# C_2004324EN.01003901.xml

| 30.12.2004 | EN | Official Journal of the European Union | C 324/39 |
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30.12.2004

EN

Official Journal of the European Union

C 324/39

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REPORT

REPORT

on the annual accounts of the European Food Safety Authority for the 2003 financial year together with the Authority's replies

(2004/C 324/06)

CONTENTS

| 1 | INTRODUCTION |
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1

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

| 6-9 | OBSERVATIONS |
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6-9

Tables 1 to 4

The Authority's replies

The Authority's replies

INTRODUCTION

| 1. | The European Food Safety Authority (hereinafter called the Authority) was established by Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 (1). The Commission handled the Authority's financial management in 2002 and it had no separate accounts of its own. The financial year 2003 was thus the first in which the Authority was fully responsible for its financial management. Its main responsibilities are to supply the necessary scientific information needed for Community legislation to be drawn up, to collect and analyse data that allow risks to be characterised and controlled and to provide independent information on these risks. The Authority's responsibilities and activities are summarised in Table 1 on the basis of information supplied by it. |
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1.

The European Food Safety Authority (hereinafter called the Authority) was established by Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 (1). The Commission handled the Authority's financial management in 2002 and it had no separate accounts of its own. The financial year 2003 was thus the first in which the Authority was fully responsible for its financial management. Its main responsibilities are to supply the necessary scientific information needed for Community legislation to be drawn up, to collect and analyse data that allow risks to be characterised and controlled and to provide independent information on these risks. The Authority's responsibilities and activities are summarised in Table 1 on the basis of information supplied by it.

1

Table 1

THE COURT'S OPINION

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

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

2

| 3. | The Court of Auditors has examined the Authority's annual accounts for the financial year ended 31 December 2003. In accordance with Article 44(1) of Regulation (EC) No 178/2002 (1), the budget was implemented on the responsibility of the Executive Director. This responsibility includes the drawing-up and presentation of the accounts (3), in accordance with the internal financial provisions adopted pursuant to Article 44(3) of Regulation (EC) No 178/2002. The Court is required under Article 248 of the Treaty establishing the European Community to examine these accounts. |
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3.

The Court of Auditors has examined the Authority's annual accounts for the financial year ended 31 December 2003. In accordance with Article 44(1) of Regulation (EC) No 178/2002 (1), the budget was implemented on the responsibility of the Executive Director. This responsibility includes the drawing-up and presentation of the accounts (3), in accordance with the internal financial provisions adopted pursuant to Article 44(3) of Regulation (EC) No 178/2002. The Court is required under Article 248 of the Treaty establishing the European Community to examine these accounts.

1

3

| 4. | The Court carried out 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 it considered necessary in that context. |
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4.

The Court carried out 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 it considered necessary in that context.

| 5. | The Court has thus obtained reasonable assurance that the annual accounts for the 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. |
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5.

The Court has thus obtained reasonable assurance that the annual accounts for the 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 financial year is set out in Table 2. The Authority's revenue and expenditure account and balance sheet for the financial year 2003 are summarised in Tables 3 and 4. |
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6.

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

Table 2

Tables 3 and 4

| 7. | Article 43(1)(e) of the Authority's financial regulation provides that the Accounting Officer is to validate the systems laid down by the Authorising Officer to supply or justify accounting information. No such validation has taken place. |
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7.

Article 43(1)(e) of the Authority's financial regulation provides that the Accounting Officer is to validate the systems laid down by the Authorising Officer to supply or justify accounting information. No such validation has taken place.

| 8. | The Personnel Department did not carry out systematic checks on the determination of the remuneration (particularly salaries) and on the financial entitlements of newly recruited staff. |
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8.

The Personnel Department did not carry out systematic checks on the determination of the remuneration (particularly salaries) and on the financial entitlements of newly recruited staff.

| 9. | Examination of the IT system control environment showed that it needed to be strengthened in view of the planned increase in the Authority's activities. |
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9.

Examination of the IT system control environment showed that it needed to be strengthened in view of the planned increase in the Authority's activities.

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

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(1)  OJ L 31, 1.2.2002, p. 1.

1

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

2

(3)  As required under Article 83(3) of the Authority's financial regulation, the final accounts for the financial year 2003 were drawn up on 14 September 2004 and forwarded to the Court of Auditors. These accounts 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

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Table 1

European Food Safety Authority (temporary headquarters: Brussels, due to be transferred to Parma)

| Areas of Community competence deriving from the Treaty | Competence of the Authority
  (Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002) | Governance | Resources made available to the Authority in 2003 | Products and services supplied in 2003 |
| --- | --- | --- | --- | --- |
| Free movement of foodstuffs (Article 37 of the Treaty)

  A high level of protection of health, safety and protection of the environment and of consumers, taking account of any new developments 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

Competence of the Authority

(Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002)

Governance

Resources made available to the Authority in 2003

Products and services supplied in 2003

Free movement of foodstuffs (Article 37 of the Treaty)

A high level of protection of health, safety and protection of the environment and of consumers, taking account of any new developments 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 |
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—

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 |
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—

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 |
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—

To collect and analyse data needed to allow characterisation and monitoring of risks

Tasks

| — | To issue scientific opinions and studies |
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—

To issue scientific opinions and studies

| — | To promote uniform risk assessment methodologies |
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—

To promote uniform risk assessment methodologies

| — | To assist the Commission |
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—

To assist the Commission

| — | To search for, analyse and summarise the requisite scientific and technical data |
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—

To search for, analyse and summarise the requisite scientific and technical data

| — | To identify and characterise emerging risks |
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—

To identify and characterise emerging risks

| — | To establish a network of organisations operating in similar fields |
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—

To establish a network of organisations operating in similar fields

| — | To provide scientific and technical assistance in crisis management |
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—

To provide scientific and technical assistance in crisis management

| — | To improve international cooperation |
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—

To improve international cooperation

| — | To provide the public and interested parties with reliable, objective and easily comprehensible information |
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—

To provide the public and interested parties with reliable, objective and easily comprehensible information

| — | To take part in the Commission's rapid alert system. |
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—

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 ensure that it is implemented |
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1.

Management Board

14 members appointed by the Council (in cooperation with the European Parliament and the Commission) and one representative of the Commission

To adopt the work programme and ensure that it is 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 |
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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 |
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3.

Advisory Forum

One representative per Member State

To advise the Executive Director

| 4. | Scientific Committee and Scientific Panels:

  To draw up the Authority's scientific opinions |
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4.

Scientific Committee and Scientific Panels:

To draw up the Authority's scientific opinions

| 5. | External audit

  Court of Auditors |
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5.

External audit

Court of Auditors

| 6. | Discharge authority

  Parliament, on the Council's recommendation |
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6.

Discharge authority

Parliament, on the Council's recommendation

Final budget

12,6 million euro Community contribution: 99,7 %

Staff numbers as at 31 December 2003

Number of posts in establishment plan: 49

Posts occupied: 27

+36 other staff (auxiliary contracts, seconded national experts, local staff, temporary staff)

Total staff: 63

Assigned to the following duties:

operational: 33

administrative: 30

The Authority set up its Scientific Committee and all the Scientific Panels in June 2003. It issued 23 public opinions during the remainder of the year.

In October the Authority held a conference in Ostende (Belgium) with its interested parties, the purpose of which was to determine how to carry out its mandate in the future.

The Advisory Forum met six times with a view to setting up the network linking the national authorities. This led to increased exchanges of information with the Authority and between the national departments concerned.

Source:Information supplied by the Authority.

Table 2

European Food Safety Authority — 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 | Final budget appropriations | Appropriations carried over from the previous financial year (1) | Available appropriations
  (2003 budget and carry-over from financial year 2002) |
| entered | committed | paid | carried over | cancelled | entered | paid | cancelled | entered | committed | paid | carried over | cancelled |
| Community subsidies | 12,6 | 10,0 | Title I
  Staff | 4,1 | 3,7 | 3,6 | 0,1 | 0,4 | 0,0 | 0,0 | 0,0 | 4,1 | 3,7 | 3,6 | 0,1 | 0,4 |
| Other subsidies | 0,0 | 0,0 | Title II
  Administration | 2,8 | 2,2 | 1,0 | 1,2 | 0,6 | 0,3 | 0,1 | 0,2 | 3,1 | 2,2 | 1,1 | 1,2 | 0,8 |
| Other revenue | p.m. | 0,0 | Title III
  Operating expenditure | 5,7 | 4,0 | 1,1 | 2,9 | 1,7 | 0,1 | 0,1 | 0,0 | 5,8 | 4,0 | 1,2 | 2,9 | 1,7 |
| Total | 12,6 | 10,0 | Total | 12,6 | 9,9 | 5,7 | 4,2 | 2,7 | 0,4 | 0,2 | 0,2 | 13,0 | 9,9 | 5,9 | 4,2 | 2,9 |
| NB:The totals may include differences due to rounding.

  Source:information supplied bythe Authority. These tables summarise the data provided by the Authority 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

Final budget appropriations

Appropriations carried over from the previous financial year (1)

Available appropriations

(2003 budget and carry-over from financial year 2002)

entered

committed

paid

carried over

cancelled

entered

paid

cancelled

entered

committed

paid

carried over

cancelled

Community subsidies

12,6

10,0

Title I

Staff

4,1

3,7

3,6

0,1

0,4

0,0

0,0

0,0

4,1

3,7

3,6

0,1

0,4

Other subsidies

0,0

0,0

Title II

Administration

2,8

2,2

1,0

1,2

0,6

0,3

0,1

0,2

3,1

2,2

1,1

1,2

0,8

Other revenue

p.m.

0,0

Title III

Operating expenditure

5,7

4,0

1,1

2,9

1,7

0,1

0,1

0,0

5,8

4,0

1,2

2,9

1,7

Total

12,6

10,0

Total

12,6

9,9

5,7

4,2

2,7

0,4

0,2

0,2

13,0

9,9

5,9

4,2

2,9

NB:The totals may include differences due to rounding.

Source:information supplied bythe Authority. These tables summarise the data provided by the Authority in its own accounts.

Table 3

European Food Safety Authority — Revenue and expenditure account for the 2003 financial year

| (1000 euro) |
| --- |
| | 2003 |
| Revenue |
| Commission subsidies | 10 284 |
| Other revenue | 33 |
| Total revenue (a) | 10 317 |
| Expenditure |
| Staff — Title I of the budget |
| Payments | 3 567 |
| Appropriations carried over | 149 |
| Administration — Title II of the budget |
| Payments | 1 092 |
| Appropriations carried over | 1 189 |
| Operating expenditure — Title III of the budget |
| Payments | 1 278 |
| Appropriations carried over | 2 895 |
| Total expenditure (b) | 10 171 |
| Outturn for the financial year (a – b) | 146 |
| Exchange-rate difference | 0 |
| Balance for the financial year | 146 |
| NB:The totals may include differences due to rounding.

  Source:information supplied by the Authority. |

(1000 euro)

2003

Revenue

Commission subsidies

10 284

Other revenue

33

Total revenue (a)

10 317

Expenditure

Staff — Title I of the budget

Payments

3 567

Appropriations carried over

149

Administration — Title II of the budget

Payments

1 092

Appropriations carried over

1 189

Operating expenditure — Title III of the budget

Payments

1 278

Appropriations carried over

2 895

Total expenditure (b)

10 171

Outturn for the financial year (a – b)

146

Exchange-rate difference

0

Balance for the financial year

146

NB:The totals may include differences due to rounding.

Source:information supplied by the Authority.

Table 4

European Food Safety Authority — Balance sheet at 31 December 2003

| (1000 euro) |
| --- |
| Assets | 2003 | Liabilities | 2003 |
| Fixed assets | | Fixed capital | |
| Intangible assets | 362 | Own capital | 769 |
| Equipment and furniture | 106 | Balance for the financial year | 146 |
| Computer equipment | 701 | Subtotal | 915 |
| Depreciation | – 401 | Current liabilities | |
| Subtotal | 769 | Automatic carry-overs of appropriations | 4 233 |
| Current assets | | Salary deductions | 8 |
| Recovery orders | 1 | Subtotal | 4 241 |
| Sundry accounts receivable | 2 | Suspense accounts | |
| Subtotal | 3 | Sums to be re-used | 6 |
| Cash accounts | | Subtotal | 6 |
| Bank accounts | 4 342 | | |
| Imprest account | 15 | | |
| Subtotal | 4 357 | | |
| Suspense accounts | 33 | | |
| Total | 5 162 | Total | 5 162 |
| NB:The totals may include differences due to rounding.

  Source:information supplied by the Authority. |

(1000 euro)

Assets

2003

Liabilities

2003

Fixed assets

Fixed capital

Intangible assets

362

Own capital

769

Equipment and furniture

106

Balance for the financial year

146

Computer equipment

701

Subtotal

915

Depreciation

– 401

Current liabilities

Subtotal

769

Automatic carry-overs of appropriations

4 233

Current assets

Salary deductions

8

Recovery orders

1

Subtotal

4 241

Sundry accounts receivable

2

Suspense accounts

Subtotal

3

Sums to be re-used

6

Cash accounts

Subtotal

6

Bank accounts

4 342

Imprest account

15

Subtotal

4 357

Suspense accounts

33

Total

5 162

Total

5 162

NB:The totals may include differences due to rounding.

Source:information supplied by the Authority.

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(1)  The Authority has not included automatic carry-overs and the use made of them in its accounts on the ground that the Commission was its Authorising Officer by delegation for the financial year 2002. Only appropriations for the financial year 2002 that were not carried over automatically were managed and entered in the accounts by the Authority.

NB:The totals may include differences due to rounding.

Source:information supplied bythe Authority. These tables summarise the data provided by the Authority in its own accounts.

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THE AUTHORITY'S REPLIES

| 7. | The description and validation of the accounting systems will be carried out in the course of the 2004 financial year. |
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7.

The description and validation of the accounting systems will be carried out in the course of the 2004 financial year.

| 8. | As a result of the observations made, checks on the determination of the grades and steps attributed to newly recruited staff were validated and dated by the head of Human Resources. The data relating to the individual rights of staff were also validated. |
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8.

As a result of the observations made, checks on the determination of the grades and steps attributed to newly recruited staff were validated and dated by the head of Human Resources. The data relating to the individual rights of staff were also validated.

| 9. | A start was made on strengthening the IT system in March 2004. The principle aims are:






  1. | to ensure the reliability of the IT infrastructure; |
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9.

A start was made on strengthening the IT system in March 2004. The principle aims are:

1.

to ensure the reliability of the IT infrastructure;

| 2. | to create, document and introduce operational procedures; |
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2.

to create, document and introduce operational procedures;

| 3. | to rationalise the IT software systems, work processes and the flow of information. |
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3.

to rationalise the IT software systems, work processes and the flow of information.

These activities are intended to give the Authority an effective IT system to match the increases in its activities.

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