# C_2005332EN.01002301.xml

| 28.12.2005 | EN | Official Journal of the European Union | C 332/23 |
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28.12.2005

EN

Official Journal of the European Union

C 332/23

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REPORT

REPORT

on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2004 together with the Agency's replies

(2005/C 332/04)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

| 3-6 | THE COURT'S OPINION |
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3-6

| 7-9 | OBSERVATIONS |
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7-9

Tables 1 to 4

The Agency's replies

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. Table 1 summarises the Agency's competences and activities based on information provided by the Agency. |
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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. Table 1 summarises the Agency's competences and activities based on information provided by the Agency.

1

Table 1

| 2. | For information, the annual accounts drawn up by the Agency for the financial year 2004 are summarised in Tables 2, 3 and 4. |
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2.

For information, the annual accounts drawn up by the Agency for the financial year 2004 are summarised in Tables 2, 3 and 4.

Tables 2, 3 and 4

THE COURT'S OPINION

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

The Court's 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); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

2

| 4. | The Agency's accounts for the financial year ended 31 December 2004 (3) were drawn up by its Executive Director, pursuant to Article 14 of Regulation (EC) No 2062/94, 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. |
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4.

The Agency's accounts for the financial year ended 31 December 2004 (3) were drawn up by its Executive Director, pursuant to Article 14 of Regulation (EC) No 2062/94, 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.

3

| 5. | The Court conducted an audit in accordance with its policies and standards, which are based on international auditing standards that have been adapted to the Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and the underlying transactions are legal and regular. |
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5.

The Court conducted an audit in accordance with its policies and standards, which are based on international auditing standards that have been adapted to the Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and the underlying transactions are legal and regular.

| 6. | The Court has obtained a reasonable basis to support the following opinion. |
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6.

The Court has obtained a reasonable basis to support the following opinion.

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2004 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 opinion into question.

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2004 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 opinion into question.

OBSERVATIONS

| 7. | The Agency has not yet put in place detailed rules for the implementation of its new financial regulation or provided for internal control procedures based on risk analysis (4). |
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7.

The Agency has not yet put in place detailed rules for the implementation of its new financial regulation or provided for internal control procedures based on risk analysis (4).

4

| 8. | Four framework contracts signed more than four years ago were used in 2004 for contracts amounting in total to 208 000 euro. Article 117 of the detailed rules for the implementation of the Financial Regulation (5) applicable to the general budget limits the duration of such contracts to four years. |
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8.

Four framework contracts signed more than four years ago were used in 2004 for contracts amounting in total to 208 000 euro. Article 117 of the detailed rules for the implementation of the Financial Regulation (5) applicable to the general budget limits the duration of such contracts to four years.

5

| 9. | The revenue and expenditure account for the financial year 2003 shows, before economic adjustments, a loss of 1 987 000 euro connected with the implementation of the Agency's budget. This balance ought to have been included in an amending budget for the financial year 2004 (6). |
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9.

The revenue and expenditure account for the financial year 2003 shows, before economic adjustments, a loss of 1 987 000 euro connected with the implementation of the Agency's budget. This balance ought to have been included in an amending budget for the financial year 2004 (6).

6

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 5 October 2005.

For the Court of Auditors

Hubert WEBER

President

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(1)  OJ L 216, 20.8.1994, p. 1. Regulation amended by Council Regulation (EC) No 1654/2003 of 18 June 2003 (OJ L 245, 29.9.2003, p. 38).

1

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

2

(3)  These accounts were drawn up on 6 September 2005 and received by the Court on 19 September 2005.

3

(4)  Article 38 of the Agency's financial regulation.

4

(5)  Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 (OJ L 357, 31.12.2002). The provisions of this regulation apply to the Agency on the basis of Article 74 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 laying down the financial framework for the bodies mentioned in Article 185 of the Financial Regulation applicable to the general budget.

5

(6)  Article 16 of the Agency's financial regulation.

6

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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
  (Council Regulation (EC) No 2062/94 of 18 July 1994) | Governance | Resources made available to the Agency in 2004

  (2003 data) | Products and services supplied in 2004 |
| --- | --- | --- | --- | --- |
| Social provisions | Objectives | Tasks | 1. Administrative Board | Final budget: | Development of the network |
| 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 Articles 136 and 137 of the Treaty) | — | To provide the Community bodies, the Member States and those involved in the field with information of use in the field of safety and health at work in order to encourage improvements, especially in the working environment, as regards the protection of the safety and health of workers. |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in the Council Regulation

(Council Regulation (EC) No 2062/94 of 18 July 1994)

Governance

Resources made available to the Agency in 2004

(2003 data)

Products and services supplied in 2004

Social provisions

Objectives

Tasks

1. Administrative Board

Final budget:

Development of the network

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 Articles 136 and 137 of the Treaty)

—

To provide the Community bodies, the Member States and those involved in the field with information of use in the field of safety and health at work in order to encourage improvements, especially in the working environment, as regards the protection of the safety and health of workers.

| — | To collect and disseminate information on national and Community priorities and on research; |
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—

To collect and disseminate information on national and Community priorities and on research;

| — | to promote cooperation and the exchange of information, including information on training programmes; |
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—

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; |
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—

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 from and to third countries and international organisations; |
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—

to make available information from and to third countries and international organisations;

| — | to provide information on preventive activities; |
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—

to provide information on preventive activities;

| — | to contribute to the development of future Community action programmes; |
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—

to contribute to the development of future Community action programmes;

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

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

Composition

| — | 1 representative of each Member State; |
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—

1 representative of each Member State;

| — | 1 representative of the employers’ organisations of each Member State; |
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—

1 representative of the employers’ organisations of each Member State;

| — | 1 representative of the employees’ organisations of each Member State; |
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—

1 representative of the employees’ organisations of each Member State;

| — | 3 representatives of the Commission. |
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—

3 representatives of the Commission.

Task

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

2. The Director

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

3. Committees

Obligatory consultation of the Commission and the Advisory Committee on Safety, Hygiene and Protection at Work in respect of the work programme.

4. External audit

European Court of Auditors.

5. Discharge authority

Parliament on a recommendation by the Council.

10,7 million euro (14,6 million euro)

including:

| — | Community subsidy, DG Employment: 98 % (92 %) |
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—

Community subsidy, DG Employment: 98 % (92 %)

| — | Community subsidy, DG Enlargement: 0 % (7 %) |
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—

Community subsidy, DG Enlargement: 0 % (7 %)

| — | miscellaneous revenue: 2 % (1 %) |
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—

miscellaneous revenue: 2 % (1 %)

Staff at 31 December 2004:

38 (33) posts in the establishment plan,

of which, posts filled: 29 (29)

22 (25) other posts (auxiliary contracts, seconded national experts, local staff and employment-agency staff)

Total staff: 51 (54)

assigned to

operational tasks: 34 (34)

administrative tasks: 9 (12)

mixed tasks: 8 (8)

Approximately 850 partners through national focal points, four expert groups, three topic centres, participation of PHARE and EFTA countries.

Dissemination of information

| — | European Week for Safety and Health at work: ‘building safety’; |
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—

European Week for Safety and Health at work: ‘building safety’;

| — | participation in 67 exhibitions/conferences, |
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—

participation in 67 exhibitions/conferences,

| — | electronic media: bi-monthly newsletter to 24 000 subscribers, website (2,9 million visitors) |
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—

electronic media: bi-monthly newsletter to 24 000 subscribers, website (2,9 million visitors)

| — | publications (3,3 million copies of publications distributed): 7 information reports, 14 fact sheets, 1 issue of the ‘Forum’ magazine, 24 press releases. |
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—

publications (3,3 million copies of publications distributed): 7 information reports, 14 fact sheets, 1 issue of the ‘Forum’ magazine, 24 press releases.

Third programme for SMEs (2003-2004): 40 projects finalised.

Source: Information provided by the Agency.

Table 2

European Agency for Safety and Health at Work — Implementation of the budget for the financial year 2004

| (1000 euro) |
| --- |
| Revenue | Expenditure |
| Source of revenue | Revenue entered in the final budget for the financial year | Revenue collected | Expenditure allocation | Appropriations in the final budget | Appropriations carried over from the previous financial year | Available appropriations
  (2004 budget and financial year 2003) |
| entered | committed | paid | carried over | cancelled | outstanding commitments | paid | cancelled | appropriations | committed | paid | carried over | cancelled |
| Community subsidies | 10 588 | 9 542 | Title I
  Staff | 4 347 | 3 708 | 3 379 | 60 | 908 | 87 | 67 | 20 | 4 434 | 3 795 | 3 446 | 60 | 928 |
| Other subsidies | 180 | 66 | Title II
  Administration | 1 373 | 1 241 | 966 | 248 | 159 | 186 | 158 | 28 | 1 559 | 1 427 | 1 124 | 248 | 187 |
| Other revenue | 0 | 111 | Title III
  Operating activities | 5 048 | 5 019 | 2 407 | 2 549 | 92 | 5 858 | 5 019 | 839 | 10 906 | 10 877 | 7 426 | 2 549 | 931 |
| PHARE revenue | 0 | 121 | PHARE expenditure | — | — | — | — | — | 502 | 358 | 144 | 502 | 502 | 358 | 0 | 144 |
| Total | 10 768 | 9 840 | Total | 10 768 | 9 968 | 6 752 | 2 857 | 1 159 | 6 633 | 5 602 | 1 031 | 17 401 | 16 601 | 12 354 | 2 857 | 2 190 |
| NB: Variations in totals are due to the effects of rounding.

  Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts. |

(1000 euro)

Revenue

Expenditure

Source of revenue

Revenue entered in the final budget for the financial year

Revenue collected

Expenditure allocation

Appropriations in the final budget

Appropriations carried over from the previous financial year

Available appropriations

(2004 budget and financial year 2003)

entered

committed

paid

carried over

cancelled

outstanding commitments

paid

cancelled

appropriations

committed

paid

carried over

cancelled

Community subsidies

10 588

9 542

Title I

Staff

4 347

3 708

3 379

60

908

87

67

20

4 434

3 795

3 446

60

928

Other subsidies

180

66

Title II

Administration

1 373

1 241

966

248

159

186

158

28

1 559

1 427

1 124

248

187

Other revenue

0

111

Title III

Operating activities

5 048

5 019

2 407

2 549

92

5 858

5 019

839

10 906

10 877

7 426

2 549

931

PHARE revenue

0

121

PHARE expenditure

—

—

—

—

—

502

358

144

502

502

358

0

144

Total

10 768

9 840

Total

10 768

9 968

6 752

2 857

1 159

6 633

5 602

1 031

17 401

16 601

12 354

2 857

2 190

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

Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts.

Table 3

European Agency for Safety and Health at Work — Revenue and expenditure account for the financial years 2004 and 2003

| (1000 euro) |
| --- |
| | 2004 | 2003 |
| Revenue |
| Community subsidies | 9 542 | 11 641 |
| Other subsidies | 66 | 66 |
| Other revenue | 111 | 157 |
| PHARE revenue | 121 | 824 |
| Total revenue (a) | 9 840 | 12 688 |
| Expenditure |
| Staff — Title I of the budget |
| Payments | 3 379 | 3 245 |
| Appropriations carried over | 60 | 87 |
| Administration — Title II of the budget |
| Payments | 966 | 1 146 |
| Appropriations carried over | 248 | 186 |
| Operating activities — Title III of the budget |
| Payments (1) | 2 426 | 2 559 |
| Appropriations carried over | 2 549 | 5 859 |
| PHARE expenditure |
| Payments | 0 | 548 |
| Appropriations carried over | 0 | 502 |
| Total expenditure (b) | 9 628 | 14 131 |
| Outturn for the financial year (c = a – b) (2) | 212 | –1 443 |
| Balance carried over from the previous financial year | –1 987 | –1 108 |
| Appropriations carried over and cancelled | 887 | 766 |
| Sums to be reused from the previous financial year and not used | 0 | 1 |
| RO (PHARE II) appropriations not used | 144 | 0 |
| Payments against commitment cancelled in 2002 | 0 | – 191 |
| Exchange-rate differences | 0 | 4 |
| PHARE amount to be refunded to the Commission | –39 | 0 |
| Adjustment entries | 2 | –16 |
| Outturn for the financial year before economic adjustments (d) | – 779 | –1 987 |
| Budget revenue to be recovered | 0 | 850 |
| Other revenue to be recovered | 0 | 3 |
| Acquisitions of fixed assets | 58 | 207 |
| Depreciation | – 175 | – 186 |
| Stock | –6 | 0 |
| Scrapping of fixed assets | –91 | 0 |
| Depreciation | 88 | 0 |
| Miscellaneous expenditure | –34 | –1 |
| Economic adjustments (e) | – 161 | 873 |
| Balance for the financial year (d + e) | – 940 | –1 113 |
| NB: Variations in totals are due to the effects of rounding.

  Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts. |

(1000 euro)

2004

2003

Revenue

Community subsidies

9 542

11 641

Other subsidies

66

66

Other revenue

111

157

PHARE revenue

121

824

Total revenue (a)

9 840

12 688

Expenditure

Staff — Title I of the budget

Payments

3 379

3 245

Appropriations carried over

60

87

Administration — Title II of the budget

Payments

966

1 146

Appropriations carried over

248

186

Operating activities — Title III of the budget

Payments (1)

2 426

2 559

Appropriations carried over

2 549

5 859

PHARE expenditure

Payments

0

548

Appropriations carried over

0

502

Total expenditure (b)

9 628

14 131

Outturn for the financial year (c = a – b) (2)

212

–1 443

Balance carried over from the previous financial year

–1 987

–1 108

Appropriations carried over and cancelled

887

766

Sums to be reused from the previous financial year and not used

0

1

RO (PHARE II) appropriations not used

144

0

Payments against commitment cancelled in 2002

0

– 191

Exchange-rate differences

0

4

PHARE amount to be refunded to the Commission

–39

0

Adjustment entries

2

–16

Outturn for the financial year before economic adjustments (d)

– 779

–1 987

Budget revenue to be recovered

0

850

Other revenue to be recovered

0

3

Acquisitions of fixed assets

58

207

Depreciation

– 175

– 186

Stock

–6

0

Scrapping of fixed assets

–91

0

Depreciation

88

0

Miscellaneous expenditure

–34

–1

Economic adjustments (e)

– 161

873

Balance for the financial year (d + e)

– 940

–1 113

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

Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts.

Table 4

European Agency for Safety and Health at Work — Balance sheet at 31 December 2004 and 31 December 2003

| (1000 euro) |
| --- |
| Assets | 2004 | 2003 | Liabilities | 2004 | 2003 |
| Fixed assets | | | Own capital | | |
| Computer software | 66 | 95 | Own capital (3) | 431 | 431 |
| IT equipment | 90 | 136 | Budget outturn for the financial year | 1 207 | – 879 |
| Fittings and furniture | 169 | 215 | Adjustment outturn | – 161 | 873 |
| Subtotal | 325 | 445 | Balance for the previous financial year | –1 113 | –1 108 |
| Stocks | | | Subtotal | 364 | – 683 |
| Office supplies | 0 | 6 | Current liabilities | | |
| Subtotal | 0 | 6 | Non-automatic carry-overs | 0 | 135 |
| Current assets | | | Automatic carry-overs | 2 857 | 6 498 |
| Community subsidies | 809 | 1 035 | Commission | 145 | 282 |
| Sundry accounts receivable | 19 | 62 | Sundry accounts payable | 67 | 128 |
| Subtotal | 828 | 1 097 | Payroll deductions | 0 | 73 |
| Cash accounts | | | Subtotal | 3 069 | 7 117 |
| Bank and cash | 2 305 | 4 889 | Provisions for risks and charges | | |
| Cash | 3 | 1 | Cases pending | 34 | 0 |
| Subtotal | 2 308 | 4 890 | Subtotal | 34 | 0 |
| Suspense accounts | | | Suspense accounts | | |
| Advances | 6 | 6 | Revenue for re-use | 0 | 11 |
| Subtotal | 6 | 6 | Subtotal | 0 | 11 |
| Total | 3 467 | 6 445 | Total | 3 467 | 6 445 |
| NB: Variations in totals are due to the effects of rounding.

  Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts. |

(1000 euro)

Assets

2004

2003

Liabilities

2004

2003

Fixed assets

Own capital

Computer software

66

95

Own capital (3)

431

431

IT equipment

90

136

Budget outturn for the financial year

1 207

– 879

Fittings and furniture

169

215

Adjustment outturn

– 161

873

Subtotal

325

445

Balance for the previous financial year

–1 113

–1 108

Stocks

Subtotal

364

– 683

Office supplies

0

6

Current liabilities

Subtotal

0

6

Non-automatic carry-overs

0

135

Current assets

Automatic carry-overs

2 857

6 498

Community subsidies

809

1 035

Commission

145

282

Sundry accounts receivable

19

62

Sundry accounts payable

67

128

Subtotal

828

1 097

Payroll deductions

0

73

Cash accounts

Subtotal

3 069

7 117

Bank and cash

2 305

4 889

Provisions for risks and charges

Cash

3

1

Cases pending

34

0

Subtotal

2 308

4 890

Subtotal

34

0

Suspense accounts

Suspense accounts

Advances

6

6

Revenue for re-use

0

11

Subtotal

6

6

Subtotal

0

11

Total

3 467

6 445

Total

3 467

6 445

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

Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts.

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(1)  This sum includes payments made from the appropriations to be re-used in 2004 (18 573 euro).

(2)  Calculated in accordance with the principles of Article 15 of Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 (OJ L 130, 31.5.2000, p. 8).

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

Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts.

(3)  The amount of own capital, fixed at 31 December 2003, corresponds to the sum of the gross value of fixed assets at 31 December 2002 minus historical depreciation for the period 1996 to 2002, plus the variation in the value of stock between 31 December 2002 and 31 December 2003 and the adjustments on the valuation, recognition and downgrading of fixed assets.

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

Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts.

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THE AGENCY'S REPLIES

| 7. | Draft detailed rules for the implementation of the new financial regulation were sent to the Commission on 30 May 2005 for comments before submission to the Administrative Board.
  The Agency's internal control procedures were drawn up on the basis of guidelines handed down by the Commission, and will be gradually adapted in accordance with the conclusions of the forthcoming report of the Commission's Internal Audit Service and the risk analysis to be undertaken by the Agency. |
| --- | --- |

7.

Draft detailed rules for the implementation of the new financial regulation were sent to the Commission on 30 May 2005 for comments before submission to the Administrative Board.

The Agency's internal control procedures were drawn up on the basis of guidelines handed down by the Commission, and will be gradually adapted in accordance with the conclusions of the forthcoming report of the Commission's Internal Audit Service and the risk analysis to be undertaken by the Agency.

| 8. | These four service contracts will all be the subject of a call for tenders in 2005. |
| --- | --- |

8.

These four service contracts will all be the subject of a call for tenders in 2005.

| 9. | The cumulative negative budget outturn for the financial year 2004 will be entered in the 2005 budget. |
| --- | --- |

9.

The cumulative negative budget outturn for the financial year 2004 will be entered in the 2005 budget.

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