulation applicable to the general budget.

5

---

Table 1

European Aviation Safety Agency (Cologne)

| Areas of Community competence deriving from the Treaty | The Agency's powers as defined in Regulation (EC) No 1592/2002 | Governance | Resources made available to the Agency in 2006

  (2005) | Products and services |
| --- | --- | --- | --- | --- |
| Common transport policy:

  ‘The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport.’

  (Article 80 of the Treaty) | Objectives:

  To maintain a high uniform level of civil aviation safety in Europe and to ensure the proper functioning and development of civil aviation safety. | Measures to be adopted by the Agency:







  (1) | To issue opinions to the Commission; |

Areas of Community competence deriving from the Treaty

The Agency's powers as defined in Regulation (EC) No 1592/2002

Governance

Resources made available to the Agency in 2006

(2005)

Products and services

Common transport policy:

‘The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport.’

(Article 80 of the Treaty)

Objectives:

To maintain a high uniform level of civil aviation safety in Europe and to ensure the proper functioning and development of civil aviation safety.

Measures to be adopted by the Agency:

(1)

To issue opinions to the Commission;

| (2) | To issue certification specifications, including airworthiness codes and acceptable means of compliance, and any guidance material for the application of Community policy; |
| --- | --- |

(2)

To issue certification specifications, including airworthiness codes and acceptable means of compliance, and any guidance material for the application of Community policy;

| (3) | To take decisions regarding airworthiness and environmental certification; |
| --- | --- |

(3)

To take decisions regarding airworthiness and environmental certification;

| (4) | To conduct standardisation inspections at the competent authorities of the Member States; |
| --- | --- |

(4)

To conduct standardisation inspections at the competent authorities of the Member States;

| (5) | To conduct the necessary investigations on company premises. |
| --- | --- |

(5)

To conduct the necessary investigations on company premises.

| (1) | The Management Board, consisting of one representative of each Member State and one representative of the Commission, sets up an advisory body of interested parties. |
| --- | --- |

(1)

The Management Board, consisting of one representative of each Member State and one representative of the Commission, sets up an advisory body of interested parties.

| (2) | The Executive Director manages the Agency and is appointed by the Management Board on a proposal from the Commission. |
| --- | --- |

(2)

The Executive Director manages the Agency and is appointed by the Management Board on a proposal from the Commission.

| (3) | The Board of Appeal rules on the Agency's decisions concerning certification, fees, charges and checks at undertakings. |
| --- | --- |

(3)

The Board of Appeal rules on the Agency's decisions concerning certification, fees, charges and checks at undertakings.

| (4) | Financial control Court of Auditors. |
| --- | --- |

(4)

Financial control Court of Auditors.

| (5) | Discharge given by the Parliament on a recommendation from the Council. |
| --- | --- |

(5)

Discharge given by the Parliament on a recommendation from the Council.

Final budget:

Total budget: 66,8 (31,5) million euro, including:

Revenue from fees and charges: 33,2 (8,6) million euro (50 %)

Community subsidy: 31,4 (18,9) million euro (47 %),

Contribution from the Federal Republic of Germany (Ministry of Transport): 1,2 million euro (2 %)

Staff at 31.12.2006;

328 (200) temporary staff in the establishment plan

posts occupied: 276 (132)

Other satff: 33 (21) contract and auxiliary staff

Total staff:

309 (153) assigned to the following tasks:

| — | operational: 227 (86) |
| --- | --- |

—

operational: 227 (86)

| — | administrative: 57 (38) |
| --- | --- |

—

administrative: 57 (38)

| — | mixed: 25 (29) |
| --- | --- |

—

mixed: 25 (29)

Opinions:

| — | 5 opinions concerning amendments to Regulations (EC) Nos 1592/2002, 1702/2003 and 2042/2003. |
| --- | --- |

—

5 opinions concerning amendments to Regulations (EC) Nos 1592/2002, 1702/2003 and 2042/2003.

Rulemaking decisions:

| — | 3 amendments of CS 25, CS-P and CS-ETSO certification specifications; |
| --- | --- |

—

3 amendments of CS 25, CS-P and CS-ETSO certification specifications;

| — | 6 amendments of Acceptable Means of Compliance and Guidance Material for Regulations (EC) Nos 1702/2003 and 2042/2003; |
| --- | --- |

—

6 amendments of Acceptable Means of Compliance and Guidance Material for Regulations (EC) Nos 1702/2003 and 2042/2003;

| — | 1 decision on the organisation of approval numbers. |
| --- | --- |

—

1 decision on the organisation of approval numbers.

International cooperation:

| — | 1 agreement protocol concluded with China on the final production line of the Airbus A320 in China and 1 cooperation agreement signed with China on Airbus products in general; |
| --- | --- |

—

1 agreement protocol concluded with China on the final production line of the Airbus A320 in China and 1 cooperation agreement signed with China on Airbus products in general;

| — | 1 cooperation agreement concluded with Japan for the export of European products; |
| --- | --- |

—

1 cooperation agreement concluded with Japan for the export of European products;

| — | 13 cooperation agreements concluded with every non-EU ECAC country within the context of the continuation of the SAFA programme; |
| --- | --- |

—

13 cooperation agreements concluded with every non-EU ECAC country within the context of the continuation of the SAFA programme;

| — | Extension of the cooperation agreement with the Aeronautical Committee of the Commonwealth of Independent States on Beriev products. |
| --- | --- |

—

Extension of the cooperation agreement with the Aeronautical Committee of the Commonwealth of Independent States on Beriev products.

Certification decisions:

Type certificates: 70

Supplementary type certificates: 803

Airworthiness directives: 382

European Technical Specifications: 178

Acceptable means of compliance: 97

Major changes: 1 125

Minor changes: 1 830

Major repairs: 1 009

Minor repairs: 372

AFM/RFM (= Flight Manual Revisions): 430

Approval of design organisations (1): 377

Approval of maintenance organisations (bilateral) (1): 1 293

Approval of maintenance organisations (foreign) (1): 201

Approval of maintenance training organisations (1): 16

Approval of manufacturing organisations (1): 6

Standardisation inspections (number of countries by type):

Approval of manufacturing organisations: 12 countries

Approval of maintenance organisations: 26 countries

Source: Information supplied by the Agency.

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

Table 2

European Aviation Safety Agency (Cologne) — 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 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 |
| Own revenue | 30 700 | 33 236 | Title I
  Staff (NDA) | 25 211 | 23 881 | 23 595 | 286 | 1 330 | 214 | 160 | 54 |
| Community subsidy | 32 899 | 31 454 | Title II
  Administration (NDA) | 6 812 | 6 222 | 3 637 | 2 585 | 590 | 782 | 690 | 92 |
| Other subsidies | 635 | 453 | Title III
  Operating activities (NDA) | 7 380 | 5 625 | 2 763 | 2 862 | 1 756 | 1 276 | 1 130 | 146 |
| Title III
  Operating activities (DA) | | | | | | | | |
| Other revenue | 156 | 308 | — CA | 25 680 | 23 219 | | | 2 461 | | | |
| — PA | 24 880 | | 11 362 | 13 518 | 0 | 4 334 | 4 334 | 0 |
| Assigned revenue | 1 273 | 1 380 | Assigned revenue | 1 380 | 1 365 | 1 357 | 0 | 22 | 0 | 0 | 0 |
| Total | 65 663 | 66 831 | Total CA | 66 463 | 60 312 | | 5 733 | 6 159 | 2 272 | | 292 |
| Total PA | 65 663 | | 42 714 | 19 251 | 3 698 | 6 606 | 6 314 | 292 |
| 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 the context of differentiated appropriations. |
| PA | : | payment appropriations in the context of differentiated appropriations. |

(1000 euro)

Revenue

Expenditure

Source 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

Own revenue

30 700

33 236

Title I

Staff (NDA)

25 211

23 881

23 595

286

1 330

214

160

54

Community subsidy

32 899

31 454

Title II

Administration (NDA)

6 812

6 222

3 637

2 585

590

782

690

92

Other subsidies

635

453

Title III

Operating activities (NDA)

7 380

5 625

2 763

2 862

1 756

1 276

1 130

146

Title III

Operating activities (DA)

Other revenue

156

308

— CA

25 680

23 219

2 461

— PA

24 880

11 362

13 518

0

4 334

4 334

0

Assigned revenue

1 273

1 380

Assigned revenue

1 380

1 365

1 357

0

22

0

0

0

Total

65 663

66 831

Total CA

66 463

60 312

5 733

6 159

2 272

292

Total PA

65 663

42 714

19 251

3 698

6 606

6 314

292

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 the context of differentiated appropriations.

PA

:

payment appropriations in the context of differentiated appropriations.

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

European Aviation Safety Agency (Cologne) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | Note | 2006 | 2005 |
| Operating revenue |
| Fees and charges | (2) | 35 173 | 10 888 |
| Community subsidies | | 26 401 | 17 417 |
| Other subsidies | | 2 021 | 2 138 |
| Other revenue | | 340 | 26 |
| Total (a) | | 63 935 | 30 469 |
| Operating expenditure |
| Staff expenditure | (3) | 23 778 | 13 636 |
| Fixed asset related expenditure | | 573 | 341 |
| Other administrative expenditure | (4) | 6 436 | 3 675 |
| Operational expenditure | | 27 798 | 11 660 |
| Total (b) | | 58 586 | 29 312 |
| Surplus/(deficit) from operating activities (c = a – b) | | 5 349 | 1 157 |
| Financial operations revenue (e) | | 263 | 41 |
| Financial operations expenditure (f) | | 19 | 14 |
| Surplus/(deficit) from non-operating activities (g = e – f) | | 243 | 27 |
| Economic result for the year (h = c + g) | | 5 593 | 1 184 |

(1000 euro)

Note

2006

2005

Operating revenue

Fees and charges

(2)

35 173

10 888

Community subsidies

26 401

17 417

Other subsidies

2 021

2 138

Other revenue

340

26

Total (a)

63 935

30 469

Operating expenditure

Staff expenditure

(3)

23 778

13 636

Fixed asset related expenditure

573

341

Other administrative expenditure

(4)

6 436

3 675

Operational expenditure

27 798

11 660

Total (b)

58 586

29 312

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

5 349

1 157

Financial operations revenue (e)

263

41

Financial operations expenditure (f)

19

14

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

243

27

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

5 593

1 184

Table 4

European Aviation Safety Agency (Cologne) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | Note | 2006 | 2005 |
| Non-current assets |
| Intangible assets | | 268 | 182 |
| Tangible fixed assets | | 1 719 | 1 348 |
| Current assets |
| Short-term receivables | (5) | 13 881 | 8 816 |
| Cash and cash equivalents | (6) | 24 056 | 11 746 |
| Total assets | | 39 924 | 22 094 |
| Current liabilities |
| Provisions for risks and charges | (7) | 639 | — |
| Accounts payable | (8) | 30 663 | 19 065 |
| Total liabilities | | 31 302 | 19 065 |
| Net assets |
| Accumulated surplus/deficit | | 3 029 | 1 845 |
| Economic result of the year | | 5 593 | 1 184 |
| Total net assets | | 8 622 | 3 029 |
| Total liabilities and net assets | | 39 924 | 22 094 |

(1000 euro)

Note

2006

2005

Non-current assets

Intangible assets

268

182

Tangible fixed assets

1 719

1 348

Current assets

Short-term receivables

(5)

13 881

8 816

Cash and cash equivalents

(6)

24 056

11 746

Total assets

39 924

22 094

Current liabilities

Provisions for risks and charges

(7)

639

—

Accounts payable

(8)

30 663

19 065

Total liabilities

31 302

19 065

Net assets

Accumulated surplus/deficit

3 029

1 845

Economic result of the year

5 593

1 184

Total net assets

8 622

3 029

Total liabilities and net assets

39 924

22 094

---

(1)  Total initial and surveillance approvals at 31.12.2006.

Source: Information supplied by the Agency.

(2)  The strong increase in revenue reflects the first full year of implementation of Commission Regulation (EC) No 488/2005 on fees and charges levied for certification activities.

(3)  126 people were recruited in 2006.

(4)  Building cost of the new space needed.

(5)  Short-term receivables reflect the growth in fees and charges revenue.

(6)  The increase in cash reflects both improved collection of revenue and a high unpaid amount of accrued charges as a a result of late invoicing by main suppliers.

(7)  2006 provisions for risks and charges represent staff expenditure related to annual leave accrual. The corresponding expenses in 2005, an amount of 237 180 euro, were reported under accounts payable.

(8)  The increase in accounts payable is related to the certification suppliers accrual, reflecting both higher activity and late invoicing from external providers.

---

THE AGENCY'S REPLIES

| 7. | The carried over differentiated payment appropriations were related to activities to be paid by the fee income.
  The Agency had to use differentiated payment appropriations carried over from 2005 because the 2006 fee income was insufficient to cover the cost of its certification activities and to offset the impact of the change from differentiated to non-differentiated appropriations from 1 January 2007 (The Financial Regulation does not provide a procedure for making such a change). |
| --- | --- |

7.

The carried over differentiated payment appropriations were related to activities to be paid by the fee income.

The Agency had to use differentiated payment appropriations carried over from 2005 because the 2006 fee income was insufficient to cover the cost of its certification activities and to offset the impact of the change from differentiated to non-differentiated appropriations from 1 January 2007 (The Financial Regulation does not provide a procedure for making such a change).

| 8. | The new fees and charges regulation (EC) No 593/2007 which has entered into force on 1 June 2007 should generate revenue sufficient to cover the cost of the certification activities. The Agency has decided to implement during 2007 and 2008 an integrated management system that will further increase the level of detail in monitoring the cost of its activities. |
| --- | --- |

8.

The new fees and charges regulation (EC) No 593/2007 which has entered into force on 1 June 2007 should generate revenue sufficient to cover the cost of the certification activities. The Agency has decided to implement during 2007 and 2008 an integrated management system that will further increase the level of detail in monitoring the cost of its activities.

| 9. | During 2006, the follow up of receivables has been impacted by the burden of old 2005 recoverable amounts for which sufficient information was not always available. The Agency continues its efforts to make this information more reliable and to reduce the delays in the collection of receivables. Moreover, since December 2006, the Agency has been sending out systematically reminders and is charging interest in case of late payment. |
| --- | --- |

9.

During 2006, the follow up of receivables has been impacted by the burden of old 2005 recoverable amounts for which sufficient information was not always available. The Agency continues its efforts to make this information more reliable and to reduce the delays in the collection of receivables. Moreover, since December 2006, the Agency has been sending out systematically reminders and is charging interest in case of late payment.

| 10. | The Agency takes note of the Court's observation. In the first case, a prior study has been ordered in urgency, as it appeared during the last quarter of 2005 that a fast review of the Fees and charges Regulation was crucial to guarantee sufficient revenue to the Agency. In the second case, the contract has been prolonged, looking forward to the results of an external analysis ordered to enable the decision upon internalisation or externalisation of travel related services. The Agency is currently drafting the Terms of Reference in view of launching a comprehensive call for tenders. |
| --- | --- |

10.

The Agency takes note of the Court's observation. In the first case, a prior study has been ordered in urgency, as it appeared during the last quarter of 2005 that a fast review of the Fees and charges Regulation was crucial to guarantee sufficient revenue to the Agency. In the second case, the contract has been prolonged, looking forward to the results of an external analysis ordered to enable the decision upon internalisation or externalisation of travel related services. The Agency is currently drafting the Terms of Reference in view of launching a comprehensive call for tenders.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/55 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/55

---

REPORT

on the annual accounts of the European Maritime Safety Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/10)

CONTENTS

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

1-2

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

3-6

| 7-10 | OBSERVATIONS |
| --- | --- |

7-10

Tables 1 to 4

The Agency's replies

INTRODUCTION

| 1. | The European Maritime Safety Agency (hereinafter called ‘the Agency’) was set up by Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 (1). The Agency's tasks are to ensure a high level of maritime safety and prevention of pollution by ships, to provide the Commission and the Member States with technical assistance, to monitor the implementation of Community legislation and to evaluate its effectiveness. |
| --- | --- |

1.

The European Maritime Safety Agency (hereinafter called ‘the Agency’) was set up by Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 (1). The Agency's tasks are to ensure a high level of maritime safety and prevention of pollution by ships, to provide the Commission and the Member States with technical assistance, to monitor the implementation of Community legislation and to evaluate its effectiveness.

| 2. | Table 1summarises 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. |
| --- | --- |

2.

Table 1summarises 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.

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 of 25 June 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. |
| --- | --- |

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 of 25 June 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.

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 18 of Regulation (EC) No 1406/2002, and sent to the Court, which is required to give a Statement of Assurance as to their reliability and the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 18 of Regulation (EC) No 1406/2002, and sent to the Court, which is required to give a Statement of Assurance as to their reliability and the legality and regularity of the underlying transactions.

| 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 thus obtained a reasonable basis for the Statement set out below:

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
| --- | --- |

6.

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

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

OBSERVATIONS

| 7. | More than 43 % of the payment appropriations had to be cancelled at the end of the year 2006. In addition, there was a concentration of transactions during the last quarter of the year. Thus, the budgetary principle of accuracy was not strictly observed. |
| --- | --- |

7.

More than 43 % of the payment appropriations had to be cancelled at the end of the year 2006. In addition, there was a concentration of transactions during the last quarter of the year. Thus, the budgetary principle of accuracy was not strictly observed.

| 8. | The procedures for establishing the budget and the establishment plan were not sufficiently rigorous. This led to a high number of budgetary transfers (4), inadequate planning of staff recruitment (5) and incorrect budget presentation (6). |
| --- | --- |

8.

The procedures for establishing the budget and the establishment plan were not sufficiently rigorous. This led to a high number of budgetary transfers (4), inadequate planning of staff recruitment (5) and incorrect budget presentation (6).

| 9. | Legal commitments were entered into before the corresponding budgetary commitments (7). Some contracts allowed for 100 % prefinancing: this practice is not in line with the principles of sound financial management (8). |
| --- | --- |

9.

Legal commitments were entered into before the corresponding budgetary commitments (7). Some contracts allowed for 100 % prefinancing: this practice is not in line with the principles of sound financial management (8).

| 10. | The inventory system is weak. The records do not allow all goods to be physically traced. Computer equipment is not recorded in the system. |
| --- | --- |

10.

The inventory system is weak. The records do not allow all goods to be physically traced. Computer equipment is not recorded in the system.

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 208, 5.8.2002, p. 1.

1

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

2

(3)  These accounts were drawn up on 13 June 2007 and received by the Court 27 June 2007.

3

(4)  More than 35 transfers of appropriations in 2006.

4

(5)  Failure to meet recruitment objectives resulted in a transfer which decreased budget line 1 100 (salaries) by 1,2 million euro.

5

(6)  The budget is supposed to show a summary statement of the schedule of payments due in subsequent financial years to meet budget commitments entered into in earlier financial years (article 31, 2(c) of the Agency's financial regulation).

6

(7)  Four cases of a total approximate value of 345 000 euro.

7

(8)  Article 67 of Financial Regulation, (Regulation (EC, Euratom) no 2343/2002 of the Commission of 23 December 2002).

8

o

---

Table 1

European Maritime Safety Agency (Lisbon)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 as amended by Regulations (EC) No. 1644/2003 of 22 July 2003 and No. 724/2004 of 31 March 2004 | Governance | Resources made available to the Agency 2006

  (Data for 2005) | Products and services supplied 2006 |
| --- | --- | --- | --- | --- |
| Common transport policy

  ‘The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport.’

  (Article 80 of the Treaty) | Objectives







  — | To ensure a high, uniform and effective level of maritime safety and prevention of pollution by ships. |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 as amended by Regulations (EC) No. 1644/2003 of 22 July 2003 and No. 724/2004 of 31 March 2004

Governance

Resources made available to the Agency 2006

(Data for 2005)

Products and services supplied 2006

Common transport policy

‘The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport.’

(Article 80 of the Treaty)

Objectives

—

To ensure a high, uniform and effective level of maritime safety and prevention of pollution by ships.

| — | To provide the Member States and the Commission with technical and scientific assistance. |
| --- | --- |

—

To provide the Member States and the Commission with technical and scientific assistance.

| — | To monitor the implementation of Community legislation in this field and to evaluate the effectiveness of the measures in place. |
| --- | --- |

—

To monitor the implementation of Community legislation in this field and to evaluate the effectiveness of the measures in place.

| — | To introduce operational methods for combating pollution in European waters. |
| --- | --- |

—

To introduce operational methods for combating pollution in European waters.

Tasks

| — | To assist the Commission in drawing up Community legislation and in its implementation; |
| --- | --- |

—

To assist the Commission in drawing up Community legislation and in its implementation;

| — | To monitor the overall functioning of the Community port State control regime, which may include visits to the Member States. |
| --- | --- |

—

To monitor the overall functioning of the Community port State control regime, which may include visits to the Member States.

| — | To provide the Commission with technical assistance for the port State control of ships. |
| --- | --- |

—

To provide the Commission with technical assistance for the port State control of ships.

| — | To work with the Member States on developing technical solutions and to provide technical assistance related to the implementation of Community legislation. |
| --- | --- |

—

To work with the Member States on developing technical solutions and to provide technical assistance related to the implementation of Community legislation.

| — | To promote cooperation between riparian States in the shipping areas concerned. |
| --- | --- |

—

To promote cooperation between riparian States in the shipping areas concerned.

| — | To develop and operate any information system necessary. |
| --- | --- |

—

To develop and operate any information system necessary.

| — | To facilitate cooperation between the Member States and the Commission in the development of a common methodology for investigating maritime accidents. |
| --- | --- |

—

To facilitate cooperation between the Member States and the Commission in the development of a common methodology for investigating maritime accidents.

| — | To provide the Commission and the Member States with reliable information on maritime safety and on pollution by ships. |
| --- | --- |

—

To provide the Commission and the Member States with reliable information on maritime safety and on pollution by ships.

| — | To assist the Commission and the Member States in the identification and pursuit of ships making unlawful discharges. |
| --- | --- |

—

To assist the Commission and the Member States in the identification and pursuit of ships making unlawful discharges.

| — | To monitor the classification societies recognised by the EU and to issue the corresponding reports to the Commission. |
| --- | --- |

—

To monitor the classification societies recognised by the EU and to issue the corresponding reports to the Commission.

| — | To assist the Commission with the input for and implementation of tasks relating to the Directive on marine equipment. |
| --- | --- |

—

To assist the Commission with the input for and implementation of tasks relating to the Directive on marine equipment.

| — | To provide the Commission with data on the introduction of the Directive on ship waste reception facilities in European ports. |
| --- | --- |

—

To provide the Commission with data on the introduction of the Directive on ship waste reception facilities in European ports.

1.   Administrative Board

Composition

One representative per Member State, four representatives of the Commission, four representatives, without the right to vote, from the professional sectors concerned.

Tasks

| — | To adopt the budget and the work programme. |
| --- | --- |

—

To adopt the budget and the work programme.

| — | To examine requests from Member State for assistance. |
| --- | --- |

—

To examine requests from Member State for assistance.

2.   Executive Director

Appointed by the Administrative Board on a proposal from the Commission.

3.   External audit

Court of Auditors.

4.   Discharge Authority

Parliament on a recommendation from the Council.

Final Budget for 2006:

44,7 million euro (35,3) Community contribution: 100 % (100%)

Total Staff at 31 December 2006:

132 (95) posts in the establishment plan

Number of posts occupied:

111 (80)

20 (20) other posts (auxiliary contracts, seconded national experts, local staff, employment-agency staff)

Total staff numbers: 131 (100)

assigned to the following duties:

| — | operational tasks: 83 (65) |
| --- | --- |

—

operational tasks: 83 (65)

| — | administrative and support tasks: 41 (27) |
| --- | --- |

—

administrative and support tasks: 41 (27)

| — | mixed tasks: 7 (8) |
| --- | --- |

—

mixed tasks: 7 (8)

Number of specifications and guideline documents: 49 (includes reports and/or studies)

Inspections/Audits: 47 (over 600 mission-man days)

Exercises at sea (Operational Activities): 7

Seminars, trainings & workshops: 59 (102 days and 1 440 participants)

Source: Information supplied by the Agency

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

Table 2

European Maritime Safety Agency (Lisbon) — Implementation of the budget for the financial year 2006

| (1000 euro) |
| --- |
| Revenue | Expenditure |
| Origin of revenue | Revenue entered in the final budget for the financial year | Revenue received | Allocation of expenditure | Final budget appropriations for the financial year | Appropriations carried over from the previous Financial Year |
| entered | committed | paid | carried over | cancelled | entered | paid | cancelled |
| Community subsidies | 44 738 | 32 030 | Title I
  Staff (NDA) | 13 459 | 12 705 | 10 387 | 664 | 2 408 | 161 | 62 | 99 |
| Title II
  Administration (NDA) | 2 972 | 2 550 | 1 944 | 606 | 422 | 333 | 248 | 85 |
| Other income | 0 | 362 | Title III
  Operating activities (DA) | | | | | | | | |
| — CA | 28 308 | 19 033 | 0 | 0 | 9 275 | 0 | 0 | 0 |
| — PA | 28 308 | 0 | 11 638 | 0 | 16 669 | 0 | 0 | 0 |
| Total | 44 738 | 32 392 | Total CA | 44 738 | 34 287 | 0 | 1 270 | 12 105 | 0 | 0 | 0 |
| Total PA | 44 738 | 0 | 23 969 | 1 270 | 19 499 | 494 | 310 | 184 |
| NDA | : | non differentiated appropriations (commitment appropriations equal payment appropriations). |
| DA | : | differentiated appropriations (commitment and payment appropriations may differ). |
| CA | : | commitment appropriations in a system of differentiated appropriations. |
| CP | : | 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 received

Allocation of expenditure

Final budget appropriations for the financial year

Appropriations carried over from the previous Financial Year

entered

committed

paid

carried over

cancelled

entered

paid

cancelled

Community subsidies

44 738

32 030

Title I

Staff (NDA)

13 459

12 705

10 387

664

2 408

161

62

99

Title II

Administration (NDA)

2 972

2 550

1 944

606

422

333

248

85

Other income

0

362

Title III

Operating activities (DA)

— CA

28 308

19 033

0

0

9 275

0

0

0

— PA

28 308

0

11 638

0

16 669

0

0

0

Total

44 738

32 392

Total CA

44 738

34 287

0

1 270

12 105

0

0

0

Total PA

44 738

0

23 969

1 270

19 499

494

310

184

NDA

:

non differentiated appropriations (commitment appropriations equal payment appropriations).

DA

:

differentiated appropriations (commitment and payment appropriations may differ).

CA

:

commitment appropriations in a system of differentiated appropriations.

CP

:

payment appropriations in a system of differentiated appropriations.

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

European Maritime Safety Agency (Lisbon) — Economic outturnn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 24 716 | 15 666 |
| Other subsidies | 678 | 0 |
| Total (a) | 25 394 | 15 666 |
| Operating expenditure |
| Staff expenditure | 9 616 | 6 099 |
| Fixed asset related expenditure | 236 | 151 |
| Other administrative expenditure | 3 548 | 2 042 |
| Operational expenditure (1) | 14 151 | 2 925 |
| Total (b) | 27 551 | 11 217 |
| Surplus/(deficit) from operating activities (c = a – b) | –2 157 | 4 439 |
| Financial operations revenue (e) | 0 | 0 |
| Financial operations expenditure (f) | 0 | 3 |
| Surplus/(deficit) from non-operating activities (g = e – f) | 0 | –3 |
| Economic result for the year (h = c + g) | –2 157 | 4 435 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

24 716

15 666

Other subsidies

678

0

Total (a)

25 394

15 666

Operating expenditure

Staff expenditure

9 616

6 099

Fixed asset related expenditure

236

151

Other administrative expenditure

3 548

2 042

Operational expenditure (1)

14 151

2 925

Total (b)

27 551

11 217

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

–2 157

4 439

Financial operations revenue (e)

0

0

Financial operations expenditure (f)

0

3

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

0

–3

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

–2 157

4 435

Table 4

European Maritime Safety Agency (Lisbon) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 55 | 69 |
| Tangible fixed assets | 523 | 455 |
| Current assets |
| Short-term pre-financing | 4 849 | 5 351 |
| Short-term receivables | 270 | 105 |
| Cash and cash equivalents | 11 633 | 8 866 |
| Total assets | 17 330 | 14 847 |
| Current liabilities |
| Provisions for risks and charges | 191 | 107 |
| Accounts payable | 12 111 | 7 555 |
| Total liabilities | 12 301 | 7 661 |
| Net assets |
| Accumulated surplus/deficit | 7 185 | 2 750 |
| Economic result for the year | –2 157 | 4 435 |
| Total net assets | 5 028 | 7 185 |
| Total liabilities and net assets | 17 330 | 14 847 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

55

69

Tangible fixed assets

523

455

Current assets

Short-term pre-financing

4 849

5 351

Short-term receivables

270

105

Cash and cash equivalents

11 633

8 866

Total assets

17 330

14 847

Current liabilities

Provisions for risks and charges

191

107

Accounts payable

12 111

7 555

Total liabilities

12 301

7 661

Net assets

Accumulated surplus/deficit

7 185

2 750

Economic result for the year

–2 157

4 435

Total net assets

5 028

7 185

Total liabilities and net assets

17 330

14 847

---

(1)  Signature of new contracts for tankers.

---

THE AGENCY'S REPLIES

| 7. | The budget in of the Agency was over 50 % devoted to ‘antipollution measures’. In this area the Agency launched calls for tender to conclude four contracts for pollution response vessels. Towards the end of this process two companies decided at the last moment to withdraw their bids so that only two contracts were awarded. This resulted in a cancellation of substantial payment appropriations at the end of the year. |
| --- | --- |

7.

The budget in of the Agency was over 50 % devoted to ‘antipollution measures’. In this area the Agency launched calls for tender to conclude four contracts for pollution response vessels. Towards the end of this process two companies decided at the last moment to withdraw their bids so that only two contracts were awarded. This resulted in a cancellation of substantial payment appropriations at the end of the year.

| 8. | The re-location of the Agency in 2006 from Brussels to Lisbon has had budgetary implications difficult to predict, including the departure of almost 20 percent of staff under contract. |
| --- | --- |

8.

The re-location of the Agency in 2006 from Brussels to Lisbon has had budgetary implications difficult to predict, including the departure of almost 20 percent of staff under contract.

| 9. | The procedures to avoid a posteriori commitments are being strengthened. The conditions of prefinancing are revised following the comment of the Court. |
| --- | --- |

9.

The procedures to avoid a posteriori commitments are being strengthened. The conditions of prefinancing are revised following the comment of the Court.

| 10. | The replacement from June 2007 of the old inventory system by ABAC Assets will eliminate the problems mentioned by the Court. |
| --- | --- |

10.

The replacement from June 2007 of the old inventory system by ABAC Assets will eliminate the problems mentioned by the Court.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/62 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/62

---

REPORT

on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2006 together with the Agency's replies

(2007/C 309/11)

CONTENTS

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

1-2

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

3-6

| 7 | OBSERVATION |
| --- | --- |

7

Tables 1 to 4

The Agency's replies

INTRODUCTION

| 1. | The European Agency for Safety and Health at Work (hereinafter referred to as ‘the Agency’) was established by Council Regulation (EC)No 2062/94 of 18 July 1994 (1). The Agency's task is to collect and disseminate information on national and Community priorities in the field of safety and health at work, to support national and Community organisations involved in the formulation and implementation of policy and to provide information on preventive measures. |
| --- | --- |

1.

The European Agency for Safety and Health at Work (hereinafter referred to as ‘the Agency’) was established by Council Regulation (EC)No 2062/94 of 18 July 1994 (1). The Agency's task is to collect and disseminate information on national and Community priorities in the field of safety and health at work, to support national and Community organisations involved in the formulation and implementation of policy and to provide information on preventive measures.

| 2. | Table 1summarises 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. |
| --- | --- |

2.

Table 1summarises 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.

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 of 25 June 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. |
| --- | --- |

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 of 25 June 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.

| 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 2062/94, 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. |
| --- | --- |

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 2062/94, 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.

| 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 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. |
| --- | --- |

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.

OBSERVATION

| 7. | In 2006, the Director signed 19 decisions for approximately 880 000 euro authorising budgetary transfers from article to article within chapters. Contrary to the Financial Regulation, the Governing Board did not receive the required information (4). Thus, the budgetary principle of specification was not strictly observed. |
| --- | --- |

7.

In 2006, the Director signed 19 decisions for approximately 880 000 euro authorising budgetary transfers from article to article within chapters. Contrary to the Financial Regulation, the Governing Board did not receive the required information (4). Thus, the budgetary principle of specification was not strictly observed.

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 216, 20.8.1994, p. 1. The Regulation was last amended by Council Regulation (EC) No 1112/2005 of 24 June 2005 (OJ L 184, 15.7.2005, p. 5).

1

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

2

(3)  These accounts were drawn up on 4 June 2007 and received by the Court on 2 July 2007.

3

(4)  Article 23 of the Financial Regulation.

4

---

Table 1

European Agency for Safety and Health at Work (Bilbao)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in the Council Regulation (EC) No 2062/94 as amended by Council Regulation (EC) No 1112/2005 | Governance | Resources made available to the Agency in 2006

  (Data for 2005) | Products and services provided during 2006 |
| --- | --- | --- | --- | --- |
| Social provisions

  The Community and the Member States (...) shall have as their objectives (...) improved living and working conditions, so as to make possible their harmonisation while the improvement is being maintained (...).
  With a view to achieving the objectives of Article 136, the Community shall support and complement the activities of the Member States in the following fields: (a) improvement in particular of the working environment to protect workers' health and safety; (b) working conditions; (...)

  (Extracts from Article 136 and 137 of the Treaty) | Objectives







  — | In order to improve the working environment, as regards the protection of the safety and health of workers as provided for in the Treaty and successive Community strategies and action programmes concerning health and safety at the workplace, the aim of the Agency shall be to provide the Community bodies, the Member States, the social partners and those involved in the field with technical, scientific and economic information of use in the field of safety and health at work. |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in the Council Regulation (EC) No 2062/94 as amended by Council Regulation (EC) No 1112/2005

Governance

Resources made available to the Agency in 2006

(Data for 2005)

Products and services provided during 2006

Social provisions

The Community and the Member States (...) shall have as their objectives (...) improved living and working conditions, so as to make possible their harmonisation while the improvement is being maintained (...).

With a view to achieving the objectives of Article 136, the Community shall support and complement the activities of the Member States in the following fields: (a) improvement in particular of the working environment to protect workers' health and safety; (b) working conditions; (...)

(Extracts from Article 136 and 137 of the Treaty)

Objectives

—

In order to improve the working environment, as regards the protection of the safety and health of workers as provided for in the Treaty and successive Community strategies and action programmes concerning health and safety at the workplace, the aim of the Agency shall be to provide the Community bodies, the Member States, the social partners and those involved in the field with technical, scientific and economic information of use in the field of safety and health at work.

Tasks

| — | To collect, analyse and disseminate information on national and Community priorities and on research. |
| --- | --- |

—

To collect, analyse and disseminate information on national and Community priorities and on research.

| — | To promote cooperation and the exchange of information, including information on training programmes. |
| --- | --- |

—

To promote cooperation and the exchange of information, including information on training programmes.

| — | To supply the Community bodies and the Member States with information they require to formulate and implement policies, in particular as regards the impact on small and medium-sized enterprises. |
| --- | --- |

—

To supply the Community bodies and the Member States with information they require to formulate and implement policies, in particular as regards the impact on small and medium-sized enterprises.

| — | To make available information on preventive activities. |
| --- | --- |

—

To make available information on preventive activities.

| — | To contribute to the development of strategies and Community action programmes |
| --- | --- |

—

To contribute to the development of strategies and Community action programmes

| — | To set up a network comprising national focal points and topic centres. |
| --- | --- |

—

To set up a network comprising national focal points and topic centres.

1.   Governing Board

Composition

| — | 1 representative of the Government of each Member State. |
| --- | --- |

—

1 representative of the Government of each Member State.

| — | 1 representative of the employers' organisations of each Member State. |
| --- | --- |

—

1 representative of the employers' organisations of each Member State.

| — | 1 representative of the employees' organisations of each Member State. |
| --- | --- |

—

1 representative of the employees' organisations of each Member State.

| — | 3 representatives of the Commission. |
| --- | --- |

—

3 representatives of the Commission.

Task

To adopt the Agency's work programme, budget and annual general report.

2.   Bureau

Composition

| — | Chairman and 3 vice-chairmen of the Board |
| --- | --- |

—

Chairman and 3 vice-chairmen of the Board

| — | Coordinators from each of the three interest groups |
| --- | --- |

—

Coordinators from each of the three interest groups

| — | 1 additional member from each of the groups and the Commission |
| --- | --- |

—

1 additional member from each of the groups and the Commission

Task:

Overseeing the preparation and follow-up of the Board's decisions

3.   The Director

Appointed by the Governing Board on a proposal from the Commission.

4.   Committees

Obligatory consultation of the Commission and the Advisory Committee on Safety and Health at Work in respect of the work programme and budget.

5.   External audit

European Court of Auditors.

6.   Discharge authority

Parliament on a recommendation by the Council.

Final budget:

| — | 14,1 million euro (13,7 million euro) |
| --- | --- |

—

14,1 million euro (13,7 million euro)

Including:

| — | Community subsidy, DG Employment: 93,5 % (96%) |
| --- | --- |

—

Community subsidy, DG Employment: 93,5 % (96%)

| — | Community subsidy, DG Enlargement: 4,5 % (3%) |
| --- | --- |

—

Community subsidy, DG Enlargement: 4,5 % (3%)

| — | Miscellaneous revenue: 2 % (1%) |
| --- | --- |

—

Miscellaneous revenue: 2 % (1%)

Staff at 31 December 2006:

40 (40) posts in the establishment plan,

of which, posts filled: 33 (32)

posts vacant: 7 (8)

26 (20) other posts (auxiliary contracts, seconded national experts and local staff).

Total staff: 59 (52)

assigned to

| — | operational tasks: 42 (35) |
| --- | --- |

—

operational tasks: 42 (35)

| — | administrative tasks: 9 (9) |
| --- | --- |

—

administrative tasks: 9 (9)

| — | mixed tasks: 8 (8) |
| --- | --- |

—

mixed tasks: 8 (8)

Building the links — Networking:

| — | Strengthening of tri-partism in the Agency networks |
| --- | --- |

—

Strengthening of tri-partism in the Agency networks

| — | Institutional capacity building in Accession and Candidate Countries (Phare programmess) |
| --- | --- |

—

Institutional capacity building in Accession and Candidate Countries (Phare programmess)

Communicating Information:

| — | Safe Start! — European Week 2006 campaign on young workers. |
| --- | --- |

—

Safe Start! — European Week 2006 campaign on young workers.

| — | Healthy Workplace Initiative — SME-targeted campaign in EU 10, Romania and Bulgaria. |
| --- | --- |

—

Healthy Workplace Initiative — SME-targeted campaign in EU 10, Romania and Bulgaria.

| — | Multilingual web-based and printed information services on occupational safety and health. |
| --- | --- |

—

Multilingual web-based and printed information services on occupational safety and health.

Developing knowledge:

| — | Information products for national and European Week campaign 2006 (on Young People) and 2007 (MSDs) |
| --- | --- |

—

Information products for national and European Week campaign 2006 (on Young People) and 2007 (MSDs)

| — | Information products on Ageing Workers, OSH & Economic Performance, and the HORECA Sector |
| --- | --- |

—

Information products on Ageing Workers, OSH & Economic Performance, and the HORECA Sector

| — | Risk Observatory information products including reports on OSH research priorities, biological agents and ultraviolet radiation; data collection on stress, vibration and skin problems, and on young workers and musculoskeletal disorders for the European Weeks 2006 and 2007, feasibility study for a company survey |
| --- | --- |

—

Risk Observatory information products including reports on OSH research priorities, biological agents and ultraviolet radiation; data collection on stress, vibration and skin problems, and on young workers and musculoskeletal disorders for the European Weeks 2006 and 2007, feasibility study for a company survey

Source: Information supplied by the Agency.

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

Table 2

European Agency for Safety and Health at Work (Bilbao) — 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 collected | Allocation of expenditure | Final budget appropriations | Appropriations carried over from the previous financial year |
| final | committed | paid | carried over | cancelled | available | paid | cancelled |
| Community subsidies | 13 200 | 11 900 | Title I
  Staff | 4 556 | 4 080 | 3 831 | 125 | 600 | 75 | 28 | 47 |
| Other revenue | 247 | 248 | Title II
  Administration | 1 524 | 1 481 | 1 083 | 381 | 61 | 331 | 313 | 17 |
| | | | Title III
  Operating activities | 7 367 | 7 025 | 5 060 | 1 963 | 344 | 2 213 | 1 814 | 400 |
| Assigned revenue (1) | 518 | 312 | Assigned revenue (1) | 518 | 407 | 324 | 194 | 0 | 206 | 0 | 206 |
| Total | 13 965 | 12 460 | Total | 13 965 | 12 993 | 10 298 | 2 663 | 1 005 | 2 825 | 2 155 | 670 |
| 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

Appropriations carried over from the previous financial year

final

committed

paid

carried over

cancelled

available

paid

cancelled

Community subsidies

13 200

11 900

Title I

Staff

4 556

4 080

3 831

125

600

75

28

47

Other revenue

247

248

Title II

Administration

1 524

1 481

1 083

381

61

331

313

17

Title III

Operating activities

7 367

7 025

5 060

1 963

344

2 213

1 814

400

Assigned revenue (1)

518

312

Assigned revenue (1)

518

407

324

194

0

206

0

206

Total

13 965

12 460

Total

13 965

12 993

10 298

2 663

1 005

2 825

2 155

670

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

European Agency for Safety and Health at Work (Bilbao) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidy | 11 730 | 11 021 |
| Other subsidies | 238 | 284 |
| Other incomes | 1 580 | 2 460 |
| Total (a) | 13 548 | 13 765 |
| Operating expenditure |
| Staff expenditure | 3 640 | 3 312 |
| Fixed asset-related expenditure (2) | 139 | –14 |
| Other administrative expenditure | 1 825 | 1 692 |
| Other operational expenditure | 8 028 | 8 584 |
| Total (b) | 13 632 | 13 575 |
| Surplus/(deficit) from operating activities (c = a – b) | –84 | 190 |
| Financial expenditure (d) | 6 | 7 |
| Surplus/(deficit) from non operating activities (e = d) | –6 | –7 |
| Economic result for the year (f = c + e) | –90 | 183 |

(1000 euro)

2006

2005

Operating revenue

Community subsidy

11 730

11 021

Other subsidies

238

284

Other incomes

1 580

2 460

Total (a)

13 548

13 765

Operating expenditure

Staff expenditure

3 640

3 312

Fixed asset-related expenditure (2)

139

–14

Other administrative expenditure

1 825

1 692

Other operational expenditure

8 028

8 584

Total (b)

13 632

13 575

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

–84

190

Financial expenditure (d)

6

7

Surplus/(deficit) from non operating activities (e = d)

–6

–7

Economic result for the year (f = c + e)

–90

183

Table 4

European Agency for Safety and Health at Work (Bilbao) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible assets | 71 | 88 |
| Tangible assets | 247 | 247 |
| Long-term receivables | 4 | 4 |
| Current assets |
| Short-term pre-financing | 435 | 454 |
| Short-term receivables | 27 | 142 |
| Cash and cash equivalents | 2 990 | 3 392 |
| Total assets | 3 774 | 4 327 |
| Current liabilities |
| Provisions for risks and charges | 63 | 58 |
| Accounts payable | 1 981 | 2 448 |
| Total liabilities | 2 044 | 2 507 |
| Net assets |
| Accumulated surplus/deficit | 1 820 | 1 637 |
| Economic result for the year | –90 | 183 |
| Total net assets | 1 730 | 1 820 |
| Total liabilities and net assets | 3 774 | 4 327 |

(1000 euro)

2006

2005

Non-current assets

Intangible assets

71

88

Tangible assets

247

247

Long-term receivables

4

4

Current assets

Short-term pre-financing

435

454

Short-term receivables

27

142

Cash and cash equivalents

2 990

3 392

Total assets

3 774

4 327

Current liabilities

Provisions for risks and charges

63

58

Accounts payable

1 981

2 448

Total liabilities

2 044

2 507

Net assets

Accumulated surplus/deficit

1 820

1 637

Economic result for the year

–90

183

Total net assets

1 730

1 820

Total liabilities and net assets

3 774

4 327

---

(1)  The amount entered in the budget for assigned revenue is 661 000 euro, of which only 518 000 euro have been received.

In order to present a correct image, the correct amount of 518 000 euro is given here.

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.

(2)  The negative amount presented for 2005 is the result of corrections.

---

THE AGENCY'S REPLIES

| 1. | The Agency accepts the observation. As from July 2007, the Board is notified of any transfer decisions made by the Director via the Agency's extranet. |
| --- | --- |

1.

The Agency accepts the observation. As from July 2007, the Board is notified of any transfer decisions made by the Director via the Agency's extranet.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/67 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/67

---

REPORT

on the annual accounts of the European Railway Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/12)

CONTENTS

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

1-2

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

3-6

| 7-10 | OBSERVATIONS |
| --- | --- |

7-10

Tables 1 to 4

The Agency's replies

INTRODUCTION

| 1. | The European Railway Agency (hereinafter referred to as ‘the Agency’) was created by Regulation (EC) No 881/2004 of the European Parliament and of the Council of 29 April 2004 (1). It became autonomous on 1 January 2006. The Agency's aim is to enhance the level of interoperability of railway systems and to develop a common approach to safety in order to contribute to creating a more competitive European railway sector with a high level of safety. |
| --- | --- |

1.

The European Railway Agency (hereinafter referred to as ‘the Agency’) was created by Regulation (EC) No 881/2004 of the European Parliament and of the Council of 29 April 2004 (1). It became autonomous on 1 January 2006. The Agency's aim is to enhance the level of interoperability of railway systems and to develop a common approach to safety in order to contribute to creating a more competitive European railway sector with a high level of safety.

| 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. |
| --- | --- |

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.

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 of 25 June 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. |
| --- | --- |

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 of 25 June 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.

| 4. | The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 39 of Regulation (EC) No 881/2004, 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. |
| --- | --- |

4.

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 39 of Regulation (EC) No 881/2004, 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.

| 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 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 transactionsExcept for the cases referred in paragraph 10, the transactions underlying the Agency's annual accounts, taken as a whole, 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 transactionsExcept for the cases referred in paragraph 10, the transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.

OBSERVATIONS

| 7. | In its first year of financial autonomy the Agency implemented 72 % of its commitment appropriations. The levels of carryover for administrative expenditure (Title II) and operating expenditure (Title III) were of 37,5 % and 85 % respectively. Thus, the budgetary principle of annuality was not strictly observed. |
| --- | --- |

7.

In its first year of financial autonomy the Agency implemented 72 % of its commitment appropriations. The levels of carryover for administrative expenditure (Title II) and operating expenditure (Title III) were of 37,5 % and 85 % respectively. Thus, the budgetary principle of annuality was not strictly observed.

| 8. | The Agency is located in two cities: its administrative seat is in Valenciennes whereas its meetings have to be held in Lille. The Agency has not yet found ways of offsetting the costs resulting from its obligation to be located on two sites. |
| --- | --- |

8.

The Agency is located in two cities: its administrative seat is in Valenciennes whereas its meetings have to be held in Lille. The Agency has not yet found ways of offsetting the costs resulting from its obligation to be located on two sites.

| 9. | The internal control system showed weaknesses. Subdelegations were not granted according to the rules. There were inconsistencies between delegation decisions and access rights to the budgetary management system SI2. The Agency did not adopt implementing rules for its financial regulation. |
| --- | --- |

9.

The internal control system showed weaknesses. Subdelegations were not granted according to the rules. There were inconsistencies between delegation decisions and access rights to the budgetary management system SI2. The Agency did not adopt implementing rules for its financial regulation.

| 10. | An examination of the tendering procedures showed various anomalies: use of expired contracts (4) and irregular extensions of existing contracts (5). Thus the Agency must launch procurement procedures for those areas currently covered by contracts which had not been the subject of regular procedures. |
| --- | --- |

10.

An examination of the tendering procedures showed various anomalies: use of expired contracts (4) and irregular extensions of existing contracts (5). Thus the Agency must launch procurement procedures for those areas currently covered by contracts which had not been the subject of regular procedures.

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 220, 21.6.2004, p. 3.

1

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

2

(3)  These accounts were drawn up on 19 June 2007 and received by the Court on 2 July 2007.

3

(4)  One case identified: 49 000 euro.

4

(5)  Two cases identified: 630 000 euro.

5

---

Table 1

European Railway Agency (Lille/Valenciennes)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Regulation (EC) No 881/2004 | Governance | Resources available to the Agency in 2006 | Products and services provided in 2006 |
| --- | --- | --- | --- | --- |
| Common Transport Policy

  For the purpose of implementing Article 70, and taking into account the distinctive features of transport, the Council shall, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, lay down:






  (a) | common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States; |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 881/2004

Governance

Resources available to the Agency in 2006

Products and services provided in 2006

Common Transport Policy

For the purpose of implementing Article 70, and taking into account the distinctive features of transport, the Council shall, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, lay down:

(a)

common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States;

| (b) | the conditions under which non-resident carriers may operate transport services within a Member State; |
| --- | --- |

(b)

the conditions under which non-resident carriers may operate transport services within a Member State;

| (c) | measures to improve transport safety; |
| --- | --- |

(c)

measures to improve transport safety;

| (d) | any other appropriate provisions. |
| --- | --- |

(d)

any other appropriate provisions.

(Article 71)

Objectives

To contribute, on technical matters, to the implementation of the Community legislation aimed at:

| 1. | improving the competitive position of the railway sector |
| --- | --- |

1.

improving the competitive position of the railway sector

| 2. | developing a common approach to safety on the European railway system, |
| --- | --- |

2.

developing a common approach to safety on the European railway system,

in order to contribute to creating a European railway area without frontiers and guaranteeing a high level of safety.

Tasks:

| 1. | Address recommendations to the Commission on:






  — | the common safety methods (CSMs) and common safety targets (CSTs) provided for in the Railway Safety Directive (2004/49/EC); |
| --- | --- | --- |

1.

Address recommendations to the Commission on:

—

the common safety methods (CSMs) and common safety targets (CSTs) provided for in the Railway Safety Directive (2004/49/EC);

| — | safety certificates and measures in the field of safety; |
| --- | --- |

—

safety certificates and measures in the field of safety;

| — | the development, implementation and monitoring of rail interoperability; |
| --- | --- |

—

the development, implementation and monitoring of rail interoperability;

| — | monitoring interoperability; |
| --- | --- |

—

monitoring interoperability;

| — | the certification of maintenance workshops; |
| --- | --- |

—

the certification of maintenance workshops;

| — | vocational competences; |
| --- | --- |

—

vocational competences;

| — | the registration of rolling stock. |
| --- | --- |

—

the registration of rolling stock.

| 2. | Issue opinions on:






  — | national safety rules; |
| --- | --- | --- |

2.

Issue opinions on:

—

national safety rules;

| — | monitoring the quality of the work of notified bodies; |
| --- | --- |

—

monitoring the quality of the work of notified bodies;

| — | the interoperability of the trans-European network. |
| --- | --- |

—

the interoperability of the trans-European network.

| 3. | Coordination of national bodies:






  — | coordination of national safety authorities and national investigation bodies (as described in Directive 2004/49/EC, Articles 17 and 21). |
| --- | --- | --- |

3.

Coordination of national bodies:

—

coordination of national safety authorities and national investigation bodies (as described in Directive 2004/49/EC, Articles 17 and 21).

| 4. | Publications and databases:






  — | report on safety performance (every two years); |
| --- | --- | --- |

4.

Publications and databases:

—

report on safety performance (every two years);

| — | report on progress with interoperability (every two years); |
| --- | --- |

—

report on progress with interoperability (every two years);

| — | public database of safety documents; |
| --- | --- |

—

public database of safety documents;

| — | public register of documents on interoperability. |
| --- | --- |

—

public register of documents on interoperability.

1.   Administrative Board

Comprises one representative from each Member State, four representatives from the Commission and six representatives, without the right to vote, from the professional sectors concerned.

2.   Executive Director

Appointed by the Administrative Board on a proposal from the Commission.

3.   External audit

Court of Auditors.

4.   Discharge Authority

The Parliament following a recommendation from the Council.

Final Budget:

14,4 million euro

Staff at 31 December 2006:

posts listed in the establishment plan: 95

posts occupied: 80

Other staff: 5 p.

Total staff: 85

Responsible for:

| — | operational tasks: 58,5 |
| --- | --- |

—

operational tasks: 58,5

| — | administrative tasks: 26,5 |
| --- | --- |

—

administrative tasks: 26,5

Safety:

Recommendation to the Commission on harmonised formats for safety certificates and harmonised application forms to be used by railway undertakings and national safety authorities.

Recommendation to the Commission on notification of national safety rules following a request from the Commission related to other measures in the field of safety.

Annual progress reports to the Commission for:

Interoperability:

Recommendation on registration of rolling stock and report on specifications on the National Vehicle Register.

ERTMS (European Rail Traffic Management System):

Recommendation to the Commission to update Annex A of the technical specifications for interoperability, Control Command and Signalling for high speed and conventional rail systems.

Economic Evaluation:

Methodology Guidelines for impact assessment, applicable to all Agency Recommendations, have been supplied to the Commission. Applied guidelines have been derived for various draft recommendations. Impact assessments are being prepared in parallel with recommendations.

At the request of the Commission, an impact assessment for improved cross-acceptance of rolling stock (locomotives) has been provided.

Source: Information supplied by the Agency.

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

Table 2

European Railway Agency (Lille/Valenciennes) — Implementation of the budget 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 | Final budget appropriations | Appropriations carried over from previous year(s) |
| entered | committed | paid | carried over | cancelled | entered | committed | paid | cancelled |
| Community subsidies | 14 398 | 12 385 | Title I
  Staff | 9 649 | 6 816 | 6 688 | 129 | 2 833 | 12 | 4 | 4 | 8 |
| Other revenue | | 20 | Title II
  Administration | 1 349 | 1 062 | 664 | 398 | 287 | 1 048 | 347 | 337 | 711 |
| | | | Title III
  Operating activities | 3 400 | 2 543 | 390 | 2 153 | 857 | 2 245 | 1 389 | 1 157 | 1 089 |
| Total | 14 398 | 12 406 | Total | 14 398 | 10 422 | 7 742 | 2 680 | 3 976 | 3 305 | 1 741 | 1 498 | 1 807 |
| 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

Origin of revenue

Revenue entered in the final budget for the financial year

Revenue collected

Allocation of expenditure

Final budget appropriations

Appropriations carried over from previous year(s)

entered

committed

paid

carried over

cancelled

entered

committed

paid

cancelled

Community subsidies

14 398

12 385

Title I

Staff

9 649

6 816

6 688

129

2 833

12

4

4

8

Other revenue

20

Title II

Administration

1 349

1 062

664

398

287

1 048

347

337

711

Title III

Operating activities

3 400

2 543

390

2 153

857

2 245

1 389

1 157

1 089

Total

14 398

12 406

Total

14 398

10 422

7 742

2 680

3 976

3 305

1 741

1 498

1 807

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

European Railway Agency (Lille/Valenciennes) — Economic outturn account for the financial year 2006

| (1000 euro) |
| --- |
| | 2006 |
| Operating revenue |
| Community subsidies | 11 920 |
| Other subsidies | 364 |
| Total (a) | 12 284 |
| Operating expenses |
| Staff expenses | 6 694 |
| Fixed asset related expenses | 168 |
| Other administrative expenses | 1 322 |
| Operational expenses | 1 330 |
| Total (b) | 9 514 |
| Surplus/(deficit) from operating activities (c = a – b) | 2 770 |
| Financial operations revenue (e) | 3 |
| Financial operations expenses (f) | 2 |
| Surplus/(deficit) from non-operating activities (g = e – f) | 1 |
| Economic result for the year (h = c + g) | 2 771 |

(1000 euro)

2006

Operating revenue

Community subsidies

11 920

Other subsidies

364

Total (a)

12 284

Operating expenses

Staff expenses

6 694

Fixed asset related expenses

168

Other administrative expenses

1 322

Operational expenses

1 330

Total (b)

9 514

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

2 770

Financial operations revenue (e)

3

Financial operations expenses (f)

2

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

1

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

2 771

Table 4

European Railway Agency (Lille/Valenciennes) — Balance sheet at 31 December 2006

| (1000 euro) |
| --- |
| | 2006 |
| Non-current assets |
| Intangible fixed assets | 506 |
| Tangible fixed assets | 378 |
| Current assets |
| Short-term pre-financing | 18 |
| Short-term receivables | 188 |
| Cash and cash equivalents | 3 299 |
| Total assets | 4 389 |
| Current liabilities |
| Accounts payable | 1 618 |
| Total liabilities | 1 618 |
| Net assets |
| Economic result for the year | 2 771 |
| Total net assets | 2 771 |
| Total liabilities and net assets | 4 389 |

(1000 euro)

2006

Non-current assets

Intangible fixed assets

506

Tangible fixed assets

378

Current assets

Short-term pre-financing

18

Short-term receivables

188

Cash and cash equivalents

3 299

Total assets

4 389

Current liabilities

Accounts payable

1 618

Total liabilities

1 618

Net assets

Economic result for the year

2 771

Total net assets

2 771

Total liabilities and net assets

4 389

---

THE AGENCY'S REPLIES

| 7. | During 2006 the programmed activities were not fully implemented as the Agency was still in its start-up phase. In 2007, the Agency shall proceed to an in-depth analysis of the programming of its activities, the resources required and the budget to be allocated together with a plan for calls for tenders. |
| --- | --- |

7.

During 2006 the programmed activities were not fully implemented as the Agency was still in its start-up phase. In 2007, the Agency shall proceed to an in-depth analysis of the programming of its activities, the resources required and the budget to be allocated together with a plan for calls for tenders.

| 8. | The Agency is at the moment negotiating with the host state authorities the possibility of entering into a Seat Agreement. In this context the host state has agreed to make a substantial contribution to the rent of the future new building in Valenciennes. This will partly offset the annual costs (estimated at 450 000 euros) that result from the Agency's double location. |
| --- | --- |

8.

The Agency is at the moment negotiating with the host state authorities the possibility of entering into a Seat Agreement. In this context the host state has agreed to make a substantial contribution to the rent of the future new building in Valenciennes. This will partly offset the annual costs (estimated at 450 000 euros) that result from the Agency's double location.

| 9. | At the beginning of 2007, the Agency has put a security function in place to check the consistency between delegations and sub-delegations contained in the budgetary management system and the corresponding signed acts. The Agency plans to submit its implementing rules for adoption by the Administrative Board before the end of 2007. |
| --- | --- |

9.

At the beginning of 2007, the Agency has put a security function in place to check the consistency between delegations and sub-delegations contained in the budgetary management system and the corresponding signed acts. The Agency plans to submit its implementing rules for adoption by the Administrative Board before the end of 2007.

| 10. | The situations described by the Court were as a result of a shortage of personnel during the Agency's start-up phase. In order to prevent this happening in future a procurement function has been created in June 2007. Its task is to coordinate and supervise the procurement procedures. |
| --- | --- |

10.

The situations described by the Court were as a result of a shortage of personnel during the Agency's start-up phase. In order to prevent this happening in future a procurement function has been created in June 2007. Its task is to coordinate and supervise the procurement procedures.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/72 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/72

---

REPORT

on the annual accounts of the European GNSS Supervisory Authority for the financial year 2006 together with the Authority's replies

(2007/C 309/13)

CONTENTS

| 1-5 | INTRODUCTION |
| --- | --- |

1-5

| 6-9 | STATEMENT OF ASSURANCE |
| --- | --- |

6-9

| 10-11 | OBSERVATIONS |
| --- | --- |

10-11

Tables 1 to 4

The Authority's replies

INTRODUCTION

| 1. | The European GNSS (Global Navigation Satellite System) Supervisory Authority (hereinafter ‘the Authority’) was set up as a Community Agency by Council Regulation (EC) No 1321/2004 (1) of 12 July 2004 to manage the public interests relating to the European GNSS programmes and to act as the regulatory authority for the programme during the deployment and operational phases of the Galileo Programme. Table 1 summarises the Authority's objectives and activities. |
| --- | --- |

1.

The European GNSS (Global Navigation Satellite System) Supervisory Authority (hereinafter ‘the Authority’) was set up as a Community Agency by Council Regulation (EC) No 1321/2004 (1) of 12 July 2004 to manage the public interests relating to the European GNSS programmes and to act as the regulatory authority for the programme during the deployment and operational phases of the Galileo Programme. Table 1 summarises the Authority's objectives and activities.

| 2. | Council Regulation (EC) No 1942/2006 (2) of 12 December 2006 extended the mandate of the Authority to cover the activities of the development phase (first phase of the Galileo Programme (3)) which the Galileo Joint Undertaking was not able to finalise before its winding-up on 31 December 2006. |
| --- | --- |

2.

Council Regulation (EC) No 1942/2006 (2) of 12 December 2006 extended the mandate of the Authority to cover the activities of the development phase (first phase of the Galileo Programme (3)) which the Galileo Joint Undertaking was not able to finalise before its winding-up on 31 December 2006.

| 3. | The Authority began operations in 2006. Initially, all the financial transactions of the Authority were carried out on its behalf by the Directorate-General for Energy and Transport. Following the installation of the necessary financial systems, the Authority took over responsibility for its financial operations in September 2006 (4). |
| --- | --- |

3.

The Authority began operations in 2006. Initially, all the financial transactions of the Authority were carried out on its behalf by the Directorate-General for Energy and Transport. Following the installation of the necessary financial systems, the Authority took over responsibility for its financial operations in September 2006 (4).

| 4. | The handover of activities from the Galileo Joint Undertaking to the Authority started in December 2006 with the transfer of 70 million euro and the rights and obligations related to FP6 (5), MEDA (6), EGNOS (7) and other contracts. Therefore, although the Community subsidy and other revenue for the Authority in 2006 was just over 7 million euro, the total assets of the Authority amounted to 76,6 million euro at the end of 2006. |
| --- | --- |

4.

The handover of activities from the Galileo Joint Undertaking to the Authority started in December 2006 with the transfer of 70 million euro and the rights and obligations related to FP6 (5), MEDA (6), EGNOS (7) and other contracts. Therefore, although the Community subsidy and other revenue for the Authority in 2006 was just over 7 million euro, the total assets of the Authority amounted to 76,6 million euro at the end of 2006.

| 5. | Key information from the financial statements drawn up by the Authority for the financial year 2006 is presented in Tables 2, 3 and 4. |
| --- | --- |

5.

Key information from the financial statements drawn up by the Authority for the financial year 2006 is presented in Tables 2, 3 and 4.

STATEMENT OF ASSURANCE

| 6. | 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 (8); it was drawn up following an examination of the Authority's accounts, as required by Article 248 of the Treaty establishing the European Community. |
| --- | --- |

6.

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 (8); it was drawn up following an examination of the Authority's accounts, as required by Article 248 of the Treaty establishing the European Community.

| 7. | The Authority's accounts for the financial year ended 31 December 2006 were drawn up by its Executive Director, pursuant to Article 12 of Council Regulation (EC) No 1321/2004, 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. The financial statements cover the period from 18 September (the starting date for independent financial operations) to 31 December 2006. |
| --- | --- |

7.

The Authority's accounts for the financial year ended 31 December 2006 were drawn up by its Executive Director, pursuant to Article 12 of Council Regulation (EC) No 1321/2004, 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. The financial statements cover the period from 18 September (the starting date for independent financial operations) to 31 December 2006.

| 8. | 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. |
| --- | --- |

8.

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.

| 9. | The Court has thus obtained a reasonable basis for the statement expressed below.

  Reliability of the accountsThe Authority'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 Authority's annual accounts for the financial year ended 31 December 2006 are, taken as a whole, legal and regular.The observations which follow do not call the Court's statement into question. |
| --- | --- |

9.

The Court has thus obtained a reasonable basis for the statement expressed below.

Reliability of the accountsThe Authority'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 Authority's annual accounts for the financial year ended 31 December 2006 are, taken as a whole, legal and regular.The observations which follow do not call the Court's statement into question.

OBSERVATIONS

| 10. | The Court's testing of a representative sample of 80 transactions identified weaknesses in the operation of the management and control systems. In 12 cases, the initiating official for the transaction did not have the delegated authority and the appropriate financial circuit was not followed. In two cases the Authority's authorising officer did not approve a budgetary commitment before entering into a legal commitment, contrary to the requirements of the Financial Regulation. |
| --- | --- |

10.

The Court's testing of a representative sample of 80 transactions identified weaknesses in the operation of the management and control systems. In 12 cases, the initiating official for the transaction did not have the delegated authority and the appropriate financial circuit was not followed. In two cases the Authority's authorising officer did not approve a budgetary commitment before entering into a legal commitment, contrary to the requirements of the Financial Regulation.

| 11. | According to the Regulation, as of 1 January 2007, the Authority is the owner of all tangible and intangible assets created or developed during the development phase of the Galileo Programme (9). A part of the assets were transferred from the Galileo Joint Undertaking in December 2006 (paragraph 4 above). Due to the absence of agreement between three of the members of the Joint Undertaking (10) and the Authority, the transfer of the further identified assets of 65 million euro (11) was delayed until mid 2007. |
| --- | --- |

11.

According to the Regulation, as of 1 January 2007, the Authority is the owner of all tangible and intangible assets created or developed during the development phase of the Galileo Programme (9). A part of the assets were transferred from the Galileo Joint Undertaking in December 2006 (paragraph 4 above). Due to the absence of agreement between three of the members of the Joint Undertaking (10) and the Authority, the transfer of the further identified assets of 65 million euro (11) was delayed until mid 2007.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 20 September 2007.

For the Court of Auditors

Hubert WEBER

President

---

(1)  OJ L 246, 20.7.2004, p. 1.

1

(2)  OJ L 367, 22.12.2006, p. 18.

2

(3)  The Galileo programme is divided into three phases: development and validation (2001-2005); deployment (2006-2007); and commercial operation (2008 onwards).

3

In its communication to the European Parliament and to the Council ‘Taking stock of the Galileo programme’ (COM(2006) 272 final of 7.6.2006), the Commission amended the schedule of the Galileo programme. Development and validation will continue until the beginning of 2009; deployment will take place in 2009 and 2010; the commercial operating phase will commence at the end of 2010.

(4)  Agreement on the transfer modalities between the Directorate-General for Energy and Transport and the Authority, 15 September 2006.

4

(5)  FP6 is the Sixth framework programme of the European Community for research, technological development and demonstration activities, contributing to the creation of the European Research Area and to innovation (2002 to 2006) — (Decision No 1513/2002/EC of the European Parliament and of the Council of 27 June 2002 — OJ L 232, 29.8.2002).

5

(6)  The MEDA programme is the principal instrument of economic and financial cooperation under the Euro-Mediterranean partnership (Council Regulation (EC) No 1488/96 of 23 July 1996 — OJ L 189, 30.7.1996).

6

(7)  The EGNOS (European Geostationary Navigation Overlay Service) programme, the European satellite navigation system which aims at correcting and improving GPS data, has been integrated into the Galileo programme following the Council Conclusions of 5 June 2003.

7

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

8

(9)  Article 3(1) of Council Regulation (EC) No 1321/2004 as amended by Article 1(2) of Regulation (EC) No 1942/2006.

9

(10)  The European Space Agency, the National Remote Sensing Centre of China and the MATIMOP-Israeli Industry Centre for Research and Development.

10

(11)  This amount does not include the balance of funds resulting from the winding-up of the Galileo Joint Undertaking, which will only be transferred to the Authority at the end of the winding-up procedure.

11

---

Table 1

European GNSS Supervisory Authority (Brussels)

| Areas of Community competence deriving from the Treaty | Competences of the Authority as defined in Council Regulation (EC) No 1321/2004 and amended by Council Regulation (EC) No 1942/2006 | Governance | Resources made available to the Authority | Main products and services supplied in 2006 |
| --- | --- | --- | --- | --- |
| Competitivity for growth and employment | Objectives







  — | To manage the public interests relating to the European GNSS programmes |

Areas of Community competence deriving from the Treaty

Competences of the Authority as defined in Council Regulation (EC) No 1321/2004 and amended by Council Regulation (EC) No 1942/2006

Governance

Resources made available to the Authority

Main products and services supplied in 2006

Competitivity for growth and employment

Objectives

—

To manage the public interests relating to the European GNSS programmes

| — | To be the regulatory authority for the European GNSS programmes |
| --- | --- |

—

To be the regulatory authority for the European GNSS programmes

Tasks

| — | To conclude the concession contract with the private concession holder responsible for implementing and managing the Galileo deployment and operating phases; |
| --- | --- |

—

To conclude the concession contract with the private concession holder responsible for implementing and managing the Galileo deployment and operating phases;

| — | To ensure that the concession holder complies with the concession contract and the specifications annexed thereto; |
| --- | --- |

—

To ensure that the concession holder complies with the concession contract and the specifications annexed thereto;

| — | To take all appropriate measures to ensure the continuity of services in case of default of the concession holder; |
| --- | --- |

—

To take all appropriate measures to ensure the continuity of services in case of default of the concession holder;

| — | To manage the funds specifically allocated to it for the European GNSS programmes; |
| --- | --- |

—

To manage the funds specifically allocated to it for the European GNSS programmes;

| — | To monitor the overall financial management in order to advise on the public sector contributions; |
| --- | --- |

—

To monitor the overall financial management in order to advise on the public sector contributions;

| — | To take over the management of the agreement with the economic operator charged with operating Egnos; |
| --- | --- |

—

To take over the management of the agreement with the economic operator charged with operating Egnos;

| — | To present a framework on the future policy options concerning Egnos; |
| --- | --- |

—

To present a framework on the future policy options concerning Egnos;

| — | To coordinate Member States' actions in respect of the frequencies neccessary to ensure the operation of the system; |
| --- | --- |

—

To coordinate Member States' actions in respect of the frequencies neccessary to ensure the operation of the system;

| — | To prepare drafts in order to assist the Commission in preparing proposals for the European GNSS programmes to be presented to the European Parliament and to the Council and in adopting the corresponding implementing rules; |
| --- | --- |

—

To prepare drafts in order to assist the Commission in preparing proposals for the European GNSS programmes to be presented to the European Parliament and to the Council and in adopting the corresponding implementing rules;

| — | To modernise the system and develop new generations thereof; |
| --- | --- |

—

To modernise the system and develop new generations thereof;

| — | To accomplish such budgetary implementation tasks as are entrusted to it by the Commission and that are linked to the European GNSS programmes; |
| --- | --- |

—

To accomplish such budgetary implementation tasks as are entrusted to it by the Commission and that are linked to the European GNSS programmes;

| — | To ensure that the components of the system are duly certified and to empower the appropriate authorised certification bodies for issuing the relevant certificates and monitoring the respect of related standards and technical specifications; |
| --- | --- |

—

To ensure that the components of the system are duly certified and to empower the appropriate authorised certification bodies for issuing the relevant certificates and monitoring the respect of related standards and technical specifications;

1.   Administrative Board

Composition

| — | One representative per Member State |
| --- | --- |

—

One representative per Member State

| — | One representative from the Commission |
| --- | --- |

—

One representative from the Commission

Tasks

| — | Appoints the Executive Director; |
| --- | --- |

—

Appoints the Executive Director;

| — | Adopts the annual work programme; |
| --- | --- |

—

Adopts the annual work programme;

| — | Produces a statement of estimates of revenue and expenditure for the Authority for the following financial year and sends it to the Commission which forwards it to the Budgetary Authority; |
| --- | --- |

—

Produces a statement of estimates of revenue and expenditure for the Authority for the following financial year and sends it to the Commission which forwards it to the Budgetary Authority;

| — | Adopts the budget; |
| --- | --- |

—

Adopts the budget;

| — | Delivers an opinion on the annual accounts of the Authority; |
| --- | --- |

—

Delivers an opinion on the annual accounts of the Authority;

| — | Takes decisions on all aspects relating to the system's safety and security; |
| --- | --- |

—

Takes decisions on all aspects relating to the system's safety and security;

| — | Exercises disciplinary authority over the Executive Director; |
| --- | --- |

—

Exercises disciplinary authority over the Executive Director;

| — | Adopts the special provisions necessary for the implementation of the right of access to the documents of the Authority; |
| --- | --- |

—

Adopts the special provisions necessary for the implementation of the right of access to the documents of the Authority;

| — | Adopts the annual report on the activities and prospects of the Authority and forwards it, by 15 June, to the Member States, the European Parliament, the Council, the Commission, the European Economic and Social Committee and the Court of Auditors; |
| --- | --- |

—

Adopts the annual report on the activities and prospects of the Authority and forwards it, by 15 June, to the Member States, the European Parliament, the Council, the Commission, the European Economic and Social Committee and the Court of Auditors;

| — | Adopts its rules of procedure. |
| --- | --- |

—

Adopts its rules of procedure.

Final budget

7,0 million euro including a Community subsidy: 100 %

Staff numbers at 31 December 2006

39 posts in the establishment plan

Posts occupied: 18

+5 other posts (auxiliary contracts, seconded national experts, local and employment-agency staff)

Total staff numbers: 23

assigned to the following tasks:

| — | operational: 9 |
| --- | --- |

—

operational: 9

| — | administrative: 9 |
| --- | --- |

—

administrative: 9

| — | mixed: 5 |
| --- | --- |

—

mixed: 5

Setting-up of the GSA

| — | Financial autonomy in September 2006 |
| --- | --- |

—

Financial autonomy in September 2006

| — | 18 posts filled and 13 others recruited at 31.12.2006 |
| --- | --- |

—

18 posts filled and 13 others recruited at 31.12.2006

| — | Move to new premises was planned and prepared |
| --- | --- |

—

Move to new premises was planned and prepared

| — | Plan for establishing the System Safety and Security Committee approved on 30.11.2006 and call for nominations issued on 13.12.2006 |
| --- | --- |

—

Plan for establishing the System Safety and Security Committee approved on 30.11.2006 and call for nominations issued on 13.12.2006

| — | Preparation of the documentation and signing of the transfer of the activities of the GJU (except for the In-Orbit-Validation phase and international activities) |
| --- | --- |

—

Preparation of the documentation and signing of the transfer of the activities of the GJU (except for the In-Orbit-Validation phase and international activities)

| — | Introduction of the basic elements of communication (logo, graphics) |
| --- | --- |

—

Introduction of the basic elements of communication (logo, graphics)

Galileo and EGNOS systems

| — | Draft certification plan for EGNOS |
| --- | --- |

—

Draft certification plan for EGNOS

| — | Preparation and approval of an ESA/GSA agreement by the Administrative Board |
| --- | --- |

—

Preparation and approval of an ESA/GSA agreement by the Administrative Board

| — | Contribution to defining a policy for managing the GNSS intellectual property rights |
| --- | --- |

—

Contribution to defining a policy for managing the GNSS intellectual property rights

Concession

| — | Support given to the GJU negotiating team for the concession contract |
| --- | --- |

—

Support given to the GJU negotiating team for the concession contract

| — | Start-up of consultations on introducing the accounting rules for recording tangible and intangible assets. |
| --- | --- |

—

Start-up of consultations on introducing the accounting rules for recording tangible and intangible assets.

| — | To enforce and verify compliance by the concession holder with instructions issued pursuant to Joint Action 2004/552/CFSP; |
| --- | --- |

—

To enforce and verify compliance by the concession holder with instructions issued pursuant to Joint Action 2004/552/CFSP;

| — | To manage all aspects relating to the system's safety and security; |
| --- | --- |

—

To manage all aspects relating to the system's safety and security;

| — | To take over, with a view to the completion of the development phase of the Galileo programme, the tasks assigned to the latter by Articles 2, 3 and 4 of the Annex to Regulation (EC) No 876/2002; |
| --- | --- |

—

To take over, with a view to the completion of the development phase of the Galileo programme, the tasks assigned to the latter by Articles 2, 3 and 4 of the Annex to Regulation (EC) No 876/2002;

| — | To carry out all research of benefit to the development and promotion of the European GNSS programmes. |
| --- | --- |

—

To carry out all research of benefit to the development and promotion of the European GNSS programmes.

2.   Executive Director

Appointed by the Administrative Board.

3.   Scientific and Technical Committee

Composed of acknowledged experts from Member States and the Commission.

4.   System Safety and Security Committee

Composed of one representative per Member State and one representative from the Commission.

5.   External audit

European Court of Auditors.

6.   Discharge authority

European Parliament on a recommendation from the Council.

Source: Information submitted by the Authority.

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

Table 2

European GNSS Supervisory Authority (Brussels) — Implementation of the budget 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 under the final budget | Appropriations carried over from the previous financial year |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Community subsidies | 7 026 | 7 026 | Title I
  Staff | 2 510 | 921 | 522 | 398 | 1 589 | 37 | 0 | 37 |
| Other subsidies | | | Title II
  Administration | 1 353 | 1 060 | 182 | 878 | 293 | 27 | 0 | 27 |
| Other revenue | 3 | 0 | Title III
  Operating activities | 3 100 | 1 127 | 0 | 1 127 | 1 973 | 0 | 0 | 0 |
| | | | Earmarked revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 7 029 | 7 026 | Total | 6 963 | 3 108 | 704 | 2 403 | 3 855 | 64 | 0 | 64 |
| NB: Any discrepancies in totals are due to the effects of rounding.

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

(1000 euro)

Revenue

Expenditure

Origin of Revenue

Revenue entered in the final budget for the financial year

Revenue collected

Allocation of expenditure

Appropriations under the final budget

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Community subsidies

7 026

7 026

Title I

Staff

2 510

921

522

398

1 589

37

0

37

Other subsidies

Title II

Administration

1 353

1 060

182

878

293

27

0

27

Other revenue

3

0

Title III

Operating activities

3 100

1 127

0

1 127

1 973

0

0

0

Earmarked revenue

0

0

0

0

0

0

0

0

Total

7 029

7 026

Total

6 963

3 108

704

2 403

3 855

64

0

64

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

Source: Data supplied by the Authority — This table summarises the data provided by the Authority in its annual accounts.

Revenue collected and paymets are estimated on a cash basis.

Table 3

European GNSS Supervisory Authority (Brussels) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Own resources | 0,00 | 0,00 |
| Community subsidies | 1 981,00 | 0,00 |
| Other subsidies | 0,00 | 0,00 |
| Other revenues | 60,00 | 0,00 |
| Total (a) | 2 041,00 | 0,00 |
| Operating expenses |
| Staff expenses | 564,00 | 0,00 |
| Fixed asset related expenses | 4,00 | 0,00 |
| Other administrative expenses | 595,00 | 0,00 |
| Operational expenses | 53,00 | 0,00 |
| Total (b) | 1 216,00 | 0,00 |
| Surplus/(deficit) from operating activities (c = a – b) | 825,00 | 0,00 |
| Financial operations revenues (e) | 0,00 | 0,00 |
| Financial operations expenses (f) | 0,00 | 0,00 |
| Surplus /(deficit) from non-operating activities (g = e – f) | 0,00 | 0,00 |
| Economic result for the year (h = c + g) | 825,00 | 0,00 |

(1000 euro)

2006

2005

Operating revenue

Own resources

0,00

0,00

Community subsidies

1 981,00

0,00

Other subsidies

0,00

0,00

Other revenues

60,00

0,00

Total (a)

2 041,00

0,00

Operating expenses

Staff expenses

564,00

0,00

Fixed asset related expenses

4,00

0,00

Other administrative expenses

595,00

0,00

Operational expenses

53,00

0,00

Total (b)

1 216,00

0,00

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

825,00

0,00

Financial operations revenues (e)

0,00

0,00

Financial operations expenses (f)

0,00

0,00

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

0,00

0,00

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

825,00

0,00

Table 4

European GNSS Supervisory Authority (Brussels) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 0,00 | 0,00 |
| Tangible fixed assets | 65,00 | 0,00 |
| Current assets |
| Short-term pre-financing | 0,00 | 0,00 |
| Short-term receivables | 59,00 | 0,00 |
| Cash and cash equivalents | 76 485,00 | 0,00 |
| Total assets | 76 609,00 | 0,00 |
| Non-current liabilities |
| Provisions for risks and charges | 0,00 | 0,00 |
| Other long-term liabilities | 0,00 | 0,00 |
| Current liabilities |
| Provisions for risks and charges | 29,00 | 0,00 |
| Accounts payable (1) | 75 755,00 | 0,00 |
| Total liabilities | 75 784,00 | 0,00 |
| Net assets |
| Reserves | 0,00 | 0,00 |
| Accumulated surplus/deficit | 0,00 | 0,00 |
| Economic result of the year | 825,00 | 0,00 |
| Total net assets | 825,00 | 0,00 |
| Total liabilities and net assets | 76 609,00 | 0,00 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

0,00

0,00

Tangible fixed assets

65,00

0,00

Current assets

Short-term pre-financing

0,00

0,00

Short-term receivables

59,00

0,00

Cash and cash equivalents

76 485,00

0,00

Total assets

76 609,00

0,00

Non-current liabilities

Provisions for risks and charges

0,00

0,00

Other long-term liabilities

0,00

0,00

Current liabilities

Provisions for risks and charges

29,00

0,00

Accounts payable (1)

75 755,00

0,00

Total liabilities

75 784,00

0,00

Net assets

Reserves

0,00

0,00

Accumulated surplus/deficit

0,00

0,00

Economic result of the year

825,00

0,00

Total net assets

825,00

0,00

Total liabilities and net assets

76 609,00

0,00

---

(1)  Including an amount of 70 069 962,04 euro from the Galileo Joint Undertaking for the activities transferred with effect from 1 January 2007. This amount will be reclassified in the 2007 Accounts.

---

THE AUTHORITY'S REPLIES

| 10. | These preliminary observations have been the subject of all my attention. With regards to your observation No 10, please consider that the transactions took place during a period of start-up where the Authority's staff was limited in number and was gathering experience while at the same time dealing with a heavy workload. The Authority's situation has much improved since and specific attention has been and is being paid to the training of staff and the improvement and documentation of procedures. |
| --- | --- |

10.

These preliminary observations have been the subject of all my attention. With regards to your observation No 10, please consider that the transactions took place during a period of start-up where the Authority's staff was limited in number and was gathering experience while at the same time dealing with a heavy workload. The Authority's situation has much improved since and specific attention has been and is being paid to the training of staff and the improvement and documentation of procedures.

| 11. | The Court also observes that a part of the Galileo Joint Undertaking's assets for an amount of 65 million euro had not been transferred as of 1 January 2007. I am pleased to confirm that, to date, 97 % of this amount has been received by the Authority and that the issues having slowed down the transfer are resolved. |
| --- | --- |

11.

The Court also observes that a part of the Galileo Joint Undertaking's assets for an amount of 65 million euro had not been transferred as of 1 January 2007. I am pleased to confirm that, to date, 97 % of this amount has been received by the Authority and that the issues having slowed down the transfer are resolved.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/80 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/80

---

REPORT

on the annual accounts of the European Food Safety Authority for the financial year 2006 together with the Authority's replies

(2007/C 309/14)

CONTENTS

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

1-2

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

3-6

| 7-11 | OBSERVATIONS |
| --- | --- |

7-11

Tables 1 to 4

The Authority's replies

INTRODUCTION

| 1. | The European Food Safety Authority (hereinafter referred to as ‘the Authority’) was established by Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 (1). Its main tasks are to supply the scientific information needed for Community legislation to be drawn up, to collect and analyse data that allow risks to be identified and monitored and to provide independent information on these risks. |
| --- | --- |

1.

The European Food Safety Authority (hereinafter referred to as ‘the Authority’) was established by Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 (1). Its main tasks are to supply the scientific information needed for Community legislation to be drawn up, to collect and analyse data that allow risks to be identified and monitored and to provide independent information on these risks.

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

2.

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

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

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

| 4. | The Authority's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 44 of Regulation (EC) No 178/2002, 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. |
| --- | --- |

4.

The Authority's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 44 of Regulation (EC) No 178/2002, 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.

| 5. | The Court conducted its audit in accordance with the IFAC ad 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 ad 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 Authority'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 Authority'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 thus obtained a reasonable basis for the Statement set out below:

Reliability of the accountsThe Authority'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 Authority'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. | In 2006, payment rates were of 56 % of appropriations for administrative expenditure (Title II) and of 50 % of those for operational activities (Title III). 20 % of appropriations carried over from 2005 were cancelled at the end of 2006. A large number of transfers were made with a high concentration of them at the year-end (4). Thus, the budgetary principles of annuality and specification were not strictly observed. |
| --- | --- |

7.

In 2006, payment rates were of 56 % of appropriations for administrative expenditure (Title II) and of 50 % of those for operational activities (Title III). 20 % of appropriations carried over from 2005 were cancelled at the end of 2006. A large number of transfers were made with a high concentration of them at the year-end (4). Thus, the budgetary principles of annuality and specification were not strictly observed.

| 8. | The Authority did neither make a comprehensive risk assessment and define appropriate performance indicators, nor documented the systems and internal control procedures governing its activities. This situation precluded the implementation of an effective risk-management policy, which is essential to activity-based budget management. |
| --- | --- |

8.

The Authority did neither make a comprehensive risk assessment and define appropriate performance indicators, nor documented the systems and internal control procedures governing its activities. This situation precluded the implementation of an effective risk-management policy, which is essential to activity-based budget management.

| 9. | Final payments (5) were made in spite of insufficient supporting documentation. Moreover, it was difficult to assess the adequacy of the checks carried out to verify the correctness and completeness of the financial information submitted by the supplier. |
| --- | --- |

9.

Final payments (5) were made in spite of insufficient supporting documentation. Moreover, it was difficult to assess the adequacy of the checks carried out to verify the correctness and completeness of the financial information submitted by the supplier.

| 10. | The Authority did neither set realistic recruitment objectives, nor define priorities with regard to vacancies nor fix deadlines for each recruitment procedure. Only two-thirds of the 250 posts available under the Authority's 2006 establishment plan had been filled by the end of the year. |
| --- | --- |

10.

The Authority did neither set realistic recruitment objectives, nor define priorities with regard to vacancies nor fix deadlines for each recruitment procedure. Only two-thirds of the 250 posts available under the Authority's 2006 establishment plan had been filled by the end of the year.

| 11. | With regard to procurement procedures, the following irregularities were observed (6): the selection criteria not stated, or not applied; the price-evaluation method not defined until the evaluation procedure was under way; too vague description of the quality criteria. The composition of the evaluation committee did not comply with the principle of hierarchical independence of its members. This situation resulted mainly from the fact that the Authority did not apply clear procurement procedures. |
| --- | --- |

11.

With regard to procurement procedures, the following irregularities were observed (6): the selection criteria not stated, or not applied; the price-evaluation method not defined until the evaluation procedure was under way; too vague description of the quality criteria. The composition of the evaluation committee did not comply with the principle of hierarchical independence of its members. This situation resulted mainly from the fact that the Authority did not apply clear procurement procedures.

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 31, 1.2.2002, p. 1.

1

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

2

(3)  These accounts were drawn up on 19 June 2007 and received by the Court on 27 June 2007.

3

(4)  31 of the 49 transfers effected by the Authority were made during the last quarter.

4

(5)  Value of the cases detected: approximately 500 000 euro.

5

(6)  Seven cases of an approximate total value of: 670 000 euro.

6

---

Table 1

European Food Safety Authority (Parma)

| Areas of Community competence deriving from the Treaty | Competences of the Authority
  (Regulation (EC) No 178/2002 of the European Parliament and of the Council) | Governance | Resources made available to the Authority in 2006

  (2005) | Products and services supplied |
| --- | --- | --- | --- | --- |
| Free movement of goods

  (Article 37 of the Treaty)

  Contribution to a high level of protection of health, safety and protection of the environment and of consumers, taking account of any new development based on scientific facts

  (Article 95 of the Treaty)

  Common trade policy

  (Article 133 of the Treaty)

  Public health

  (Article 152(4)(b) of the Treaty) | Objectives







  — | To provide scientific opinions and scientific and technical support for the Community's legislation and policies which have a direct or indirect impact on food and feed safety |

Areas of Community competence deriving from the Treaty

Competences of the Authority

(Regulation (EC) No 178/2002 of the European Parliament and of the Council)

Governance

Resources made available to the Authority in 2006

(2005)

Products and services supplied

Free movement of goods

(Article 37 of the Treaty)

Contribution to a high level of protection of health, safety and protection of the environment and of consumers, taking account of any new development based on scientific facts

(Article 95 of the Treaty)

Common trade policy

(Article 133 of the Treaty)

Public health

(Article 152(4)(b) of the Treaty)

Objectives

—

To provide scientific opinions and scientific and technical support for the Community's legislation and policies which have a direct or indirect impact on food and feed safety

| — | To provide independent information on risks relating to food safety |
| --- | --- |

—

To provide independent information on risks relating to food safety

| — | To contribute to the achievement of a high level of protection of human life and health |
| --- | --- |

—

To contribute to the achievement of a high level of protection of human life and health

| — | To collect and analyse data needed to allow characterisation and monitoring of risks |
| --- | --- |

—

To collect and analyse data needed to allow characterisation and monitoring of risks

Tasks

| — | To issue scientific opinions and studies |
| --- | --- |

—

To issue scientific opinions and studies

| — | To promote uniform risk-assessment methodologies |
| --- | --- |

—

To promote uniform risk-assessment methodologies

| — | To assist the Commission |
| --- | --- |

—

To assist the Commission

| — | To search for, analyse and summarise the requisite scientific and technical data |
| --- | --- |

—

To search for, analyse and summarise the requisite scientific and technical data

| — | To identify and characterise emerging risks |
| --- | --- |

—

To identify and characterise emerging risks

| — | To establish a network of organisations operating in similar fields |
| --- | --- |

—

To establish a network of organisations operating in similar fields

| — | To provide scientific and technical assistance in crisis management |
| --- | --- |

—

To provide scientific and technical assistance in crisis management

| — | To improve international cooperation |
| --- | --- |

—

To improve international cooperation

| — | To provide the public and interested parties with reliable, objective and easily comprehensible information |
| --- | --- |

—

To provide the public and interested parties with reliable, objective and easily comprehensible information

| — | To take part in the Commission's rapid alert system |
| --- | --- |

—

To take part in the Commission's rapid alert system

1.   Management Board

Composition

14 members appointed by the Council (in cooperation with the European Parliament and the Commission) and one representative of the Commission

Duties

To adopt the work programme and the budget and ensure that they are implemented

2.   Executive Director

Appointed by the Management Board on the basis of a list of candidates proposed by the Commission, following a hearing before the European Parliament

3.   Advisory Forum

Composition

One representative per Member State

Duties

To advise the Executive Director

4.   Scientific Committee and scientific panels:

To draw up the Authority's scientific opinions

5.   External audit

Court of Auditors

6.   Discharge authority

Parliament, on the Council's recommendation

Final budget

40,2 million euro (36,9 million euro); Community contribution: 100 % (100%)

Staff numbers as at 31 December 2006

Number of posts in establishment plan: 250 (194)

Posts occupied: 173 (124)

+57 (36) other posts (auxiliary contracts, seconded national experts, local staff)

Total staff: 230 (160)

Assigned to the following duties:

| — | operational: 150 (104) |
| --- | --- |

—

operational: 150 (104)

| — | administrative: 80 (56) |
| --- | --- |

—

administrative: 80 (56)

Following the 323 requests for scientific opinions made to the EFSA in 2006, 132 opinions and four reports were adopted and published. They covered many areas dealt with by the nine scientific panels, including aromatic plants, genetically modified organisms (with the WHO), bovine spongiform encephalopathy (BSE) or transmissible spongiform encephalopathy (TSE).

EFSA's communication of risks to the public and its activities in general have been broadly acknowledged as a result of 4 600 articles covering the Authority's scientific work. Consultation of EFSA's website also increased, with 1,33 million hits, and there were 12 200 subscribers to EFSA Highlights. The coordination of the communication of risks was stepped up through the Advisory Forum and the workshops organised.

EFSA's networking with interested parties, national authorities and institutional counterparts intensified through the activities of, inter alia, a forum for interested parties and programmes aimed at the new Member States or candidate countries. The Advisory Forum met five times with a view to networking with national authorities on specific topics, such as coordination in the event of a crisis scenario and increasing the use of the extranet linking national authorities, the Commission and EFSA.

With regard to the assessment of EFSA in 2005, the Management Board submitted its recommendations in the summer of 2006 and their implementation has been ongoing since then.

Source: Information supplied by the Authority.

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

Table 2

European Food Safety Authority (Parma) — 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 collected | 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 | 40 249 | 37 520 | Title I
  Staff | 18 505 | 17 722 | 17 238 | 483 | 783 | 546 | 546 | 480 | 66 |
| Other revenue | 0 | 23 | Title II
  Administration | 7 375 | 7 037 | 4 144 | 2 894 | 338 | 2 285 | 2 285 | 2 100 | 185 |
| | | | Title III
  Operating activities | 14 369 | 11 649 | 7 137 | 4 512 | 2 720 | 3 476 | 3 476 | 2 464 | 1 012 |
| Total | 40 249 | 37 543 | Total | 40 249 | 36 408 | 28 519 | 7 889 | 3 841 | 6 308 | 6 308 | 5 044 | 1 264 |
| NB: Variations in totals are due to the effects of rounding.

  Source: Data supplied by the Authority. This table summarises the data provided by the Authority 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

Appropriations carried over from previous financial year(s)

entered

committed

paid

carried over

cancelled

entered

committed

paid

cancelled

Community subsidies

40 249

37 520

Title I

Staff

18 505

17 722

17 238

483

783

546

546

480

66

Other revenue

0

23

Title II

Administration

7 375

7 037

4 144

2 894

338

2 285

2 285

2 100

185

Title III

Operating activities

14 369

11 649

7 137

4 512

2 720

3 476

3 476

2 464

1 012

Total

40 249

37 543

Total

40 249

36 408

28 519

7 889

3 841

6 308

6 308

5 044

1 264

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

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

Table 3

European Food Safety Authority (Parma) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Own resources | | |
| Community subsidies | 35 117 | 27 405 |
| Other subsidies | | |
| Other revenue | 23 | 0 |
| Total (a) | 35 140 | 27 405 |
| Operating expenditure |
| Staff expenditure | 16 014 | 13 012 |
| Fixed asset related expenditure | 771 | 603 |
| Other administrative expenditure | 8 303 | 5 833 |
| Operational expenditure | 8 950 | 8 718 |
| Total (b) | 34 038 | 28 166 |
| Surplus/(deficit) from operating activities (c = a – b) | 1 102 | – 761 |
| Financial operations revenue (e) | 3 | 0 |
| Financial operations expenditure (f) | 4 | 7 |
| Surplus/(deficit) from non-operating activities (g = e – f) | –1 | –7 |
| Economic result for the year (h = c + g) | 1 101 | – 768 |

(1000 euro)

2006

2005

Operating revenue

Own resources

Community subsidies

35 117

27 405

Other subsidies

Other revenue

23

0

Total (a)

35 140

27 405

Operating expenditure

Staff expenditure

16 014

13 012

Fixed asset related expenditure

771

603

Other administrative expenditure

8 303

5 833

Operational expenditure

8 950

8 718

Total (b)

34 038

28 166

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

1 102

– 761

Financial operations revenue (e)

3

0

Financial operations expenditure (f)

4

7

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

–1

–7

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

1 101

– 768

Table 4

European Food Safety Authority (Parma) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 687 | 615 |
| Tangible fixed assets | 950 | 972 |
| Current assets |
| Short-term pre-financing | 224 | 171 |
| Short-term receivables | 43 | 100 |
| Other receivables | 112 | 28 |
| Cash and cash equivalents | 10 607 | 10 879 |
| Total assets | 12 624 | 12 766 |
| Current liabilities |
| Provision for risks and charges | 388 | 0 |
| Accounts payable | 7 451 | 9 082 |
| Total liabilities | 7 839 | 9 082 |
| Net assets |
| Accumulated surplus/deficit | 3 684 | 4 452 |
| Economic result for the year | 1 101 | – 768 |
| Total net assets | 4 785 | 3 684 |
| Total liabilities and net assets | 12 624 | 12 766 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

687

615

Tangible fixed assets

950

972

Current assets

Short-term pre-financing

224

171

Short-term receivables

43

100

Other receivables

112

28

Cash and cash equivalents

10 607

10 879

Total assets

12 624

12 766

Current liabilities

Provision for risks and charges

388

0

Accounts payable

7 451

9 082

Total liabilities

7 839

9 082

Net assets

Accumulated surplus/deficit

3 684

4 452

Economic result for the year

1 101

– 768

Total net assets

4 785

3 684

Total liabilities and net assets

12 624

12 766

---

THE AUTHORITY'S REPLIES

| 7. | The payment rate in 2006, mainly under Title Ill reflects the increased multi-annual nature of the operations. In 2007 the Authority will improve its budget forecasting and monitoring to reduce transfers in number nd volume. Increased control on carry over will be implemented for the 2007 closing of accounts. |
| --- | --- |

7.

The payment rate in 2006, mainly under Title Ill reflects the increased multi-annual nature of the operations. In 2007 the Authority will improve its budget forecasting and monitoring to reduce transfers in number nd volume. Increased control on carry over will be implemented for the 2007 closing of accounts.

| 8. | To increase awareness for internal control within the Authority, an internal control action plan was implemented. Moreover internal control self assessment as well as high level corporate risk assessment are part of the 2007 work plan. |
| --- | --- |

8.

To increase awareness for internal control within the Authority, an internal control action plan was implemented. Moreover internal control self assessment as well as high level corporate risk assessment are part of the 2007 work plan.

| 9. | The final payments audited were processed during the first part of 2006, nevertheless, in order to assess the correctness and completeness of the financial information submitted by the supplier, the Authority reinforced the financial verification team by two additional staff members during the first quarter of 2007 and implemented check-lists during the second quarter of 2007. |
| --- | --- |

9.

The final payments audited were processed during the first part of 2006, nevertheless, in order to assess the correctness and completeness of the financial information submitted by the supplier, the Authority reinforced the financial verification team by two additional staff members during the first quarter of 2007 and implemented check-lists during the second quarter of 2007.

| 10. | In November 2006 a precise recruitment plan 2007 has been adopted by the Authority's management in order to enable the Authority to recruit the number of staff members as foreseen in its establishment plan. |
| --- | --- |

10.

In November 2006 a precise recruitment plan 2007 has been adopted by the Authority's management in order to enable the Authority to recruit the number of staff members as foreseen in its establishment plan.

| 11. | Procurement procedures in question are not recent some were launched as early as 2004, for others contracts were awarded in 2005 and 2006. The Authority continues to improve compliance with applicable procurement rules, in particular through a reinforced central support unit, update of guidance documents and, since 2007, by the recruitment of a new staff member devoted to the support of tendering procedures. Moreover, the Authority made an important effort to train its staff in procurement matters (various general and topical training sessions were organised in 2006 and 2007 — over 100 staff members participated). |
| --- | --- |

11.

Procurement procedures in question are not recent some were launched as early as 2004, for others contracts were awarded in 2005 and 2006. The Authority continues to improve compliance with applicable procurement rules, in particular through a reinforced central support unit, update of guidance documents and, since 2007, by the recruitment of a new staff member devoted to the support of tendering procedures. Moreover, the Authority made an important effort to train its staff in procurement matters (various general and topical training sessions were organised in 2006 and 2007 — over 100 staff members participated).

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/86 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/86

---

REPORT

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

(2007/C 309/15)

CONTENTS

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

1-2

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

3-6

| 7-13 | OBSERVATIONS |
| --- | --- |

7-13

Tables 1 to 4

The Centre's replies

INTRODUCTION

| 1. | The European Centre for the Development of Vocational Training (hereinafter ‘the Centre’) was established by Council Regulation (EEC) No 337/75 (1). Its core mandate is to serve the development of vocational training at Community level. In order to achieve this objective, it has the task of compiling and disseminating documentation on vocational training systems. |
| --- | --- |

1.

The European Centre for the Development of Vocational Training (hereinafter ‘the Centre’) was established by Council Regulation (EEC) No 337/75 (1). Its core mandate is to serve the development of vocational training at Community level. In order to achieve this objective, it has the task of compiling and disseminating documentation on vocational training systems.

| 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. |
| --- | --- |

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.

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. |
| --- | --- |

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.

| 4. | The Centre's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 12 (a) of Regulation (EEC) No 337/75, and sent to the Court, which is required to provide a statement as to their reliability and the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The Centre's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 12 (a) of Regulation (EEC) No 337/75, and sent to the Court, which is required to provide a statement as to their reliability and the legality and regularity of the underlying transactions.

| 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 thus obtained a reasonable basis for the following 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 transactionsExcept for the situation described in paragraph 13, the transactions underlying the Centre's annual accounts, taken as a whole, are legal and regular. |
| --- | --- |

6.

The Court has thus obtained a reasonable basis for the following 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 transactionsExcept for the situation described in paragraph 13, the transactions underlying the Centre's annual accounts, taken as a whole, are legal and regular.

OBSERVATIONS

| 7. | For the 2006 administrative expenditure budget (Title II), more than 43 % of the commitments made were carried over to the following financial year. For operating activities (differentiated appropriations under Title III), more than 20 % of the payment appropriations were cancelled. The Court observed a high number of budget transfers, a large amount transferred from Title I (staff expenditure) to Title III (operating activities) as well as a concentration of transfers at the year end. The budgetary principle of specification was not strictly observed. |
| --- | --- |

7.

For the 2006 administrative expenditure budget (Title II), more than 43 % of the commitments made were carried over to the following financial year. For operating activities (differentiated appropriations under Title III), more than 20 % of the payment appropriations were cancelled. The Court observed a high number of budget transfers, a large amount transferred from Title I (staff expenditure) to Title III (operating activities) as well as a concentration of transfers at the year end. The budgetary principle of specification was not strictly observed.

| 8. | The Centre has neither defined nor documented an inventory procedure for identifying, registering and capitalising assets in a correct and exhaustive manner. |
| --- | --- |

8.

The Centre has neither defined nor documented an inventory procedure for identifying, registering and capitalising assets in a correct and exhaustive manner.

| 9. | Despite the progress made in 2006, the documentation of the main procedures including the internal control processes was not complete. |
| --- | --- |

9.

Despite the progress made in 2006, the documentation of the main procedures including the internal control processes was not complete.

| 10. | The Centre reimbursed in their entirety all school fees paid for the children of some agents. There was no legal basis for these refunds. |
| --- | --- |

10.

The Centre reimbursed in their entirety all school fees paid for the children of some agents. There was no legal basis for these refunds.

| 11. | In two cases, the Centre did not check correctly the necessary professional experience required by the vacancy notice during the pre-selection phase and thus had to reject the successful candidates after the formal job proposal. There was a lack of effective control on whether the documents submitted by candidates in support of their professional experience offer genuine proof in order to avoid unnecessary costs and legal risks. |
| --- | --- |

11.

In two cases, the Centre did not check correctly the necessary professional experience required by the vacancy notice during the pre-selection phase and thus had to reject the successful candidates after the formal job proposal. There was a lack of effective control on whether the documents submitted by candidates in support of their professional experience offer genuine proof in order to avoid unnecessary costs and legal risks.

| 12. | In one procurement procedure (4), the complexity of the system of evaluation of the bids and the absence of clear and complete information on the award criteria and their respective weights led to a situation of non-transparency for the bidders. For a framework contract (5), the Centre did not publish in either the contract notice or the tender documents sufficient information about the estimated global market value. An IT maintenance service contract (6) signed in December 2003 by an unauthorised person remained in force until the end of 2006 despite its imprecisions about the quantity and price of the services to be provided. |
| --- | --- |

12.

In one procurement procedure (4), the complexity of the system of evaluation of the bids and the absence of clear and complete information on the award criteria and their respective weights led to a situation of non-transparency for the bidders. For a framework contract (5), the Centre did not publish in either the contract notice or the tender documents sufficient information about the estimated global market value. An IT maintenance service contract (6) signed in December 2003 by an unauthorised person remained in force until the end of 2006 despite its imprecisions about the quantity and price of the services to be provided.

| 13. | In its 2005 Statement of Assurance (7) the Court emphasised the absence of a legal basis for a decision of the Centre's Appeal Committee by granting to an agent a compensation for non-pecuniary harm not provided for in the Staff Regulations. Despite the Court's observation, that compensation (8) was paid in 2006. |
| --- | --- |

13.

In its 2005 Statement of Assurance (7) the Court emphasised the absence of a legal basis for a decision of the Centre's Appeal Committee by granting to an agent a compensation for non-pecuniary harm not provided for in the Staff Regulations. Despite the Court's observation, that compensation (8) was paid in 2006.

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 39, 13.2.1975, p. 1.

1

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

2

(3)  These accounts were drawn up on 17 March 2007 and received by the Court 14 June 2007.

3

(4)  Approximate annual value: 125 000 euro.

4

(5)  Approximate annual value: 80 000 euro.

5

(6)  Approximate annual value: 15 000 euro.

6

(7)  OJ C 312, 19.12.2006, p. 61.

7

(8)  Amount: 3 000 euro.

8

---

Table 1

European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki

| Area of Community competence deriving from the Treaty | Competence of the Centre as specified in Articles 2 and 3 of Council Regulation (EEC) No 337/75 of 10 February 1975 as last amended by Council Regulation (EC) No 2051/2004 of 25 October 2004 | Governance
  Council Regulation (EEC) No 337/75 of 10 February 1975 as last amended by Council Regulation (EC) No 2051/2004 of 25 October 2004 | Resources made available to the Centre in 2006

  (2005) | Products and services supplied in 2006

  (2005) |
| --- | --- | --- | --- | --- |
| The Community implements a vocational training policy to support and supplement the action of the Member States as regards the content and organisation of vocational training.
  Action aims to:






  — | facilitate adaptation to industrial changes, in particular through vocational training and retraining; |

Area of Community competence deriving from the Treaty

Competence of the Centre as specified in Articles 2 and 3 of Council Regulation (EEC) No 337/75 of 10 February 1975 as last amended by Council Regulation (EC) No 2051/2004 of 25 October 2004

Governance

Council Regulation (EEC) No 337/75 of 10 February 1975 as last amended by Council Regulation (EC) No 2051/2004 of 25 October 2004

Resources made available to the Centre in 2006

(2005)

Products and services supplied in 2006

(2005)

The Community implements a vocational training policy to support and supplement the action of the Member States as regards the content and organisation of vocational training.

Action aims to:

—

facilitate adaptation to industrial changes, in particular through vocational training and retraining;

| — | improve initial and continuing vocational training in order to facilitate vocational integration and reintegration into the labour market; |
| --- | --- |

—

improve initial and continuing vocational training in order to facilitate vocational integration and reintegration into the labour market;

| — | facilitate access to vocational training and encourage mobility of instructors and trainees and particularly young people; |
| --- | --- |

—

facilitate access to vocational training and encourage mobility of instructors and trainees and particularly young people;

| — | stimulate cooperation on training between educational or training establishments and firms; |
| --- | --- |

—

stimulate cooperation on training between educational or training establishments and firms;

| — | develop exchanges of information and experience on issues common to the training systems of the Member States. |
| --- | --- |

—

develop exchanges of information and experience on issues common to the training systems of the Member States.

(From Article 150 of the Treaty)

The Centre's mandate

In its capacity as a European Union reference centre for vocational training and education, Cedefop provides political decision-makers, researchers and professionals with information aimed at developing a clearer understanding of current trends that will thus enable them to reach more soundly based decisions with a view to future action.

Cedefop assists the European Commission in promoting and developing vocational training and education at Community level.

Tasks

| — | To compile selected documentation and produce data analysis; |
| --- | --- |

—

To compile selected documentation and produce data analysis;

| — | To contribute to research development and coordination; |
| --- | --- |

—

To contribute to research development and coordination;

| — | To utilise and disseminate relevant information; |
| --- | --- |

—

To utilise and disseminate relevant information;

| — | To encourage and support a concerted approach to matters relating to the development of vocational training; |
| --- | --- |

—

To encourage and support a concerted approach to matters relating to the development of vocational training;

| — | To provide a forum for a broad and diverse public. |
| --- | --- |

—

To provide a forum for a broad and diverse public.

Governing Board (GB), consisting of:

For each Member State:

| — | one member representing the Government; |
| --- | --- |

—

one member representing the Government;

| — | one member representing the employers' organisations; |
| --- | --- |

—

one member representing the employers' organisations;

| — | one member representing the employees' organisations and three members representing the European Commission. |
| --- | --- |

—

one member representing the employees' organisations and three members representing the European Commission.

Bureau, made up of:

The chairman and the three vice-chairmen of the GB (one from each of the groups), one coordinator per group and one representative of the Commission.

Director

Appointed by the Commission from a list of candidates submitted by the Governing Board; is responsible for the management of the Centre and implements the decisions of the Governing Board and the Bureau.

Internal control

Commission's Internal Audit Service.

Internal Auditor of the Centre (as of 16 December 2006).

External audit

European Court of Auditors.

Discharge

Parliament, on the Council's recommendation.

Budget

17,6 (17,1) million euro

Community contribution: 95 % (96 %)

Staff numbers at 31 December 2006

Number of posts in establishment plan: 95 (91)

Posts occupied: 81 (85)

Other staff: (contract staff and seconded national experts): 42 (38).

Total staff: 123 (123)

assigned to the following duties:

operational: 84 (85)

administrative: 34 (33)

mixed: 5 (5)

Cedefop's report to the ministerial conference in Helsinki, assessing progress in achieving the Copenhagen-Maastricht objectives for the enhancement of European cooperation in vocational education and training (VET). Cedefop prepared the background document for the Helsinki communiqué.

The 4th research report, focussing on modernisation of VET, was prepared. It comprises research findings on reform, innovation of VET, social cohesion, and skill demand.

An Agora conference and publication on older workers and lifelong learning provided a comprehensive view on an increasingly important issue.

In regard to the identification of skill needs Cedefop concentrated 2006 on methods for the forecasting of skill needs in preparation of a medium term skill needs forecast for all Member States. The European Journal of vocational education (3 issues were published, as in 2005) improved in scientific quality and contributes to the quality of research in VET.

Contribution to clusters and working groups of the EC under the Education and Training 2010 program on learning outcomes and validation of non-formal learning, quality assurance, lifelong guidance, teachers and trainers, the European qualifications framework and the European Credit transfer system. Like Europass, these are examples of European approaches and instruments to create a European area of VET. Europass (Cedefop provides major input and cooperates with EC) is a successful initiative which is used and accepted by a rapidly increasing number of European citizens. By the end of 2006 over a million CV templates had been downloaded and almost one million CVs have been generated on line.

The Leonardo Da Vinci study visits programme, the cooperation with social partners and sectoral approaches to VET are other examples of Cedefop's contribution to the development of VET in the EU.

Besides continuation of close co-operation with the European Training Foundation in the familiarisation of acceding/candidate countries and beyond, Cedefop has entered into a formal co-operation with the Foundation on living and working conditions to strengthen synergies.

A revamped website, increased work with the press and continued activities of documentation (ISO certified) and publication — online and in hard copy — have helped to raise the visibility of Cedefop and awareness of VET issues.

Some data: 24 conferences and seminars, 24 work shops, and 21 presentations/visits to Cedefop were organised in 2006; 43 (60) publications were published, the number of registered users of the electronic training village (ETV) increased to 64 828 (60 440) and work proceeded on 36 projects (29 projects). Study visits: 844 (762) participants.

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 the Development of Vocational Training (Cedefop) — Thessaloniki — 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 collected | Allocation of expenditure | Appropriations for the financial year | Appropriations carried over from the previous financial year |
| entered | committed | paid | carried over | cancelled | available | committed | paid | carried over | cancelled |
| Own revenue | | | Title I
  Staff (NDA) | 9 443 | 8 483 | 8 145 | 338 | 960 | 213 | 213 | 173 | 0 | 40 |
| Community subsidy | 16 700 | 14 589 | Title II
  Administration (NDA) | 1 419 | 1 281 | 738 | 559 | 123 | 334 | 334 | 297 | 0 | 38 |
| Other revenue | 140 | 75 | Title III
  Operating activities (DA) | | | | | | | | | | |
| — CA | 5 978 | 5 722 | 0 | 0 | 256 | 0 | 0 | 0 | 0 | 0 |
| — PA | 5 978 | 0 | 4 527 | 0 | 1 451 | 0 | 0 | 0 | 0 | 0 |
| Assigned revenue | 723 | 649 | Assigned revenue | 723 | 387 | 65 | 584 | 74 | 511 | 337 | 179 | 333 | 0 |
| Total | 17 563 | 15 313 | Total CA | 17 563 | 15 872 | 0 | 1 480 | 1 413 | 1 058 | 884 | 0 | 333 | 77 |
| Total PA | 17 563 | 0 | 13 475 | 1 480 | 2 607 | 1 058 | 0 | 649 | 333 | 77 |
| NDA | : | non-differentiated appropriations (commitment appropriations equal payment appropriations). |
| DA | : | differentiated appropriations (commitment appropriations may differ from payment appropriations). |
| CA | : | commitment appropriations in the context of differentiated appropriations. |
| PA | : | payment appropriations in the context of differentiated appropriations. |

(1000 euro)

Revenue

Expenditure

Source 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

committed

paid

carried over

cancelled

Own revenue

Title I

Staff (NDA)

9 443

8 483

8 145

338

960

213

213

173

0

40

Community subsidy

16 700

14 589

Title II

Administration (NDA)

1 419

1 281

738

559

123

334

334

297

0

38

Other revenue

140

75

Title III

Operating activities (DA)

— CA

5 978

5 722

0

0

256

0

0

0

0

0

— PA

5 978

0

4 527

0

1 451

0

0

0

0

0

Assigned revenue

723

649

Assigned revenue

723

387

65

584

74

511

337

179

333

0

Total

17 563

15 313

Total CA

17 563

15 872

0

1 480

1 413

1 058

884

0

333

77

Total PA

17 563

0

13 475

1 480

2 607

1 058

0

649

333

77

NDA

:

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

DA

:

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

CA

:

commitment appropriations in the context of differentiated appropriations.

PA

:

payment appropriations in the context of differentiated appropriations.

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

Table 3

European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 14 146 | 14 620 |
| Other subsidies | 457 | 399 |
| Other revenues | 279 | 291 |
| Total (a) | 14 882 | 15 309 |
| Operating expenditure |
| Staff expenditure | 8 166 | 9 091 |
| Fixed asset related expenditure | 480 | 502 |
| Other administrative expenditure | 1 181 | 1 460 |
| Operational expenditure | 4 340 | 5 021 |
| Total (b) | 14 167 | 16 074 |
| Surplus/(deficit) from operating activities (c = a – b) | 715 | – 765 |
| Financial operations revenue (e) | 0 | 1 |
| Financial operations expenditure (f) | 4 | 4 |
| Surplus/(deficit) from non-operating activities (g = e – f) | –4 | –3 |
| Economic result for the year (h = c + g) | 711 | – 768 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

14 146

14 620

Other subsidies

457

399

Other revenues

279

291

Total (a)

14 882

15 309

Operating expenditure

Staff expenditure

8 166

9 091

Fixed asset related expenditure

480

502

Other administrative expenditure

1 181

1 460

Operational expenditure

4 340

5 021

Total (b)

14 167

16 074

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

715

– 765

Financial operations revenue (e)

0

1

Financial operations expenditure (f)

4

4

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

–4

–3

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

711

– 768

Table 4

European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 92 | 136 |
| Tangible fixed assets | 4 887 | 5 218 |
| Current assets |
| Short-term pre-financing | 552 | 80 |
| Short-term receivables | 443 | 294 |
| Cash and cash equivalents | 3 919 | 3 344 |
| Total assets | 9 893 | 9 072 |
| Current liabilities |
| Provisions for risks and charges | 317 | 204 |
| Accounts payable | 3 777 | 3 780 |
| Total liabilities | 4 094 | 3 984 |
| Net assets |
| Accumulated surplus/deficit | 5 088 | 5 856 |
| Economic result of the year | 711 | – 768 |
| Total net assets | 5 799 | 5 088 |
| Total liabilities and net assets | 9 893 | 9 072 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

92

136

Tangible fixed assets

4 887

5 218

Current assets

Short-term pre-financing

552

80

Short-term receivables

443

294

Cash and cash equivalents

3 919

3 344

Total assets

9 893

9 072

Current liabilities

Provisions for risks and charges

317

204

Accounts payable

3 777

3 780

Total liabilities

4 094

3 984

Net assets

Accumulated surplus/deficit

5 088

5 856

Economic result of the year

711

– 768

Total net assets

5 799

5 088

Total liabilities and net assets

9 893

9 072

---

THE CENTRE'S REPLIES

| 7. | Further attempts to improve the planning and monitoring of the Centre's budget implementation and budgeting have been undertaken and will be reinforced. This will allow for fewer transfers and increase the specificity of the budget. |
| --- | --- |

7.

Further attempts to improve the planning and monitoring of the Centre's budget implementation and budgeting have been undertaken and will be reinforced. This will allow for fewer transfers and increase the specificity of the budget.

| 8. | Although the situation as described by the Court did not affect the reliability of the Centre's financial statements, the Centre has started to further develop and document a reliable inventory management system with clearly defined responsibilities. This will be implemented by the end of 2007 and specific training is foreseen in December 2007 for all agents involved. |
| --- | --- |

8.

Although the situation as described by the Court did not affect the reliability of the Centre's financial statements, the Centre has started to further develop and document a reliable inventory management system with clearly defined responsibilities. This will be implemented by the end of 2007 and specific training is foreseen in December 2007 for all agents involved.

| 9. | In 2006, the Centre made major progress in the most sensitive areas. However, despite its considerable efforts, the Centre could not complete the documentation of its procedures, partly because the recruitment of an internal auditor could only be concluded in December 2006. The Centre continues with its efforts to have complete documentation by the first half of 2008. |
| --- | --- |

9.

In 2006, the Centre made major progress in the most sensitive areas. However, despite its considerable efforts, the Centre could not complete the documentation of its procedures, partly because the recruitment of an internal auditor could only be concluded in December 2006. The Centre continues with its efforts to have complete documentation by the first half of 2008.

| 10. | The reimbursement, even though based on a 1997 decision which had not been prolonged, has been motivated by the high fees of English speaking schools and the absence of a European school in Thessaloniki. The measure resulted in extra costs of 2 900 euro per child and year (for the school year 2006/2007 two employees with altogether four children benefited from this measure.) The Centre has realised the mistake and published in July 2007 an administrative note to all staff confirming the relevant provisions of the Staff Regulation.
  Moreover, the Centre promotes the establishment of a European schooling facility in Thessaloniki to be organised by the competent Greek authorities. |
| --- | --- |

10.

The reimbursement, even though based on a 1997 decision which had not been prolonged, has been motivated by the high fees of English speaking schools and the absence of a European school in Thessaloniki. The measure resulted in extra costs of 2 900 euro per child and year (for the school year 2006/2007 two employees with altogether four children benefited from this measure.) The Centre has realised the mistake and published in July 2007 an administrative note to all staff confirming the relevant provisions of the Staff Regulation.

Moreover, the Centre promotes the establishment of a European schooling facility in Thessaloniki to be organised by the competent Greek authorities.

| 11. | On 29 January 2007 an internal guide for selection boards was published. It provides, amongst others, clear guidelines for the calculation of professional experience. Moreover checks at the pre-selection stage and before issuing the formal job offers have been reinforced. |
| --- | --- |

11.

On 29 January 2007 an internal guide for selection boards was published. It provides, amongst others, clear guidelines for the calculation of professional experience. Moreover checks at the pre-selection stage and before issuing the formal job offers have been reinforced.

| 12. | (1) | Since July 2007 and in reaction to the Courts finding the Centre has made an effort to assure that weightings of sub-criteria are published in the tender documents. |
| --- | --- | --- |

12.

(1)

Since July 2007 and in reaction to the Courts finding the Centre has made an effort to assure that weightings of sub-criteria are published in the tender documents.

| (2) | The procedure for the framework contract was launched in October 2005 (and the contract was signed in March 2006). Since January 2007 the Centre provides for each acquisition systematically information on its market volume in the tender documents. |
| --- | --- |

(2)

The procedure for the framework contract was launched in October 2005 (and the contract was signed in March 2006). Since January 2007 the Centre provides for each acquisition systematically information on its market volume in the tender documents.

| (3) | The current directorate had not been aware of the issue. In consequence, the IT contract mentioned has not been renewed in 2007. A new open procurement had been launched and concluded in February 2007. |
| --- | --- |

(3)

The current directorate had not been aware of the issue. In consequence, the IT contract mentioned has not been renewed in 2007. A new open procurement had been launched and concluded in February 2007.

| 13. | The decision of which the legality is contested by the Court, is conform to the rules adopted by the Governing Board of the Centre. The Centre has asked for an opinion of the Legal Service of the Commission in response to the 2005 statement of the Court. The opinion of the Legal Service of the Commission fully confirmed the legality of the decision of the Appeals Committee and has been transmitted to the Court. Following the renewed observation of the Court, the Centre will consult the College of the Heads of Administration. |
| --- | --- |

13.

The decision of which the legality is contested by the Court, is conform to the rules adopted by the Governing Board of the Centre. The Centre has asked for an opinion of the Legal Service of the Commission in response to the 2005 statement of the Court. The opinion of the Legal Service of the Commission fully confirmed the legality of the decision of the Appeals Committee and has been transmitted to the Court. Following the renewed observation of the Court, the Centre will consult the College of the Heads of Administration.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/94 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/94

---

REPORT

on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2006 together with the Centre's replies

(2007/C 309/16)

CONTENTS

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

1-2

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

3-6

| 7-9 | OBSERVATIONS |
| --- | --- |

7-9

Tables 1 to 4

The Centre's replies

INTRODUCTION

| 1. | The Translation Centre for the Bodies of the European Union (hereinafter ‘the Centre’) was established by Council Regulation (EC) No 2965/94 (1). The Centre's role is to provide the EU bodies, and any other EU Institutions and Bodies which call upon its services, with the translation services necessary for their activities. |
| --- | --- |

1.

The Translation Centre for the Bodies of the European Union (hereinafter ‘the Centre’) was established by Council Regulation (EC) No 2965/94 (1). The Centre's role is to provide the EU bodies, and any other EU Institutions and Bodies which call upon its services, with the translation services necessary for their activities.

| 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. |
| --- | --- |

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.

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. |
| --- | --- |

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.

| 4. | The Centre'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 2965/94, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The Centre'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 2965/94, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions.

| 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 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. |
| --- | --- |

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.

OBSERVATIONS

| 7. | The accumulated budget surplus (4) for 2006 was 16,9 million euro. In 2005 it was 10,5 million euro and in 2004 it was 3,5 million euro. In 2007, the Centre will refund 9,3 million euro to its clients. Such an accumulation of surpluses showed that the method for pricing its translations is not precise enough. |
| --- | --- |

7.

The accumulated budget surplus (4) for 2006 was 16,9 million euro. In 2005 it was 10,5 million euro and in 2004 it was 3,5 million euro. In 2007, the Centre will refund 9,3 million euro to its clients. Such an accumulation of surpluses showed that the method for pricing its translations is not precise enough.

| 8. | In one case (5), a legal commitment was made prior to the budget commitment, in breach of the Financial Regulation. |
| --- | --- |

8.

In one case (5), a legal commitment was made prior to the budget commitment, in breach of the Financial Regulation.

| 9. | Written guidelines necessary for the assessment of candidates did not exist. In a recruitment procedure for translators, the Centre failed to provide written evidence of the rules applied for the evaluation of the candidates files. |
| --- | --- |

9.

Written guidelines necessary for the assessment of candidates did not exist. In a recruitment procedure for translators, the Centre failed to provide written evidence of the rules applied for the evaluation of the candidates files.

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 314, 7.12.1994, p. 1.

1

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

2

(3)  These accounts were drawn up on 1 July 2007 and received by the Court on 3 July 2007.

3

(4)  The budgetary result is calculated on the basis of a modified cash method and not on the basis of the accruals principle used for the economic result (see table 3).

4

see table 3

(5)  Value: 320 000 euro.

5

---

Table 1

Translation Centre for the Bodies of the European Union (Luxembourg)

| Areas of Community competence | Competences of the Centre
  Council Regulation (EC) No 2965/94 of 28 November 1994 | Governance | Resources made available to the Centre in 2006

  (2005 data) | Products and services provided during the financial year 2006

  (2005 data) |
| --- | --- | --- | --- | --- |
| The representatives of the Member States' governments adopted by mutual agreement a declaration concerning the creation, under the aegis of the Commission's translation departments in Luxembourg, of a Translation Centre for the bodies of the Union, which would provide the necessary translation services for the operation of the bodies and services whose seats were established by the Decision of 29 October 1993

  (Council Decision taken on the basis of Article 235 of the Treaty). | Objectives

  To provide the necessary translation services for the operation of the following bodies:






  — | the European Environment Agency, |

Areas of Community competence

Competences of the Centre

Council Regulation (EC) No 2965/94 of 28 November 1994

Governance

Resources made available to the Centre in 2006

(2005 data)

Products and services provided during the financial year 2006

(2005 data)

The representatives of the Member States' governments adopted by mutual agreement a declaration concerning the creation, under the aegis of the Commission's translation departments in Luxembourg, of a Translation Centre for the bodies of the Union, which would provide the necessary translation services for the operation of the bodies and services whose seats were established by the Decision of 29 October 1993

(Council Decision taken on the basis of Article 235 of the Treaty).

Objectives

To provide the necessary translation services for the operation of the following bodies:

—

the European Environment Agency,

| — | the European Training Foundation, |
| --- | --- |

—

the European Training Foundation,

| — | the European Monitoring Centre for Drugs and Drug Addiction, |
| --- | --- |

—

the European Monitoring Centre for Drugs and Drug Addiction,

| — | the European Medicines Agency, |
| --- | --- |

—

the European Medicines Agency,

| — | the European Agency for Health and Safety at Work, |
| --- | --- |

—

the European Agency for Health and Safety at Work,

| — | the Office for Harmonisation in the Internal Market (Trademarks and Designs), |
| --- | --- |

—

the Office for Harmonisation in the Internal Market (Trademarks and Designs),

| — | the European Police Office (Europol) and the Europol Drugs Unit. |
| --- | --- |

—

the European Police Office (Europol) and the Europol Drugs Unit.

Bodies set up by the Council other than the above may use the Centre's services. The institutions and bodies of the European Union which already have their own Translation Services may, if need be, call upon the Centre's services on a voluntary basis.

The Centre plays a full part in the work of the Interinstitutional Translation Committee.

Tasks

| — | To make arrangements for cooperation with the bodies and institutions |
| --- | --- |

—

To make arrangements for cooperation with the bodies and institutions

| — | To participate in the work of the Interinstitutional Translation Committee. |
| --- | --- |

—

To participate in the work of the Interinstitutional Translation Committee.

1.   Management Board

Composition

| — | one representative per Member State; |
| --- | --- |

—

one representative per Member State;

| — | two representatives from the Commission; |
| --- | --- |

—

two representatives from the Commission;

| — | one representative from each body or institution calling upon the Centre's services. |
| --- | --- |

—

one representative from each body or institution calling upon the Centre's services.

Task

Adopts the Centre's annual work programme and annual report.

2.   Director

Appointed by the Management Board on a proposal from the Commission.

3.   External control

Court of Auditors.

4.   Internal audit

Commission's internal auditor.

5.   Discharge authority

Parliament on a recommendation from the Council.

Final budget

40,88 (27,9) million euro

Staff as at 31 December 2006

189 (181) posts listed in the establishment plan

posts occupied: 169 (163)

Assigned to:

| — | operational duties: 80 (114); |
| --- | --- |

—

operational duties: 80 (114);

| — | administrative duties: 89 (57); |
| --- | --- |

—

administrative duties: 89 (57);

| — | mixed duties: 0 (4). |
| --- | --- |

—

mixed duties: 0 (4).

Number of pages translated

546 735 (505 438).

Number of pages by language

| — | official languages: 537 797 (501 475); |
| --- | --- |

—

official languages: 537 797 (501 475);

| — | other languages: 8 938 (3 963). |
| --- | --- |

—

other languages: 8 938 (3 963).

Number of pages per client

| — | bodies: 531 454 (496 665); |
| --- | --- |

—

bodies: 531 454 (496 665);

| — | institutions 15 281 (8 773). |
| --- | --- |

—

institutions 15 281 (8 773).

Number of pages translated freelance

260 301 (226 822)

Source: Information forwarded 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

Translation Centre for the Bodies of the European Union (Luxembourg) — 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 the previous financial year |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Own revenue | 29 731 | 32 359 | Title I
  Staff | 15 464 | 13 989 | 13 793 | 196 | 1 475 | 106 | 99 | 7 |
| Other revenue | 0 | 93 | Title II
  Administration | 4 421 | 3 949 | 2 734 | 1 215 | 472 | 755 | 673 | 82 |
| Interest | 600 | 844 | Title III
  Operating activities | 10 739 | 8 909 | 7 434 | 1 475 | 1 830 | 1 291 | 1 288 | 3 |
| Balance for the previous financial year | 10 545 | 10 545 | Title X
  Reserve | 10 252 | 0 | 0 | 0 | 10 252 | 0 | 0 | 0 |
| Total | 40 876 | 43 841 | Total | 40 876 | 26 847 | 23 961 | 2 886 | 14 029 | 2 151 | 2 060 | 92 |
| Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts. Revenue collected and payments are estimated on a cash basis. |

(1000 euro)

Revenue

Expenditure

Source of revenue

Revenue entered in the final budget for the financial year

Revenue received

Allocation of expenditure

Final budget appropriations

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Own revenue

29 731

32 359

Title I

Staff

15 464

13 989

13 793

196

1 475

106

99

7

Other revenue

0

93

Title II

Administration

4 421

3 949

2 734

1 215

472

755

673

82

Interest

600

844

Title III

Operating activities

10 739

8 909

7 434

1 475

1 830

1 291

1 288

3

Balance for the previous financial year

10 545

10 545

Title X

Reserve

10 252

0

0

0

10 252

0

0

0

Total

40 876

43 841

Total

40 876

26 847

23 961

2 886

14 029

2 151

2 060

92

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

Table 3

Translation Centre for the Bodies of the European Union (Luxembourg) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Own resources | 32 817 | 30 408 |
| Other revenue (1) | 126 | 372 |
| Total (a) | 32 943 | 30 780 |
| Operating expenditure |
| Staff expenditure | 13 713 | 13 200 |
| Fixed asset-related expenditure | 4 195 | 3 547 |
| Other administrative expenditure | 2 021 | 1 849 |
| Operational expenditure | 8 757 | 7 397 |
| Total (b) | 28 686 | 25 993 |
| Surplus/(deficit) from operating activities (c = a – b) | 4 258 | 4 787 |
| Revenue from financial operations (e) (2) | 844 | 429 |
| Expenditure on financial operations (f) | 3 | 4 |
| Surplus/(deficit) from non-operating activities (g = e – f) | 841 | 425 |
| Economic result for the year (h = c + g) | 5 099 | 5 212 |

(1000 euro)

2006

2005

Operating revenue

Own resources

32 817

30 408

Other revenue (1)

126

372

Total (a)

32 943

30 780

Operating expenditure

Staff expenditure

13 713

13 200

Fixed asset-related expenditure

4 195

3 547

Other administrative expenditure

2 021

1 849

Operational expenditure

8 757

7 397

Total (b)

28 686

25 993

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

4 258

4 787

Revenue from financial operations (e) (2)

844

429

Expenditure on financial operations (f)

3

4

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

841

425

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

5 099

5 212

Table 4

Translation Centre for the Bodies of the European Union (Luxembourg) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 267 | 343 |
| Tangible fixed assets | 391 | 356 |
| Current assets |
| Stock | 313 | 279 |
| Short-term receivables | 5 907 | 6 184 |
| Cash and cash equivalents | 34 618 | 27 392 |
| Total assets | 41 496 | 34 554 |
| Current liabilities |
| Provisions for risks and charges | 10 600 | 9 330 |
| Accounts payable (3) | 11 286 | 1 418 |
| Total liabilities | 21 886 | 10 748 |
| Net assets |
| Reserves | 466 | 9 761 |
| Accumulated surplus/deficit | 14 045 | 8 833 |
| Economic result for the year | 5 099 | 5 212 |
| Total net assets | 19 610 | 23 806 |
| Total liabilities and net assets | 41 496 | 34 554 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

267

343

Tangible fixed assets

391

356

Current assets

Stock

313

279

Short-term receivables

5 907

6 184

Cash and cash equivalents

34 618

27 392

Total assets

41 496

34 554

Current liabilities

Provisions for risks and charges

10 600

9 330

Accounts payable (3)

11 286

1 418

Total liabilities

21 886

10 748

Net assets

Reserves

466

9 761

Accumulated surplus/deficit

14 045

8 833

Economic result for the year

5 099

5 212

Total net assets

19 610

23 806

Total liabilities and net assets

41 496

34 554

---

(1)  In 2005, the Centre included translation work in progress (279 452 euro) in its Balance Sheet for the first time. In 2006, by contrast, only the variation in the volume of this work in progress (33 215 euro) is recorded in the economic outturn account.

(2)  In 2006, there was an increase in the available financial assets, resulting in an increase in interest received.

(3)  This amounts includes 9 292 000 euro to be repaid to the Centre's clients and disclosed as a reserve in the Centre's Financial Statements (see Centre's reply to point 7).

---

THE CENTRE'S REPLIES

| 7. | The Centre is aware of the increase of its budget surpluses and has decided to refund EUR 9,3 million to its clients in 2007. To prevent this situation from arising in the future, the Centre will do its utmost to improve the method for calculating prices. Moreover, as this method requires an estimate of the foreseen demand for translation, the Centre will encourage its clients to improve their forecasts. |
| --- | --- |

7.

The Centre is aware of the increase of its budget surpluses and has decided to refund EUR 9,3 million to its clients in 2007. To prevent this situation from arising in the future, the Centre will do its utmost to improve the method for calculating prices. Moreover, as this method requires an estimate of the foreseen demand for translation, the Centre will encourage its clients to improve their forecasts.

| 8. | The Centre has adapted its procedure to prevent the repetition of the situation described by the Court. |
| --- | --- |

8.

The Centre has adapted its procedure to prevent the repetition of the situation described by the Court.

| 9. | The Centre will study ways to improve its recruitment procedure to take into account the Court's remark. |
| --- | --- |

9.

The Centre will study ways to improve its recruitment procedure to take into account the Court's remark.

---

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

19.12.2007

EN

Official Journal of the European Union

C 309/99

---

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 |
| --- | --- |

1-2

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

3-6

| 7-11 | OBSERVATIONS |
| --- | --- |

7-11

Tables 1 to 4

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. |
| --- | --- |

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.

| 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. |
| --- | --- |

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.

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. |
| --- | --- |

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.

| 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. |
| --- | --- |

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.

| 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 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. |
| --- | --- |

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.

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. |
| --- | --- |

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.

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

8.

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

| 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. |
| --- | --- |

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.

| 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. |
| --- | --- |

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. |
| --- | --- |

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.

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 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

---

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. |
| --- | --- |

—

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

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

—

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

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

—

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

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

—

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 |
| --- | --- |

—

operational: 49

| — | administrative: 35 |
| --- | --- |

—

administrative: 35

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

—

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

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

—

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). |
| --- | --- |

—

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. |
| --- | --- |

—

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. |
| --- | --- |

—

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. |
| --- | --- |

—

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

---

(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.

---

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. |
| --- | --- |

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). |
| --- | --- |

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. |
| --- | --- |

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. |
| --- | --- |

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). |
| --- | --- |

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).

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/105 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/105

---

REPORT

on the annual accounts of the European Police College for the financial year 2006 together with the College's replies

(2007/C 309/18)

CONTENTS

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

1-2

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

3-6

| 7-11 | OBSERVATIONS |
| --- | --- |

7-11

Tables 1 to 3

The College's replies

INTRODUCTION

| 1. | The European Police College (hereinafter called ‘the College’) was established by Council Decision 2000/820/JHA, as repealed in 2005 and replaced by Council Decision 2005/681/JHA (1). The College's task is to function as a network and bring together the national training institutes in the Member States to provide training sessions, based on common standards, for senior police officers. The College became fully autonomous in 2006. |
| --- | --- |

1.

The European Police College (hereinafter called ‘the College’) was established by Council Decision 2000/820/JHA, as repealed in 2005 and replaced by Council Decision 2005/681/JHA (1). The College's task is to function as a network and bring together the national training institutes in the Member States to provide training sessions, based on common standards, for senior police officers. The College became fully autonomous in 2006.

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

2.

Table 1 summarises the College's competences and activities. Key data summarised from the financial statements drawn up by the College for the financial year 2006 is presented in Tables 2 and 3 for information purposes.

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 of 25 June 2002 (2); it was drawn up following an examination of the College's accounts, as required by Article 248 of the Treaty establishing the European Community. |
| --- | --- |

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 of 25 June 2002 (2); it was drawn up following an examination of the College's accounts, as required by Article 248 of the Treaty establishing the European Community.

| 4. | The College's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 11 of Council Decision 2005/681/JHA, and sent to the Court, which is required to give Statement of Assurance on their reliability and on the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The College's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 11 of Council Decision 2005/681/JHA, and sent to the Court, which is required to give Statement of Assurance on their reliability and on the legality and regularity of the underlying transactions.

| 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 thus obtained a reasonable basis for the Statement set out below.

  Reliability of the accountsThe College's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable. Nevertheless, the Court draws attention to the observations in paragraph 9.Legality and regularity of the underlying transactionsExcept for the situation described in paragraph 11, the transactions underlying the College's annual accounts, taken as a whole, are legal and regular. |
| --- | --- |

6.

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

Reliability of the accountsThe College's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable. Nevertheless, the Court draws attention to the observations in paragraph 9.Legality and regularity of the underlying transactionsExcept for the situation described in paragraph 11, the transactions underlying the College's annual accounts, taken as a whole, are legal and regular.

OBSERVATIONS

| 7. | In 2006 the College did not establish the necessary systems and procedures to enable it to prepare a financial report in compliance with the requirements of the framework Financial Regulation applicable to the Agencies. |
| --- | --- |

7.

In 2006 the College did not establish the necessary systems and procedures to enable it to prepare a financial report in compliance with the requirements of the framework Financial Regulation applicable to the Agencies.

| 8. | The College's Financial Regulation refers to the need for detailed rules for its implementation (4). The College did not yet adopt any detailed implementing rules, including those ensuring the transparency of the College's procurement procedures. |
| --- | --- |

8.

The College's Financial Regulation refers to the need for detailed rules for its implementation (4). The College did not yet adopt any detailed implementing rules, including those ensuring the transparency of the College's procurement procedures.

| 9. | The College did neither implement its budget using differentiated appropriations as provided for by its Financial Regulation (5)nor draw up budgetary implementation statements. The introduction of commitment appropriations would improve control over the College's budgetary implementation and ensure that any appropriations which were unused at the close of the financial year could be carried over under strictly defined conditions in accordance with the Financial Regulation. |
| --- | --- |

9.

The College did neither implement its budget using differentiated appropriations as provided for by its Financial Regulation (5)nor draw up budgetary implementation statements. The introduction of commitment appropriations would improve control over the College's budgetary implementation and ensure that any appropriations which were unused at the close of the financial year could be carried over under strictly defined conditions in accordance with the Financial Regulation.

| 10. | As regards the courses and seminars (1 296 636 euro in 2006), although information relating to the events was made available, there was no formal submission and approval of cost estimates prior to the events taking place. Budget appropriations were not used in accordance with the principle of sound financial management (6). |
| --- | --- |

10.

As regards the courses and seminars (1 296 636 euro in 2006), although information relating to the events was made available, there was no formal submission and approval of cost estimates prior to the events taking place. Budget appropriations were not used in accordance with the principle of sound financial management (6).

| 11. | The system of procurement did not comply with the provisions of the Financial Regulation. There was no documentation available to justify the need to purchase particular items and to explain the recourse to a particular supplier. A similar issue arose with removal costs for staff, which were not dealt with following standard procurement procedures for the acquisition of goods and services. |
| --- | --- |

11.

The system of procurement did not comply with the provisions of the Financial Regulation. There was no documentation available to justify the need to purchase particular items and to explain the recourse to a particular supplier. A similar issue arose with removal costs for staff, which were not dealt with following standard procurement procedures for the acquisition of goods and services.

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 256, 1.10.2005, p. 63.

1

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

2

(3)  These accounts were drawn up on 28 March 2007 and received by the Court on 6 July 2007.

3

(4)  For example, in Article 10(3), Article 34 and Article 74.

4

(5)  Article 8 of the College's Financial Regulation.

5

(6)  Article 25 of the College's Financial Regulation.

6

---

Table 1

European Police College (Bramshill)

| Areas of Community Competence deriving from the Treaty | Competences of the College as defined in Council Decision 2005/681/JHA | Governance | Resources made available to the College in 2006 | Main products and services supplied in 2006 |
| --- | --- | --- | --- | --- |
| Approximation of laws

  Treaty on European Union, in particular Article 30(1) and Article 34(2) thereof. | Objectives

  The aim of CEPOL shall be to help train the senior police officers of the Member States by optimising cooperation between CEPOL's various components. It shall support and develop a European approach to the main problems facing Member States in the fight against crime, crime prevention and the maintenance of law and order and public security, in particular the cross-border dimensions of those problems. | Tasks







  (1) | To increase knowledge of the national police systems and structures of other Member States and of cross-border police cooperation within the European Union; |

Areas of Community Competence deriving from the Treaty

Competences of the College as defined in Council Decision 2005/681/JHA

Governance

Resources made available to the College in 2006

Main products and services supplied in 2006

Approximation of laws

Treaty on European Union, in particular Article 30(1) and Article 34(2) thereof.

Objectives

The aim of CEPOL shall be to help train the senior police officers of the Member States by optimising cooperation between CEPOL's various components. It shall support and develop a European approach to the main problems facing Member States in the fight against crime, crime prevention and the maintenance of law and order and public security, in particular the cross-border dimensions of those problems.

Tasks

(1)

To increase knowledge of the national police systems and structures of other Member States and of cross-border police cooperation within the European Union;

| (2) | To improve knowledge of international and Union instruments, particularly in the following sectors:






  (a) | the institutions of the European Union, their functioning and role, as well as the decision-making mechanisms and legal instruments of the European Union, in particular as regards their implications for law-enforcement cooperation; |
| --- | --- | --- |

(2)

To improve knowledge of international and Union instruments, particularly in the following sectors:

(a)

the institutions of the European Union, their functioning and role, as well as the decision-making mechanisms and legal instruments of the European Union, in particular as regards their implications for law-enforcement cooperation;

| (b) | Europol's objectives, structure and functioning, as well as ways to maximise cooperation between Europol and relevant law-enforcement services in the Member States in the fight against organised crime; |
| --- | --- |

(b)

Europol's objectives, structure and functioning, as well as ways to maximise cooperation between Europol and relevant law-enforcement services in the Member States in the fight against organised crime;

| (c) | Eurojust's objectives, structure and functioning; |
| --- | --- |

(c)

Eurojust's objectives, structure and functioning;

| (3) | to provide appropriate training with regard to respect for democratic safeguards, with particular reference to the rights of defence. |
| --- | --- |

(3)

to provide appropriate training with regard to respect for democratic safeguards, with particular reference to the rights of defence.

1.   Governing Board

Composed of:

| — | one delegation from each Member State. Each delegation shall have one vote. Representatives of the European Commission and of the General Secretariat of the Council of the European Union and Europol shall be invited to attend meetings as non-voting observers. |
| --- | --- |

—

one delegation from each Member State. Each delegation shall have one vote. Representatives of the European Commission and of the General Secretariat of the Council of the European Union and Europol shall be invited to attend meetings as non-voting observers.

2.   Director

Manages the Agency, is appointed and removed by the Governing Board.

3.   External Audit

European Court of Auditors.

4.   Internal Auditors

Internal Audit services of the Commission.

5.   Discharge

European Parliament following a recommendation from the Council.

Final budget

5 million euro

(100 % Community subsidy)

Staff at 31 December 2006

Number of posts in the establishment plan: 22,5

Posts occupied: 7

Other posts: (contract staff, seconded national experts, etc.): 8

Total staff: 15.

No information provided.

Source: Information supplied by the College.

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

Table 2

European Police College (Bramshill) — Economic outturn account for the financial year 2006

| (1000 euro) |
| --- |
| | 2006 |
| Operating revenue |
| Community subsidies | 4 352 |
| Total (a) | 4 352 |
| Operating expenditure |
| Staff expenditure | 1 460 |
| Other administrative expenditure | 358 |
| Operational expenditure | 2 454 |
| Total (b) | 4 272 |
| Surplus/(deficit) from operating activities (c = a – b) | 80 |
| Financial operations revenues (e) | 0 |
| Financial operations expenditure (f) | 12 |
| Surplus/(deficit) from non-operating activities (g = e – f) | –12 |
| Economic result for the year (h = c + g) | 68 |

(1000 euro)

2006

Operating revenue

Community subsidies

4 352

Total (a)

4 352

Operating expenditure

Staff expenditure

1 460

Other administrative expenditure

358

Operational expenditure

2 454

Total (b)

4 272

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

80

Financial operations revenues (e)

0

Financial operations expenditure (f)

12

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

–12

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

68

Table 3

European Police College (Bramshill) — Balance sheet at 31 December 2006

| (1000 euro) |
| --- |
| | 2006 |
| Non-current assets |
| Tangible fixed assets | 37 |
| Current assets |
| Short-term receivables | 298 |
| Cash and cash equivalents | 3 682 |
| Total assets | 4 017 |
| Current liabilities |
| Accounts payable | 3 949 |
| Total liabilities | 3 949 |
| Net assets |
| Economic result for the year | 68 |
| Total net assets | 68 |
| Total liabilities and net assets | 4 017 |

(1000 euro)

2006

Non-current assets

Tangible fixed assets

37

Current assets

Short-term receivables

298

Cash and cash equivalents

3 682

Total assets

4 017

Current liabilities

Accounts payable

3 949

Total liabilities

3 949

Net assets

Economic result for the year

68

Total net assets

68

Total liabilities and net assets

4 017

---

THE COLLEGE'S REPLIES

| 7. | The College is in the process of implementing the new budget management system ABAC during 2007 and of becoming compliant with the requirements of its Financial Regulation. For 2006, the College was able to transmit to the Commission the information necessary for the consolidation of the Community accounts. |
| --- | --- |

7.

The College is in the process of implementing the new budget management system ABAC during 2007 and of becoming compliant with the requirements of its Financial Regulation. For 2006, the College was able to transmit to the Commission the information necessary for the consolidation of the Community accounts.

| 8. | The implementing Rules to the Financial Regulation of the College shall be presented for adoption to the Governing Board in its meeting of November 2007. |
| --- | --- |

8.

The implementing Rules to the Financial Regulation of the College shall be presented for adoption to the Governing Board in its meeting of November 2007.

| 9. | The College is in the process of implementing ABAC. This system shall provide the basis for achieving a rapid progress during the financial year 2007 on the implementation of procedures that shall allow for full compliance in the management of the College's budget, as defined in the Financial Regulation. |
| --- | --- |

9.

The College is in the process of implementing ABAC. This system shall provide the basis for achieving a rapid progress during the financial year 2007 on the implementation of procedures that shall allow for full compliance in the management of the College's budget, as defined in the Financial Regulation.

| 10. | The Governing Board of the College, in its meeting of May 2007, has adopted a legal commitment system to be implemented from the second half of 2007 onwards. The College shall pay due attention to the principle of sound financial management when deciding on, approving and managing the activities under its work programme. |
| --- | --- |

10.

The Governing Board of the College, in its meeting of May 2007, has adopted a legal commitment system to be implemented from the second half of 2007 onwards. The College shall pay due attention to the principle of sound financial management when deciding on, approving and managing the activities under its work programme.

| 11. | The College has improved its procurement procedures and aims at fully respecting EC public procurement directives, rules and regulations, for instance, on the launching of large open calls for tenders such as the e-Platform Network. |
| --- | --- |

11.

The College has improved its procurement procedures and aims at fully respecting EC public procurement directives, rules and regulations, for instance, on the launching of large open calls for tenders such as the e-Platform Network.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/111 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/111

---

REPORT

on the annual accounts of Eurojust for the financial year 2006 together with the Eurojust's replies

(2007/C 309/19)

CONTENTS

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

1-2

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

3-6

| 7-9 | OBSERVATIONS |
| --- | --- |

7-9

Tables 1 to 4

The Eurojust's replies

INTRODUCTION

| 1. | Eurojust was set up by Council Decision No 2002/187/JHA (1) with a view to stepping up the fight against serious organised crime. Its objective is to improve the coordination of investigations and prosecutions covering the territories of several Member States of the European Union, as well as that of non-member States. |
| --- | --- |

1.

Eurojust was set up by Council Decision No 2002/187/JHA (1) with a view to stepping up the fight against serious organised crime. Its objective is to improve the coordination of investigations and prosecutions covering the territories of several Member States of the European Union, as well as that of non-member States.

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

2.

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

STATEMENT OF ASSURANCE

| 3. | This statement is addressed to the European Parliament and the Council pursuant to Article 36 of Council Decision 2002/187/JHA. |
| --- | --- |

3.

This statement is addressed to the European Parliament and the Council pursuant to Article 36 of Council Decision 2002/187/JHA.

| 4. | Eurojust's accounts for the financial year ended 31 December 2006 (2) were drawn up by its Administrative Director, pursuant to Article 36 of Council Decision No 2002/187/JHA, 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. |
| --- | --- |

4.

Eurojust's accounts for the financial year ended 31 December 2006 (2) were drawn up by its Administrative Director, pursuant to Article 36 of Council Decision No 2002/187/JHA, 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.

| 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 thus obtained a reasonable basis for the Statement set out below.

  Reliability of the accountsEurojust'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 Eurojust'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 thus obtained a reasonable basis for the Statement set out below.

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

OBSERVATIONS

| 7. | The commitment rate for appropriations entered in the budget for the financial year 2006 was 96 %. The carryover rate was 33 % for administrative expenditure (Title II), and 30 % for operational expenditure (Title III). The management of the budget showed a high number of transfers of appropriations between budget lines and in many cases the supporting documentation was insufficiently detailed. Thus, the budgetary principles of annuality and specification were not strictly observed. |
| --- | --- |

7.

The commitment rate for appropriations entered in the budget for the financial year 2006 was 96 %. The carryover rate was 33 % for administrative expenditure (Title II), and 30 % for operational expenditure (Title III). The management of the budget showed a high number of transfers of appropriations between budget lines and in many cases the supporting documentation was insufficiently detailed. Thus, the budgetary principles of annuality and specification were not strictly observed.

| 8. | The rules for procurement were not strictly implemented. Four framework contracts were concluded for a maximum duration of more than four years. For the procurement of courier services (3) no appropriate procedure had been launched at the time of the audit (November 2006). For translation services, a bureau was instructed to use translators chosen by Eurojust instead of its own staff. This situation was not in line with the competition principle and it resulted in a price increase of 45 000 euro as compared to contractual tariffs. |
| --- | --- |

8.

The rules for procurement were not strictly implemented. Four framework contracts were concluded for a maximum duration of more than four years. For the procurement of courier services (3) no appropriate procedure had been launched at the time of the audit (November 2006). For translation services, a bureau was instructed to use translators chosen by Eurojust instead of its own staff. This situation was not in line with the competition principle and it resulted in a price increase of 45 000 euro as compared to contractual tariffs.

| 9. | The data concerning fixed assets were compiled using a spreadsheet and other software tools. This did not guarantee the integrity of the data recorded. A fixed assets register which includes all assets and their values was not established and used to monitor the Eurojust's property. |
| --- | --- |

9.

The data concerning fixed assets were compiled using a spreadsheet and other software tools. This did not guarantee the integrity of the data recorded. A fixed assets register which includes all assets and their values was not established and used to monitor the Eurojust's property.

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)  Decision of 28 February 2002 setting up Eurojust (OJ L 63, 6.3.2002, p. 1).

1

(2)  These accounts were drawn up on 27 June 2007 and received by the Court on 4 July 2007.

2

(3)  Value of the contracts: more than 100 000 euro.

3

---

Table 1

Eurojust (The Hague) — 2006

| Areas of competence deriving from the Treaty on European Union | Competences of Eurojust as defined in the Council Decision 2002/187/JAI | Governance | Resources made available to Eurojust in 2006

  (2005) | Products and services supplied in 2006

  (2005) |
| --- | --- | --- | --- | --- |
| Third pillar body created by Council Decision.
  The Union's objective is to provide citizens with a high level of safety within an area of freedom, security and justice.
  The Council encourages cooperation through Eurojust by enabling it to facilitate proper coordination between the Member States' national prosecuting authorities.

  (extracts from Articles 29 and 31)

  Eurojust's main areas of responsibility are the same as Europol's, that is, the fight against terrorism, organised crime, in particular drug-trafficking, illegal immigration, illicit vehicle trafficking, trafficking in human beings, the counterfeiting of money, trafficking in radioactive substances, computer crime, acts detrimental to the Union's financial interests and money-laundering. | Objectives


  Article 3


  Eurojust Decision







  — | To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions. |

Areas of competence deriving from the Treaty on European Union

Competences of Eurojust as defined in the Council Decision 2002/187/JAI

Governance

Resources made available to Eurojust in 2006

(2005)

Products and services supplied in 2006

(2005)

Third pillar body created by Council Decision.

The Union's objective is to provide citizens with a high level of safety within an area of freedom, security and justice.

The Council encourages cooperation through Eurojust by enabling it to facilitate proper coordination between the Member States' national prosecuting authorities.

(extracts from Articles 29 and 31)

Eurojust's main areas of responsibility are the same as Europol's, that is, the fight against terrorism, organised crime, in particular drug-trafficking, illegal immigration, illicit vehicle trafficking, trafficking in human beings, the counterfeiting of money, trafficking in radioactive substances, computer crime, acts detrimental to the Union's financial interests and money-laundering.

Objectives

Article 3

Eurojust Decision

—

To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions.

| — | To improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests. |
| --- | --- |

—

To improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests.

| — | To support the competent authorities of the Member States in order to render their investigations and prosecutions more effective. |
| --- | --- |

—

To support the competent authorities of the Member States in order to render their investigations and prosecutions more effective.

| — | To provide support with procedures involving a Member State and a non-member State. |
| --- | --- |

—

To provide support with procedures involving a Member State and a non-member State.

| — | To provide support with procedures involving a Member State and the Community. |
| --- | --- |

—

To provide support with procedures involving a Member State and the Community.

Tasks

Articles 5, 6 and 7

Eurojust Decision

To organise cooperation between the various national legal systems, Eurojust acts:

| — | through its national members; or |
| --- | --- |

—

through its national members; or

| — | as a College. |
| --- | --- |

—

as a College.

If the competent authorities of the Member State concerned decide not to respond to the requests which Eurojust has issued as a College, they shall inform Eurojust of the reasons for their decision.

| 1. | The College is responsible for the organisation and operation of Eurojust. |
| --- | --- |

1.

The College is responsible for the organisation and operation of Eurojust.

| 2. | The College is composed of national members who are seconded by each Member State in accordance with its legal system and who are prosecutors, judges or police officers of equivalent competence. |
| --- | --- |

2.

The College is composed of national members who are seconded by each Member State in accordance with its legal system and who are prosecutors, judges or police officers of equivalent competence.

| 3. | The College elects its President from among the national members. |
| --- | --- |

3.

The College elects its President from among the national members.

| 4. | The Joint Supervisory Body checks the processing of personal data |
| --- | --- |

4.

The Joint Supervisory Body checks the processing of personal data

| 5. | The Administrative Director is unanimously appointed by the College. |
| --- | --- |

5.

The Administrative Director is unanimously appointed by the College.

| 6. | External audit: the European Court of Auditors. |
| --- | --- |

6.

External audit: the European Court of Auditors.

| 7. | Discharge is given by the Parliament on the Council's recommendation. |
| --- | --- |

7.

Discharge is given by the Parliament on the Council's recommendation.

Final budget

14,7 million euro (13 million euro)

Community subsidy: 100 % (100 %)

Staff numbers at 31 December 2006

Number of posts in the establishment plan: 112 (87)

Posts occupied: 93 (70)

+21 (15) other posts:

(2 contract staff, 5 seconded national experts, local staff, 14 employment agency staff)

Total staff numbers: 114 (85)

assigned to the following tasks:

operational: 56 (31)

administrative: 49 (41)

mixed: 9 (13)

Number of meetings: 89 (73)

Standard cases (*): 270 out of 361

Complex cases: 91 out of 361

Total number of cases: 771 (588)

Fraud: 175 (120)

Drug trafficking: 170 (135)

Terrorism: 44 (25)

Murder: 59 (43)

Trafficking in persons: 32 (33)

(*) New type of classification as of 1 July 2006, valid for the 361 cases opened between this date and 31 December 2006.

Source: Information supplied by Eurojust.

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

Table 2

EUROJUST (The Hague) — 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 | Appropriations under the final budget | Appropriations carried over from the previous financial year(s) |
| entered | committed | paid | carried over | cancelled | entered | paid | cancelled |
| Community subsidies | 14 700 | 14 700 | Title I
  Staff | 6 844 | 6 601 | 6 412 | 189 | 243 | 112 | 96 | 16 |
| Other revenue | — | 1 004 | Title II
  Administration | 3 384 | 3 295 | 2 214 | 1 082 | 89 | 722 | 571 | 151 |
| | | | Title III
  Operating activities | 4 472 | 4 189 | 2 940 | 1 320 | 211 | 1 280 | 1 153 | 127 |
| Total | 14 700 | 15 704 | Total | 14 700 | 14 086 | 11 566 | 2 591 | 543 | 2 114 | 1 819 | 295 |
| NB: Variations in totals are due to the effects of rounding.

  Source: Data supplied by Eurojust. This table summarises the data supplied by Eurojust 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)

entered

committed

paid

carried over

cancelled

entered

paid

cancelled

Community subsidies

14 700

14 700

Title I

Staff

6 844

6 601

6 412

189

243

112

96

16

Other revenue

—

1 004

Title II

Administration

3 384

3 295

2 214

1 082

89

722

571

151

Title III

Operating activities

4 472

4 189

2 940

1 320

211

1 280

1 153

127

Total

14 700

15 704

Total

14 700

14 086

11 566

2 591

543

2 114

1 819

295

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

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

Table 3

EUROJUST (The Hague) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 12 858 | 11 991 |
| Other revenues | 973 | 59 |
| Total (a) | 13 831 | 12 050 |
| Operating expenditure |
| Staff expenditure | 6 581 | 5 149 |
| Fixed-asset related expenditure | 674 | 508 |
| Other administrative expenditure | 2 202 | 2 800 |
| Operational expenditure | 3 297 | 2 054 |
| Total (b) | 12 754 | 10 511 |
| Surplus/(deficit) from operating activities (c = a – b) | 1 077 | 1 539 |
| Other charges (d) | — | 3 |
| Surplus /(deficit) from non-operating activities (e = – d) | 0 | –3 |
| Economic result for the year (f = c + e) | 1 077 | 1 536 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

12 858

11 991

Other revenues

973

59

Total (a)

13 831

12 050

Operating expenditure

Staff expenditure

6 581

5 149

Fixed-asset related expenditure

674

508

Other administrative expenditure

2 202

2 800

Operational expenditure

3 297

2 054

Total (b)

12 754

10 511

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

1 077

1 539

Other charges (d)

—

3

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

0

–3

Economic result for the year (f = c + e)

1 077

1 536

Table 4

EUROJUST (The Hague) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 556 | 167 |
| Tangible fixed assets | 1 674 | 1 606 |
| Current assets |
| Short-term receivables | 372 | 159 |
| Cash and cash equivalents | 4 749 | 3 130 |
| Total assets | 7 351 | 5 062 |
| Current liabilities |
| Provisions for risks and charges | 134 | 85 |
| Accounts payables | 2 762 | 1 599 |
| Total liabilities | 2 896 | 1 684 |
| Net assets |
| Accumulated surplus/deficit | 3 378 | 1 842 |
| Economic result for the year | 1 077 | 1 536 |
| Total net assets | 4 455 | 3 378 |
| Total liabilities and net assets | 7 351 | 5 062 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

556

167

Tangible fixed assets

1 674

1 606

Current assets

Short-term receivables

372

159

Cash and cash equivalents

4 749

3 130

Total assets

7 351

5 062

Current liabilities

Provisions for risks and charges

134

85

Accounts payables

2 762

1 599

Total liabilities

2 896

1 684

Net assets

Accumulated surplus/deficit

3 378

1 842

Economic result for the year

1 077

1 536

Total net assets

4 455

3 378

Total liabilities and net assets

7 351

5 062

---

THE EUROJUST'S REPLIES

| 7. | For Title II, the level of carry over is mostly due to a project managed by the host State and started very late in the year.
  For Title III, Eurojust has reduced the rate since 2005 (from 33 % to 30 %). Eurojust has reviewed its Budget transfer policy in view to lower the number and volume of transfers and improve their documentation. |
| --- | --- |

7.

For Title II, the level of carry over is mostly due to a project managed by the host State and started very late in the year.

For Title III, Eurojust has reduced the rate since 2005 (from 33 % to 30 %). Eurojust has reviewed its Budget transfer policy in view to lower the number and volume of transfers and improve their documentation.

| 8. | Eurojust has adopted appropriate measures to replace framework contracts within their fourth year of duration at the latest. An open procurement procedure for courier services has been launched and is ongoing.
  The translation of the Annual Report of Eurojust entails very strict constraints as regards both timetable and quality requirements. Unfortunately, no supplier with whom Eurojust has a contract was able to provide the quality of service required within the timeframe necessary which led to the situation described by the Court. Nevertheless, Eurojust has taken into account the comment of the Court and is preparing a new procurement procedure to be launched before the end of 2007. |
| --- | --- |

8.

Eurojust has adopted appropriate measures to replace framework contracts within their fourth year of duration at the latest. An open procurement procedure for courier services has been launched and is ongoing.

The translation of the Annual Report of Eurojust entails very strict constraints as regards both timetable and quality requirements. Unfortunately, no supplier with whom Eurojust has a contract was able to provide the quality of service required within the timeframe necessary which led to the situation described by the Court. Nevertheless, Eurojust has taken into account the comment of the Court and is preparing a new procurement procedure to be launched before the end of 2007.

| 9. | Eurojust is working to resolve this situation by the end of 2007 by which time ABAC Assets will be in place and a link to the current software used for physical inventory will have the capacity to provide the information requested by the financial regulation. |
| --- | --- |

9.

Eurojust is working to resolve this situation by the end of 2007 by which time ABAC Assets will be in place and a link to the current software used for physical inventory will have the capacity to provide the information requested by the financial regulation.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/116 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/116

---

REPORT

on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2006 together with the Foundation's replies

(2007/C 309/20)

CONTENTS

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

1-2

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

3-6

| 7-9 | OBSERVATIONS |
| --- | --- |

7-9

Tables 1 to 4

The Foundation's replies

INTRODUCTION

| 1. | The European Foundation for the Improvement of Living and Working Conditions (hereinafter referred to as ‘the Foundation’) was set up by Council Regulation (EEC) No 1365/75 of 26 May 1975 (1). Its aim is to contribute to the planning and establishment of better living and working conditions in the European Union by increasing and disseminating knowledge which is relevant to this subject. |
| --- | --- |

1.

The European Foundation for the Improvement of Living and Working Conditions (hereinafter referred to as ‘the Foundation’) was set up by Council Regulation (EEC) No 1365/75 of 26 May 1975 (1). Its aim is to contribute to the planning and establishment of better living and working conditions in the European Union by increasing and disseminating knowledge which is relevant to this subject.

| 2. | Table 1 summarises the Foundation's competences and activities. 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 Foundation's competences and activities. 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.

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.

| 4. | The Foundation's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 16 of Council Regulation (EEC) No 1365/75, and sent to the Court, which is required to provide a statement on their 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 Director, pursuant to Article 16 of Council Regulation (EEC) No 1365/75, and sent to the Court, which is required to provide a statement on their reliability and on the legality and regularity of the underlying transactions.

| 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 thus 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 thus 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.

OBSERVATIONS

| 7. | The implementation rate for 2006 commitment appropriations was more than 97 %. Carryover rates were 43 % for administrative expenditure (Title II) and 45 % for operating activities (Title III). Thus, the budgetary principle of annuality was not strictly observed. |
| --- | --- |

7.

The implementation rate for 2006 commitment appropriations was more than 97 %. Carryover rates were 43 % for administrative expenditure (Title II) and 45 % for operating activities (Title III). Thus, the budgetary principle of annuality was not strictly observed.

| 8. | At the year-end 2006, the Foundation signed two contracts for services to be rendered in 2007 for a total value of 305 987 euro. These contracts were covered by 2006 commitment appropriations from Title II — Administrative expenditure. Despite the fact that the above contracts related to services to be rendered exclusively in 2007, they were not charged to the budget of the related financial year. |
| --- | --- |

8.

At the year-end 2006, the Foundation signed two contracts for services to be rendered in 2007 for a total value of 305 987 euro. These contracts were covered by 2006 commitment appropriations from Title II — Administrative expenditure. Despite the fact that the above contracts related to services to be rendered exclusively in 2007, they were not charged to the budget of the related financial year.

| 9. | For recruitment procedures the selection criteria were neither decided by selection boards at the outset nor defined in conformity with the vacancy notice. This did not ensure transparent and non-discriminatory procedures. |
| --- | --- |

9.

For recruitment procedures the selection criteria were neither decided by selection boards at the outset nor defined in conformity with the vacancy notice. This did not ensure transparent and non-discriminatory procedures.

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 139, 30.5.1975, p. 1.

1

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

2

(3)  These accounts were drawn up on 15 May 2007 and received by the Court on 3 July 2007.

3

---

Table 1

European Foundation for the Improvement of Living and Working Conditions (Dublin)

| Areas of Community competence deriving from the Treaty | Competences of the Foundation as defined in Council Regulation (EEC) No 1365/75 of 26 May 1975; amended by Council Regulation (EC) No 1111/2005 of 24 June 2005 | Governance | Resources available to the Foundation

  (2005 data) | Activities and services provided |
| --- | --- | --- | --- | --- |
| ‘The Community and the Member States, having in mind fundamental social rights, ... shall have as their objectives... improved living and working conditions, ... the Community shall support and complement the activities of the Member States in the following fields; ... b) working conditions; c) social security and the social protection of workers; d) protection of workers where their employment contract is terminated; e) the information and consultation of workers; f) representation and the collective defence of the interests of workers and employers, including co-determination; g) conditions of employment for third-country nationals; h) the integration of persons excluded from the labour market; i) equality between men and women...’

  (Articles 136 and 137 of the Treaty) | Objectives

  The aim of the Foundation shall be to contribute to the establishment of better living and working conditions by increasing and disseminating knowledge which is relevant to this subject. In particular, it is required to consider the following areas:






  — | man at work, |

Areas of Community competence deriving from the Treaty

Competences of the Foundation as defined in Council Regulation (EEC) No 1365/75 of 26 May 1975; amended by Council Regulation (EC) No 1111/2005 of 24 June 2005

Governance

Resources available to the Foundation

(2005 data)

Activities and services provided

‘The Community and the Member States, having in mind fundamental social rights, ... shall have as their objectives... improved living and working conditions, ... the Community shall support and complement the activities of the Member States in the following fields; ... b) working conditions; c) social security and the social protection of workers; d) protection of workers where their employment contract is terminated; e) the information and consultation of workers; f) representation and the collective defence of the interests of workers and employers, including co-determination; g) conditions of employment for third-country nationals; h) the integration of persons excluded from the labour market; i) equality between men and women...’

(Articles 136 and 137 of the Treaty)

Objectives

The aim of the Foundation shall be to contribute to the establishment of better living and working conditions by increasing and disseminating knowledge which is relevant to this subject. In particular, it is required to consider the following areas:

—

man at work,

| — | organisation of work and particularly job design, |
| --- | --- |

—

organisation of work and particularly job design,

| — | problems peculiar to certain categories of workers, |
| --- | --- |

—

problems peculiar to certain categories of workers,

| — | long-term aspects of the improvement of the environment, |
| --- | --- |

—

long-term aspects of the improvement of the environment,

| — | the distribution of human activities in space and in time. |
| --- | --- |

—

the distribution of human activities in space and in time.

Tasks

| — | to foster the exchange of information and experience in these fields, |
| --- | --- |

—

to foster the exchange of information and experience in these fields,

| — | to facilitate contact between universities, study and research institutes, economic and social administrations and organisations, |
| --- | --- |

—

to facilitate contact between universities, study and research institutes, economic and social administrations and organisations,

| — | to carry out studies or to conclude study contracts and to provide assistance for pilot projects, |
| --- | --- |

—

to carry out studies or to conclude study contracts and to provide assistance for pilot projects,

| — | to cooperate as closely as possible with existing specialised institutes in the Member States and at international level. |
| --- | --- |

—

to cooperate as closely as possible with existing specialised institutes in the Member States and at international level.

| 1. | The Governing Board (GB)






  — | from each Member State: 1 government representative, 1 representative from employers' organisations and 1 workers' representative, |
| --- | --- | --- |

1.

—

from each Member State: 1 government representative, 1 representative from employers' organisations and 1 workers' representative,

| — | 3 representatives from the Commission. |
| --- | --- |

—

3 representatives from the Commission.

| 2. | The Bureau of the GB






  — | consists of 11 members; 3 members from each of the social partners and the governments, 2 from the Commission, |
| --- | --- | --- |

2.

—

consists of 11 members; 3 members from each of the social partners and the governments, 2 from the Commission,

| — | it monitors the implementation of decisions of the GB and takes measures to ensure proper management between GB meetings. |
| --- | --- |

—

it monitors the implementation of decisions of the GB and takes measures to ensure proper management between GB meetings.

| 3. | The Director is appointed by the Commission from a list of candidates submitted by the GB, he implements the decisions of the GB and the Bureau of the GB and manages the Foundation. |
| --- | --- |

3.

The Director is appointed by the Commission from a list of candidates submitted by the GB, he implements the decisions of the GB and the Bureau of the GB and manages the Foundation.

| 4. | The Advisory Committees are composed of up to 3 members from the Commission, governments and the social partners, with the aim of advising on the implementation of major projects and the assessment of results. |
| --- | --- |

4.

The Advisory Committees are composed of up to 3 members from the Commission, governments and the social partners, with the aim of advising on the implementation of major projects and the assessment of results.

| 5. | External audit
  The Court of Auditors. |
| --- | --- |

5.

The Court of Auditors.

| 6. | Discharge given by the Parliament on a recommendation by the Council. |
| --- | --- |

6.

Discharge given by the Parliament on a recommendation by the Council.

Final Budget for 2006

19,8 million euro (19,3)

Including a Community subsidy of: 98,9 % (98,8%)

Staff in December 2006

94 (94) posts provided for in the establishment plan; Posts occupied: 89 (82)

Other staff:

Seconded National Experts and employment-agency staff: 1 (12)

Contract staff: 9 (3)

Total staff employed: 99 (94)

assigned to the following tasks:

| — | operational: 58 (54) |
| --- | --- |

—

operational: 58 (54)

| — | administrative: 32 (32) |
| --- | --- |

—

administrative: 32 (32)

| — | mixed: 4 (5) |
| --- | --- |

—

mixed: 4 (5)

Monitoring and surveys

| — | Establishment of one Network of European Observatories (NEO) covering the former three networks attached to the European Industrial Relations Observatory (EIRO), the European Working Conditions Observatory (EWCO) and the European Restructuring Monitor (ERM), |
| --- | --- |

—

Establishment of one Network of European Observatories (NEO) covering the former three networks attached to the European Industrial Relations Observatory (EIRO), the European Working Conditions Observatory (EWCO) and the European Restructuring Monitor (ERM),

| — | Fourth Working Conditions Survey: first results, |
| --- | --- |

—

Fourth Working Conditions Survey: first results,

| — | First Company Survey: first results. |
| --- | --- |

—

First Company Survey: first results.

Employment and restructuring

| — | Studies on the Food & Beverage sector and Knowledge Intensive Businesses Services, |
| --- | --- |

—

Studies on the Food & Beverage sector and Knowledge Intensive Businesses Services,

| — | Geographical and Labour Market Mobility in Europe: report, |
| --- | --- |

—

Geographical and Labour Market Mobility in Europe: report,

| — | Attractive Workplaces for All: a contribution to the Lisbon Strategy at company level, |
| --- | --- |

—

Attractive Workplaces for All: a contribution to the Lisbon Strategy at company level,

| — | Labour Supply in Care Services: report. |
| --- | --- |

—

Labour Supply in Care Services: report.

Work-life balance and Working Conditions

| — | Fourth Working Conditions Survey, |
| --- | --- |

—

Fourth Working Conditions Survey,

| — | 15 years of European working surveys: trend report, |
| --- | --- |

—

15 years of European working surveys: trend report,

| — | Measuring Job Satisfaction in surveys, |
| --- | --- |

—

Measuring Job Satisfaction in surveys,

| — | Working-time reports based on the Company survey. |
| --- | --- |

—

Working-time reports based on the Company survey.

Industrial Relations (IR) and Partnership

| — | Working Time and Pay Developments, |
| --- | --- |

—

Working Time and Pay Developments,

| — | European Works Councils: reports and case studies, |
| --- | --- |

—

European Works Councils: reports and case studies,

| — | IR Country Profiles, |
| --- | --- |

—

IR Country Profiles,

| — | Capacity Building for Social Dialogue: reports on New Member States and Turkey. |
| --- | --- |

—

Capacity Building for Social Dialogue: reports on New Member States and Turkey.

Social Cohesion and Quality of Life

| — | EurLIFE database updates, |
| --- | --- |

—

EurLIFE database updates,

| — | Ageing Workforce and Age Management: reports and case studies, |
| --- | --- |

—

Ageing Workforce and Age Management: reports and case studies,

| — | Employment guidance services for people with disabilities. |
| --- | --- |

—

Employment guidance services for people with disabilities.

Communication and sharing ideas and experience

| — | 332 publications, 53 press releases, 40 % increase in web use, 16 % increase of press cuttings |
| --- | --- |

—

332 publications, 53 press releases, 40 % increase in web use, 16 % increase of press cuttings

| — | Promotion campaigns ‘Your work, your life; balance company needs with worker satisfaction’ and ‘Fourth Working Conditions survey: what workers say’, |
| --- | --- |

—

Promotion campaigns ‘Your work, your life; balance company needs with worker satisfaction’ and ‘Fourth Working Conditions survey: what workers say’,

| — | Foundation Forum 2006 ‘Competitive Europe, Social Europe — Partners or Rivals?’ |
| --- | --- |

—

Foundation Forum 2006 ‘Competitive Europe, Social Europe — Partners or Rivals?’

| — | Company Network Seminars |
| --- | --- |

—

Company Network Seminars

| — | Foundation Seminar Series ‘Flexicurity and Employability’ |
| --- | --- |

—

Foundation Seminar Series ‘Flexicurity and Employability’

| — | National Outreach Centres covering AU, BE, ES, FI, FR, HU, IT, LUX, SP, UK, |
| --- | --- |

—

National Outreach Centres covering AU, BE, ES, FI, FR, HU, IT, LUX, SP, UK,

| — | Exhibitions at Employment week in Brussels and at the PES conference in Oporto. |
| --- | --- |

—

Exhibitions at Employment week in Brussels and at the PES conference in Oporto.

Source: Information supplied 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 Foundation for the Improvement of Living and Working Conditions (Dublin) — 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 collected | Allocation of expenditure | Appropriations for the financial year | Appropriations carried over from previous financial year |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Community subsidy | 19 000 | 19 000 | Title I
  Staff (NDA) | 9 931 | 9 894 | 9 774 | 120 | 37 | 157 | 152 | 5 |
| Other subsidies | 540 | 241 | Title II
  Administration (NDA) | 1 530 | 1 463 | 862 | 634 | 34 | 507 | 482 | 24 |
| Other revenue | 220 | 265 | Title III
  Operating activities (NDA) | 8 299 | 7 860 | 4 612 | 3 558 | 129 | 3 954 | 3 713 | 241 |
| Total | 19 760 | 19 506 | Total | 19 760 | 19 217 | 15 248 | 4 312 | 200 | 4 618 | 4 347 | 270 |
| Source: Data supplied by the Foundation — This table summarises the data supplied by the Foundation 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

Appropriations for the financial year

Appropriations carried over from previous financial year

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Community subsidy

19 000

19 000

Title I

Staff (NDA)

9 931

9 894

9 774

120

37

157

152

5

Other subsidies

540

241

Title II

Administration (NDA)

1 530

1 463

862

634

34

507

482

24

Other revenue

220

265

Title III

Operating activities (NDA)

8 299

7 860

4 612

3 558

129

3 954

3 713

241

Total

19 760

19 506

Total

19 760

19 217

15 248

4 312

200

4 618

4 347

270

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

Table 3

European Foundation for the Improvement of Living and Working Conditions (Dublin) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 19 000 | 18 600 |
| Other subsidies | 517 | — |
| Other revenue | 248 | 366 |
| Total (a) | 19 765 | 18 966 |
| Operating expenses |
| Staff expenses | 8 908 | 8 035 |
| Fixed asset related expenses (1) | 724 | 576 |
| Other administrative expenses | 2 106 | 2 117 |
| Operational expenses | 7 409 | 8 581 |
| Total (b) | 19 147 | 19 309 |
| Surplus/(deficit) from operating activities (c = a – b) | 618 | – 343 |
| Financial operations revenue (e) | — | — |
| Financial operations expenses (f) | 10 | 9 |
| Surplus/(deficit) from non-operating activities (g = e – f) | –10 | –9 |
| Economic result for the year (h = c + g) | 608 | – 352 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

19 000

18 600

Other subsidies

517

—

Other revenue

248

366

Total (a)

19 765

18 966

Operating expenses

Staff expenses

8 908

8 035

Fixed asset related expenses (1)

724

576

Other administrative expenses

2 106

2 117

Operational expenses

7 409

8 581

Total (b)

19 147

19 309

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

618

– 343

Financial operations revenue (e)

—

—

Financial operations expenses (f)

10

9

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

–10

–9

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

608

– 352

Table 4

European Foundation for the Improvement of Living and Working Conditions (Dublin) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 84 | 22 |
| Tangible fixed assets | 2 388 | 2 778 |
| Current assets |
| Short-term pre-financing | 344 | 539 |
| Short-term receivables | 690 | 505 |
| Cash and cash equivalents | 3 111 | 3 244 |
| Total assets | 6 617 | 7 088 |
| Current liabilities |
| Provisions for risks and charges | 274 | 189 |
| Accounts payable | 1 643 | 2 806 |
| Total liabilities | 1 917 | 2 995 |
| Net assets |
| Accumulated surplus/deficit | 4 093 | 4 445 |
| Economic result for the year | 608 | – 352 |
| Total net assets | 4 701 | 4 093 |
| Total liabilities and net assets | 6 618 | 7 088 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

84

22

Tangible fixed assets

2 388

2 778

Current assets

Short-term pre-financing

344

539

Short-term receivables

690

505

Cash and cash equivalents

3 111

3 244

Total assets

6 617

7 088

Current liabilities

Provisions for risks and charges

274

189

Accounts payable

1 643

2 806

Total liabilities

1 917

2 995

Net assets

Accumulated surplus/deficit

4 093

4 445

Economic result for the year

608

– 352

Total net assets

4 701

4 093

Total liabilities and net assets

6 618

7 088

---

(1)  Increase due to corrections following a physical inventory done in 2006.

---

THE FOUNDATION'S REPLIES

| 7. | Measures will be taken to reduce significantly the carry-over rate for Title II in 2007. Taking into account the average duration of our study contracts (18 months) and our payments schedule, unavoidably about 35 % of Title 3 credits had to be carried over. |
| --- | --- |

7.

Measures will be taken to reduce significantly the carry-over rate for Title II in 2007. Taking into account the average duration of our study contracts (18 months) and our payments schedule, unavoidably about 35 % of Title 3 credits had to be carried over.

| 8. | Due to the fact that the mentioned contracts had to start on 1 January 2007 and that the budget 2007 was not yet established at the time, the mentioned services had to be committed at the latest in December 2006. However, from 2007 onwards they will be committed against the appropriations of the following year. |
| --- | --- |

8.

Due to the fact that the mentioned contracts had to start on 1 January 2007 and that the budget 2007 was not yet established at the time, the mentioned services had to be committed at the latest in December 2006. However, from 2007 onwards they will be committed against the appropriations of the following year.

| 9. | Since March 2007, all vacancy notices include a clear indication of whether success in tests is a precondition for success in the competition. |
| --- | --- |

9.

Since March 2007, all vacancy notices include a clear indication of whether success in tests is a precondition for success in the competition.

---

| 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

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

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).

| 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.

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.

| 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.

| 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.

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.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/128 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/128

---

REPORT

on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2006 together with the Centre's replies

(2007/C 309/22)

CONTENTS

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

1-2

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

3-6

| 7-9 | OBSERVATIONS |
| --- | --- |

7-9

Tables 1 to 4

The Centre's replies

INTRODUCTION

| 1. | The European Monitoring Centre for Drugs and Drug Addiction (hereinafter ‘the Centre’) was established by Council Regulation (EEC) No 302/93 of 8 February 1993 (1). Its main task is to collect data on drugs and drug addiction in order to prepare and publish information that is objective, reliable and comparable at European level. The information is intended to provide a basis for analysing the demand for drugs and ways of reducing both it and, in general, phenomena associated with the drug market. |
| --- | --- |

1.

The European Monitoring Centre for Drugs and Drug Addiction (hereinafter ‘the Centre’) was established by Council Regulation (EEC) No 302/93 of 8 February 1993 (1). Its main task is to collect data on drugs and drug addiction in order to prepare and publish information that is objective, reliable and comparable at European level. The information is intended to provide a basis for analysing the demand for drugs and ways of reducing both it and, in general, phenomena associated with the drug market.

| 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 inTables 2, 3 and 4 for information purposes. |
| --- | --- |

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 inTables 2, 3 and 4 for information purposes.

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

| 4. | The Centre's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 11 of Regulation (EEC) No 302/93, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The Centre's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 11 of Regulation (EEC) No 302/93, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions.

| 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 thus obtained a reasonable basis for the Statement 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 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. |
| --- | --- |

6.

The Court has thus obtained a reasonable basis for the Statement 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 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. | The utilisation rate of commitment appropriations (including assigned revenue) was 95 % (94 % in 2005) and the corresponding rate for payment appropriations improved to 87 % (85 % in 2005). The Centre reduced the level of carry-overs to 25 % in 2006 (40 % in 2005). |
| --- | --- |

7.

The utilisation rate of commitment appropriations (including assigned revenue) was 95 % (94 % in 2005) and the corresponding rate for payment appropriations improved to 87 % (85 % in 2005). The Centre reduced the level of carry-overs to 25 % in 2006 (40 % in 2005).

| 8. | In nine cases out of 13 examined contrary to the provisions of the contracts, there were delays in making the payments to the national focal points of Reitox (European Information Network on Drugs and Drug Addiction) under the grant agreements. |
| --- | --- |

8.

In nine cases out of 13 examined contrary to the provisions of the contracts, there were delays in making the payments to the national focal points of Reitox (European Information Network on Drugs and Drug Addiction) under the grant agreements.

| 9. | In the report on the annual accounts of the Centre for the financial year 2005 (4), the Court made an observation in respect of a member of staff who had been sent on a long-term mission to Brussels and who after the end of the mission, had been seconded to the Commission. However, since the end of the secondment, this staff member continued to be paid by the Centre without having resumed work in Lisbon. The situation remained unchanged in 2006. In 2007, this agent was declared able to work anywhere except specifically in Lisbon. |
| --- | --- |

9.

In the report on the annual accounts of the Centre for the financial year 2005 (4), the Court made an observation in respect of a member of staff who had been sent on a long-term mission to Brussels and who after the end of the mission, had been seconded to the Commission. However, since the end of the secondment, this staff member continued to be paid by the Centre without having resumed work in Lisbon. The situation remained unchanged in 2006. In 2007, this agent was declared able to work anywhere except specifically in Lisbon.

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 36, 12.2.1993This Regulation was amended by Regulations (EC) No 3294/94 of 22 December 1994 (OJ L 341, 30.12.1994, p. 7) and (EC) No 1651/2003 of 18 June 2003 (OJ L 245, 29.9.2003, p. 30).

1

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

2

(3)  These accounts were drawn up on 15 June 2007 and received by the Court on 13 July 2007.

3

(4)  OJ C 312 of 19.12.2006 (paragraph 12, p. 68).

4

---

Table 1

European Monitoring Centre for Drugs and Drug Addiction (Lisbon)

| Areas of Community competence deriving from the Treaty | Competences of the Centre as defined in Council Regulation (EEC) No 302/93 | Governance | Resources available to the Centre in 2006

  (2005) | Products and services supplied in 2006

  (2005 data) |
| --- | --- | --- | --- | --- |
| The Community complements the Member States' action in reducing drugs-related health damage, including information and prevention.

  (Article 152 of the Treaty) | Objectives

  To provide the Union and its Member States with reliable information at European level concerning drugs and drug addiction and their consequences.
  The Monitoring Centre should give priority to analysing:






  1) | the demand and reduction of the demand for drugs; |

Areas of Community competence deriving from the Treaty

Competences of the Centre as defined in Council Regulation (EEC) No 302/93

Governance

Resources available to the Centre in 2006

(2005)

Products and services supplied in 2006

(2005 data)

The Community complements the Member States' action in reducing drugs-related health damage, including information and prevention.

(Article 152 of the Treaty)

Objectives

To provide the Union and its Member States with reliable information at European level concerning drugs and drug addiction and their consequences.

The Monitoring Centre should give priority to analysing:

1)

the demand and reduction of the demand for drugs;

| 2) | national and Community strategies and policies; |
| --- | --- |

2)

national and Community strategies and policies;

| 3) | international cooperation and the geopolitics of supply; |
| --- | --- |

3)

international cooperation and the geopolitics of supply;

| 4) | control of the trade in narcotics, psychotropic substances and drug precursors; |
| --- | --- |

4)

control of the trade in narcotics, psychotropic substances and drug precursors;

| 5) | the implications of drug use for producer, consumer and transit countries, including money laundering. |
| --- | --- |

5)

the implications of drug use for producer, consumer and transit countries, including money laundering.

Tasks

| — | To collect and analyse data. |
| --- | --- |

—

To collect and analyse data.

| — | To make enquiries and carry out preparatory actions. |
| --- | --- |

—

To make enquiries and carry out preparatory actions.

| — | To ensure that European-level data are more reliable. |
| --- | --- |

—

To ensure that European-level data are more reliable.

| — | To publish reliable information. |
| --- | --- |

—

To publish reliable information.

| — | To improve coordination between national and Community actions. |
| --- | --- |

—

To improve coordination between national and Community actions.

| — | To promote the incorporation of drug-related data into international programmes. |
| --- | --- |

—

To promote the incorporation of drug-related data into international programmes.

| 1. | The Management Board
  Comprises one representative from each Member State, two representatives of the Commission and two qualified scientists appointed by the European Parliament.
  It approves the work programme and general annual report and adopts the budget. |
| --- | --- |

1.

Comprises one representative from each Member State, two representatives of the Commission and two qualified scientists appointed by the European Parliament.

It approves the work programme and general annual report and adopts the budget.

| 2. | Director: Appointed by the Management Board at the Commission's proposal. |
| --- | --- |

2.

Director: Appointed by the Management Board at the Commission's proposal.

| 3. | Scientific Committee: Delivers opinions. It is made up of one representative from each Member State. The Management Board may also appoint a maximum of six other members on the basis of their specific qualifications. |
| --- | --- |

3.

Scientific Committee: Delivers opinions. It is made up of one representative from each Member State. The Management Board may also appoint a maximum of six other members on the basis of their specific qualifications.

| 4. | External control: Court of Auditors |
| --- | --- |

4.

External control: Court of Auditors

| 5. | Discharge authority: European Parliament on the Council's recommendation. |
| --- | --- |

5.

Discharge authority: European Parliament on the Council's recommendation.

Final budget

13,12 million euro (12,8 million euro).

Community contribution: 92 % (96 %).

Staff numbers as at 31 December 2006

Number of posts in establishment plan: 77 (77)

Posts occupied: 68 (58)

+23 (25) other staff (auxiliary contracts, contract staff and temporary replacements)

Total staff: 91(83)

Assigned to the following duties:

operational: 53,5 (50,5)

administrative and IT support: 30 (25)

mixed: 7,5 (7,5)

Network

The Centre runs a computerised network for the collection and exchange of information called the ‘European Information Network on Drugs and Drug Addiction’ (Reitox); this network connects national drug information networks, specialist centres in the Member States and the information systems of international organisations working with the Centre.

Publications

| — | Annual report on the state of the drug problem in Europe (23 (22) language versions, publication and interactive website) |
| --- | --- |

—

Annual report on the state of the drug problem in Europe (23 (22) language versions, publication and interactive website)

| — | Annual report on selected issues (EN, publication and interactive website) |
| --- | --- |

—

Annual report on selected issues (EN, publication and interactive website)

| — | Statistical bulletin and interactive website containing over 250 (200) tables, 150 (100) graphs and PDF files |
| --- | --- |

—

Statistical bulletin and interactive website containing over 250 (200) tables, 150 (100) graphs and PDF files

| — | General activity report (annual, EN) |
| --- | --- |

—

General activity report (annual, EN)

| — | Drugnet Europe newsletter (4 issues, EN (two in five languages and two EN)) |
| --- | --- |

—

Drugnet Europe newsletter (4 issues, EN (two in five languages and two EN))

| — | Technical and scientific studies and articles (21) (28) |
| --- | --- |

—

Technical and scientific studies and articles (21) (28)

| — | articles and scientific summaries (16) |
| --- | --- |

—

articles and scientific summaries (16)

Other websites:

Set-up/updating/content development:

| — | Country situation summaries |
| --- | --- |

—

Country situation summaries

| — | Country data profiles |
| --- | --- |

—

Country data profiles

| — | Drug treatment overviews |
| --- | --- |

—

Drug treatment overviews

| — | European legal database on drugs |
| --- | --- |

—

European legal database on drugs

| — | Evaluation instruments bank |
| --- | --- |

—

Evaluation instruments bank

| — | Exchange on drug demand reduction action |
| --- | --- |

—

Exchange on drug demand reduction action

Promotional brochures (4 (3) products)

Media products (174 (110) miscellaneous products)

Participation in international conferences/meetings (162 (75))

Organisation of technical and scientific meetings (27 (24))

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 Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Budget implementation 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 for the financial year | Appropriations carried over from the previous financial year |
| entered | committed | paid | carried over | cancelled | available | committed | cancelled |
| Community subsidies | 12 100 | 12 100 | Title I
  Staff (NDA) | 6 500 | 6 468 | 6 373 | 95 | 32 | 154 | 134 | 20 |
| Own revenue | 521 | 521 | Title II
  Administrations (NDA) | 1 590 | 1 482 | 1 077 | 405 | 108 | 650 | 611 | 39 |
| Other revenue | | 93 | Title III
  Operational activities (DA) | | | | | | | | |
| — CA | 4 531 | 4 486 | | | 45 | | | |
| — PA | 4 531 | | 4 163 | | 368 | | | |
| Assigned revenue (Phare) | 500 | 381 | Assigned revenue (Phare) | 500 | 224 | 28 | 472 | 0 | 284 | 171 | |
| Total | 13 121 | 13 095 | Total CA | 13 121 | 12 660 | | 972 | 45 | | | |
| Total PA | 13 121 | 12 660 | 11 641 | 972 | 508 | 1 088 | 916 | 59 |
| NDA | : | non-differentiated appropriations (commitment appropriations equal payment appropriations). |
| DA | : | differentiated appropriations (commitment appropriations and payment appropriations may differ). |
| CA | : | commitment appropriations in a system of differentiated appropriations. |
| PA | : | payment appropriations in a system of differentiated appropriations. |

(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 for the financial year

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

committed

cancelled

Community subsidies

12 100

12 100

Title I

Staff (NDA)

6 500

6 468

6 373

95

32

154

134

20

Own revenue

521

521

Title II

Administrations (NDA)

1 590

1 482

1 077

405

108

650

611

39

Other revenue

93

Title III

Operational activities (DA)

— CA

4 531

4 486

45

— PA

4 531

4 163

368

Assigned revenue (Phare)

500

381

Assigned revenue (Phare)

500

224

28

472

0

284

171

Total

13 121

13 095

Total CA

13 121

12 660

972

45

Total PA

13 121

12 660

11 641

972

508

1 088

916

59

NDA

:

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

DA

:

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

CA

:

commitment appropriations in a system of differentiated appropriations.

PA

:

payment appropriations in a system of differentiated appropriations.

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

Table 3

European Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 13 394 | 10 592 |
| Other revenues | 93 | 312 |
| Total (a) | 13 488 | 10 904 |
| Operating expenditure |
| Staff expenditure | 6 566 | 5 843 |
| Fixed asset-related expenditure | 292 | |
| Other administrative expenditure | 2 369 | 2 269 |
| Operating activities | 4 629 | 4 181 |
| Total (b) | 13 857 | 12 293 |
| Surplus/(deficit) from operating activities (c = a – b) | – 370 | –1 389 |
| Revenue from financial operations (e) | | |
| Expenditure on financial operations (f) | 16 | 35 |
| Surplus/(deficit) from non-operating activities (g = e – f) | –16 | –35 |
| Economic result for the year (h = c + g) | – 385 | –1 424 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

13 394

10 592

Other revenues

93

312

Total (a)

13 488

10 904

Operating expenditure

Staff expenditure

6 566

5 843

Fixed asset-related expenditure

292

Other administrative expenditure

2 369

2 269

Operating activities

4 629

4 181

Total (b)

13 857

12 293

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

– 370

–1 389

Revenue from financial operations (e)

Expenditure on financial operations (f)

16

35

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

–16

–35

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

– 385

–1 424

Table 4

European Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 374 | 56 |
| Tangible fixed assets | 2 809 | 2 933 |
| Current assets |
| Short-term receivables | 416 | 224 |
| Cash and cash equivalents | 1 881 | 3 005 |
| Total assets | 5 480 | 6 218 |
| Current liabilities |
| Provisions for risks and charges | 149 | 115 |
| Accounts payable | 2 843 | 3 231 |
| Total liabilities | 2 992 | 3 346 |
| Net assets |
| Accumulated surplus/deficit | 2 872 | 4 296 |
| Economic result for the year | – 385 | –1 424 |
| Total net assets | 2 488 | 2 872 |
| Total liabilities and net assets | 5 480 | 6 218 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

374

56

Tangible fixed assets

2 809

2 933

Current assets

Short-term receivables

416

224

Cash and cash equivalents

1 881

3 005

Total assets

5 480

6 218

Current liabilities

Provisions for risks and charges

149

115

Accounts payable

2 843

3 231

Total liabilities

2 992

3 346

Net assets

Accumulated surplus/deficit

2 872

4 296

Economic result for the year

– 385

–1 424

Total net assets

2 488

2 872

Total liabilities and net assets

5 480

6 218

---

THE CENTRE'S REPLIES

| 7. | The Centre will continue its efforts to maintain the high rate of execution of its budget and if possible to improve it. |
| --- | --- |

7.

The Centre will continue its efforts to maintain the high rate of execution of its budget and if possible to improve it.

| 8. | In order to improve the referred payment process the EMCDDA has taken various measures: |
| --- | --- |

8.

In order to improve the referred payment process the EMCDDA has taken various measures:

| — | improvement of the relevant communication/notification process to the National Focal Points (NFP); |
| --- | --- |

—

improvement of the relevant communication/notification process to the National Focal Points (NFP);

| — | provision of guidelines and specific training for NFPs on financial procedures; |
| --- | --- |

—

provision of guidelines and specific training for NFPs on financial procedures;

| — | reinforcement of the operating capacity for the financial and administrative management of the grants; |
| --- | --- |

—

reinforcement of the operating capacity for the financial and administrative management of the grants;

| — | streamlining of the relevant internal control processes. |
| --- | --- |

—

streamlining of the relevant internal control processes.

| 9. | The secondment of the concerned staff member ended on 30 September 2006. As from 1 October 2006 the staff member was reinstated in the EMCDDA services. However, the concerned person took sick leave, providing evidence (by means of regular medical certificates) of being unable to carry out duties because of illness. |
| --- | --- |

9.

The secondment of the concerned staff member ended on 30 September 2006. As from 1 October 2006 the staff member was reinstated in the EMCDDA services. However, the concerned person took sick leave, providing evidence (by means of regular medical certificates) of being unable to carry out duties because of illness.

The EMCDDA requested twice the medical service of the European Commission to carry out a medical examination to verify the grounds for the referred sick leave and the examinations have confirmed the existence of reasons justifying the absence for sickness.

The EMCDDA will continue to use all instruments provided by the relevant regulations to manage the referred case.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/135 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/135

---

REPORT

on the annual accounts of the Community Plant Variety Office for the financial year 2006 together with the Office's replies

(2007/C 309/23)

CONTENTS

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

1-2

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

3-6

Tables 1 to 4

The Office's replies

INTRODUCTION

| 1. | The Community Plant Variety Office (hereinafter ‘the Office’) was created by Council Regulation (EC) No 2100/94 of 27 July 1994 (1). Its main task is to register and examine applications for the grant of Community industrial property rights for plant varieties and to ensure that the necessary technical examinations are carried out by the competent offices in the Member States. |
| --- | --- |

1.

The Community Plant Variety Office (hereinafter ‘the Office’) was created by Council Regulation (EC) No 2100/94 of 27 July 1994 (1). Its main task is to register and examine applications for the grant of Community industrial property rights for plant varieties and to ensure that the necessary technical examinations are carried out by the competent offices in the Member States.

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

2.

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

STATEMENT OF ASSURANCE

| 3. | This Statement is addressed to the Administrative Council of the Office in accordance with Article 111 of Council Regulation (EC) No 2100/94. |
| --- | --- |

3.

This Statement is addressed to the Administrative Council of the Office in accordance with Article 111 of Council Regulation (EC) No 2100/94.

| 4. | The Office's accounts for the financial year ended 31 December 2006 (2) were drawn up by its President, pursuant to Article 112 of Regulation (EC) No 2100/94, 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. |
| --- | --- |

4.

The Office's accounts for the financial year ended 31 December 2006 (2) were drawn up by its President, pursuant to Article 112 of Regulation (EC) No 2100/94, 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.

| 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 thus obtained a reasonable basis for the Statement set out below.

  Reliability of the accountsThe Office'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 Office's annual accounts, taken as a whole, are legal and regular. |
| --- | --- |

6.

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

Reliability of the accountsThe Office'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 Office's annual accounts, taken as a whole, are legal and regular.

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 227, 1.9.1994, p. 27.

1

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

2

---

Table 1

Community Plant Variety Office (Angers)

| Areas of Community competence deriving from the Treaty | Competences of the Office as defined in Council Regulation (EC) No 2100/94 | Governance | Resources made available to the Office in 2006

  (2005) | Products and services supplied in 2006 |
| --- | --- | --- | --- | --- |
| Free movement of goods

  Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property shall not constitute a means of arbitrary discrimination or a disguised restriction on trade between the Member States.

  (Extract from Article 30 of the Treaty) | Objectives

  To apply the system of Community plant variety rights as the sole and exclusive form of Community industrial property rights for plant varieties. | Tasks







  — | To decide whether to refuse or grant applications for Community plant variety rights. |

Areas of Community competence deriving from the Treaty

Competences of the Office as defined in Council Regulation (EC) No 2100/94

Governance

Resources made available to the Office in 2006

(2005)

Products and services supplied in 2006

Free movement of goods

Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property shall not constitute a means of arbitrary discrimination or a disguised restriction on trade between the Member States.

(Extract from Article 30 of the Treaty)

Objectives

To apply the system of Community plant variety rights as the sole and exclusive form of Community industrial property rights for plant varieties.

Tasks

—

To decide whether to refuse or grant applications for Community plant variety rights.

| — | To decide on objections. |
| --- | --- |

—

To decide on objections.

| — | To decide on appeals. |
| --- | --- |

—

To decide on appeals.

| — | To decide on the revocation or cancellation of a Community plant variety right. |
| --- | --- |

—

To decide on the revocation or cancellation of a Community plant variety right.

| 1. | The President directs the Office. He is appointed by the Council from a list of candidates proposed by the Commission after obtaining the opinion of the Administrative Council. |
| --- | --- |

1.

The President directs the Office. He is appointed by the Council from a list of candidates proposed by the Commission after obtaining the opinion of the Administrative Council.

| 2. | The Administrative Council oversees the Office's work programme and draws up rules governing the Office's working methods. It is composed of one representative of each Member State and one representative of the Commission, plus their alternates. |
| --- | --- |

2.

The Administrative Council oversees the Office's work programme and draws up rules governing the Office's working methods. It is composed of one representative of each Member State and one representative of the Commission, plus their alternates.

| 3. | Decisions regarding the grant of Community plant variety rights are adopted by committees composed of three members of staff of the Office and by the Board of Appeal in appeal proceedings. |
| --- | --- |

3.

Decisions regarding the grant of Community plant variety rights are adopted by committees composed of three members of staff of the Office and by the Board of Appeal in appeal proceedings.

| 4. | External control: review of the legality of acts by the President for which Community legislation provides no judicial review by any other body, as well as the legality of acts by the Administrative Council in respect of the Office's budget. |
| --- | --- |

4.

External control: review of the legality of acts by the President for which Community legislation provides no judicial review by any other body, as well as the legality of acts by the Administrative Council in respect of the Office's budget.

| 5. | Financial control: Court of Auditors. |
| --- | --- |

5.

Financial control: Court of Auditors.

| 6. | Discharge Authority: Administrative Council. |
| --- | --- |

6.

Discharge Authority: Administrative Council.

Final budget

13,0 (13,4) million euro

Staff numbers as at 31 December 2006:

Number of posts in establishment plan: 41 (40)

Posts occupied: 41(40)

+4 (5) other posts (auxiliary contracts, national experts on secondment, local staff, employment agency staff)

Total staff: 45 (45)

Assigned to the following duties:

Applications heard: 2 751 (2 734)

Rights granted: 2 289 (2 178)

Community rights in force at 31 December 2006: 12 933 (11 231)

operational:

19

administrative:

20

mixed:

6

Source: Information supplied by the Office

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

Table 2

Community Plant Variety Office (Angers) — Budget implementation for the financial year 2006

| (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 | Appropriations carried over from the previous financial year |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Own revenue | 8 395 | 8 478 | Title I
  Staff (NDA) | 4 451 | 4 404 | 4 351 | 51 | 49 | 47 | 47 | 0 |
| Accumulated surplus | 2 130 | 0 |
| Community subsidies | 328 | 328 | Title II
  Administration (NDA) | 2 071 | 1 555 | 702 | 852 | 516 | 630 | 371 | 259 |
| Other revenue | 325 | 524 | Title III
  Operating activities (DA) | | | | | | | | |
| — CA | 6 496 | 5 397 | 0 | 0 | 1 099 | 0 | 0 | 0 |
| — PA | 4 656 | 0 | 4 358 | 0 | 298 | 0 | 0 | 0 |
| Total | 11 178 | 9 330 | Total CE | 13 018 | 11 356 | 0 | 0 | 1 664 | 677 | 418 | 259 |
| Total CP | 11 178 | 0 | 9 411 | 903 | 863 | 677 | 418 | 259 |
| NDA | : | non-differentiated appropriations (commitment appropriations equal 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

Source of revenue

Revenue entered in the final budget for the financial year

Revenue collected

Allocation of expenditure

Final budget appropriations

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Own revenue

8 395

8 478

Title I

Staff (NDA)

4 451

4 404

4 351

51

49

47

47

0

Accumulated surplus

2 130

0

Community subsidies

328

328

Title II

Administration (NDA)

2 071

1 555

702

852

516

630

371

259

Other revenue

325

524

Title III

Operating activities (DA)

— CA

6 496

5 397

0

0

1 099

0

0

0

— PA

4 656

0

4 358

0

298

0

0

0

Total

11 178

9 330

Total CE

13 018

11 356

0

0

1 664

677

418

259

Total CP

11 178

0

9 411

903

863

677

418

259

NDA

:

non-differentiated appropriations (commitment appropriations equal 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 Office. This table summarises the data provided supplied by the Office in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

Community Plant Variety Office (Angers) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Fees collected | 8 844 | 7 649 |
| Other revenues | 29 | 235 |
| Total (a) | 8 873 | 7 884 |
| Operating expenditure |
| Staff expenditure | 4 398 | 4 226 |
| Fixed asset related expenditure | 191 | 189 |
| Other administrative expenditure | 1 031 | 1 296 |
| Operating expenditure | 4 535 | 3 971 |
| Total (b) | 10 155 | 9 682 |
| Surplus/(deficit) from operating activities (c = a – b) | –1 282 | –1 798 |
| Revenue from financial operations (e) | 495 | 367 |
| Expenditure on financial operations (f) | 0 | 0 |
| Surplus/(deficit) from non-operating activities (g = e – f) | 495 | 367 |
| Extraordinary income | 7 | — |
| Extraordinary expenditure | 38 | — |
| Surplus/(deficit) from extraordinary activities | –31 | — |
| Economic result for the year | – 818 | –1 431 |

(1000 euro)

2006

2005

Operating revenue

Fees collected

8 844

7 649

Other revenues

29

235

Total (a)

8 873

7 884

Operating expenditure

Staff expenditure

4 398

4 226

Fixed asset related expenditure

191

189

Other administrative expenditure

1 031

1 296

Operating expenditure

4 535

3 971

Total (b)

10 155

9 682

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

–1 282

–1 798

Revenue from financial operations (e)

495

367

Expenditure on financial operations (f)

0

0

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

495

367

Extraordinary income

7

—

Extraordinary expenditure

38

—

Surplus/(deficit) from extraordinary activities

–31

—

Economic result for the year

– 818

–1 431

Table 4

Community Plant Variety Office (Angers) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 43 | 81 |
| Tangible fixed assets | 3 319 | 3 432 |
| Current assets |
| Short-term receivables | 943 | 897 |
| Cash and cash equivalents | 18 487 | 19 111 |
| Total assets | 22 792 | 23 521 |
| Current liabilities |
| Accounts payable | 7 419 | 7 331 |
| Total liabilities | 7 419 | 7 331 |
| Net assets |
| Accumulated surplus/deficit | 16 191 | 17 621 |
| Economic result for the year | – 818 | –1 431 |
| Total net assets | 15 373 | 16 190 |
| Total liabilities and net assets | 22 792 | 23 521 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

43

81

Tangible fixed assets

3 319

3 432

Current assets

Short-term receivables

943

897

Cash and cash equivalents

18 487

19 111

Total assets

22 792

23 521

Current liabilities

Accounts payable

7 419

7 331

Total liabilities

7 419

7 331

Net assets

Accumulated surplus/deficit

16 191

17 621

Economic result for the year

– 818

–1 431

Total net assets

15 373

16 190

Total liabilities and net assets

22 792

23 521

---

THE OFFICE'S REPLIES

The Office has taken note of the Court's report.

---

| 19.12.2007 | EN | Official Journal of the European Union | C 309/141 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/141

---

REPORT

on the annual accounts of the Office for Harmonisation in the Internal Market for the financial year 2006 together with the Office's replies

(2007/C 309/24)

CONTENTS

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

1-2

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

3-6

| 7-9 | OBSERVATIONS |
| --- | --- |

7-9

Tables 1 to 4

The Office's replies

INTRODUCTION

| 1. | The Office for Harmonisation in the Internal Market (hereinafter ‘the Office’) was set up by Council Regulation (EC) No 40/94 (1) of 20 December 1993. Its mandate is to implement the Community legislation on trade marks and designs, which gives undertakings uniform protection throughout the entire area of the European Union. |
| --- | --- |

1.

The Office for Harmonisation in the Internal Market (hereinafter ‘the Office’) was set up by Council Regulation (EC) No 40/94 (1) of 20 December 1993. Its mandate is to implement the Community legislation on trade marks and designs, which gives undertakings uniform protection throughout the entire area of the European Union.

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

2.

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

STATEMENT OF ASSURANCE

| 3. | This Statement is addressed to the Office Budget Committee in accordance with Article 137 of Council Regulation (EC) No 40/94. |
| --- | --- |

3.

This Statement is addressed to the Office Budget Committee in accordance with Article 137 of Council Regulation (EC) No 40/94.

| 4. | The Office's accounts for the financial year ended 31 December 2006 (2) were drawn up by its President, pursuant to Article 119 of Council Regulation (EC) No 40/94, and sent to the Court, which is required to provide a statement on their reliability and on the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The Office's accounts for the financial year ended 31 December 2006 (2) were drawn up by its President, pursuant to Article 119 of Council Regulation (EC) No 40/94, and sent to the Court, which is required to provide a statement on their reliability and on the legality and regularity of the underlying transactions.

| 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 thus obtained a reasonable basis for the Statement set out below.

  Reliability of the accountsThe Office'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 Office'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 thus obtained a reasonable basis for the Statement set out below.

Reliability of the accountsThe Office'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 Office'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. | Implementation of the budget was characterised by a significant increase in revenue (27 % higher than the initial budget) and a lower overall level of expenditure resulting in a budgetary surplus of 69 million euro. The implementation rates for the commitment and payment appropriations were 92,7 % and 72,6 % respectively. Around 15 % of the appropriations for administrative expenditure (Title II) for the year and those carried over from the previous financial year were cancelled. More than one third of the commitments for the 2006 financial year were carried over. A high number of budgetary transfers were made (3). All transfers initiated in one day or within defined short periods are not processed for approval together. Thus, the budgetary principles of annuality and specification were not strictly observed. |
| --- | --- |

7.

Implementation of the budget was characterised by a significant increase in revenue (27 % higher than the initial budget) and a lower overall level of expenditure resulting in a budgetary surplus of 69 million euro. The implementation rates for the commitment and payment appropriations were 92,7 % and 72,6 % respectively. Around 15 % of the appropriations for administrative expenditure (Title II) for the year and those carried over from the previous financial year were cancelled. More than one third of the commitments for the 2006 financial year were carried over. A high number of budgetary transfers were made (3). All transfers initiated in one day or within defined short periods are not processed for approval together. Thus, the budgetary principles of annuality and specification were not strictly observed.

| 8. | The accumulated surplus in 2006 reached 200 million euro, the equivalent of the annual budget. On the basis of the recent analysis made, there was a need for the Office to propose to the Commission a level of fees which more accurately reflects its real costs (4). |
| --- | --- |

8.

The accumulated surplus in 2006 reached 200 million euro, the equivalent of the annual budget. On the basis of the recent analysis made, there was a need for the Office to propose to the Commission a level of fees which more accurately reflects its real costs (4).

| 9. | The examination of procedures for recruiting staff showed the following shortcomings: a lack of formal decisions in appointing selection boards, selection board incomplete once having been set up, parity of members of the selection board not assured and no minutes of the selection board meetings. Written procedures and guidelines for the recruitment of temporary staff have not yet been adopted and implemented (5). |
| --- | --- |

9.

The examination of procedures for recruiting staff showed the following shortcomings: a lack of formal decisions in appointing selection boards, selection board incomplete once having been set up, parity of members of the selection board not assured and no minutes of the selection board meetings. Written procedures and guidelines for the recruitment of temporary staff have not yet been adopted and implemented (5).

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 11, 14.1.1994

1

(2)  These accounts were drawn up on 1 July 2007 and received by the Court on 2 July 2007.

2

(3)  During 2006 there were more than 30 transfers.

3

(4)  Article 134(2) of the Council Regulation (EC) No 40/94 of 20 December 1993.

4

(5)  Article 12(5) of the Conditions of Employment of other servants of the EC.

5

---

Table 1

Office for Harmonisation in the Internal Market (Alicante)

| Area of Community competence deriving from the Treaty | Competences of the Office as specified in Council Regulation (EC) No 40/94 of 20 December 1993 | Gouvernance | Resources made available to the Office in 2006

  (2005) | Products and services supplied in the 2006 financial year |
| --- | --- | --- | --- | --- |
| Free movement of goods

  Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property must not constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.

  (From Article 30 of the Treaty)

  Restrictions on freedom to provide services within the Community are prohibited in respect of nationals of Member States who are established in a State of the Community other than that of the person for whom the services are intended.

  (From Article 49 of the Treaty) | Objectives

  To implement the Community legislation on trade marks and designs, which gives undertakings the right to uniform protection throughout the entire area of the European Union. | Tasks







  — | To receive and enter applications for registration. |

Area of Community competence deriving from the Treaty

Competences of the Office as specified in Council Regulation (EC) No 40/94 of 20 December 1993

Gouvernance

Resources made available to the Office in 2006

(2005)

Products and services supplied in the 2006 financial year

Free movement of goods

Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property must not constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.

(From Article 30 of the Treaty)

Restrictions on freedom to provide services within the Community are prohibited in respect of nationals of Member States who are established in a State of the Community other than that of the person for whom the services are intended.

(From Article 49 of the Treaty)

Objectives

To implement the Community legislation on trade marks and designs, which gives undertakings the right to uniform protection throughout the entire area of the European Union.

Tasks

—

To receive and enter applications for registration.

| — | To examine the conditions for entry in the Register and compatibility with Community legislation. |
| --- | --- |

—

To examine the conditions for entry in the Register and compatibility with Community legislation.

| — | To search at the industrial property offices of the Member States for any pre-existing national trade marks. |
| --- | --- |

—

To search at the industrial property offices of the Member States for any pre-existing national trade marks.

| — | To publish applications. |
| --- | --- |

—

To publish applications.

| — | To examine any opposition by third parties. |
| --- | --- |

—

To examine any opposition by third parties.

| — | To register or reject applications. |
| --- | --- |

—

To register or reject applications.

| — | To examine applications for revocation or invalidity. |
| --- | --- |

—

To examine applications for revocation or invalidity.

| — | To handle appeals against decisions. |
| --- | --- |

—

To handle appeals against decisions.

1.   Administrative Board

Composition

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

—

One representative of each Member State

| — | One representative of the Commission and their alternates |
| --- | --- |

—

One representative of the Commission and their alternates

Task

| — | To advise the President on matters for which the Office is responsible |
| --- | --- |

—

To advise the President on matters for which the Office is responsible

| — | To prepare lists of candidates (Article 120) for President, Vice-Presidents and chairmen and members of the Boards of Appeal |
| --- | --- |

—

To prepare lists of candidates (Article 120) for President, Vice-Presidents and chairmen and members of the Boards of Appeal

2.   President of the Office

| — | Appointed by the Council from a list of at most three candidates which has been prepared by the Administrative Board |
| --- | --- |

—

Appointed by the Council from a list of at most three candidates which has been prepared by the Administrative Board

3.   Budget Committee

Composition

One representative of each Member State and one representative of the Commission and their alternates

Task

| — | To adopt the budget and the financial regulation, grant discharge to the President and determine the cost of search reports |
| --- | --- |

—

To adopt the budget and the financial regulation, grant discharge to the President and determine the cost of search reports

4.   Decisions in connection with procedures

Decisions are taken by:

| (a) | the Examiners; |
| --- | --- |

(a)

the Examiners;

| (b) | the Opposition Divisions; |
| --- | --- |

(b)

the Opposition Divisions;

| (c) | the Administration of Trade Marks and Legal Division; |
| --- | --- |

(c)

the Administration of Trade Marks and Legal Division;

| (d) | the Cancellation Divisions; |
| --- | --- |

(d)

the Cancellation Divisions;

| (e) | the Boards of Appeal |
| --- | --- |

(e)

the Boards of Appeal

5.   External audit

The Court of Auditors

6.   Discharge authority

The Office's Budget Committee

Final budget

212 million euro (218 million euro) including a Community subsidy: 0 % (0%)

Staff numbers as at 31 December 2006

675 (675) posts in the establishment plan,

posts occupied: 603 (611)

+72 (78) other staff (auxiliary contracts, seconded national experts, local and employment agency staff)

Total staff: 675 (689)

assigned to the following duties:

| — | production: 480 (548) |
| --- | --- |

—

production: 480 (548)

| — | support: 195 (141) |
| --- | --- |

—

support: 195 (141)

Trade marks

Number of applications: 77 461

Number of registrations: 66 954

Number of cases of opposition: 13 995

of which cases settled: 13 979

Appeals to the Boards of Appeal: 1 659

Average time for registration (excluding opposition or appeal):

| — | before publication: 8 months |
| --- | --- |

—

before publication: 8 months

| — | between publication and registration: 6 months |
| --- | --- |

—

between publication and registration: 6 months

Designs

Designs received: 68 500

Designs registered: 69 555

Source: Information supplied by the Office.

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

Table 2

Office for Harmonisation in the Internal Market (Alicante) — 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 the previous financial year |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Own revenue | 146 723 | 184 020 | Title I
  Staff | 60 431 | 59 348 | 56 758 | 1 390 | 2 283 | 995 | 835 | 160 |
| Other revenue | 709 | 553 | Title II
  Administration | 37 772 | 31 337 | 20 639 | 10 691 | 6 442 | 9 685 | 8 866 | 819 |
| Interest | 4 500 | 7 692 | Title III
  Operating activities | 36 541 | 35 371 | 20 963 | 14 407 | 1 170 | 14 226 | 13 015 | 1 212 |
| Balance of the previous financial year | 59 797 | 59 296 | Title X
  Reserve | 76 985 | 0 | 0 | 0 | 76 985 | 0 | 0 | 0 |
| Total | 211 729 | 251 561 | Total | 211 729 | 126 056 | 98 360 | 26 488 | 86 880 | 24 906 | 22 716 | 2 191 |
| Source: Data supplied by the Office. This table summarises the data provided by the Office in its annual accounts. Revenue collected and payments are estimated on a cash basis. |

(1000 euro)

Revenue

Expenditure

Source of revenue

Revenue entered in the final budget for the financial year

Revenue received

Allocation of expenditure

Final budget appropriations

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Own revenue

146 723

184 020

Title I

Staff

60 431

59 348

56 758

1 390

2 283

995

835

160

Other revenue

709

553

Title II

Administration

37 772

31 337

20 639

10 691

6 442

9 685

8 866

819

Interest

4 500

7 692

Title III

Operating activities

36 541

35 371

20 963

14 407

1 170

14 226

13 015

1 212

Balance of the previous financial year

59 797

59 296

Title X

Reserve

76 985

0

0

0

76 985

0

0

0

Total

211 729

251 561

Total

211 729

126 056

98 360

26 488

86 880

24 906

22 716

2 191

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

Table 3

Office for Harmonization in the Internal Market (Alicante) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Revenue from fees | 184 066 | 156 945 |
| Revenue from the sale of publications | 285 | 512 |
| Other revenue | 172 | 310 |
| Total (a) | 184 523 | 157 767 |
| Operating expenses |
| Staff expenses | 58 055 | 56 278 |
| Fixed asset related expenses | 3 586 | 3 386 |
| Other administrative expenses | 26 833 | 25 224 |
| Operational expenses | 34 720 | 35 850 |
| Total (b) | 123 194 | 120 738 |
| Surplus/(deficit) from operating activities (c = a – b) | 61 329 | 37 029 |
| Financial operations revenues (e) | 8 149 | 4 451 |
| Financial operations expenses (f) | 63 | 38 |
| Surplus/(deficit) from non-operating activities (g = e – f) | 8 086 | 4 413 |
| Economic result for the year (h = c + g) | 69 415 | 41 442 |

(1000 euro)

2006

2005

Operating revenue

Revenue from fees

184 066

156 945

Revenue from the sale of publications

285

512

Other revenue

172

310

Total (a)

184 523

157 767

Operating expenses

Staff expenses

58 055

56 278

Fixed asset related expenses

3 586

3 386

Other administrative expenses

26 833

25 224

Operational expenses

34 720

35 850

Total (b)

123 194

120 738

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

61 329

37 029

Financial operations revenues (e)

8 149

4 451

Financial operations expenses (f)

63

38

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

8 086

4 413

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

69 415

41 442

Table 4

Office for Harmonization in the Internal Market (Alicante) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 1 023 | 829 |
| Tangible fixed assets | 25 948 | 26 627 |
| Current assets |
| Short-term pre-financing | 190 | 185 |
| Short-term receivables | 2 453 | 2 011 |
| Cash and cash equivalents | 281 510 | 208 020 |
| Total assets | 311 125 | 237 672 |
| Non-current liabilities |
| Provisions for risks and charges | 727 | 597 |
| Other long-term liabilities | 20 | 16 |
| Current liabilities |
| Provisions for risks and charges | 12 266 | 10 499 |
| Accounts payable | 54 681 | 52 544 |
| Total liabilities | 67 693 | 63 656 |
| Net assets |
| Reserves | 72 353 | — |
| Accumulated surplus/deficit | 101 663 | 132 575 |
| Economic result of the year | 69 415 | 41 442 |
| Total net assets | 243 431 | 174 017 |
| Total liabilities and net assets | 311 125 | 237 672 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

1 023

829

Tangible fixed assets

25 948

26 627

Current assets

Short-term pre-financing

190

185

Short-term receivables

2 453

2 011

Cash and cash equivalents

281 510

208 020

Total assets

311 125

237 672

Non-current liabilities

Provisions for risks and charges

727

597

Other long-term liabilities

20

16

Current liabilities

Provisions for risks and charges

12 266

10 499

Accounts payable

54 681

52 544

Total liabilities

67 693

63 656

Net assets

Reserves

72 353

—

Accumulated surplus/deficit

101 663

132 575

Economic result of the year

69 415

41 442

Total net assets

243 431

174 017

Total liabilities and net assets

311 125

237 672

---

THE OFFICE'S REPLIES

| 7. | The Office is continuing its efforts to improve its forecasts of its revenue and expenditure. The significant amount of carried over appropriations form 2006 to 2007 is mainly due to delays of some IT projects. The Office has put in April 2007 an improved procedure for handling transfers. |
| --- | --- |

7.

The Office is continuing its efforts to improve its forecasts of its revenue and expenditure. The significant amount of carried over appropriations form 2006 to 2007 is mainly due to delays of some IT projects. The Office has put in April 2007 an improved procedure for handling transfers.

| 8. | The Office takes good note of the observations of the Court of Auditors. In December 2006, the Commission made proposals for a new fee mechanism. The Council, in May 2007, asked the Commission to make a proposal for a substantial reduction. |
| --- | --- |

8.

The Office takes good note of the observations of the Court of Auditors. In December 2006, the Commission made proposals for a new fee mechanism. The Council, in May 2007, asked the Commission to make a proposal for a substantial reduction.

| 9. | In 2006, the Office has already improved the formalising of its procedures regarding human resources management and in particular recruitment. In 2007, this effort will be pursued to take account of the Court's remarks. |
| --- | --- |

9.

In 2006, the Office has already improved the formalising of its procedures regarding human resources management and in particular recruitment. In 2007, this effort will be pursued to take account of the Court's remarks.

---

Corrigenda

| 19.12.2007 | EN | Official Journal of the European Union | C 309/147 |
| --- | --- | --- | --- |

19.12.2007

EN

Official Journal of the European Union

C 309/147

---

Corrigendum to the Annual Report of the Court of Auditors on the implementation of the budget concerning the financial year 2006, together with the institutions' replies

(
  Official Journal of the European Union C 273 of 15 November 2007
  )

(2007/C 309/25)

On page 127, Table 6.2 is replaced by the following table:

Table 6.2 — Cross-tabulation of reimbursement correctness by fund (1)

| Correctness of reimbursement | Fund | Total |
| --- | --- | --- |
| ERDF | ESF | EAGGF | Cohesion Fund |
| Eligibility error | 15 cases | 9 cases | 3 cases | 2 cases | 29 cases |
| 19 % | 15 % | 10 % | 20 % | 16 % |
| Occurrence error | 5 cases | 7 cases | 0 cases | 1 cases | 13 cases |
| 6 % | 12 % | 0 % | 10 % | 7 % |
| Accuracy error | 2 cases | 7 cases | 1 cases | 0 cases | 10 cases |
| 3 % | 12 % | 3 % | 0 % | 6 % |
| Multiple error | 13 cases | 12 cases | 0 cases | 0 cases | 25 cases |
| 17 % | 20 % | 0 % | 0 % | 14 % |
| Correct reimbursement | 42 cases | 25 cases | 26 cases | 7 cases | 100 cases |
| 55 % | 42 % | 87 % | 70 % | 56 % |
| Total | 77 cases | 60 cases | 30 cases | 10 cases | 177 cases |
| 100 % | 100 % | 100 % | 100 % | 100 %
   (2) |

Correctness of reimbursement

Fund

Total

ERDF

ESF

EAGGF

Cohesion Fund

Eligibility error

15 cases

9 cases

3 cases

2 cases

29 cases

19 %

15 %

10 %

20 %

16 %

Occurrence error

5 cases

7 cases

0 cases

1 cases

13 cases

6 %

12 %

0 %

10 %

7 %

Accuracy error

2 cases

7 cases

1 cases

0 cases

10 cases

3 %

12 %

3 %

0 %

6 %

Multiple error

13 cases

12 cases

0 cases

0 cases

25 cases

17 %

20 %

0 %

0 %

14 %

Correct reimbursement

42 cases

25 cases

26 cases

7 cases

100 cases

55 %

42 %

87 %

70 %

56 %

Total

77 cases

60 cases

30 cases

10 cases

177 cases

100 %

100 %

100 %

100 %

100 %
   (2)

---

(1)  This cross-tabulation is based on the Court's sample of projects.

(2)  Columns ESF and total do not sum up to 100 %. The differences are due to rounding.

---