# C_2010338EN.01014901.xml

| 14.12.2010 | EN | Official Journal of the European Union | C 338/149 |
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14.12.2010

EN

Official Journal of the European Union

C 338/149

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REPORT

on the annual accounts of the European Training Foundation for the financial year 2009, together with the Foundation’s replies

2010/C 338/26

CONTENTS

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 150 |
| STATEMENT OF ASSURANCE ... | 3-12 | 150 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13 | 151 |
| Table ... | 152 |
| The Foundation’s replies ... | 154 |

Paragraph

Paragraph

Page

Page

INTRODUCTION ...

1-2

150

STATEMENT OF ASSURANCE ...

3-12

150

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13

151

Table ...

152

The Foundation’s replies ...

The Foundation’s replies

154

INTRODUCTION

INTRODUCTION

| 1. | The European Training Foundation (hereinafter ‘the Foundation’), located in Turin, was created by Council Regulation (EEC) No 1360/90 (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). |
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1.

The European Training Foundation (hereinafter ‘the Foundation’), located in Turin, was created by Council Regulation (EEC) No 1360/90 (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).

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| 2. | The Foundation’s 2009 budget was 19,1 million euro, compared with 19,2 million euro the previous year. The number of staff employed by the Foundation at the end of the year was 123 as compared with 124 the previous year. |
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2.

The Foundation’s 2009 budget was 19,1 million euro, compared with 19,2 million euro the previous year. The number of staff employed by the Foundation at the end of the year was 123 as compared with 124 the previous year.

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| 12. | The comments which follow do not call the Court’s opinions into question. |
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The comments which follow do not call the Court’s opinions into question.

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | The procedures for drawing up the budget were not sufficiently rigorous and led to a considerable number of budgetary transfers (12). Some of these transfers led to sucessive increases and decreases in the same budget headings (13). More than 0,7 million euro were transferred from Title I — Staff expenditure to Title III — Operational expenditure. This increased the amount carried forward to 2010 and reduced the amount to be repaid to the Commission. Contrary to the rules in force, the Governing Board was not requested to authorise the transfers when required (14). Moreover the budget presentation is not in line with the requirements of the Foundation’s Financial Regulation (15). |
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13.

The procedures for drawing up the budget were not sufficiently rigorous and led to a considerable number of budgetary transfers (12). Some of these transfers led to sucessive increases and decreases in the same budget headings (13). More than 0,7 million euro were transferred from Title I — Staff expenditure to Title III — Operational expenditure. This increased the amount carried forward to 2010 and reduced the amount to be repaid to the Commission. Contrary to the rules in force, the Governing Board was not requested to authorise the transfers when required (14). Moreover the budget presentation is not in line with the requirements of the Foundation’s Financial Regulation (15).

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This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

ETF — European Training Foundation (Turin)

| Areas of Union competence deriving from the Treaty | Competences of the Foundation
  (Council Regulation (EEC) No 1360/90) | Governance | Resources made available to the Foundation in 2009

  (Data for 2008) | Product and services supplied during the financial year 2009 |
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| The Union and the Member States shall foster cooperation with third countries and the competent international organisations in the sphere of vocational training.

  (Article 166(3) of the Treaty on the Functioning of the European Union) | Objectives







  — | To contribute, in the context of EU external relations policies, to improving human capital development in the following countries: the countries eligible for support under Regulations (EC) No 1085/2006 and (EC) No 1638/2006 and subsequent related legal acts; other countries designated by decision of the Governing Board on the basis of a proposal supported by two-thirds of its members and a Commission opinion, and covered by a Union instrument or international agreement that includes an element of human capital development, and as far as available resources allow. |

Areas of Union competence deriving from the Treaty

Competences of the Foundation

(Council Regulation (EEC) No 1360/90)

Governance

Resources made available to the Foundation in 2009

(Data for 2008)

Product and services supplied during the financial year 2009

The Union and the Member States shall foster cooperation with third countries and the competent international organisations in the sphere of vocational training.

(Article 166(3) of the Treaty on the Functioning of the European Union)

Objectives

—

To contribute, in the context of EU external relations policies, to improving human capital development in the following countries: the countries eligible for support under Regulations (EC) No 1085/2006 and (EC) No 1638/2006 and subsequent related legal acts; other countries designated by decision of the Governing Board on the basis of a proposal supported by two-thirds of its members and a Commission opinion, and covered by a Union instrument or international agreement that includes an element of human capital development, and as far as available resources allow.

| — | For the purpose of this Regulation, ‘human capital development’ shall be defined as work which contributes to the lifelong development of individuals’ skills and competences through the improvement of vocational education and training systems. |
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—

For the purpose of this Regulation, ‘human capital development’ shall be defined as work which contributes to the lifelong development of individuals’ skills and competences through the improvement of vocational education and training systems.

Tasks

For the purpose of achieving the objective, the Foundation, within the limits of the powers conferred on the Governing Board and following the general guidelines established at Union level, shall have the following functions:

| — | to provide information, policy analyses and advice on human capital development issues in the partner countries, |
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to provide information, policy analyses and advice on human capital development issues in the partner countries,

| — | to promote knowledge and analysis of skills needs in national and local labour markets, |
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—

to promote knowledge and analysis of skills needs in national and local labour markets,

| — | to support relevant stakeholders in partner countries in building capacity in human capital development, |
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to support relevant stakeholders in partner countries in building capacity in human capital development,

| — | to facilitate the exchange of information and experience among donors engaged in human capital development reform in partner countries, |
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to facilitate the exchange of information and experience among donors engaged in human capital development reform in partner countries,

| — | to support the delivery of Union assistance to partner countries in the field of human capital development, |
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to support the delivery of Union assistance to partner countries in the field of human capital development,

| — | to disseminate information and encourage networking and the exchange of experience and good practice between the EU and partner countries and amongst partner countries in human capital development issues, |
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to disseminate information and encourage networking and the exchange of experience and good practice between the EU and partner countries and amongst partner countries in human capital development issues,

| — | to contribute, at the Commission’s request, to the analysis of the overall effectiveness of training assistance to the partner countries, |
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to contribute, at the Commission’s request, to the analysis of the overall effectiveness of training assistance to the partner countries,

| — | to undertake such other tasks as may be agreed between the Governing Board and the Commission, within the general framework of this Regulation. |
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to undertake such other tasks as may be agreed between the Governing Board and the Commission, within the general framework of this Regulation.

1 —   Governing Board

| — | One representative of each Member State. |
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One representative of each Member State.

| — | Three representatives of the Commission. |
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Three representatives of the Commission.

| — | Three non-voting experts appointed by the European Parliament. |
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Three non-voting experts appointed by the European Parliament.

| — | In addition, three representatives of the partner countries may attend meetings of the Governing Board as observers. |
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In addition, three representatives of the partner countries may attend meetings of the Governing Board as observers.

2 —   Director

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

3 —   External Audit

Court of Auditors.

4 —   Internal Audit

Internal Audit Service of the Commission.

5 —   Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

19,1 (19,2) million euro, of which 18,8 (18) million euro funded by a Commission subsidy and 0,3 (1,2) million euro funded by other bodies as assigned revenue.

Staff at 31 December 2009

| — | 96 (96) temporary posts in the establishment plan, of which 86 (86) posts occupied. |
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96 (96) temporary posts in the establishment plan, of which 86 (86) posts occupied.

| — | 37 (38) other staff (auxiliaries, local staff, contract staff, etc.) |
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37 (38) other staff (auxiliaries, local staff, contract staff, etc.)

| — | Total staff: 123 (124), assigned to the following duties:






  — | operational tasks: 64 (64) |
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Total staff: 123 (124), assigned to the following duties:

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operational tasks: 64 (64)

| — | administrative tasks: 40,5 (38,5) |
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administrative tasks: 40,5 (38,5)

| — | mixed tasks: 20,5 (21,5). |
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mixed tasks: 20,5 (21,5).

Activities

The assistance provided by the Foundation covers a large range of technical fields including: initial vocational training, lifelong learning, continuing (adult) education, human resources development in companies, employment policies, training of the unemployed, poverty alleviation and social inclusion, and training to encourage local development.

Support to the Commission:

In 2009, 101 ongoing direct requests for support were received from the Commission. 56 % of total requests were for the IPA, reflecting a small decline, 40 % were for ENPI, representing a small increase, and 4 % were processed for DCI, reflecting a large decline.

The Foundation support to the delivery of Union assistance to partner countries was requested by the Commission. The most frequent applications were those in the field of policy advice (22 %), followed by formulation of projects (21 %), content review of ongoing projects (16 %) and inputs to the multiannual programming (12 %). The Commission’s satisfaction rate with the Foundation’s response was: 62 % very good quality/very useful and 25 % good/useful.

Operational activities are classified in outputs according to the following categories:

| | Policy reviews and analysis: 23 outputs
  13 (IPA), 6 (ENPI), 4 (DCI) |
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Policy reviews and analysis: 23 outputs

13 (IPA), 6 (ENPI), 4 (DCI)

| | Capacity building actions: 67 outputs
  20 (IPA), 31(ENPI), 16 (DCI) |
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Capacity building actions: 67 outputs

20 (IPA), 31(ENPI), 16 (DCI)

| | Support to programming cycle: 30 outputs
  14 (IPA), 10(ENPI), 6 (DCI) |
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Support to programming cycle: 30 outputs

14 (IPA), 10(ENPI), 6 (DCI)

| | Dissemination and networking: 22 outputs
  8 (IPA), 10(ENPI), 4 (DCI) |
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Dissemination and networking: 22 outputs

8 (IPA), 10(ENPI), 4 (DCI)

| | Action learning research: 13 outputs
  13 (ILP) |
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Action learning research: 13 outputs

13 (ILP)

Total: 55 (IPA), 57(ENPI), 30 (DCI), 13 (ILP)

155 outputs

IPA: Instrument for Pre-Accession Assistance

ENPI: European Neighbourhood and Partnership Instrument

DCI: Development Cooperation Instrument

ILP: Innovation and Learning Programmes

Source: Information provided by the Foundation.

THE FOUNDATION’S REPLIES

| 13. | The Foundation 2009 budget planning and execution was affected by the delay in the revision of the Agency’s legal base (16) and the last-minute suspension of a reserve of 2 million euro set by the European Parliament on Titles I and II of its budget.
  The Foundation enjoys a more stable perspective in 2010. It has already put in place tighter monitoring and control of budget transfers to limit the number of transfers and prepares measures to further enhance budget planning and forecasting for the 2011 financial year.
  The Foundation, in accordance with the Court’s finding will follow a more strict interpretation of the Financial Regulation regarding the transfers. The Foundation will publish a payments schedule in accordance with Article 31(2)(c) of the Financial Regulation starting from the 2010 amending budget. |
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13.

The Foundation 2009 budget planning and execution was affected by the delay in the revision of the Agency’s legal base (16) and the last-minute suspension of a reserve of 2 million euro set by the European Parliament on Titles I and II of its budget.

The Foundation enjoys a more stable perspective in 2010. It has already put in place tighter monitoring and control of budget transfers to limit the number of transfers and prepares measures to further enhance budget planning and forecasting for the 2011 financial year.

The Foundation, in accordance with the Court’s finding will follow a more strict interpretation of the Financial Regulation regarding the transfers. The Foundation will publish a payments schedule in accordance with Article 31(2)(c) of the Financial Regulation starting from the 2010 amending budget.

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(1)  OJ L 131, 23.5.1990, p. 1.

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(2)  The Table summarises the Foundation's competences and activities. It is presented for information purposes.

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(3)  These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

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(4)  The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

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(5)  The budget implementation reports comprise the budget outturn account and its annex.

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

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(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

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(8)  Article 38 of Regulation (EC, Euratom) No 2343/2002.

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(9)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VII of Regulation (EC, Euratom) No 2343/2002 as last amended by Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 23) and are integrated as such in the Financial Regulation of the Foundation.

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(10)  International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

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(11)  The Final Annual Accounts were drawn up on 14 June 2010 and received by the Court on 24 June 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://www.etf.europa.eu/Archive

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Official Journal of the European Union

(12)  37 transfers of appropriations in 2009.

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(13)  Budget heading 1100 — salaries decreased and re-increased by no less than 9 decisions.

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1100

(14)  Two transfers from one Title to another exceeding 10 % of the appropriations for the year were not authorised by the Governing Board.

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(15)  The budget shall 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) of the Foundation’s Financial Regulation).

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(16)  Regulation (EC) No 1339/2008 of the European Parliament and of the Council of 16 December 2008 establishing a European Training Foundation (recast) (OJ L 354 of 31.12.2008, p. 82).

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