# C_2004324EN.01005301.xml

| 30.12.2004 | EN | Official Journal of the European Union | C 324/53 |
| --- | --- | --- | --- |

30.12.2004

EN

Official Journal of the European Union

C 324/53

---

REPORT

REPORT

on the annual accounts of the European Centre for the Development of Vocational Training for the 2003 financial year together with the Centre's replies

(2004/C 324/08)

CONTENTS

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

1

| 2-5 | THE COURT'S OPINION |
| --- | --- |

2-5

| 6-12 | OBSERVATIONS |
| --- | --- |

6-12

Tables 1 to 4

The Centre's replies

The Centre's replies

INTRODUCTION

| 1. | The European Centre for the Development of Vocational Training (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. The Centre's powers and activities are summarised, on the basis of information submitted by the Centre, in Table 1. |
| --- | --- |

1.

The European Centre for the Development of Vocational Training (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. The Centre's powers and activities are summarised, on the basis of information submitted by the Centre, in Table 1.

1

Table 1

THE COURT'S OPINION

| 2. | This opinion is addressed to the Council and the European Parliament in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2). |
| --- | --- |

2.

This opinion is addressed to the Council and the European Parliament in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2).

2

| 3. | The Court has examined the Centre's annual accounts for the financial year ended 31 December 2003. In accordance with Article 12a(1) of Council Regulation (EEC) No 337/75, the Centre’s budget was implemented on the responsibility of its Director. This responsibility includes the drawing-up and presentation of the accounts (3), in accordance with the internal financial provisions provided for in Article 12 of the same Regulation. The Court of Auditors is required under Article 248 of the Treaty establishing the European Community to audit those accounts. |
| --- | --- |

3.

The Court has examined the Centre's annual accounts for the financial year ended 31 December 2003. In accordance with Article 12a(1) of Council Regulation (EEC) No 337/75, the Centre’s budget was implemented on the responsibility of its Director. This responsibility includes the drawing-up and presentation of the accounts (3), in accordance with the internal financial provisions provided for in Article 12 of the same Regulation. The Court of Auditors is required under Article 248 of the Treaty establishing the European Community to audit those accounts.

3

| 4. | The Court performed its audit in accordance with its auditing policies and standards, which have been adapted from generally accepted international auditing standards to reflect the specific nature of the Community context. It examined the accounting documents and applied the audit procedures that it considered necessary in that context. |
| --- | --- |

4.

The Court performed its audit in accordance with its auditing policies and standards, which have been adapted from generally accepted international auditing standards to reflect the specific nature of the Community context. It examined the accounting documents and applied the audit procedures that it considered necessary in that context.

| 5. | The Court has thus obtained reasonable assurance that the annual accounts for the financial year ended 31 December 2003 are reliable and that the underlying transactions, taken as a whole, are legal and regular. The content of the following observations does not call the audit opinion expressed by the Court in this report into question. |
| --- | --- |

5.

The Court has thus obtained reasonable assurance that the annual accounts for the financial year ended 31 December 2003 are reliable and that the underlying transactions, taken as a whole, are legal and regular. The content of the following observations does not call the audit opinion expressed by the Court in this report into question.

OBSERVATIONS

| 6. | The implementation of the appropriations for the financial year 2003, and of the appropriations carried over from the previous year, is set out in Table 2. The Centre's revenue and expenditure account and balance sheet for the 2003 financial year are presented in summary form in Tables 3 and 4. |
| --- | --- |

6.

The implementation of the appropriations for the financial year 2003, and of the appropriations carried over from the previous year, is set out in Table 2. The Centre's revenue and expenditure account and balance sheet for the 2003 financial year are presented in summary form in Tables 3 and 4.

Table 2

Tables 3 and 4

| 7. | In 2003 the Centre received Phare subsidies and contributions from third countries (4) amounting to 791 844 euro. Contrary to the principles of budgetary unity and accuracy, the Centre did not use an amending budget to include the amount of these 2003 subsidies in its budget. |
| --- | --- |

7.

In 2003 the Centre received Phare subsidies and contributions from third countries (4) amounting to 791 844 euro. Contrary to the principles of budgetary unity and accuracy, the Centre did not use an amending budget to include the amount of these 2003 subsidies in its budget.

4

| 8. | The Centre's new financial regulation and the detailed rules for its implementation were adopted by the Management Board on 31 March 2003. These rules (5) specify that a new internal audit system is to be set up. Changes to the Centre's financial organisation and its accounting system were not yet complete at the end of the year. |
| --- | --- |

8.

The Centre's new financial regulation and the detailed rules for its implementation were adopted by the Management Board on 31 March 2003. These rules (5) specify that a new internal audit system is to be set up. Changes to the Centre's financial organisation and its accounting system were not yet complete at the end of the year.

5

| 9. | In accordance with Article 28(2)(e) of the Centre's financial regulation, the accounting officer is to validate the systems laid down by the authorising officer to supply or justify accounting information. There has been no such validation. |
| --- | --- |

9.

In accordance with Article 28(2)(e) of the Centre's financial regulation, the accounting officer is to validate the systems laid down by the authorising officer to supply or justify accounting information. There has been no such validation.

| 10. | The Centre has set up a ‘contracts unit’ to ensure that contracts to be awarded for studies are correct, but this unit is not informed about the procedures that are under way until the selection reports have been signed. It is unable to do anything to prevent irregularities at the initial stages (choice of procedure, examination of invitations to tender and publicity measures). Extending this unit's powers appears especially necessary insofar as a study of various files has brought to light inconsistencies and formal errors in the management of contract award procedures. |
| --- | --- |

10.

The Centre has set up a ‘contracts unit’ to ensure that contracts to be awarded for studies are correct, but this unit is not informed about the procedures that are under way until the selection reports have been signed. It is unable to do anything to prevent irregularities at the initial stages (choice of procedure, examination of invitations to tender and publicity measures). Extending this unit's powers appears especially necessary insofar as a study of various files has brought to light inconsistencies and formal errors in the management of contract award procedures.

| 11. | In 2003 the Centre had a list of potential contractors following a call for expressions of interest (CEI) which was issued in 2000. This list was drawn up and centralised under the authority of the permanent Chairman of the Evaluation Boards. By means of this list, the Centre was able to launch a restricted procedure among the potential contractors on the list, without the need to publish or declare selection criteria, up to a maximum value of around 163 000 euro (6). Five files on restricted procedures using CEIs were examined. In three cases (total contract value: 79 800 euro) giving rise to payments in 2003, the successful contractors did not appear on this list and no explanation was given for this situation. In view of this finding, the relevance of the existence of such a list of contractors could be called into question. The Court notes, moreover, that as the list has not been updated, the Centre gives a somewhat inconsistent picture of its selection procedures. |
| --- | --- |

11.

In 2003 the Centre had a list of potential contractors following a call for expressions of interest (CEI) which was issued in 2000. This list was drawn up and centralised under the authority of the permanent Chairman of the Evaluation Boards. By means of this list, the Centre was able to launch a restricted procedure among the potential contractors on the list, without the need to publish or declare selection criteria, up to a maximum value of around 163 000 euro (6). Five files on restricted procedures using CEIs were examined. In three cases (total contract value: 79 800 euro) giving rise to payments in 2003, the successful contractors did not appear on this list and no explanation was given for this situation. In view of this finding, the relevance of the existence of such a list of contractors could be called into question. The Court notes, moreover, that as the list has not been updated, the Centre gives a somewhat inconsistent picture of its selection procedures.

6

| 12. | On examination, recruitment files and a number of individual files were found to have formal and documentary shortcomings which prevented the necessary transparency with regard to the decisions taken on recruitment and the financial impact of those decisions when calculating pay. |
| --- | --- |

12.

On examination, recruitment files and a number of individual files were found to have formal and documentary shortcomings which prevented the necessary transparency with regard to the decisions taken on recruitment and the financial impact of those decisions when calculating pay.

This Report was adopted by the Court of Auditors in Luxembourg at its meeting of 29 and 30 September 2004.

For the Court of Auditors

Juan Manuel FABRA VALLÉS

President

---

(1)  OJ L 39, 13.2.1975, p. 1.

1

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

2

(3)  As required under Article 63 of the Centre's financial regulation, the final accounts for the financial year 2003 were drawn up on 1 September 2004 and forwarded to the Court of Auditors. They were received by the Court on 17 September 2004. A summarised version of these accounts is presented in the tables annexed to this report.

3

(4)  Participation by Norway.

4

(5)  Article 25 of the Centre's new financial regulation.

5

(6)  See Article 128(1) of the Regulation laying down detailed rules for the implementation of the financial regulation.

6

---

Table 1

European Centre for the Development of Vocational Training (Thessaloniki)

| Areas 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 | Governance | Resources available to the Centre
  (2002 data) | Products and services supplied in 2003 |
| --- | --- | --- | --- | --- |
| The Community implements a vocational training policy to support and supplement the action of the Member States
  Action aims to:
  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

  (From Article 150 of the Treaty) | The Centre's mandate

  To assist the Commission in encouraging, at Community level, the promotion and development of vocational training and of in-service training and to contribute to the implementation of a common vocational training policy. | Tasks







  — | To compile selected documentation |

Areas 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

Governance

Resources available to the Centre

(2002 data)

Products and services supplied in 2003

The Community implements a vocational training policy to support and supplement the action of the Member States

Action aims to:

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

(From Article 150 of the Treaty)

The Centre's mandate

To assist the Commission in encouraging, at Community level, the promotion and development of vocational training and of in-service training and to contribute to the implementation of a common vocational training policy.

Tasks

—

To compile selected documentation

| — | to contribute to research |
| --- | --- |

—

to contribute to research

| — | to disseminate information |
| --- | --- |

—

to disseminate information

| — | to encourage and support any initiative likely to facilitate a concerted approach; |
| --- | --- |

—

to encourage and support any initiative likely to facilitate a concerted approach;

| — | to provide a forum for all those concerned. |
| --- | --- |

—

to provide a forum for all those concerned.

| 1. | Management Board

  Per Member State:






  — | one Government representative |
| --- | --- | --- |

1.

Management Board

Per Member State:

—

one Government representative

| — | one representative of employers' organisations |
| --- | --- |

—

one representative of employers' organisations

| — | one representative of employees' organisations |
| --- | --- |

—

one representative of employees' organisations

| — | three members representing the Commission |
| --- | --- |

—

three members representing the Commission

| 2. | Director

  Appointed by the Commission from a list of candidates submitted by the Management Board; carries out the decisions of the Management Board and is responsible for the day-to-day administration of the Centre |
| --- | --- |

2.

Director

Appointed by the Commission from a list of candidates submitted by the Management Board; carries out the decisions of the Management Board and is responsible for the day-to-day administration of the Centre

| 3. | External audit

  The European Court of Auditors |
| --- | --- |

3.

External audit

The European Court of Auditors

| 4. | Discharge

  Parliament, on the Council's recommendation |
| --- | --- |

4.

Discharge

Parliament, on the Council's recommendation

Final budget

14,7 (14,2) million euro. Community contribution: 98,6 % (96,5 %)

Staff numbers at 31 December 2003

Number of posts in establishment plan: 83 (83)

Posts occupied: 77+2 (79)

+46 (32) other staff (auxiliary contracts, seconded national experts, local employees, temporary replacements)

Total staff: 125 (111)

Assigned to the following duties:

operational: 66 (59) administrative: 38 (33)

mixed: 21 (19)

Conferences and seminars: 72

Studies: 65

Projects: 23

Participation in:

Copenhagen Process

e-Learning Programme, Leonardo da Vinci programme, social partners' joint action framework

Publications:

68 publications, Cedefop Info, electronic newsletter

Circulation of documents:

10 244 on request, 2 346 electronic newsletter subscriptions, 8 523 subscriptions to Cedefop Info

Maintenance and development of the Electronic Training Village

Participants in the study visits programme: 773

Source:information supplied by the Centre.

Table 2

European Centre for the Development of Vocational Training — Implementation of the budget for the 2003 financial year

| (million euro) |
| --- |
| Revenue | Expenditure |
| Origin of revenue | Revenue entered in the final budget for the financial year | Revenue collected | Allocation of expenditure | Appropriations in the final budget | Appropriations carried over from the previous financial year | Appropriations available
  (2003 budget and financial year 2002) |
| entered | committed | paid | carried over | cancelled | initial | paid | to be carried over | cancelled | appropriations | committed | paid | carried over | cancelled |
| Community subsidies | 14,5 | 14,5 | Title I
  Staff | 8,0 | 8,0 | 7,6 | 0,4 | 0,0 | 0,3 | 0,3 | 0,0 | 0,0 | 8,3 | 8,3 | 7,8 | 0,4 | 0,1 |
| Financial and other revenue | 0,2 | 0,0 | Title II
  Administration | 1,2 | 1,1 | 0,8 | 0,4 | 0,0 | 0,3 | 0,3 | 0,0 | 0,0 | 1,5 | 1,5 | 1,1 | 0,4 | 0,0 |
| Subsidy from non-Member States | p.m. (1) | 0,2 | Title III
  Operating activities | 5,5 | 5,5 | 2,4 | 3,1 | 0,0 | 2,2 | 1,8 | 0,0 | 0,3 | 7,7 | 7,7 | 4,2 | 3,1 | 0,3 |
| PHARE assigned revenue | (2) | 0,6 | Assigned revenue PHARE and non-Member States | (2) | 0,8 | 0,5 | 0,2 | 0,0 | 0,2 | 0,1 | 0,1 | 0,0 | 0,2 | 1,0 | 0,6 | 0,4 | 0,0 |
| Total | 14,7 | 15,3 | Total | 14,7 | 15,4 | 11,3 | 4,2 | 0,0 | 3,1 | 2,5 | 0,1 | 0,4 | 17,8 | 18,5 | 13,8 | 4,3 | 0,4 |
| NB:The totals may contain differences due to the effects of rounding.

  Source:information supplied by the Centre. This table summarises the data provided by the Centre in its own accounts. |

(million euro)

Revenue

Expenditure

Origin of revenue

Revenue entered in the final budget for the financial year

Revenue collected

Allocation of expenditure

Appropriations in the final budget

Appropriations carried over from the previous financial year

Appropriations available

(2003 budget and financial year 2002)

entered

committed

paid

carried over

cancelled

initial

paid

to be carried over

cancelled

appropriations

committed

paid

carried over

cancelled

Community subsidies

14,5

14,5

Title I

Staff

8,0

8,0

7,6

0,4

0,0

0,3

0,3

0,0

0,0

8,3

8,3

7,8

0,4

0,1

Financial and other revenue

0,2

0,0

Title II

Administration

1,2

1,1

0,8

0,4

0,0

0,3

0,3

0,0

0,0

1,5

1,5

1,1

0,4

0,0

Subsidy from non-Member States

p.m. (1)

0,2

Title III

Operating activities

5,5

5,5

2,4

3,1

0,0

2,2

1,8

0,0

0,3

7,7

7,7

4,2

3,1

0,3

PHARE assigned revenue

(2)

0,6

Assigned revenue PHARE and non-Member States

(2)

0,8

0,5

0,2

0,0

0,2

0,1

0,1

0,0

0,2

1,0

0,6

0,4

0,0

Total

14,7

15,3

Total

14,7

15,4

11,3

4,2

0,0

3,1

2,5

0,1

0,4

17,8

18,5

13,8

4,3

0,4

NB:The totals may contain differences due to the effects of rounding.

Source:information supplied by the Centre. This table summarises the data provided by the Centre in its own accounts.

Table 3

European Centre for the Development of Vocational Training — Revenue and expenditure account for the financial years 2003 and 2002

| (1000 euro) |
| --- |
| | 2003 | 2002 |
| Revenue |
| Commission subsidies | 14 500 | 12 135 |
| Revenue from previous financial years | 0 | 25 |
| Miscellaneous revenue | 3 | 3 |
| Assigned revenue (Phare and third countries) | 792 | 333 |
| Financial revenue | 0 | 50 |
| Total revenue (a) | 15 295 | 12 546 |
| Budgetary expenditure for the financial year |
| Staff — Title I of the budget |
| Payments | 7 554 | 7 570 |
| Appropriations carried over | 443 | 298 |
| Administration — Title II of the budget |
| Payments | 778 | 767 |
| Appropriations carried over | 358 | 345 |
| Operating activities — Title III of the budget (except for assigned revenue) |
| Payments | 2 381 | 2 491 |
| Appropriations carried over | 3 138 | 2 189 |
| Assigned revenue (Phare and third countries) |
| Payments | 546 | 0 |
| Appropriations carried over | 246 | 187 |
| Total expenditure (b) | 15 444 | 13 847 |
| Outturn for the financial year (a – b) | – 149 | –1 301 |
| Balance carried over from the previous financial year | – 545 | 532 |
| Appropriations carried over and cancelled | 399 | 215 |
| Sums for reuse from the previous financial year not used | 10 | 8 |
| Refunds to the Commission | – 716 | 0 |
| Exchange-rate differences | 8 | 1 |
| Balance for the financial year | – 993 | – 545 |
| Source:information supplied by the Centre. This table summarises the data provided by the Centre in its own accounts. |

(1000 euro)

2003

2002

Revenue

Commission subsidies

14 500

12 135

Revenue from previous financial years

0

25

Miscellaneous revenue

3

3

Assigned revenue (Phare and third countries)

792

333

Financial revenue

0

50

Total revenue (a)

15 295

12 546

Budgetary expenditure for the financial year

Staff — Title I of the budget

Payments

7 554

7 570

Appropriations carried over

443

298

Administration — Title II of the budget

Payments

778

767

Appropriations carried over

358

345

Operating activities — Title III of the budget (except for assigned revenue)

Payments

2 381

2 491

Appropriations carried over

3 138

2 189

Assigned revenue (Phare and third countries)

Payments

546

0

Appropriations carried over

246

187

Total expenditure (b)

15 444

13 847

Outturn for the financial year (a – b)

– 149

–1 301

Balance carried over from the previous financial year

– 545

532

Appropriations carried over and cancelled

399

215

Sums for reuse from the previous financial year not used

10

8

Refunds to the Commission

– 716

0

Exchange-rate differences

8

1

Balance for the financial year

– 993

– 545

Source:information supplied by the Centre. This table summarises the data provided by the Centre in its own accounts.

Table 4

European Centre for the Development of Vocational Training — Balance sheet at 31 December 2003 and 31 December 2002

| (1000 euro) |
| --- |
| Assets | 2003 | 2002 | Liabilities | 2003 | 2002 |
| Fixed assets
   (3) | | | Fixed capital | | |
| Intangible fixed assets | 14 | 0 | Own capital | 5 704 | 6 007 |
| Buildings | 5 179 | 5 351 | Balance for the financial year | – 993 | – 545 |
| Equipment and furniture | 471 | 616 | Subtotal | 4 711 | 5 462 |
| Financial fixed assets, guarantee | 5 | 5 | Long-term liabilities | | |
| Subtotal | 5 669 | 5 972 | Liabilities on assigned revenue | 0 | 277 |
| Stocks | | | Subtotal | 0 | 277 |
| Office equipment | 35 | 35 | Current liabilities | | |
| Subtotal | 35 | 35 | Liabilities on assigned revenue not received | 315 | 661 |
| Long-term assets | | | Appropriations carried over against Titles I, II and III | 3 939 | 2 832 |
| Staff loans | 3 | 9 | Appropriations carried over against assigned revenue | 382 | 238 |
| Commission subsidy | 0 | 277 | Recoverable amounts | 0 | 1 615 |
| Subtotal | 3 | 286 | Sundry accounts payable | 86 | 121 |
| Current assets | | | VAT/other taxes | 90 | 73 |
| Commission | 315 | 2 276 | Bank interest to be returned to the EU | 64 | 0 |
| Other advances | 37 | 94 | Subtotal | 4 876 | 5 540 |
| Recoverable VAT | 34 | 23 | Suspense accounts | | |
| Sundry accounts receivable | 81 | 124 | Current payments | 0 | 226 |
| Subtotal | 467 | 2 517 | Sums to be reused | 157 | 229 |
| Cash accounts | | | Subtotal | 157 | 455 |
| Bank accounts (4) | 3 532 | 2 830 | | | |
| Cash | 5 | 4 | | | |
| Imprest account | 33 | 90 | | | |
| Subtotal | 3 570 | 2 924 | | | |
| Total | 9 744 | 11 734 | Total | 9 744 | 11 734 |
| Source:information supplied by the Centre. This table summarises the data provided by the Centre in its own accounts. |

(1000 euro)

Assets

2003

2002

Liabilities

2003

2002

Fixed assets
   (3)

Fixed capital

Intangible fixed assets

14

0

Own capital

5 704

6 007

Buildings

5 179

5 351

Balance for the financial year

– 993

– 545

Equipment and furniture

471

616

Subtotal

4 711

5 462

Financial fixed assets, guarantee

5

5

Long-term liabilities

Subtotal

5 669

5 972

Liabilities on assigned revenue

0

277

Stocks

Subtotal

0

277

Office equipment

35

35

Current liabilities

Subtotal

35

35

Liabilities on assigned revenue not received

315

661

Long-term assets

Appropriations carried over against Titles I, II and III

3 939

2 832

Staff loans

3

9

Appropriations carried over against assigned revenue

382

238

Commission subsidy

0

277

Recoverable amounts

0

1 615

Subtotal

3

286

Sundry accounts payable

86

121

Current assets

VAT/other taxes

90

73

Commission

315

2 276

Bank interest to be returned to the EU

64

0

Other advances

37

94

Subtotal

4 876

5 540

Recoverable VAT

34

23

Suspense accounts

Sundry accounts receivable

81

124

Current payments

0

226

Subtotal

467

2 517

Sums to be reused

157

229

Cash accounts

Subtotal

157

455

Bank accounts (4)

3 532

2 830

Cash

5

4

Imprest account

33

90

Subtotal

3 570

2 924

Total

9 744

11 734

Total

9 744

11 734

Source:information supplied by the Centre. This table summarises the data provided by the Centre in its own accounts.

---

(1)  p.m.: token entry

(2)  Phare assigned revenue was not entered in the Centre's initial budget and did not give rise to an amending budget (see paragraph 7 of the report).

NB:The totals may contain differences due to the effects of rounding.

Source:information supplied by the Centre. This table summarises the data provided by the Centre in its own accounts.

(3)  Fixed assets are shown net. The figures for 2002 have therefore been recalculated for purposes of comparison.

(4)  The substantial volume of funds in bank accounts at the end of the financial year is due to the payments made by the Commission to finance transactions for which the appropriations were carried over to the following financial year.

Source:information supplied by the Centre. This table summarises the data provided by the Centre in its own accounts.

---

THE CENTRE’S REPLIES

| 7. | The Centre ought indeed to have formalised the receipt of funds relating to the subsidy from the non-member countries and to the ‘Phare’ contract by means of a supplementary and amending budget. |
| --- | --- |

7.

The Centre ought indeed to have formalised the receipt of funds relating to the subsidy from the non-member countries and to the ‘Phare’ contract by means of a supplementary and amending budget.

| 8. | The necessary financial adaptation due to the financial reform began in 2003 and should be completed in 2005. As regards the adaptation of the accounting system, the Centre is making the necessary changes in accordance with the priorities set. |
| --- | --- |

8.

The necessary financial adaptation due to the financial reform began in 2003 and should be completed in 2005. As regards the adaptation of the accounting system, the Centre is making the necessary changes in accordance with the priorities set.

| 9. | It is correct that the accounting system has still not been validated. This is due to the changes that must still be made to fully implement the accounting reform. The validation should take place in the course of 2005. |
| --- | --- |

9.

It is correct that the accounting system has still not been validated. This is due to the changes that must still be made to fully implement the accounting reform. The validation should take place in the course of 2005.

| 10. | The Reform and the complexity of procurement and contract management issues in conjunction with the difficulties presented by a decentralised modus operandi reinforced the need for a centralised system of procurement and contract management operations. In this regard, and following the Director's Decision 2004/1, the Legal and Contract Management Service is solely in charge of direct centralised procurement and contract management at Cedefop and in this capacity takes care of and transacts all formal, legal and administrative tasks related to all stages and aspects of procurement at Cedefop. Finally, and as evidenced by the documentation provided to the Court of Auditors, the Centre would like to stress that the procedures which led to the awarding of all contracts were in compliance with the applicable rules. |
| --- | --- |

10.

The Reform and the complexity of procurement and contract management issues in conjunction with the difficulties presented by a decentralised modus operandi reinforced the need for a centralised system of procurement and contract management operations. In this regard, and following the Director's Decision 2004/1, the Legal and Contract Management Service is solely in charge of direct centralised procurement and contract management at Cedefop and in this capacity takes care of and transacts all formal, legal and administrative tasks related to all stages and aspects of procurement at Cedefop. Finally, and as evidenced by the documentation provided to the Court of Auditors, the Centre would like to stress that the procedures which led to the awarding of all contracts were in compliance with the applicable rules.

| 11. | Regarding contracts 2002/0117 (EUR 22 483), 2002/0143 (EUR 25 000) and 2003/0069 (EUR 32 257,50), Cedefop would like to point out that (a) contracts 2002/0117 and 2002/0143 concern the year 2002, (b) contracts 2002/0117 and 2003/0069 were awarded to the same contractor, and (c) all contracts at issue here are low-value contracts.
  The lists of those invited to tender which led to the awarding of the three abovementioned contracts were based on the entire pool of qualified potential contractors resulting from the Call for Expressions of Interest Cedefop No AMI/VET/2000-1. As substantiated by data provided to the auditors, these invitations to tender were addressed to organisations/individuals selected on the basis of objective and non-discriminatory criteria specific to the nature of each contract, as foreseen in the applicable rules, and not to all potential contractors in the above pool. The contractors at issue here, as evidenced jure et facto by the data provided to the Court of Auditors, were accepted as qualified potential contractors in the framework of the aforementioned Call for Expressions of Interest. Even though their names did not appear on the list presented to the auditors (as a result of difficulties related to decentralised operations at that time), their status as qualified potential contractors cannot be disputed. The Centre would like to stress that the procedures which led to the awarding of the contracts at issue were in compliance with the applicable rules. |
| --- | --- |

11.

Regarding contracts 2002/0117 (EUR 22 483), 2002/0143 (EUR 25 000) and 2003/0069 (EUR 32 257,50), Cedefop would like to point out that (a) contracts 2002/0117 and 2002/0143 concern the year 2002, (b) contracts 2002/0117 and 2003/0069 were awarded to the same contractor, and (c) all contracts at issue here are low-value contracts.

The lists of those invited to tender which led to the awarding of the three abovementioned contracts were based on the entire pool of qualified potential contractors resulting from the Call for Expressions of Interest Cedefop No AMI/VET/2000-1. As substantiated by data provided to the auditors, these invitations to tender were addressed to organisations/individuals selected on the basis of objective and non-discriminatory criteria specific to the nature of each contract, as foreseen in the applicable rules, and not to all potential contractors in the above pool. The contractors at issue here, as evidenced jure et facto by the data provided to the Court of Auditors, were accepted as qualified potential contractors in the framework of the aforementioned Call for Expressions of Interest. Even though their names did not appear on the list presented to the auditors (as a result of difficulties related to decentralised operations at that time), their status as qualified potential contractors cannot be disputed. The Centre would like to stress that the procedures which led to the awarding of the contracts at issue were in compliance with the applicable rules.

| 12. | The observations will be taken into account in the drawing up or adaptation of internal procedures by the Administration. |
| --- | --- |

12.

The observations will be taken into account in the drawing up or adaptation of internal procedures by the Administration.

---