# Official Journal C 304/2009

| | ISSN 1725-2423
  doi:10.3000/17252423.C_2009.304.eng |
| --- | --- |
| Official Journal
  of the European Union | C 304 |
| | |
| English edition | Information and Notices | Volume 5215 December 2009 |

ISSN 1725-2423

doi:10.3000/17252423.C_2009.304.eng

Official Journal

of the European Union

C 304

English edition

Information and Notices

Volume 5215 December 2009

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| Notice No | Contents | page |
| --- | --- | --- |
| | IV   Notices |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES |
| | Court of Auditors |
| 2009/C 304/01 | Report on the annual accounts of the Community Fisheries Control Agency for the financial year 2008, together with the Agency’s replies | 1 |
| 2009/C 304/02 | Report on the annual accounts of the Euratom Supply Agency for the financial year 2008, together with the Agency’s replies | 6 |
| 2009/C 304/03 | Report on the annual accounts of the European Fundamental Rights Agency for the financial year 2008, together with Agency’s replies | 10 |
| 2009/C 304/04 | Report on the annual accounts of the European Network and Information Security Agency for the financial year 2008, together with the Agency’s replies | 16 |
| 2009/C 304/05 | Report on the annual accounts of the European Aviation Safety Agency for the financial year 2008, together with the Agency’s replies | 21 |
| 2009/C 304/06 | Report on the annual accounts of the European Medicines Agency for the financial year 2008, together with the Agency’s replies | 27 |
| 2009/C 304/07 | Report on the annual accounts of the European Chemicals Agency for the financial year 2008, together with the Agency’s replies | 33 |
| 2009/C 304/08 | Report on the annual accounts of the European Agency for the Management of Operational Cooperation at the External Borders of the Member States for the financial year 2008, together with the Agency’s replies | 38 |
| 2009/C 304/09 | Report on the annual accounts of the European Agency for Reconstruction for the financial year 2008, together with the Agency’s replies | 43 |
| 2009/C 304/10 | Report on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2008, together with the Agency’s replies | 49 |
| 2009/C 304/11 | Report on the annual accounts of the European Maritime Safety Agency for the financial year 2008, together with the Agency’s replies | 55 |
| 2009/C 304/12 | Report on the annual accounts of the European Environment Agency for the financial year 2008, together with the Agency’s replies | 60 |
| 2009/C 304/13 | Report on the annual accounts of the Education, Audiovisual and Culture Executive Agency for the financial year 2008, together with the Agency’s replies | 65 |
| 2009/C 304/14 | Report on the annual accounts of the Trans-European Transport Network Executive Agency for the financial year 2008, together with the Agency’s replies | 71 |
| 2009/C 304/15 | Report on the annual accounts of the Executive Agency for Competitiveness and Innovation for the financial year 2008, together with the Agency’s replies | 77 |
| 2009/C 304/16 | Report on the annual accounts of the Executive Agency for Health and Consumers for the financial year 2008, together with the Agency’s replies | 83 |
| 2009/C 304/17 | Report on the annual accounts of the European Railway Agency for the financial year 2008, together with the Agency’s replies | 89 |
| 2009/C 304/18 | Report on the annual accounts of the European Food Safety Authority for the financial year 2008, together with the Authority’s replies | 95 |
| 2009/C 304/19 | Report on the annual accounts of the European GNSS Supervisory Authority for the financial year 2008, together with the Authority’s replies | 100 |
| 2009/C 304/20 | Report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2008, together with the Centre’s replies | 107 |
| 2009/C 304/21 | Report on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2008, together with the Centre’s replies | 112 |
| 2009/C 304/22 | Report on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2008, together with the Centre’s replies | 118 |
| 2009/C 304/23 | Report on the annual accounts of the European Police College for the financial year 2008, together with the College’s replies | 124 |
| 2009/C 304/24 | Report on the annual accounts of Eurojust for the financial year 2008, together with Eurojust’s replies | 131 |
| 2009/C 304/25 | Report on the annual accounts of the European Training Foundation for the financial year 2008, together with the Foundation’s replies | 136 |
| 2009/C 304/26 | Report on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2008, together with the Foundation’s replies | 142 |
| 2009/C 304/27 | Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2008, together with the Centre’s replies | 148 |
| 2009/C 304/28 | Report on the annual accounts of the Community Plant Variety Office for the financial year 2008, together with the Office’s replies | 154 |
| 2009/C 304/29 | Report on the annual accounts of the Office for Harmonization in the Internal Market for the financial year 2008, together with the Office’s replies | 159 |

Notice No

Contents

page

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Court of Auditors

2009/C 304/01

Report on the annual accounts of the Community Fisheries Control Agency for the financial year 2008, together with the Agency’s replies

1

2009/C 304/02

Report on the annual accounts of the Euratom Supply Agency for the financial year 2008, together with the Agency’s replies

6

2009/C 304/03

Report on the annual accounts of the European Fundamental Rights Agency for the financial year 2008, together with Agency’s replies

10

2009/C 304/04

Report on the annual accounts of the European Network and Information Security Agency for the financial year 2008, together with the Agency’s replies

16

2009/C 304/05

Report on the annual accounts of the European Aviation Safety Agency for the financial year 2008, together with the Agency’s replies

21

2009/C 304/06

Report on the annual accounts of the European Medicines Agency for the financial year 2008, together with the Agency’s replies

27

2009/C 304/07

Report on the annual accounts of the European Chemicals Agency for the financial year 2008, together with the Agency’s replies

33

2009/C 304/08

Report on the annual accounts of the European Agency for the Management of Operational Cooperation at the External Borders of the Member States for the financial year 2008, together with the Agency’s replies

38

2009/C 304/09

Report on the annual accounts of the European Agency for Reconstruction for the financial year 2008, together with the Agency’s replies

43

2009/C 304/10

Report on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2008, together with the Agency’s replies

49

2009/C 304/11

Report on the annual accounts of the European Maritime Safety Agency for the financial year 2008, together with the Agency’s replies

55

2009/C 304/12

Report on the annual accounts of the European Environment Agency for the financial year 2008, together with the Agency’s replies

60

2009/C 304/13

Report on the annual accounts of the Education, Audiovisual and Culture Executive Agency for the financial year 2008, together with the Agency’s replies

65

2009/C 304/14

Report on the annual accounts of the Trans-European Transport Network Executive Agency for the financial year 2008, together with the Agency’s replies

71

2009/C 304/15

Report on the annual accounts of the Executive Agency for Competitiveness and Innovation for the financial year 2008, together with the Agency’s replies

77

2009/C 304/16

Report on the annual accounts of the Executive Agency for Health and Consumers for the financial year 2008, together with the Agency’s replies

83

2009/C 304/17

Report on the annual accounts of the European Railway Agency for the financial year 2008, together with the Agency’s replies

89

2009/C 304/18

Report on the annual accounts of the European Food Safety Authority for the financial year 2008, together with the Authority’s replies

95

2009/C 304/19

Report on the annual accounts of the European GNSS Supervisory Authority for the financial year 2008, together with the Authority’s replies

100

2009/C 304/20

Report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2008, together with the Centre’s replies

107

2009/C 304/21

Report on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2008, together with the Centre’s replies

112

2009/C 304/22

Report on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2008, together with the Centre’s replies

118

2009/C 304/23

Report on the annual accounts of the European Police College for the financial year 2008, together with the College’s replies

124

2009/C 304/24

Report on the annual accounts of Eurojust for the financial year 2008, together with Eurojust’s replies

131

2009/C 304/25

Report on the annual accounts of the European Training Foundation for the financial year 2008, together with the Foundation’s replies

136

2009/C 304/26

Report on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2008, together with the Foundation’s replies

142

2009/C 304/27

Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2008, together with the Centre’s replies

148

2009/C 304/28

Report on the annual accounts of the Community Plant Variety Office for the financial year 2008, together with the Office’s replies

154

2009/C 304/29

Report on the annual accounts of the Office for Harmonization in the Internal Market for the financial year 2008, together with the Office’s replies

159

| | Corrigenda |
| --- | --- |
| 2009/C 304/30 | Corrigendum to the Annual Report of the Court of Auditors on the implementation of the budget concerning the financial year 2008, together with the institutions’ replies (OJ C 269, 10.11.2009) | 164 |

Corrigenda

2009/C 304/30

Corrigendum to the Annual Report of the Court of Auditors on the implementation of the budget concerning the financial year 2008, together with the institutions’ replies (OJ C 269, 10.11.2009)

(OJ C 269, 10.11.2009)

164

| EN | |
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EN

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IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Court of Auditors

| 15.12.2009 | EN | Official Journal of the European Union | C 304/1 |
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15.12.2009

EN

Official Journal of the European Union

C 304/1

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REPORT

on the annual accounts of the Community Fisheries Control Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/01

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 2 |
| STATEMENT OF ASSURANCE ... | 3-12 | 2 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13-14 | 3 |
| OTHER MATTERS ... | 15-17 | 3 |
| Table ... | 4 |
| The Agency’s replies ... | 5 |

Paragraph

Page

INTRODUCTION ...

1-2

2

STATEMENT OF ASSURANCE ...

3-12

2

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13-14

3

OTHER MATTERS ...

15-17

3

Table ...

4

The Agency’s replies ...

5

INTRODUCTION

| 1. | The Community Fisheries Control Agency (hereinafter ‘the Agency’), located in Vigo, was created by Council Regulation (EC) No 768/2005 (1) of 26 April 2005. The Agency’s main task is to organise the operational coordination of fisheries control and inspection activities by the Member States in order to ensure effective and uniform application of the rules of the common fisheries policy. The Agency acquired its financial independence on 11 November 2007 (2). |
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1.

The Community Fisheries Control Agency (hereinafter ‘the Agency’), located in Vigo, was created by Council Regulation (EC) No 768/2005 (1) of 26 April 2005. The Agency’s main task is to organise the operational coordination of fisheries control and inspection activities by the Member States in order to ensure effective and uniform application of the rules of the common fisheries policy. The Agency acquired its financial independence on 11 November 2007 (2).

| 2. | The Agency’s 2008 budget amounted to 9,5 million euro, compared with 5 million euro the previous year. The number of staff employed by the Agency at the end of the year was 48 as compared with 25 the previous year. |
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2.

The Agency’s 2008 budget amounted to 9,5 million euro, compared with 5 million euro the previous year. The number of staff employed by the Agency at the end of the year was 48 as compared with 25 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
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3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
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4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
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5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
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6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
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8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
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9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) fairly present, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
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10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the Agency’s annual accounts for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
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11.

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

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | The procedures for drawing up the budget were not sufficiently rigorous and led to a significant number of budgetary transfers (12). Some of these transfers led to successive increases and decreases in the same budgetary lines. This situation indicates weaknesses in the programming of the Agency’s activities and was at odds with the principle of specification. Contrary to the rules in force, the Administrative Board was not requested to authorise the transfers when required (13) or informed about them. |
| --- | --- |

13.

The procedures for drawing up the budget were not sufficiently rigorous and led to a significant number of budgetary transfers (12). Some of these transfers led to successive increases and decreases in the same budgetary lines. This situation indicates weaknesses in the programming of the Agency’s activities and was at odds with the principle of specification. Contrary to the rules in force, the Administrative Board was not requested to authorise the transfers when required (13) or informed about them.

| 14. | In four cases, the legal commitments were made before the corresponding budgetary commitments (14) and at the year-end 0,2 million euro relating to lapsed operations were carried forward without justification. In seven cases, legal commitments were not covered by budgetary commitments (15). |
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14.

In four cases, the legal commitments were made before the corresponding budgetary commitments (14) and at the year-end 0,2 million euro relating to lapsed operations were carried forward without justification. In seven cases, legal commitments were not covered by budgetary commitments (15).

OTHER MATTERS

| 15. | The Agency does not prepare a multi-annual work programme. Draft performance indicators are set in a general format and on an annual basis, even though the Agency has discussed long term objectives which require significant resource planning on a budgetary as well as human basis over several years. A multiannual programming document is still necessary to organise the implementation of the Agency’s strategy and its goals. |
| --- | --- |

15.

The Agency does not prepare a multi-annual work programme. Draft performance indicators are set in a general format and on an annual basis, even though the Agency has discussed long term objectives which require significant resource planning on a budgetary as well as human basis over several years. A multiannual programming document is still necessary to organise the implementation of the Agency’s strategy and its goals.

| 16. | The Agency’s 2008 objectives have not been set precisely and the monitoring of the implementation of its work programme remains informal. The introduction of an activity-based budgeting system would make it easier to establish a clear link between the work programme and the financial forecasts. |
| --- | --- |

16.

The Agency’s 2008 objectives have not been set precisely and the monitoring of the implementation of its work programme remains informal. The introduction of an activity-based budgeting system would make it easier to establish a clear link between the work programme and the financial forecasts.

| 17. | In 2008, staff recruitment was made at a more rapid pace than initially expected. As this situation was not taken into account in the forecasts for the 2009 budget (16), this latter underestimated by more than 35 % (approximately 1,3 million euro) appropriations necessary for salary expenditure. The monitoring of the budget execution should be improved. |
| --- | --- |

17.

In 2008, staff recruitment was made at a more rapid pace than initially expected. As this situation was not taken into account in the forecasts for the 2009 budget (16), this latter underestimated by more than 35 % (approximately 1,3 million euro) appropriations necessary for salary expenditure. The monitoring of the budget execution should be improved.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Community Fisheries Control Agency (Vigo)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Council Regulation (EC) No 768/2005 | Governance | Resources made available to the Agency in 2008 | Activities and services provided in 2008 |
| --- | --- | --- | --- | --- |
| Article 37 of the Treaty establishing the European Community.

  Article 28 of Council Regulation (EC) No 2371/2002 on the conservation and sustainable exploitation of fisheries resources under the common fisheries policy requires Member States to ensure effective control, inspection and enforcement of the rules of the common fisheries policy and to cooperate with each other and with third countries to this end.

  Council Regulation (EC) No 768/2005 establishing a Community Fisheries Control Agency and amending Regulation (EEC) No 2847/93 establishing a control system applicable to the common fisheries policy. | Objectives

  The Regulation establishes a Community Fisheries Control Agency, the objective of which is to organise operational coordination of fisheries control and inspection activities by the Member States and to assist them to cooperate so as to comply with the rules of the common fisheries policy in order to ensure its effective and uniform application. | Mission and Tasks


  Mission







  (i) | To coordinate the control and inspection obligations of the Community; |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Council Regulation (EC) No 768/2005

Governance

Resources made available to the Agency in 2008

Activities and services provided in 2008

Article 37 of the Treaty establishing the European Community.

Article 28 of Council Regulation (EC) No 2371/2002 on the conservation and sustainable exploitation of fisheries resources under the common fisheries policy requires Member States to ensure effective control, inspection and enforcement of the rules of the common fisheries policy and to cooperate with each other and with third countries to this end.

Council Regulation (EC) No 768/2005 establishing a Community Fisheries Control Agency and amending Regulation (EEC) No 2847/93 establishing a control system applicable to the common fisheries policy.

Objectives

The Regulation establishes a Community Fisheries Control Agency, the objective of which is to organise operational coordination of fisheries control and inspection activities by the Member States and to assist them to cooperate so as to comply with the rules of the common fisheries policy in order to ensure its effective and uniform application.

Mission and Tasks

Mission

(i)

To coordinate the control and inspection obligations of the Community;

| (ii) | To coordinate the deployment of the national means of control and inspection pooled by the Member States concerned; |
| --- | --- |

(ii)

To coordinate the deployment of the national means of control and inspection pooled by the Member States concerned;

| (iii) | To assist Member States in reporting information on fishing activities and control and inspection activities; |
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(iii)

To assist Member States in reporting information on fishing activities and control and inspection activities;

| (iv) | To assist Member States to fulfil their tasks and obligations under the rules of the common fisheries policy; |
| --- | --- |

(iv)

To assist Member States to fulfil their tasks and obligations under the rules of the common fisheries policy;

| (v) | To assist Member States and the Commission in harmonising the application of the common fisheries policy throughout the Community; |
| --- | --- |

(v)

To assist Member States and the Commission in harmonising the application of the common fisheries policy throughout the Community;

| (vi) | To contribute to the work of Member States and the Commission on research into and development of control and inspection techniques; |
| --- | --- |

(vi)

To contribute to the work of Member States and the Commission on research into and development of control and inspection techniques;

| (vii) | To contribute to the coordination of inspector training and the exchange of experience between Member States; |
| --- | --- |

(vii)

To contribute to the coordination of inspector training and the exchange of experience between Member States;

| (viii) | To coordinate operations to combat illegal, unreported and unregulated fishing, in conformity with Community rules. |
| --- | --- |

(viii)

To coordinate operations to combat illegal, unreported and unregulated fishing, in conformity with Community rules.

1 —   Administrative Board

Comprises one representative from each Member State and six representatives of the Commission.

2 —   Executive Director

Appointed by the Administrative Board from a list of at least two candidates proposed by the Commission.

3 —   External Audit

Court of Auditors.

4 —   Discharge Authority

Parliament acting following a recommendation from the Council.

Budget

Title I— 4,5 million euro

Title II— 1,6 million euro

Title III— 2,4 million euro

(Including 1,2 million euro of assigned revenue)

Human Resources

On 31.12.2007 the Agency employed 25 staff members increasing steadily to 48 staff members by the end of 2008 — 40 temporary agents and 8 contract agents.

Joint Deployment Plans (JDP), to organise the operational coordination of the fisheries control activities of Member States, were executed in the following Community fisheries:

| — | Cod fishery in the North Sea, |
| --- | --- |

—

Cod fishery in the North Sea,

| — | Cod Fishery in the Baltic Sea, |
| --- | --- |

—

Cod Fishery in the Baltic Sea,

| — | Bluefin tuna fishery in the Mediterranean Sea and Eastern Atlantic, |
| --- | --- |

—

Bluefin tuna fishery in the Mediterranean Sea and Eastern Atlantic,

| — | Fishing of regulated resources in the North West Atlantic International waters (NAFO). |
| --- | --- |

—

Fishing of regulated resources in the North West Atlantic International waters (NAFO).

Training to Member State inspectors was provided linked to the operational activities, to improve the effective and uniform application of the common fisheries policy in all areas covered by a JDP.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | The Agency will continue its effort to improve its budgetary planning and monitoring and consequently to reduce the number of budgetary modifications. The Agency would stress that due to the relocation to CFCA’s final location, 2008 has been a particular difficult year for budgetary planning. The Agency has implemented in January 2009 a structured reporting method which allows better monitoring of the budget. Also, reporting of transfers to the Administrative Board will be done regularly. |
| --- | --- |

13.

The Agency will continue its effort to improve its budgetary planning and monitoring and consequently to reduce the number of budgetary modifications. The Agency would stress that due to the relocation to CFCA’s final location, 2008 has been a particular difficult year for budgetary planning. The Agency has implemented in January 2009 a structured reporting method which allows better monitoring of the budget. Also, reporting of transfers to the Administrative Board will be done regularly.

| 14. | The Agency will take additional measures to reinforce the control over the budgetary commitments. Moreover, the Agency will decentralise the financial workflow, provide additional training to the project managers and other relevant staff and will organise regular budget planning and monitoring meetings. |
| --- | --- |

14.

The Agency will take additional measures to reinforce the control over the budgetary commitments. Moreover, the Agency will decentralise the financial workflow, provide additional training to the project managers and other relevant staff and will organise regular budget planning and monitoring meetings.

| 15. | The annual Work Programme and multi-annual programming will be further developed in accordance with the Administrative Board Mid-Term strategy and considering the outcome of the debate on the Control regulation at Council level. Also, CFCA is developing an evaluation system for its activities based upon KPIs that were for the first time introduced in the 2009 Work Programme. |
| --- | --- |

15.

The annual Work Programme and multi-annual programming will be further developed in accordance with the Administrative Board Mid-Term strategy and considering the outcome of the debate on the Control regulation at Council level. Also, CFCA is developing an evaluation system for its activities based upon KPIs that were for the first time introduced in the 2009 Work Programme.

| 16. | The Agency started to develop and to implement an activity based management system whilst at the same time the Agency strives to improve the planning and monitoring of its activities. |
| --- | --- |

16.

The Agency started to develop and to implement an activity based management system whilst at the same time the Agency strives to improve the planning and monitoring of its activities.

| 17. | The Agency has further strengthened the planning and monitoring of its budget. In this respect new management reports which allow continuous monitoring of budgetary execution have been introduced in 2009. |
| --- | --- |

17.

The Agency has further strengthened the planning and monitoring of its budget. In this respect new management reports which allow continuous monitoring of budgetary execution have been introduced in 2009.

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(1)  OJ L 128, 21.5.2005, p. 1.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Agency’s Financial Regulation.

9

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

10

(11)  The Final Annual Accounts were drawn up on 30 June 2009 and received by the Court on 1 July 2009. 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://cfca.europa.eu/

11

(12)  28 decisions of transfers of appropriations in 2008.

12

(13)  One transfer exceeding 10 % of the appropriations for the year was not authorised by the Administrative Board.

13

(14)  Total value: 1,4 million euro.

14

(15)  Total value: 76 000 euro.

15

(16)  The 2009 budget which has been adopted in 2008 was based on 2007 assumptions which have never been revised.

16

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| 15.12.2009 | EN | Official Journal of the European Union | C 304/6 |
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15.12.2009

EN

Official Journal of the European Union

C 304/6

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REPORT

on the annual accounts of the Euratom Supply Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/02

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 7 |
| STATEMENT OF ASSURANCE ... | 3-12 | 7 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13 | 8 |
| The Agency’s replies ... | 9 |

Paragraph

Page

INTRODUCTION ...

1-2

7

STATEMENT OF ASSURANCE ...

3-12

7

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13

8

The Agency’s replies ...

9

INTRODUCTION

| 1. | The Euratom Supply Agency (hereafter ‘the Agency’), located in Luxembourg, was created in 1958 (1). Council Decision 2008/114/EC, Euratom of 12 February 2008 (2) replaced the preceding Statutes of the Agency. The Agency’s main tasks are to provide the Community with expertise on the market in nuclear materials and services and to monitor it. |
| --- | --- |

1.

The Euratom Supply Agency (hereafter ‘the Agency’), located in Luxembourg, was created in 1958 (1). Council Decision 2008/114/EC, Euratom of 12 February 2008 (2) replaced the preceding Statutes of the Agency. The Agency’s main tasks are to provide the Community with expertise on the market in nuclear materials and services and to monitor it.

| 2. | In 2008, the Agency did not receive any subsidy to cover its operations. The Commission took charge of all expenses incurred by the Agency for the implementation of the 2008 budget. The commitments carried over from the year 2007 were paid with the unused part of the 2007 subsidy. |
| --- | --- |

2.

In 2008, the Agency did not receive any subsidy to cover its operations. The Commission took charge of all expenses incurred by the Agency for the implementation of the 2008 budget. The commitments carried over from the year 2007 were paid with the unused part of the 2007 subsidy.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 8 of Council Decision 2008/114/EC, Euratom of 12 February 2008 (6). |
| --- | --- |

4.

The Director General’s responsibility

| 5. | As authorising officer, the Director General (7) implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations. The Director General is responsible for putting in place the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (8) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (9) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | In the absence of an autonomous budget, the Agency is de facto integrated in the Commission. This situation raises the issue of the need to maintain the Agency in its current form and organisation. |
| --- | --- |

13.

In the absence of an autonomous budget, the Agency is de facto integrated in the Commission. This situation raises the issue of the need to maintain the Agency in its current form and organisation.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

THE AGENCY’S REPLIES

| 13. | The present situation reflects the necessary balance in accordance with the Euratom Treaty between:






  — | on the one hand, the clear relationship with the European Commission (e.g. the Commission may issue directives and appoints the Director-General of the Agency); and |
| --- | --- | --- |

13.

The present situation reflects the necessary balance in accordance with the Euratom Treaty between:

—

on the one hand, the clear relationship with the European Commission (e.g. the Commission may issue directives and appoints the Director-General of the Agency); and

| — | on the other hand a level of legal and financial autonomy (e.g. the Agency co-signs all commercial contracts related to the procurement of nuclear materials, which allows it to ensure the policy of diversification of the sources of supply.) |
| --- | --- |

—

on the other hand a level of legal and financial autonomy (e.g. the Agency co-signs all commercial contracts related to the procurement of nuclear materials, which allows it to ensure the policy of diversification of the sources of supply.)

In cooperation with the Commission, this provides for initiatives that will reinforce the operationality and efficiency of the activities of the Agency.

---

(1)  OJ L 27, 6.12.1958, p. 534.

1

(2)  OJ L 41, 15.2.2008, p. 15.

2

(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.

3

(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.

4

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

5

(6)  OJ L 41, 15.2.2008, p. 15.

6

(7)  The responsibilities of the Director General are described in the Articles 7 and 8 of Council Decision 2008/114/EC, Euratom of 12 February 2008.

7

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

8

(9)  The Final Annual Accounts were drawn up on 15 May 2009 and received by the Court on 19 June 2009. These can be found on the following website http://eca.europa.eu or http://ec.europa.eu/euratom/accounts_en.html

9

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/10 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/10

---

REPORT

on the annual accounts of the European Fundamental Rights Agency for the financial year 2008, together with Agency’s replies

2009/C 304/03

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 11 |
| STATEMENT OF ASSURANCE... | 3-12 | 11 |
| OTHER MATTERS... | 13 | 12 |
| Table... | 13 |
| The Agency’s replies... | 15 |

Paragraph

Page

INTRODUCTION...

1-2

11

STATEMENT OF ASSURANCE...

3-12

11

OTHER MATTERS...

13

12

Table...

13

The Agency’s replies...

15

INTRODUCTION

| 1. | The European Union Fundamental Rights Agency (hereinafter ‘the Agency’), located in Vienna, was established by Council Regulation (EC) No 168/2007 of 15 February 2007 (1). The objective of the Agency is to provide the relevant authorities of the Community and its Member States with assistance and expertise when implementing Community law relating to fundamental rights (2). |
| --- | --- |

1.

The European Union Fundamental Rights Agency (hereinafter ‘the Agency’), located in Vienna, was established by Council Regulation (EC) No 168/2007 of 15 February 2007 (1). The objective of the Agency is to provide the relevant authorities of the Community and its Member States with assistance and expertise when implementing Community law relating to fundamental rights (2).

| 2. | The Agency’s 2008 budget amounted to 15 million euro compared with 14,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 72 as compared with 57 the previous year. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 15 million euro compared with 14,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 72 as compared with 57 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

OTHER MATTERS

| 13. | For each of its main activities, the Agency’s 2008 work programme lists planned projects, outputs and indicators which, however, are not clearly linked to the objectives laid out at the activity level. Objectives and indicators are not specific and measurable, which makes difficult to identify shortfalls and to assess achievements as is foreseen in Article 25.3 of the Framework financial regulation for the Agencies. In order to establish a genuinely activity based budget, the Agency should define precise objectives and establish relevant and measurable performance indicators. |
| --- | --- |

13.

For each of its main activities, the Agency’s 2008 work programme lists planned projects, outputs and indicators which, however, are not clearly linked to the objectives laid out at the activity level. Objectives and indicators are not specific and measurable, which makes difficult to identify shortfalls and to assess achievements as is foreseen in Article 25.3 of the Framework financial regulation for the Agencies. In order to establish a genuinely activity based budget, the Agency should define precise objectives and establish relevant and measurable performance indicators.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Union Agency for Fundamental Rights (Vienna)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as specified in Council Regulation (EC) No 168/2007 of 15 February 2007 | Governance | Resources made available to the Agency in 2008

  (Data for 2007) | Products and services supplied in 2008

  (Data for 2007) |
| --- | --- | --- | --- | --- |
| Collection of information







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

Areas of Community competence deriving from the Treaty

Competences of the Agency as specified in Council Regulation (EC) No 168/2007 of 15 February 2007

Governance

Resources made available to the Agency in 2008

(Data for 2007)

Products and services supplied in 2008

(Data for 2007)

Collection of information

—

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

(Article 284)

Objectives

| — | To provide the relevant institutions, bodies, offices and agencies of the Community and its Member States when implementing Community law with assistance and expertise relating to fundamental rights in order to support them when they take measures or formulate courses of action within their respective spheres of competence to fully respect fundamental rights. |
| --- | --- |

—

To provide the relevant institutions, bodies, offices and agencies of the Community and its Member States when implementing Community law with assistance and expertise relating to fundamental rights in order to support them when they take measures or formulate courses of action within their respective spheres of competence to fully respect fundamental rights.

Main tasks

| — | To collect, record, analyse and disseminate relevant, objective, reliable and comparable information and data |
| --- | --- |

—

To collect, record, analyse and disseminate relevant, objective, reliable and comparable information and data

| — | To develop methods and standards to improve the comparability, objectivity and reliability of data at European level |
| --- | --- |

—

To develop methods and standards to improve the comparability, objectivity and reliability of data at European level

| — | To carry out, cooperate with or encourage scientific research and surveys, preparatory studies and feasibility studies |
| --- | --- |

—

To carry out, cooperate with or encourage scientific research and surveys, preparatory studies and feasibility studies

| — | To formulate and publish conclusions and opinions on specific thematic topics, for the Union institutions and the Member States when implementing Community law |
| --- | --- |

—

To formulate and publish conclusions and opinions on specific thematic topics, for the Union institutions and the Member States when implementing Community law

| — | To publish an annual report on fundamental-rights issues covered by the areas of the Agency’s activity |
| --- | --- |

—

To publish an annual report on fundamental-rights issues covered by the areas of the Agency’s activity

| — | To publish thematic reports based on its analysis, research and surveys |
| --- | --- |

—

To publish thematic reports based on its analysis, research and surveys

| — | To publish an annual report on its activities |
| --- | --- |

—

To publish an annual report on its activities

| — | To develop a communication strategy and promote dialogue with civil society. |
| --- | --- |

—

To develop a communication strategy and promote dialogue with civil society.

1 —   Management Board

Composition

One independent person appointed by each Member State, one independent person appointed by the Council of Europe and two representatives of the Commission.

Duties

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

2 —   Executive Board

Composition

| — | Chairperson of the Management Board |
| --- | --- |

—

Chairperson of the Management Board

| — | Vice-Chairperson of the Management Board |
| --- | --- |

—

Vice-Chairperson of the Management Board

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

—

One representative of the Commission

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

—

Two other members of the Management Board

| — | The person appointed by the Council of Europe in the Management Board may participate in the meetings of the Executive Board |
| --- | --- |

—

The person appointed by the Council of Europe in the Management Board may participate in the meetings of the Executive Board

3 —   Scientific Committee

Composition

| — | Eleven independent persons, highly qualified in the field of fundamental rights |
| --- | --- |

—

Eleven independent persons, highly qualified in the field of fundamental rights

| — | The Management Board shall appoint the members following a transparent call for applications and selection procedure |
| --- | --- |

—

The Management Board shall appoint the members following a transparent call for applications and selection procedure

4 —   Director

Appointed by the Management Board on a proposal from the Commission and after opinions of the European Parliament and the Council of the European Union (who will state their preference).

5 —   External audit

Court of Auditors

6 —   Internal control

The Commission’s internal audit service

7 —   Discharge authority

Parliament on recommendation by the Council

Budget

15 million euro

(14,2 million euro)

Staff at 31 December 2008:

49 (46) foreseen in the establishment plan,

of which occupied: 35 (34)

- 23 (11) other staff (contract staff, seconded national experts, interim staff)

Total staff: 72 (57)

undertaking the following tasks

| | operational: 42 (31) |
| --- | --- |

operational: 42 (31)

| | administrative: 24 (21) |
| --- | --- |

administrative: 24 (21)

| | mixed: 6 (5) |
| --- | --- |

mixed: 6 (5)

Raxen

Number of contributions by the 27 national focal points: 219 (245)

Number of meetings: 1 (1)

Fralex

Number of contributions by legal experts 201 (0)

Number of meetings 2 (0)

Research Reports

| | Number of reports: 6 (4) |
| --- | --- |

Number of reports: 6 (4)

| | Number of meetings: 21 (6) |
| --- | --- |

Number of meetings: 21 (6)

| | Annual Reports: 2 (2) |
| --- | --- |

Annual Reports: 2 (2)

Non-Research materials

Various publications: 13 (15)

Cooperation with Member States and other Institutions

| | Member States: 9 (7) |
| --- | --- |

Member States: 9 (7)

| | European Commission: 17 (8) |
| --- | --- |

European Commission: 17 (8)

| | European Parliament: 6 (6) |
| --- | --- |

European Parliament: 6 (6)

| | Committee of the Regions: 2 (1) |
| --- | --- |

Committee of the Regions: 2 (1)

| | Council of Europe: 25 (4) |
| --- | --- |

Council of Europe: 25 (4)

| | OSCE: 7 (5) |
| --- | --- |

OSCE: 7 (5)

| | United Nations: 6 (2) |
| --- | --- |

United Nations: 6 (2)

| | Other meetings and round tables: 18 (23) |
| --- | --- |

Other meetings and round tables: 18 (23)

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | The Agency’s 2009 Annual Work Programme defines S.M.A.R.T. objectives per activity and therefore the Activity Based Management approach has been improved.
  Moreover, mid-2009, the Agency started the implementation of an Activity Based Budget software that will provide clear indicators on the financial and human resources allocated. |
| --- | --- |

13.

The Agency’s 2009 Annual Work Programme defines S.M.A.R.T. objectives per activity and therefore the Activity Based Management approach has been improved.

Moreover, mid-2009, the Agency started the implementation of an Activity Based Budget software that will provide clear indicators on the financial and human resources allocated.

---

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

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

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

7

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

8

(9)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in chapter 1 of Title VII of Commission Regulation (EC, Euratom) No 2343/2002 as last amended by Commission 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 Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 24 April 2009 and received by the Court on 5 June 2009. 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.fra.europa.eu/fraWebsite/home/home_en.htm

11

Official Journal of the European Union

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/16 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/16

---

REPORT

on the annual accounts of the European Network and Information Security Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/04

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 17 |
| STATEMENT OF ASSURANCE ... | 3-12 | 17 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13-14 | 18 |
| Table ... | 19 |
| The Agency’s replies... | 20 |

Paragraph

Page

INTRODUCTION ...

1-2

17

STATEMENT OF ASSURANCE ...

3-12

17

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13-14

18

Table ...

19

The Agency’s replies...

20

INTRODUCTION

| 1. | The European Network and Information Security Agency (hereinafter ‘the Agency’), located in Heraklion, was created by Regulation (EC) No 460/2004 of the European Parliament and of the Council of 10 March 2004 (1). The Agency’s main task is to enhance the Community’s capability to prevent and respond to network and information security problems by building on national and Community efforts (2). |
| --- | --- |

1.

The European Network and Information Security Agency (hereinafter ‘the Agency’), located in Heraklion, was created by Regulation (EC) No 460/2004 of the European Parliament and of the Council of 10 March 2004 (1). The Agency’s main task is to enhance the Community’s capability to prevent and respond to network and information security problems by building on national and Community efforts (2).

| 2. | The Agency’s 2008 budget amounted to 8,4 million euro compared with 8,3 million euro the previous year. The number of staff employed by the Agency at the end of the year was 58 as compared with 56 the previous year. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 8,4 million euro compared with 8,3 million euro the previous year. The number of staff employed by the Agency at the end of the year was 58 as compared with 56 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | For the 2005-2007 period, VAT paid by the Agency and still to be recovered from the hosting Member State amounted to approximately 45 000 euro. Despite the considerable efforts made by the Agency since 2005, no solution had yet been found for the reimbursement of this amount by the national tax authorities. |
| --- | --- |

13.

For the 2005-2007 period, VAT paid by the Agency and still to be recovered from the hosting Member State amounted to approximately 45 000 euro. Despite the considerable efforts made by the Agency since 2005, no solution had yet been found for the reimbursement of this amount by the national tax authorities.

| 14. | In one procurement procedure (12), for a three year framework service contract, needs were underestimated and the available budget for this expenditure for the entire year was consumed within six months. Underestimating procurement budgets constitute an obstacle to fair competition as firms are less prone to present offers for limited amounts. |
| --- | --- |

14.

In one procurement procedure (12), for a three year framework service contract, needs were underestimated and the available budget for this expenditure for the entire year was consumed within six months. Underestimating procurement budgets constitute an obstacle to fair competition as firms are less prone to present offers for limited amounts.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Network and Information Security Agency (Heraklion)

| Areas of Community competence | Competences of the Agency (Regulation (EC) No 460/2004 of the European Parliament and of the Council) | Governance | Resources made available to the Agency

  (Data for 2007) | Products and services supplied in 2008 |
| --- | --- | --- | --- | --- |
| The representatives of the Member State governments have, by common agreement, adopted a statement on the creation of a European Network and Information Security Agency. The Agency should operate as a point of reference and establish confidence by virtue of its independence, the quality of the advice it delivers and the information it disseminates, the transparency of its procedures and methods of operating, and its diligence in performing the tasks assigned to it.

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







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

Areas of Community competence

Competences of the Agency (Regulation (EC) No 460/2004 of the European Parliament and of the Council)

Governance

Resources made available to the Agency

(Data for 2007)

Products and services supplied in 2008

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

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

Objectives

—

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

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

—

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

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

—

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

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

—

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

Tasks

The Agency:

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

(a)

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

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

(b)

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

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

(c)

enhances cooperation between actors in its field;

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

(d)

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

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

(e)

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

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

(f)

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

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

(g)

tracks standards;

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

(h)

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

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

(i)

promotes risk assessment activities, on prevention solutions;

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

(j)

contributes to cooperation with third countries.

1 —   Management Board

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






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

1.

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

(a)

information and communication technologies industry;

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

(b)

consumer groups;

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

(c)

academic experts.

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

2.

Board members may be replaced by alternates.

2 —   Executive Director

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

1.

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

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

2.

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

3 —   External audit

Court of Auditors.

4 —   Internal audit

The Commission’s Internal Auditor.

5 —   Discharge authority

Parliament acting on recommendation by the Council.

Budget

8,4 (8,3) million euro

Staff at 31 December 2008

| — | 44 (44) posts according to the establishment plan. Posts occupied 39 (42); |
| --- | --- |

—

44 (44) posts according to the establishment plan. Posts occupied 39 (42);

| — | Other posts: 12 (11) Contract Staff, 5 (2) SNEs, 2 (2) Trainees. |
| --- | --- |

—

Other posts: 12 (11) Contract Staff, 5 (2) SNEs, 2 (2) Trainees.

Total staff: 58 (56)

| | operational: 38 (31) |
| --- | --- |

operational: 38 (31)

| | administrative and policy: 20 (25) |
| --- | --- |

administrative and policy: 20 (25)

Improving resilience in European e-Communication networks

Stock taking of Member States policies and analysis of findings; good practice guidelines; stock taking of providers measure, technologies and standards that enhance the resilience of public communication; Analysis of resilience features of public communication and Deployment Scenarios

Developing and maintaining co operation between Member States

Cooperation models through community building, conferences, etc.; a co-operation platform for the awareness raising community; good practice sharing for CERT communities; supporting the take up of interoperable eIDs; NIS brokerage.

Identifying emerging risks for creating trust and confidence

A framework to enable decision makers to better assess emerging risks arising from new technologies; a European capacity for the evaluation of emerging risks; multi-stakeholder dialogue with public and private sector decision makers; position papers on emerging risks arising from new technologies.

Building information confidence with micro enterprises:

Analysing micro enterprises needs; Piloting ENISA’s risk assessment on micro enterprises

Requests for assistance:

Responses to five requests for assistance (Austria, Bulgaria, Cyprus, Greece, European Parliament).

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | The Agency will continue to take all possible measures available to it in order to have this matter resolved. |
| --- | --- |

13.

The Agency will continue to take all possible measures available to it in order to have this matter resolved.

| 14. | The budget estimation for this particular project was made at a time when the turnover of the Agency’s staff was relatively low. This estimate was made with the assumption that when the staffing needs of the Agency were fully met, a very limited number of interim agents would be required, if any. This line of reasoning was not entirely correct due to the continual steep staff turnover. The Agency has been monitoring the actual consumption in this contract and as a result a new call for tenders was issued in third quarter of 2009. |
| --- | --- |

14.

The budget estimation for this particular project was made at a time when the turnover of the Agency’s staff was relatively low. This estimate was made with the assumption that when the staffing needs of the Agency were fully met, a very limited number of interim agents would be required, if any. This line of reasoning was not entirely correct due to the continual steep staff turnover. The Agency has been monitoring the actual consumption in this contract and as a result a new call for tenders was issued in third quarter of 2009.

---

(1)  OJ L 77, 13.3.2004, p. 1.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 80).

7

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

8

(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 Commission 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 Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 17 June 2009 and received by the Court on 6 July 2009. 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.enisa.europa.eu/about-enisa/accounting-finance

11

Official Journal of the European Union

(12)  Framework service contract for the provision of temporary interim staff (175 000 euro over three years) while on the basis of the effective expenditure during the first six months, the total value of the contract over three years can be estimated at 1 050 000 euro.

12

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/21 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/21

---

REPORT

on the annual accounts of the European Aviation Safety Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/05

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 22 |
| STATEMENT OF ASSURANCE ... | 3-12 | 22 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13-14 | 23 |
| OTHER MATTERS ... | 15-16 | 23 |
| Table ... | 24 |
| The Agency’s replies... | 26 |

Paragraph

Page

INTRODUCTION ...

1-2

22

STATEMENT OF ASSURANCE ...

3-12

22

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13-14

23

OTHER MATTERS ...

15-16

23

Table ...

24

The Agency’s replies...

26

INTRODUCTION

| 1. | The European Aviation Safety Agency (hereinafter ‘the Agency’), located in Köln, was established by Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002 (1). The Agency’s tasks are to maintain a high level of civil aviation safety, to ensure the proper development of civil aviation safety, to establish certification specifications and to provide certification of aeronautical products (2). |
| --- | --- |

1.

The European Aviation Safety Agency (hereinafter ‘the Agency’), located in Köln, was established by Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002 (1). The Agency’s tasks are to maintain a high level of civil aviation safety, to ensure the proper development of civil aviation safety, to establish certification specifications and to provide certification of aeronautical products (2).

| 2. | The Agency’s 2008 budget amounted to 102 million euro compared with 72 million euro the previous year. The number of staff employed by the Agency at the end of the year was 442 as compared with 362 the previous year. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 102 million euro compared with 72 million euro the previous year. The number of staff employed by the Agency at the end of the year was 442 as compared with 362 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) as prepared by the Agency’s accounting officer that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | A high level of appropriations was carried forward to 2009. This is mainly operating expenditure (over 53 million euro) and was due to the following reasons: the accumulated assigned revenue (provision) for expenditure funded by fees and charges (29,5 million euro), delays in invoicing by the national aviation authorities for outsourced certification activities and other delays in the implementation of the enterprise resource planning system. This situation is at odds with the principle of annuality. |
| --- | --- |

13.

A high level of appropriations was carried forward to 2009. This is mainly operating expenditure (over 53 million euro) and was due to the following reasons: the accumulated assigned revenue (provision) for expenditure funded by fees and charges (29,5 million euro), delays in invoicing by the national aviation authorities for outsourced certification activities and other delays in the implementation of the enterprise resource planning system. This situation is at odds with the principle of annuality.

| 14. | In its first amending budget the Agency transferred about 6,6 million euro (15 %) of staff-related expenditure to operating expenditure in order to finance additional costs for the enterprise resource planning system (4,3 million euro) and the increased cost for outsourced certification activities. The significant level of transfers of staff appropriations to operating expenditure indicates unrealistic recruitment planning as well as shortcomings in the budgeting and the monitoring of the enterprise resource planning system. |
| --- | --- |

14.

In its first amending budget the Agency transferred about 6,6 million euro (15 %) of staff-related expenditure to operating expenditure in order to finance additional costs for the enterprise resource planning system (4,3 million euro) and the increased cost for outsourced certification activities. The significant level of transfers of staff appropriations to operating expenditure indicates unrealistic recruitment planning as well as shortcomings in the budgeting and the monitoring of the enterprise resource planning system.

OTHER MATTERS

| 15. | The new fees and charges regulation (12) was fully applied in 2008. According to the Agency’s analytical accounts, the 2008 economic outturn for certification tasks amounted to almost 10 million euro. This indicates that the system of annual flat fees generated income which is significantly above the actual cost. The Agency should analyse this development and establish a monitoring system at the level of certification projects to make sure that, over the entire project duration, the fees levied do not deviate significantly from the actual cost. |
| --- | --- |

15.

The new fees and charges regulation (12) was fully applied in 2008. According to the Agency’s analytical accounts, the 2008 economic outturn for certification tasks amounted to almost 10 million euro. This indicates that the system of annual flat fees generated income which is significantly above the actual cost. The Agency should analyse this development and establish a monitoring system at the level of certification projects to make sure that, over the entire project duration, the fees levied do not deviate significantly from the actual cost.

| 16. | The Agency’s 2008 work programme lists for each main activity the planned actions, priority objectives and indicators. Actions are often neither described in such a way as to be measurable nor are they clearly linked to objectives. Objectives and indicators are mainly output oriented and often not measurable. This situation makes it difficult to identify shortfalls and to monitor progress at all levels of activity. In order to have fully activity-based management allowing a continuous improvement in resource allocation and performance monitoring, the Agency should define precise and measurable objectives together with relevant performance indicators and promote the achieving of results. |
| --- | --- |

16.

The Agency’s 2008 work programme lists for each main activity the planned actions, priority objectives and indicators. Actions are often neither described in such a way as to be measurable nor are they clearly linked to objectives. Objectives and indicators are mainly output oriented and often not measurable. This situation makes it difficult to identify shortfalls and to monitor progress at all levels of activity. In order to have fully activity-based management allowing a continuous improvement in resource allocation and performance monitoring, the Agency should define precise and measurable objectives together with relevant performance indicators and promote the achieving of results.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Aviation Safety Agency (Köln)

| Areas of Community competence deriving from the Treaty | The Agency’s powers as defined in Regulation (EC) No 216/2008 of the Parliament and of the Council (the ‘Basic Regulation’) | Governance | Resources made available to the Agency in 2008
  (Data for 2007) | Products and services |
| --- | --- | --- | --- | --- |
| Common transport policy:
  The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport.

  (Article 80 of the Treaty) | Objectives







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

Areas of Community competence deriving from the Treaty

The Agency’s powers as defined in Regulation (EC) No 216/2008 of the Parliament and of the Council (the ‘Basic Regulation’)

Governance

Resources made available to the Agency in 2008

(Data for 2007)

Products and services

Common transport policy:

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

(Article 80 of the Treaty)

Objectives

—

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

Measures to be adopted by the Agency

| — | To issue opinions and recommendations to the Commission, |
| --- | --- |

—

To issue opinions and recommendations to the Commission,

| — | To issue certification specifications, including airworthiness codes and acceptable means of compliance, and any guidance material for the application of the Basic Regulation and its implementing rules, |
| --- | --- |

—

To issue certification specifications, including airworthiness codes and acceptable means of compliance, and any guidance material for the application of the Basic Regulation and its implementing rules,

| — | To take decisions regarding airworthiness and environmental certification, pilot certification, air operation certification, third country operators, inspections of Member States and investigation of undertakings, |
| --- | --- |

—

To take decisions regarding airworthiness and environmental certification, pilot certification, air operation certification, third country operators, inspections of Member States and investigation of undertakings,

| — | To conduct standardisation inspections of the competent authorities in the Member States. |
| --- | --- |

—

To conduct standardisation inspections of the competent authorities in the Member States.

1 —   The Management Board

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

2 —   The Executive Director

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

3 —   The Board of Appeal

decides on appeals against the Agency’s decisions in certain respects such as certification, fees, charges and checks at undertakings.

4 —   External audit

The Court of Auditors.

5 —   Discharge authority

Parliament, acting on a recommendation by the Council.

Budget

Total budget: 100,9 (85,3) million euro, including:

| | Revenue from fees and charges: 67,2 (55,8) million euro (67 %) |
| --- | --- |

Revenue from fees and charges: 67,2 (55,8) million euro (67 %)

| | Community subsidy: 30 (26,5) million euro (30 %) |
| --- | --- |

Community subsidy: 30 (26,5) million euro (30 %)

| | Third Countries Contribution (including contribution from EFTA and Switzerland): 1,4 (1,4) million euro |
| --- | --- |

Third Countries Contribution (including contribution from EFTA and Switzerland): 1,4 (1,4) million euro

Staff at 31 December 2008

| | 452 temporary staff in the establishment plan. |
| --- | --- |

452 temporary staff in the establishment plan.

| | posts occupied: 403 (333) |
| --- | --- |

posts occupied: 403 (333)

| | other staff: 39, contract staff 37, seconded national expert 1, special advisor 1 |
| --- | --- |

other staff: 39, contract staff 37, seconded national expert 1, special advisor 1

Total temporary staff: 403

| — | subsidy-financed: 158 |
| --- | --- |

—

subsidy-financed: 158

| — | fee-financed: 245 |
| --- | --- |

—

fee-financed: 245

Opinions

6 Opinions for amendments to Regulations (EC) No 216/2008, (EC) No 1702/2003 and (EC) No 2042/2003

Rulemaking Decisions

11 Decisions related to certification: Specifications (7) and Acceptable Means of Compliance and Guidance Material (4)

International Cooperation

18 Working Arrangements with CAAC-China (15), GACA/Saudi Arabia (1), CAAS/Singapore (1) and CASA/Australia (1).

1 Modification to the Working Arrangement between JCAB/ Japan and EASA.

2 Implementing Procedures to the Working Arrangement between IAC-AR and EASA.

1 Implementing Procedure to the Working Arrangement between GCAA/UAE and EASA.

1 Memorandum of Understanding with CAA Pakistan.

Certification decisions at 31 December 2008

| | Type Certificates (TCs): 8 |
| --- | --- |

Type Certificates (TCs): 8

| | Supplemental type certificates (STCs): 764 |
| --- | --- |

Supplemental type certificates (STCs): 764

| | Airworthiness directives (ADs): 216 |
| --- | --- |

Airworthiness directives (ADs): 216

| | Alternative Method of Compliance (AMOC): 84 |
| --- | --- |

Alternative Method of Compliance (AMOC): 84

| | European Technical Standard Order Authorisation (ETSOA): 281 |
| --- | --- |

European Technical Standard Order Authorisation (ETSOA): 281

| | Major changes: 932 |
| --- | --- |

Major changes: 932

| | Minor changes: 2 241 |
| --- | --- |

Minor changes: 2 241

| | Major repairs: 82 |
| --- | --- |

Major repairs: 82

Certification decisions at 31 December 2008 (continued)

| | Minor repairs: 148 |
| --- | --- |

Minor repairs: 148

| | Aircraft flight manual (AFM): 468 |
| --- | --- |

Aircraft flight manual (AFM): 468

| | Approval of flight conditions (PTF): 296 |
| --- | --- |

Approval of flight conditions (PTF): 296

| | Approval of Design organisations: 509 |
| --- | --- |

Approval of Design organisations: 509

| | Approval of Maintenance organisations (bilateral) (13): 1 372 |
| --- | --- |

Approval of Maintenance organisations (bilateral) (13): 1 372

| | Approval of Maintenance organisations (foreign) (13): 233 |
| --- | --- |

Approval of Maintenance organisations (foreign) (13): 233

| | Approval of Maintenance training organisations (13): 28 |
| --- | --- |

Approval of Maintenance training organisations (13): 28

| | Approval of Manufacturing (13): 20 |
| --- | --- |

Approval of Manufacturing (13): 20

Standardisation inspections (number of countries by type) at 31 December 2008

| | In the field of Maintenance (CAW): 27 |
| --- | --- |

In the field of Maintenance (CAW): 27

| | In the field of Production (IAW): 12 |
| --- | --- |

In the field of Production (IAW): 12

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | As noted by the Court, the majority of the commitments and appropriations carried forward, which are inherent to the Agency’s business cycle, correspond to advance payments received from applicants and late invoicing by the National Aviation Authorities. The commitments carried forward relating to the implementation of the enterprise resource planning system (ERP) resulted from a delay in signing the contract for the service. |
| --- | --- |

13.

As noted by the Court, the majority of the commitments and appropriations carried forward, which are inherent to the Agency’s business cycle, correspond to advance payments received from applicants and late invoicing by the National Aviation Authorities. The commitments carried forward relating to the implementation of the enterprise resource planning system (ERP) resulted from a delay in signing the contract for the service.

| 14. | The transfer was due to the higher than expected difficulty in recruiting staff with specific expertise which has slowed down the process of the internalisation of certification tasks, a number of resignations and a high number of internal applicants who succeeded in external recruitment processes (approx. 25) opened in 2008. On the other hand, there was a need for additional funds for the implementation of the enterprise resource planning system (ERP). |
| --- | --- |

14.

The transfer was due to the higher than expected difficulty in recruiting staff with specific expertise which has slowed down the process of the internalisation of certification tasks, a number of resignations and a high number of internal applicants who succeeded in external recruitment processes (approx. 25) opened in 2008. On the other hand, there was a need for additional funds for the implementation of the enterprise resource planning system (ERP).

| 15. | This is the first full year of implementation of certification tasks under the new fees and charges regulation. The Agency is continuing to perform in-depth analysis on the objective reasons explaining such a surplus, for example a high amount of overtime for Certification work which was not considered as a cost in the accounting system. This analysis will form the basis of the eventual review of the charging system with the Commission and the Industry. |
| --- | --- |

15.

This is the first full year of implementation of certification tasks under the new fees and charges regulation. The Agency is continuing to perform in-depth analysis on the objective reasons explaining such a surplus, for example a high amount of overtime for Certification work which was not considered as a cost in the accounting system. This analysis will form the basis of the eventual review of the charging system with the Commission and the Industry.

| 16. | The Agency is in the process of attaining certification against the ISO9001:2008 system and part of which is the development of objectives and key performance indicators (KPIs), the quality of which has been improved in the 2010 work programme. The assessment of these objectives and utilisation of the key performance indicators (KPIs) will be supported by the implementation of a more robust information system, i.e. the enterprise resource planning system. |
| --- | --- |

16.

The Agency is in the process of attaining certification against the ISO9001:2008 system and part of which is the development of objectives and key performance indicators (KPIs), the quality of which has been improved in the 2010 work programme. The assessment of these objectives and utilisation of the key performance indicators (KPIs) will be supported by the implementation of a more robust information system, i.e. the enterprise resource planning system.

---

(1)  OJ L 240, 7.9.2002, p. 1.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 80).

7

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

8

(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 Commission 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 Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 18 June 2009 and received by the Court on 6 July 2009. 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 www.easa.europa.eu

11

Official Journal of the European Union

(12)  Commission Regulation (EC) No 593/2007 of 31.5.2007 on the fees and charges levied by the European Aviation Safety Agency.

12

(13)  The organisation approval activity is subdivided into a main surveillance activity of already approved organisations (with a renewal every 2/3 years) and an activity linked to new approvals. The data supplied concern the total number of approvals on 31 December 2008.

13

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/27 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/27

---

REPORT

on the annual accounts of the European Medicines Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/06

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 28 |
| STATEMENT OF ASSURANCE... | 3-12 | 28 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13-15 | 29 |
| Table... | 30 |
| The Agency’s replies... | 32 |

Paragraph

Page

INTRODUCTION...

1-2

28

STATEMENT OF ASSURANCE...

3-12

28

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13-15

29

Table...

30

The Agency’s replies...

32

INTRODUCTION

| 1. | The European Medicines Agency (hereinafter ‘the Agency’), located in London, was created by Council Regulation (EEC) No 2309/93 of 22 July 1993, which was replaced by Regulation (EC) No 726/2004 of the European Parliament and of the Council of 31 March 2004 (1). The Agency operates through a network and coordinates the scientific resources made available by the national authorities in order to ensure the evaluation and supervision of medicinal products for human or veterinary use (2). |
| --- | --- |

1.

The European Medicines Agency (hereinafter ‘the Agency’), located in London, was created by Council Regulation (EEC) No 2309/93 of 22 July 1993, which was replaced by Regulation (EC) No 726/2004 of the European Parliament and of the Council of 31 March 2004 (1). The Agency operates through a network and coordinates the scientific resources made available by the national authorities in order to ensure the evaluation and supervision of medicinal products for human or veterinary use (2).

| 2. | The Agency’s 2008 budget amounted to 182,9 million euro compared with 163,1 million euro the previous year. The number of staff employed by the Agency at the end of the year was 587 as compared with 518 in the previous year. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 182,9 million euro compared with 163,1 million euro the previous year. The number of staff employed by the Agency at the end of the year was 587 as compared with 518 in the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | Of the budget appropriations, 36 million euro were carried over and 9,7 million euro were cancelled. As in previous years, the high level of carry-overs for administrative expenditure - 21,4 million euro - was mainly due for IT expenditure for a programme for the regulation of medical products (12). This situation has existed for a number of years and is at odds with the annuality principle. The Agency should take the appropriate steps to address this shortcoming. |
| --- | --- |

13.

Of the budget appropriations, 36 million euro were carried over and 9,7 million euro were cancelled. As in previous years, the high level of carry-overs for administrative expenditure - 21,4 million euro - was mainly due for IT expenditure for a programme for the regulation of medical products (12). This situation has existed for a number of years and is at odds with the annuality principle. The Agency should take the appropriate steps to address this shortcoming.

| 14. | The Agency has had a long standing policy to enter into forward foreign exchange contract for the next financial year in order to hedge part (50 %) of its administrative budget against unfavourable fluctuations of the exchange rate for the sterling (13). As the 2008 closing sterling rate used for drawing up the financial statements was significantly higher than foreseen when the contract was made (in August 2008), the Agency accounted for a negative fair value movement of 8,7 million euro in its capital account. The Agency should consider reassessing its policy in the light of the risks incurred. |
| --- | --- |

14.

The Agency has had a long standing policy to enter into forward foreign exchange contract for the next financial year in order to hedge part (50 %) of its administrative budget against unfavourable fluctuations of the exchange rate for the sterling (13). As the 2008 closing sterling rate used for drawing up the financial statements was significantly higher than foreseen when the contract was made (in August 2008), the Agency accounted for a negative fair value movement of 8,7 million euro in its capital account. The Agency should consider reassessing its policy in the light of the risks incurred.

| 15. | As was the case last year (14), the audit of the tendering procedures showed weaknesses: inadequate evaluation methods for the price criteria (15), insufficient justification of chosen procedures (16) and other procedural weaknesses (17). The Agency should aim to improve the quality of its public procurement procedures in order to address the issues highlighted above. |
| --- | --- |

15.

As was the case last year (14), the audit of the tendering procedures showed weaknesses: inadequate evaluation methods for the price criteria (15), insufficient justification of chosen procedures (16) and other procedural weaknesses (17). The Agency should aim to improve the quality of its public procurement procedures in order to address the issues highlighted above.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Medicines Agency (London)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Regulation (EC) No 726/2004 of the European Parliament and of the Council | Governance | Resources made available to the Agency in 2008

  (Data for 2007) | Products and Services in 2008

  (Data for 2007) |
| --- | --- | --- | --- | --- |
| A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities.
  Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases and obviating sources of danger to human health. (...)

  (Article 152 of the Treaty) | Objectives







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

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 726/2004 of the European Parliament and of the Council

Governance

Resources made available to the Agency in 2008

(Data for 2007)

Products and Services in 2008

(Data for 2007)

A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities.

Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases and obviating sources of danger to human health. (...)

(Article 152 of the Treaty)

Objectives

—

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

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

—

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

Tasks

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

—

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

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

—

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

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

—

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

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

—

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

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

—

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

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

1 —

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

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

2 —

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

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

3 —

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

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

4 —

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

| 5 — | The Paediatric Committee consisting of one member and one alternate from each Member State, six members and alternates representing healthcare professionals and patients’ associations, responsible for the scientific assessment and agreement of paediatric investigation plans and for the system of waivers and deferrals thereof. |
| --- | --- |

5 —

The Paediatric Committee consisting of one member and one alternate from each Member State, six members and alternates representing healthcare professionals and patients’ associations, responsible for the scientific assessment and agreement of paediatric investigation plans and for the system of waivers and deferrals thereof.

| 6 — | The Management Board consists of one member and one alternate from each Member State, two representatives of the Commission, two representatives appointed by the European Parliament, two representatives from patients’ organisations, one representative from doctors’ organisations and one representative from veterinarians’ organisations. The Board adopts the work programme and the annual report. |
| --- | --- |

6 —

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

| 7 — | The Executive Director is appointed by the Management Board on a proposal from the Commission. |
| --- | --- |

7 —

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

| 8 — | External audit Court of Auditors, Commission Internal Audit Service. |
| --- | --- |

8 —

External audit Court of Auditors, Commission Internal Audit Service.

| 9 — | Discharge authority Parliament acting on recommendation of the Council. |
| --- | --- |

9 —

Discharge authority Parliament acting on recommendation of the Council.

Budget

182,9 million euro (163,1 million euro)

Community contribution (excluding subsidy for orphan medicines): 21,9 % (24,3 %)

Staff at 31 December 2008

| | Posts provided for in the establishment plan: 481 (441) |
| --- | --- |

Posts provided for in the establishment plan: 481 (441)

| | Posts occupied: 469 (422)

  - 118 (77) other staff (contract agents seconded national experts, employment agency staff) |
| --- | --- |

Posts occupied: 469 (422)

- 118 (77) other staff (contract agents seconded national experts, employment agency staff)

Total staff:

587 (518)

Assigned to the following duties:

| | Operational: 483 (444) |
| --- | --- |

Operational: 483 (444)

| | Administrative: 104 (18) (74) |
| --- | --- |

Administrative: 104 (18) (74)

Medicinal Products for Human Use

| — | Applications for marketing authorisations: 103 (91) |
| --- | --- |

—

Applications for marketing authorisations: 103 (91)

| — | Favourable opinions: 68 (58) |
| --- | --- |

—

Favourable opinions: 68 (58)

| — | Average evaluation time: 184 days (171 days) |
| --- | --- |

—

Average evaluation time: 184 days (171 days)

| — | Opinions after authorisation: 2 122(1 899) |
| --- | --- |

—

Opinions after authorisation: 2 122(1 899)

| — | Pharmacovigilance (CAP EEA and non-EEA ADR reports): 193 587 reports (150 188 reports) |
| --- | --- |

—

Pharmacovigilance (CAP EEA and non-EEA ADR reports): 193 587 reports (150 188 reports)

| — | Periodic safety update reports: 391 (313) |
| --- | --- |

—

Periodic safety update reports: 391 (313)

| — | Scientific advice finalised: 263 (215) |
| --- | --- |

—

Scientific advice finalised: 263 (215)

| — | Procedures for mutual recognition: started 14 522(12 109); ended positively 12 681(10 932) |
| --- | --- |

—

Procedures for mutual recognition: started 14 522(12 109); ended positively 12 681(10 932)

| — | Applications for paediatric investigation plans: 271 (85) relating to 395 (202) indications |
| --- | --- |

—

Applications for paediatric investigation plans: 271 (85) relating to 395 (202) indications

Medicinal Products for Veterinary Use

| — | New applications: 13 (14) |
| --- | --- |

—

New applications: 13 (14)

| — | Applications in respect of variants: 100 (100) |
| --- | --- |

—

Applications in respect of variants: 100 (100)

| — | Inspections: 253 (185) |
| --- | --- |

—

Inspections: 253 (185)

Orphan Medicinal Products

| — | Applications: 119 (125) |
| --- | --- |

—

Applications: 119 (125)

| — | Favourable opinions: 86 (97) |
| --- | --- |

—

Favourable opinions: 86 (97)

SMEs

| — | Requests for SME status 242 (212) |
| --- | --- |

—

Requests for SME status 242 (212)

| — | Applications for fee reduction or deferrals 84 (81) |
| --- | --- |

—

Applications for fee reduction or deferrals 84 (81)

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | The Agency takes note of the Court’s observations. It is confirmed that the main reason for carry over in the IT area are a number of multiannual pan-European projects. The Agency will make every effort to respect more closely the annuality principle. |
| --- | --- |

13.

The Agency takes note of the Court’s observations. It is confirmed that the main reason for carry over in the IT area are a number of multiannual pan-European projects. The Agency will make every effort to respect more closely the annuality principle.

| 14. | The Agency believes that over the long term it is prudent to manage the currency exposure risk. We have taken into account the Court’s observation and an internal management group will look at the hedging strategy to follow for 2010 in conjunction with the Agency’s bank. |
| --- | --- |

14.

The Agency believes that over the long term it is prudent to manage the currency exposure risk. We have taken into account the Court’s observation and an internal management group will look at the hedging strategy to follow for 2010 in conjunction with the Agency’s bank.

| 15. | The Agency takes note of the observed weaknesses and has taken action to improve the implementation and accompanying controls of procurement and tender procedures. |
| --- | --- |

15.

The Agency takes note of the observed weaknesses and has taken action to improve the implementation and accompanying controls of procurement and tender procedures.

---

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

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 30 June 2009 and received by the Court on 6 July 2009. 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.emea.europa.eu/htms/general/manage/ar.htm

11

Official Journal of the European Union

(12)  In the case of one contract for IT services, 6,8 million euro have been committed at the end of 2008 and almost the entire amount has been carried over to be used in the next year.

12

(13)  See note 17 to the Financial Statements for the financial year 2008.

13

(14)  See paragraph 8 of 2007 Annual Report (OJ C 311, 5.12.2008, p. 28).

14

(15)  Four cases, with values of 2 million euro, 1,8 million euro, 0,6 million euro, 0,3 million euro.

15

(16)  One case, with value of 6,8 million euro.

16

(17)  Five cases, with values of 2 million euro, 6,8 million euro, 1,3 million euro, 2,4 million euro, 0,3 million euro.

17

(18)  For 2008, administrative staff has been redefined and include the internal audit and legal sectors.

18

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| 15.12.2009 | EN | Official Journal of the European Union | C 304/33 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/33

---

REPORT

on the annual accounts of the European Chemicals Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/07

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 34 |
| STATEMENT OF ASSURANCE ... | 3-12 | 34 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13-14 | 35 |
| OTHER MATTERS ... | 15 | 35 |
| Table ... | 36 |
| The Agency’s replies ... | 37 |

Paragraph

Page

INTRODUCTION ...

1-2

34

STATEMENT OF ASSURANCE ...

3-12

34

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13-14

35

OTHER MATTERS ...

15

35

Table ...

36

The Agency’s replies ...

37

INTRODUCTION

| 1. | The European Chemicals Agency (hereinafter referred to as ‘the Agency’), located in Helsinki, was set up by Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 (1). Its main tasks are ensure a high level of protection of human health and the environment as well as the free movement of substances, on their own, in preparations and in articles, while enhancing competitiveness and innovation. This Regulation should also promote the development of alternative methods for the assessment of hazards of substances (2). The Agency became financially independent from the Commission on 1 January 2008. |
| --- | --- |

1.

The European Chemicals Agency (hereinafter referred to as ‘the Agency’), located in Helsinki, was set up by Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 (1). Its main tasks are ensure a high level of protection of human health and the environment as well as the free movement of substances, on their own, in preparations and in articles, while enhancing competitiveness and innovation. This Regulation should also promote the development of alternative methods for the assessment of hazards of substances (2). The Agency became financially independent from the Commission on 1 January 2008.

| 2. | The Agency’s 2008 budget amounted to 66,4 million euro.The number of staff employed by the Agency at the end of the year was 244. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 66,4 million euro.The number of staff employed by the Agency at the end of the year was 244.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | Budgetary payments amounted to 36,4 million euro, 54 % of the amount committed. The operational activities in particular were delayed due to difficulties in implementing the IT system and the lack of qualified staff. Commitment appropriations amounting to 20 million euro were foreseen for operational activities but 8,2 million euro of these were carried forward and 7,5 million euro cancelled. This situation is at odds with the annuality principle and indicates weaknesses in the planning of the Agency’s activities. |
| --- | --- |

13.

Budgetary payments amounted to 36,4 million euro, 54 % of the amount committed. The operational activities in particular were delayed due to difficulties in implementing the IT system and the lack of qualified staff. Commitment appropriations amounting to 20 million euro were foreseen for operational activities but 8,2 million euro of these were carried forward and 7,5 million euro cancelled. This situation is at odds with the annuality principle and indicates weaknesses in the planning of the Agency’s activities.

| 14. | For a significant number of transactions, totalling more than 0,4 million euro, the expenditure was not covered by a budget commitment and as such was irregular. Payment appropriations were unduly carried forward to 2009; in most of the cases they were related to activities to be implemented in 2009 (12) and in one case, to an error in the evaluation of a commitment (13). This situation indicates a need for the Agency to improve its procedures for the following-up the use of its appropriations. |
| --- | --- |

14.

For a significant number of transactions, totalling more than 0,4 million euro, the expenditure was not covered by a budget commitment and as such was irregular. Payment appropriations were unduly carried forward to 2009; in most of the cases they were related to activities to be implemented in 2009 (12) and in one case, to an error in the evaluation of a commitment (13). This situation indicates a need for the Agency to improve its procedures for the following-up the use of its appropriations.

OTHER MATTERS

| 15. | The Agency’s Director appointed himself chairman of the selection board in 14 recruitment procedures. Given his prerogatives as Appointing Authority, the independence (14) of the other members, of these selection boards who are temporary agents subordinated to the Director was not guaranteed. The audit of three procedures showed weaknesses in the documentation summarising the work of the selection boards: in particular, a lack of justification for the decisions taken at the various stages in the selection process. |
| --- | --- |

15.

The Agency’s Director appointed himself chairman of the selection board in 14 recruitment procedures. Given his prerogatives as Appointing Authority, the independence (14) of the other members, of these selection boards who are temporary agents subordinated to the Director was not guaranteed. The audit of three procedures showed weaknesses in the documentation summarising the work of the selection boards: in particular, a lack of justification for the decisions taken at the various stages in the selection process.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Chemicals Agency (Helsinki)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Regulation (EC) No 1907/2006 (REACH Regulation) and Regulation (EC) No 1272/2008
  (Classification, labelling and packaging of substances and mixtures) | Governance | Resources made available to the Agency in 2008 | Products and services provided during the financial year 2008 |
| --- | --- | --- | --- | --- |
| The legal base of ECHA’s founding regulation, the REACH Regulation (EC) No 1907/2006, is

  Article 95 of the EC Treaty. | Objectives

  The purpose of the REACH Regulation is to ensure a high level of protection of human health and the environment, including the promotion of alternative methods for the assessment of the hazards of substances, as well as the free circulation of substances on the internal market, while enhancing competitiveness and innovation.
  The Agency should be central to ensuring that the legislation on chemicals and the decision-making processes and scientific bases underlying it have credibility with all stakeholders and the public. The Agency should also play a pivotal role in coordinating communication around this Regulation and in its implementation. The confidence in the Agency on the part of the Community institutions, the Member States, the general public and interested parties is therefore essential. For this reason, it is vital to ensure its independence and high scientific, technical and regulatory capacities as well as its transparency and efficiency. | Tasks

  ECHA was established for the purpose of managing, and in some cases, carrying out the technical, scientific and administrative aspects of the REACH Regulation and in order to ensure consistency at Community level in relation to these aspects.
  The Agency must also provide the Member States and the Community institutions with the best possible scientific and technical advice on questions relating to the chemicals which fall within its remit and which are referred to it in accordance with the provisions of the REACH Regulation.
  ECHA also has tasks related to the classification and labelling of chemical substances. In particular, the Agency must provide the Member States and Community institutions with the best possible scientific advice and provide industry and Member State authorities with technical and scientific guidance. | 1 -   Management Board


  Composition

  One representative of each Member State appointed by the Council and a maximum of six representatives appointed by the Commission, including three individuals from interested parties without voting rights and, in addition, two independent persons appointed by the European Parliament.

  Task

  Mainly adopting the annual and multi-annual work programme, the final budget, a general report, internal rules of procedures and the appointment of a disciplinary authority over the Executive Director. Also, the appointment of a Board of Appeal and Committee members.

  2 -   Director

  Daily management of the Agency.

  3 -   Other organs: various Committees, the Forum for the Exchange of Information on Enforcement, Secretariat and Board of Appeal


  4 -   External audit

  Court of Auditors.

  5 -   Discharge authority

  Parliament acting on recommendation by the Council. | Budget

  66,4 million euro:
  Community contribution 62,6 million euro.
  Fee income 3,8 million euro.

  Staff at 31 December 2008

  220 posts in the establishment plan
  Number of posts occupied: 210
  Other staff: 34
  Contract agents, seconded national experts and Interims
  Total staff number: 244
  Assigned to the following duties:






  — | 164 operational tasks: |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 1907/2006 (REACH Regulation) and Regulation (EC) No 1272/2008

(Classification, labelling and packaging of substances and mixtures)

Governance

Resources made available to the Agency in 2008

Products and services provided during the financial year 2008

The legal base of ECHA’s founding regulation, the REACH Regulation (EC) No 1907/2006, is

Article 95 of the EC Treaty.

Objectives

The purpose of the REACH Regulation is to ensure a high level of protection of human health and the environment, including the promotion of alternative methods for the assessment of the hazards of substances, as well as the free circulation of substances on the internal market, while enhancing competitiveness and innovation.

The Agency should be central to ensuring that the legislation on chemicals and the decision-making processes and scientific bases underlying it have credibility with all stakeholders and the public. The Agency should also play a pivotal role in coordinating communication around this Regulation and in its implementation. The confidence in the Agency on the part of the Community institutions, the Member States, the general public and interested parties is therefore essential. For this reason, it is vital to ensure its independence and high scientific, technical and regulatory capacities as well as its transparency and efficiency.

Tasks

ECHA was established for the purpose of managing, and in some cases, carrying out the technical, scientific and administrative aspects of the REACH Regulation and in order to ensure consistency at Community level in relation to these aspects.

The Agency must also provide the Member States and the Community institutions with the best possible scientific and technical advice on questions relating to the chemicals which fall within its remit and which are referred to it in accordance with the provisions of the REACH Regulation.

ECHA also has tasks related to the classification and labelling of chemical substances. In particular, the Agency must provide the Member States and Community institutions with the best possible scientific advice and provide industry and Member State authorities with technical and scientific guidance.

1 -   Management Board

Composition

One representative of each Member State appointed by the Council and a maximum of six representatives appointed by the Commission, including three individuals from interested parties without voting rights and, in addition, two independent persons appointed by the European Parliament.

Task

Mainly adopting the annual and multi-annual work programme, the final budget, a general report, internal rules of procedures and the appointment of a disciplinary authority over the Executive Director. Also, the appointment of a Board of Appeal and Committee members.

2 -   Director

Daily management of the Agency.

3 -   Other organs: various Committees, the Forum for the Exchange of Information on Enforcement, Secretariat and Board of Appeal

4 -   External audit

Court of Auditors.

5 -   Discharge authority

Parliament acting on recommendation by the Council.

Budget

66,4 million euro:

Community contribution 62,6 million euro.

Fee income 3,8 million euro.

Staff at 31 December 2008

220 posts in the establishment plan

Number of posts occupied: 210

Other staff: 34

Contract agents, seconded national experts and Interims

Total staff number: 244

Assigned to the following duties:

—

164 operational tasks:

| — | administrative and support tasks: 80 |
| --- | --- |

—

administrative and support tasks: 80

Preparations and capacity building as a new Agency in fields of registration, evaluation, authorisations and restrictions, classification and labelling and committees

Development of REACH-IT system and other IT systems

Administrative and management systems build up

Number of pre-registered substances: 150 000; 65 000 companies signed up

Number of dossiers registered: 1 460

Number of questions answered by helpdesk: 12 325

Number of new guidance documents issued: 6

Number of guidance updates issued: 10

Candidate list: 15 substances included.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

Ref. point 13:

As for other starting Agencies ECHA’s expenditure planning was difficult and the resulting budget implementation for 2008 by ECHA was suboptimal. For its first year of financial independence, the Management Board agreed to take over the Commission’s estimate for the 2008 budget. These estimates were developed under high levels of uncertainty and were on the safe side. The fast entry into operation (1.6.2008) and the extremely high number of pre-registrations (2,7 million instead of the estimated 132 000) required a concentration of resources on one single activity, affecting expenditure elsewhere. The emphasis in 2009 is on improving the planning and the monitoring of resources.

Ref. point 14:

The Agency agrees with the observation of the Court of Auditors. The end of the year operations of 2008 have been especially challenging due to lack of financial officers in the operational and technical units, which resulted in some cases in insufficient documenting or the inability to fully close all operations by year end. Currently, adequate staff is in place and the financial procedures as well as the internal controls have been revised and consolidated. The end of the year operations in 2009 will receive reinforced attention.

Ref. point 15:

The Director chaired 14 selection boards for management and key positions in the first 3 quarters of 2008, because the management in place at that point in time was acting on an interim basis. The participation of the Director in the selection board was balanced by an external evaluation of the candidates by an independent consultant firm, the inclusion of an observer from the Management Board and the fact that several selection board members were seconded officials from the Commission. For the future, the Agency has decided that the Director will no longer participate in the work of the selection boards. Moreover, guidance is in place to assist the selection boards’ work, in particular the need to motivate decisions taken.

---

(1)  OJ L 396, 30.12.2006, p. 1.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 15 June 2009 and received by the Court on 29 June 2009. 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://echa.europa.eu/publications/annual_accounts_en.asp

11

Official Journal of the European Union

(12)  Four cases of a total approximate value of 576 000 euro.

12

(13)  Value 100 000 euro.

13

(14)  Article 11 bis of the Staff Regulations.

14

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/38 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/38

---

REPORT

on the annual accounts of the European Agency for the Management of Operational Cooperation at the External Borders of the Member States for the financial year 2008, together with the Agency’s replies

2009/C 304/08

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 39 |
| STATEMENT OF ASSURANCE ... | 3-12 | 39 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13-17 | 40 |
| OTHER MATTERS ... | 18 | 40 |
| Table ... | 41 |
| The Agency’s replies ... | 42 |

Paragraph

Page

INTRODUCTION ...

1-2

39

STATEMENT OF ASSURANCE ...

3-12

39

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13-17

40

OTHER MATTERS ...

18

40

Table ...

41

The Agency’s replies ...

42

INTRODUCTION

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

1.

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

| 2. | The Agency’s 2008 budget amounted to 71,2 million euro compared with 42,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 185 as compared with 132 the previous year. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 71,2 million euro compared with 42,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 185 as compared with 132 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | In 2008, the budget increased by 29 million euro, nearly 69 % compared with the previous year. Considering that an equivalent amount of appropriations (30,3 million euro) had to be carried forward and that 13 million euro of appropriations had to be cancelled, the Agency did not have the capacity to cope with such a significant increase of its budget. |
| --- | --- |

13.

In 2008, the budget increased by 29 million euro, nearly 69 % compared with the previous year. Considering that an equivalent amount of appropriations (30,3 million euro) had to be carried forward and that 13 million euro of appropriations had to be cancelled, the Agency did not have the capacity to cope with such a significant increase of its budget.

| 14. | Amongst the 26,8 million euro of commitments for operational expenditures (title III) carried forward 0,85 million euro related to elapsed operations which should have been decommitted. |
| --- | --- |

14.

Amongst the 26,8 million euro of commitments for operational expenditures (title III) carried forward 0,85 million euro related to elapsed operations which should have been decommitted.

| 15. | More than 17 million euro were paid out in 2008 on the basis of unilateral grant decisions signed only by the Agency. This type of instrument was not foreseen, in the rules in force for Agencies. Article 75(2) of Commission Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (12) requires that grants must be covered by written agreements between the Agency and the beneficiary. Moreover, these decisions were frequently signed by the Agency after the activities have commenced or have even been completed. |
| --- | --- |

15.

More than 17 million euro were paid out in 2008 on the basis of unilateral grant decisions signed only by the Agency. This type of instrument was not foreseen, in the rules in force for Agencies. Article 75(2) of Commission Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (12) requires that grants must be covered by written agreements between the Agency and the beneficiary. Moreover, these decisions were frequently signed by the Agency after the activities have commenced or have even been completed.

| 16. | Legal commitments were entered into before the corresponding budgetary commitments. By the end of the year 49 ex-post commitments (13) were registered in the register of exceptions. This high number of exceptions shows a recurrent problem in the Agency’s commitment system. |
| --- | --- |

16.

Legal commitments were entered into before the corresponding budgetary commitments. By the end of the year 49 ex-post commitments (13) were registered in the register of exceptions. This high number of exceptions shows a recurrent problem in the Agency’s commitment system.

| 17. | The implementing rules to the Staff Regulations have not yet been adopted. For the recruitment procedures audited, the selection criteria and the threshold scores for passing to the next stage of the selection process had not been decided upon before the start of the evaluation process and the recruitment files were not always complete. This situation did not ensure transparent and non-discriminatory procedures. |
| --- | --- |

17.

The implementing rules to the Staff Regulations have not yet been adopted. For the recruitment procedures audited, the selection criteria and the threshold scores for passing to the next stage of the selection process had not been decided upon before the start of the evaluation process and the recruitment files were not always complete. This situation did not ensure transparent and non-discriminatory procedures.

OTHER MATTERS

| 18. | The Agency did not prepare a multiannual work programme and its annual work programme did not correspond to its budget. Budget modifications were made without a revision of the work programme even when the impact was significant. The introduction of an activity based budgeting system would make it easier to establish a clear link between the work programme and the financial forecasts. |
| --- | --- |

18.

The Agency did not prepare a multiannual work programme and its annual work programme did not correspond to its budget. Budget modifications were made without a revision of the work programme even when the impact was significant. The introduction of an activity based budgeting system would make it easier to establish a clear link between the work programme and the financial forecasts.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

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

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Council Regulation (EC) No 2007/2004 | Governance | Resources made available to the Agency in 2008

  (Data for 2007) | Products and services supplied in 2008 |
| --- | --- | --- | --- | --- |
| The Community policy in this area aims at developing common standards and procedures with regard to carrying out checks on persons crossing the external borders of the Member States; furthermore measures should be taken to ensure cooperation between the relevant departments of the administrations of the Member States in the areas covered by this title, as well as between the Member States and the Commission.

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

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






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

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Council Regulation (EC) No 2007/2004

Governance

Resources made available to the Agency in 2008

(Data for 2007)

Products and services supplied in 2008

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

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

Objectives

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

Frontex must:

(a)

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

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

(b)

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

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

(c)

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

Main tasks

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

1.

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

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

2.

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

| 3. | to carry out risk analysis; |
| --- | --- |

3.

to carry out risk analysis;

| 4. | to follow up on the development of research in control and surveillance; |
| --- | --- |

4.

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

| 5. | to assist Member States in circumstances requiring increased technical and operational assistance; |
| --- | --- |

5.

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

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

6.

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

1 —   Management Board

Composed of:

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

—

one representative of each Member State,

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

—

two representatives from the Commission,

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

—

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

2 —   Executive Director

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

3 —   External audit

European Court of Auditors.

4 —   Discharge Authority

Parliament acting on recommendation by the Council.

Budget

71,2 million euro (42,2 million euro)

| — | Community contribution 68,0 million euro – (41 million euro) |
| --- | --- |

—

Community contribution 68,0 million euro – (41 million euro)

Staff numbers at 31 December 2008

| — | Establishment plan: 94 (49) |
| --- | --- |

—

Establishment plan: 94 (49)

| — | Occupied: 75 (48) |
| --- | --- |

—

Occupied: 75 (48)

Other posts:

Contract staff planned 50 (20)

Contract staff occupied 44 (18)

SNE’s planned: 70 (67)

SNE’s occupied: 66 (61)

Total staff number: 185 (132)

Assigned to the following tasks:

| — | operational: 112 (103) |
| --- | --- |

—

operational: 112 (103)

| — | administrative: 73 (29) |
| --- | --- |

—

administrative: 73 (29)

Risk Analysis has produced assessments, quarterly reports, weekly evaluations, briefings, notes and other information papers.

On the Operational Cooperation side, 30 joint operations and 10 return operations were organised. Seven pilot projects were launched.

Training has continued with 192 activities involving 3 200 border guards.

Research & Development activities produced reports, bulletins, studies, 48 conferences and 6 projects were initiated.

Cooperation with Non-EU countries included the conclusion of working arrangements with Albania, Serbia, Montenegro, Bosnia and Herzegovina, the USA, Brazil, Croatia, Moldova, Georgia and the former Yugoslav Republic of Macedonia. A cooperation Plan with the Russian Federation was signed.

Cooperation with EUROPOL and other relevant organisations and the European Commission has continued and has been strengthened.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | The increase of 29 million euro left limited time to implement the additional activities. Substantial progress is expected in the level of utilisation of appropriations in 2009 and the coming years. |
| --- | --- |

13.

The increase of 29 million euro left limited time to implement the additional activities. Substantial progress is expected in the level of utilisation of appropriations in 2009 and the coming years.

| 14. | The Agency takes note of the Court’s comment. Corrections were made to the final annual financial statements. The Agency will also take additional measures to reinforce controls on commitments to be carried forward. |
| --- | --- |

14.

The Agency takes note of the Court’s comment. Corrections were made to the final annual financial statements. The Agency will also take additional measures to reinforce controls on commitments to be carried forward.

| 15. | A new Framework Partnership Agreement (FPA) was drafted in cooperation with the border authorities of the Member States. New FPAs are being signed with all border authorities that will participate in Frontex coordinated joint operations. The new system is expected to be in force by mid-2009 onwards. If in exceptional circumstances a grant is signed after activities have commenced, it will be entered in the register of exceptions (see point 16). |
| --- | --- |

15.

A new Framework Partnership Agreement (FPA) was drafted in cooperation with the border authorities of the Member States. New FPAs are being signed with all border authorities that will participate in Frontex coordinated joint operations. The new system is expected to be in force by mid-2009 onwards. If in exceptional circumstances a grant is signed after activities have commenced, it will be entered in the register of exceptions (see point 16).

| 16. | The introduction of measures to reduce the number of exceptions in 2008 has led to a significant decrease in the number of exceptions registered. In the period from January-end of May 2009, compared to the same period last year, there is a reduction of 50 % in the number of exceptions. |
| --- | --- |

16.

The introduction of measures to reduce the number of exceptions in 2008 has led to a significant decrease in the number of exceptions registered. In the period from January-end of May 2009, compared to the same period last year, there is a reduction of 50 % in the number of exceptions.

| 17. | The adoption of missing Implementing Rules to the Staff Regulation has been set up as a priority objective for 2009. At the end of 2009 Frontex shall have the most important implementing rules to the staff regulation adopted. For the recruitment corrective actions have been taken in 2009. |
| --- | --- |

17.

The adoption of missing Implementing Rules to the Staff Regulation has been set up as a priority objective for 2009. At the end of 2009 Frontex shall have the most important implementing rules to the staff regulation adopted. For the recruitment corrective actions have been taken in 2009.

| 18. | Frontex Regulation does not foresee a multiannual programme. However, in June 2009, the Frontex Management Board has agreed on a Multiannual Plan for the period 2010-2013.
  In addition, Frontex and the Management Board have drafted a proposal to the EC to introduce in its founding regulation a provision related to the implementation of a Strategy/Multiannual Plan. |
| --- | --- |

18.

Frontex Regulation does not foresee a multiannual programme. However, in June 2009, the Frontex Management Board has agreed on a Multiannual Plan for the period 2010-2013.

In addition, Frontex and the Management Board have drafted a proposal to the EC to introduce in its founding regulation a provision related to the implementation of a Strategy/Multiannual Plan.

Additional efforts have also been made to ensure consistency between the annual work programme, the budget and the establishment plan.

---

(1)  OJ L 349, 25.11.2004, p. 1.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 25 June 2009 and received by the Court on 2 July 2009. 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.frontex.europa.eu/finance/

11

Official Journal of the European Union

(12)  OJ L 181, 10.7.2008, p. 23.

12

(13)  With a total value of more than 1 million euro.

13

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| 15.12.2009 | EN | Official Journal of the European Union | C 304/43 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/43

---

REPORT

on the annual accounts of the European Agency for Reconstruction for the financial year 2008, together with the Agency’s replies

2009/C 304/09

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 44 |
| STATEMENT OF ASSURANCE... | 3-12 | 44 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13 | 45 |
| OTHER MATTERS... | 14 | 45 |
| Table... | 46 |
| The Agency’s replies... | 48 |

Paragraph

Page

INTRODUCTION...

1-2

44

STATEMENT OF ASSURANCE...

3-12

44

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13

45

OTHER MATTERS...

14

45

Table...

46

The Agency’s replies...

48

INTRODUCTION

| 1. | The European Agency for Reconstruction (hereinafter ‘the Agency’), located in Thessaloniki, was established by Council Regulation (EC) No 1628/96 (1), as last amended by Council Regulation (EC) No 1756/2006 of 28 November 2006 (2). When it was set up in 2000, the Agency was responsible for managing the EU’s aid programmes in Kosovo. Its mandate was later extended to Serbia and Montenegro and the former Yugoslav Republic of Macedonia. The Agency’s head office was in Thessaloniki and it had operational centres in Belgrade, Podgorica, Pristina and Skopje. It implemented programmes to foster institution- building and good governance, to promote the development of a market economy and essential infrastructure and to consolidate civil society (3). Its mandate ended on 31 December 2008. The ongoing programmes were transferred to the Commission during the year (4). After 31 December 2008 the Agency’s remaining assets became the property of the Commission (5). |
| --- | --- |

1.

The European Agency for Reconstruction (hereinafter ‘the Agency’), located in Thessaloniki, was established by Council Regulation (EC) No 1628/96 (1), as last amended by Council Regulation (EC) No 1756/2006 of 28 November 2006 (2). When it was set up in 2000, the Agency was responsible for managing the EU’s aid programmes in Kosovo. Its mandate was later extended to Serbia and Montenegro and the former Yugoslav Republic of Macedonia. The Agency’s head office was in Thessaloniki and it had operational centres in Belgrade, Podgorica, Pristina and Skopje. It implemented programmes to foster institution- building and good governance, to promote the development of a market economy and essential infrastructure and to consolidate civil society (3). Its mandate ended on 31 December 2008. The ongoing programmes were transferred to the Commission during the year (4). After 31 December 2008 the Agency’s remaining assets became the property of the Commission (5).

| 2. | The Agency’s 2008 budget amounted to 235 million euro compared with 250,2 million euro the previous year. For the 2008, the Agency had no appropriations for operational activities (title III); its main activities consisted of completing the implementation of programmes launched in preceding years. All the operational activities delegated by the Commission to the Agency were taken back by the Commission at the end of September and the administrative activities of the Agency ceased completely at the year end. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 235 million euro compared with 250,2 million euro the previous year. For the 2008, the Agency had no appropriations for operational activities (title III); its main activities consisted of completing the implementation of programmes launched in preceding years. All the operational activities delegated by the Commission to the Agency were taken back by the Commission at the end of September and the administrative activities of the Agency ceased completely at the year end.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (6) of the Agency, which comprise the ‘financial statements’ (7) and the ‘reports on implementation of the budget’ (8) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (9). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (10). The Director is responsible for putting in place (11) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (12) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (13) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (14) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | A grant of 1 399 132 euro was directly awarded to an international organisation. None of the formal conditions required for a direct grant award was fulfilled in this case and it is thus irregular. The advance payment linked to this grant was 532 594 euro. |
| --- | --- |

13.

A grant of 1 399 132 euro was directly awarded to an international organisation. None of the formal conditions required for a direct grant award was fulfilled in this case and it is thus irregular. The advance payment linked to this grant was 532 594 euro.

OTHER MATTERS

| 14. | Five projects audited (15) concerned cross-border cooperation. These projects were first assessed by local assessors and then presented to an Evaluation Committee which takes the decision to select them or not. For the audited projects, there was no documentation or evidence on the reasons why the issues raised by the assessors (16) concerning the justification of the requested budget, the identification of the beneficiaries, the sustainability of the projects themselves and the conformity of the objectives of the project were not taken into account by the Evaluation Committee. Under these circumstances, the relevance of these projects in terms of sound financial management was questionable. |
| --- | --- |

14.

Five projects audited (15) concerned cross-border cooperation. These projects were first assessed by local assessors and then presented to an Evaluation Committee which takes the decision to select them or not. For the audited projects, there was no documentation or evidence on the reasons why the issues raised by the assessors (16) concerning the justification of the requested budget, the identification of the beneficiaries, the sustainability of the projects themselves and the conformity of the objectives of the project were not taken into account by the Evaluation Committee. Under these circumstances, the relevance of these projects in terms of sound financial management was questionable.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Agency for Reconstruction (Thessaloniki)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Council Regulation (EC) No 2667/2000 of 5 December 2000 | Governance | Resources available to the Agency in 2008

  (Data for 2007) | Activities and services provided in 2008 |
| --- | --- | --- | --- | --- |
| The Community shall carry out, within its spheres of competence, economic, financial and technical cooperation measures with third countries. Such measures must be complementary to those carried out by the Member States and consistent with the development policy of the Community.

  (Article 181a) | Objectives

  To provide EU assistance:






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

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Council Regulation (EC) No 2667/2000 of 5 December 2000

Governance

Resources available to the Agency in 2008

(Data for 2007)

Activities and services provided in 2008

The Community shall carry out, within its spheres of competence, economic, financial and technical cooperation measures with third countries. Such measures must be complementary to those carried out by the Member States and consistent with the development policy of the Community.

(Article 181a)

Objectives

To provide EU assistance:

(i)

for reconstruction and the return of refugees and displaced persons;

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

(ii)

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

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

(iii)

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

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

(iv)

to support social development and consolidate civil society.

Application

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

Tasks

| — | To advise the Commission of priority needs, |
| --- | --- |

—

To advise the Commission of priority needs,

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

—

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

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

—

to take every possible step to implement EU assistance.

1 —   Governing Board

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

2 —   Director

Appointed by the Governing Board on a proposal from the Commission. Operational Centres in Belgrade, Pristina, Podgorica and Skopje with a high level of management autonomy.

3 —   External control

Court of Auditors.

4 —   Discharge Authority

The Parliament following a recommendation from the Council.

Budget

236,5 million euro

(250,2 million euro)

Staff at 31 December 2008

93 (108)
  TA posts listed in the establishment plan

TA posts occupied: 61 (83)

Other posts:

| | Local staff: 158 (165) posts of which 32 (154) were occupied. |
| --- | --- |

Local staff: 158 (165) posts of which 32 (154) were occupied.

| | Contract staff: 28 (29) posts of which 19 (27) were occupied. |
| --- | --- |

Contract staff: 28 (29) posts of which 19 (27) were occupied.

| | Total staff: 112 (264) |
| --- | --- |

Total staff: 112 (264)

Responsible for

Operational tasks: 59 (163)

Administrative tasks: 53 (101)

| | KOSOVO: (a) Multisectorial returns empowerment of Roma communities and social economic development assistance to minority communities; (b) Support for civil society and the media; (c) Institutional and policy support for the ministries of Justice and Internal Affairs; (d) Strengthening of border management bodies and construction of border crossing facilities; (e) Capacity building of the Agency for European Integration; (f) Support of decentralisation; (g) Drafting of public procurement law, internal audit strategy; (h) Assistance to the Ministry of Trade and Industry on SME development, investment promotion, metrology and direct assistance to small-scale businesses for marginalised groups; (i) Support for the Statistical Office of Kosovo; (j) Support for the Ministry of Agriculture; (k) Sustainable forest management; (l) Livestock breeding; (m) Development of food safety control systems; (n) Support for the energy sector including transmission network, support for the ministry of energy, support for the Kosovo Electric Company, support for the Energy Regulatory Office, support for the supply of coal, revenue collection, environmental actions for coal mines; (o) Environmental upgrades including support for water and waste utilities and construction of a water treatment plant; (p) Vocational Education Training Programme; (q) Support for the transport sector with a planning and strategy for a multimodal transport. |
| --- | --- |

KOSOVO: (a) Multisectorial returns empowerment of Roma communities and social economic development assistance to minority communities; (b) Support for civil society and the media; (c) Institutional and policy support for the ministries of Justice and Internal Affairs; (d) Strengthening of border management bodies and construction of border crossing facilities; (e) Capacity building of the Agency for European Integration; (f) Support of decentralisation; (g) Drafting of public procurement law, internal audit strategy; (h) Assistance to the Ministry of Trade and Industry on SME development, investment promotion, metrology and direct assistance to small-scale businesses for marginalised groups; (i) Support for the Statistical Office of Kosovo; (j) Support for the Ministry of Agriculture; (k) Sustainable forest management; (l) Livestock breeding; (m) Development of food safety control systems; (n) Support for the energy sector including transmission network, support for the ministry of energy, support for the Kosovo Electric Company, support for the Energy Regulatory Office, support for the supply of coal, revenue collection, environmental actions for coal mines; (o) Environmental upgrades including support for water and waste utilities and construction of a water treatment plant; (p) Vocational Education Training Programme; (q) Support for the transport sector with a planning and strategy for a multimodal transport.

| | SERBIA: (a) Draft laws in public administration reform; (b) Supply of equipment to border police; (c) Support for juvenile detention centres; (d) Introduction of capitation payment in State primary health care facilities; (e) Support for privatisation; (f) Training support for enterprises; (g) Support for implementation of the EIB education sector loan; (h) Economic development programmes for poorest municipalities; (i) Upgrading of the existing border crossing infrastructure and facilities at Presevo; (j) Renovation of municipal infrastructure; (k) Reform of the statistics office; (l) Support for facilitation of FDIs; (m) Support for vulnerable groups including refugees and displaced people; (n) District heating renovation and modernisation; (o) Installation of a new ash transport and disposal scheme for the Nikola Tesla B thermal power plant. |
| --- | --- |

SERBIA: (a) Draft laws in public administration reform; (b) Supply of equipment to border police; (c) Support for juvenile detention centres; (d) Introduction of capitation payment in State primary health care facilities; (e) Support for privatisation; (f) Training support for enterprises; (g) Support for implementation of the EIB education sector loan; (h) Economic development programmes for poorest municipalities; (i) Upgrading of the existing border crossing infrastructure and facilities at Presevo; (j) Renovation of municipal infrastructure; (k) Reform of the statistics office; (l) Support for facilitation of FDIs; (m) Support for vulnerable groups including refugees and displaced people; (n) District heating renovation and modernisation; (o) Installation of a new ash transport and disposal scheme for the Nikola Tesla B thermal power plant.

| | MONTENEGRO: (a) Support for refugee and IDP integration; (b) Strengthening environmental management through legislative reform and refurbishment of waste water treatment plants in Podgorica and in coastal cities; (c) Upgrading road infrastructure in coastal areas; (d) Assisting public administration reform; (e) Electricity utility unbundling/restructuring, energy efficiency strategy; (f) Providing management expertise to companies; (g) Police reform; (h) Prison reform; (i) Creating animal identification and registration system; (j) Fishery resource management; (k) Assisting in social inclusion reforms through support for civil society organisations. |
| --- | --- |

MONTENEGRO: (a) Support for refugee and IDP integration; (b) Strengthening environmental management through legislative reform and refurbishment of waste water treatment plants in Podgorica and in coastal cities; (c) Upgrading road infrastructure in coastal areas; (d) Assisting public administration reform; (e) Electricity utility unbundling/restructuring, energy efficiency strategy; (f) Providing management expertise to companies; (g) Police reform; (h) Prison reform; (i) Creating animal identification and registration system; (j) Fishery resource management; (k) Assisting in social inclusion reforms through support for civil society organisations.

| | FORMER YUGOSLAV REPUBLIC OF MACEDONIA: (a) Twinning support on money laundering, corruption and organised crime, statistics, air quality, financial control; (b) Completing the establishment of the National Animal Identification System; (c) Fostering the performance of SMEs and the development of a Human Resource Development Fund; (d) Helping civil society organisations and municipalities to promote economic development across borders with the EU Member States; (e) Support for the elimination of industrial hotspots, municipal waste water management and healthcare risk waste management; (f) Construction of administrative headquarters to house the association of municipalities; (g) Support for the programming of the Instrument for Pre-accession Assistance and its tendering; (h) Support for implementation of professional standards in prison administrations; (i) Elaborating a National Transport Strategy. |
| --- | --- |

FORMER YUGOSLAV REPUBLIC OF MACEDONIA: (a) Twinning support on money laundering, corruption and organised crime, statistics, air quality, financial control; (b) Completing the establishment of the National Animal Identification System; (c) Fostering the performance of SMEs and the development of a Human Resource Development Fund; (d) Helping civil society organisations and municipalities to promote economic development across borders with the EU Member States; (e) Support for the elimination of industrial hotspots, municipal waste water management and healthcare risk waste management; (f) Construction of administrative headquarters to house the association of municipalities; (g) Support for the programming of the Instrument for Pre-accession Assistance and its tendering; (h) Support for implementation of professional standards in prison administrations; (i) Elaborating a National Transport Strategy.

The Agency terminated all its activities at 31.12.2008 after transferring all CARDS programmes to the Commission.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | Due to the cancellation of a project by the Serbian authorities, the Agency was confronted with the necessity to reallocate rapidly the funds made available. In view not to leave these funds unused, with the agreement of the Serbian authorities, it was decided to fund a project with Unicef in line with the objectives of the EC Programme for Serbia. Moreover, amongst the organisations working in the field of children’s health Unicef was the best prepared as it had just concluded an evaluation of the de-institutionalisation process in this field and thus the most able to present rapidly a project of quality. |
| --- | --- |

13.

Due to the cancellation of a project by the Serbian authorities, the Agency was confronted with the necessity to reallocate rapidly the funds made available. In view not to leave these funds unused, with the agreement of the Serbian authorities, it was decided to fund a project with Unicef in line with the objectives of the EC Programme for Serbia. Moreover, amongst the organisations working in the field of children’s health Unicef was the best prepared as it had just concluded an evaluation of the de-institutionalisation process in this field and thus the most able to present rapidly a project of quality.

| 14. | According to the rules in force, the Evaluation Committee which included the Agency and the EC Delegation was not bound by the opinion of the assessors and in some cases indeed disagreed with their opinion. In these five cases, the EAR and the EC Delegation considered that the opinion of the assessors was unfounded. |
| --- | --- |

14.

According to the rules in force, the Evaluation Committee which included the Agency and the EC Delegation was not bound by the opinion of the assessors and in some cases indeed disagreed with their opinion. In these five cases, the EAR and the EC Delegation considered that the opinion of the assessors was unfounded.

---

(1)  OJ L 204, 14.8.1996, p. 1.

1

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

2

(3)  The Table summarises the agency’s competences and activities. It is presented for information purposes.

3

Table

(4)  Commission Decision PH/2008/657 of 24.4.2008.

4

(5)  Memorandum of Understanding between the Commission and the European Agency for Reconstruction of 17.12.2008.

5

(6)  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.

6

(7)  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.

7

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

8

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

9

(10)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

10

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

11

(12)  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 Commission 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 Agency.

12

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

13

(14)  The Final Annual Accounts were drawn up in February 2009 and received by the Court on 9 March 2009. 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

14

Official Journal of the European Union

(15)  Total value: 528 000 euro.

15

(16)  The assessors are designated by the joint management structures put in place to manage the cross-border programmes.

16

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/49 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/49

---

REPORT

on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2008, together with the Agency’s replies

2009/C 304/10

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 50 |
| STATEMENT OF ASSURANCE... | 3-12 | 50 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13-14 | 51 |
| Table... | 52 |
| The Agency’s replies... | 54 |

Paragraph

Page

INTRODUCTION...

1-2

50

STATEMENT OF ASSURANCE...

3-12

50

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13-14

51

Table...

52

The Agency’s replies...

54

INTRODUCTION

| 1. | The European Agency for Safety and Health at Work (hereinafter ‘the Agency’), located in Bilbao, 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 health and safety at work, to support national and Community organisations involved in policymaking and implementation and provide information on preventive measures (2). |
| --- | --- |

1.

The European Agency for Safety and Health at Work (hereinafter ‘the Agency’), located in Bilbao, 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 health and safety at work, to support national and Community organisations involved in policymaking and implementation and provide information on preventive measures (2).

| 2. | The Agency’s 2008 budget amounted to 14,9 million euro approximately the same amount as the previous year. The number of staff employed by the Agency at the end of the year was 64 as compared with 63 the previous year. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 14,9 million euro approximately the same amount as the previous year. The number of staff employed by the Agency at the end of the year was 64 as compared with 63 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments, internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | For operational expenditure (Title III), the Agency carried forward 3,4 million euro of which approximately 1 million euro concerned commitments which were entirely related to 2009. These carry-over artificially decreased the budgetary outturn by the same amount and thus reduced the level of repayments to the Commission. This situation is at odds with the principle of annuality. |
| --- | --- |

13.

For operational expenditure (Title III), the Agency carried forward 3,4 million euro of which approximately 1 million euro concerned commitments which were entirely related to 2009. These carry-over artificially decreased the budgetary outturn by the same amount and thus reduced the level of repayments to the Commission. This situation is at odds with the principle of annuality.

| 14. | For one framework contract (12) that was frequently used by the Agency, total expenditure for 2008 surpassed the limit stated in the contract notice by 200 000 euro. The framework contract was expected to run from March 2006 to March 2010. The use of a framework contract beyond its maximal value is irregular. The Agency should have launched a new public procurement procedure for a new framework contract as soon as possible. If the scope of a contract significantly changes in the course of its execution, as was the case here, the supply or services concerned should be retendered (best practice). |
| --- | --- |

14.

For one framework contract (12) that was frequently used by the Agency, total expenditure for 2008 surpassed the limit stated in the contract notice by 200 000 euro. The framework contract was expected to run from March 2006 to March 2010. The use of a framework contract beyond its maximal value is irregular. The Agency should have launched a new public procurement procedure for a new framework contract as soon as possible. If the scope of a contract significantly changes in the course of its execution, as was the case here, the supply or services concerned should be retendered (best practice).

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

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 as amended by Council Regulation (EC) No 1112/2005 of 24 June 2005) | Governance | Means available to the Agency in 2008

  (Data for 2007) | Products and services provided during 2008 |
| --- | --- | --- | --- | --- |
| Social provisions

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






  (a) | improvement in particular of the working environment to protect workers’ health and safety; |

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 as amended by Council Regulation (EC) No 1112/2005 of 24 June 2005)

Governance

Means available to the Agency in 2008

(Data for 2007)

Products and services provided during 2008

Social provisions

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

With a view to achieving the objectives of Article 136, the Community shall support and complement the activities o the Member States in the following fields:

(a)

improvement in particular of the working environment to protect workers’ health and safety;

| (b) | working conditions; (...). |
| --- | --- |

(b)

working conditions; (...).

(Extracts from Article 136 and 137 of the Treaty)

Objectives

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

Tasks

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

—

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

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

—

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

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

—

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

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

—

To make available information on preventive activities.

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

—

To contribute to the development of strategies and Community action programmes.

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

—

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

1 —   Governing Board

Composition

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

—

1 representative of the government of each Member State.

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

—

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

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

—

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

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

—

3 representatives of the Commission.

Members and alternate members from the first three categories shall be appointed from the members and alternate members of the Advisory Committee on Safety and Health at Work

Task

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

2 —   Bureau

Composition

| — | Chair and 3 vice-chairs of the Board. |
| --- | --- |

—

Chair and 3 vice-chairs of the Board.

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

—

Coordinators from each of the three interest groups.

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

—

1 additional member from each of the groups and the Commission.

Task

Overseeing the preparation and follow-up of the Board’s decisions.

3 —   The Director

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

4 —   Committees

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

5 —   External audit

European Court of Auditors.

6 —   Discharge authority

Parliament on a recommendation by the Council.

Budget

| — | 14,9 million euro (14,9 million euro) |
| --- | --- |

—

14,9 million euro (14,9 million euro)

Including:

| — | Community subsidy, DG Employment: 96,5 % (93,8 %) |
| --- | --- |

—

Community subsidy, DG Employment: 96,5 % (93,8 %)

| — | Community subsidy, DG Enlargement: 2,4 % (2,9 %) |
| --- | --- |

—

Community subsidy, DG Enlargement: 2,4 % (2,9 %)

Staff at 31 December 2008

44 (42) posts in the establishment plan,

of which, posts filled: 41 (38)

Posts vacant: 3 (4)

23 (25) other posts (contract staff, seconded national experts and local staff).

Total staff: 64 (63)

assigned to

| | operational tasks: 45 (47) |
| --- | --- |

operational tasks: 45 (47)

| | administrative tasks: 10 (9) |
| --- | --- |

administrative tasks: 10 (9)

| | mixed tasks: 9 (7) |
| --- | --- |

mixed tasks: 9 (7)

European Risk Observatory (ERO)

| — | Completion of Phases I and II of the European Survey of Enterprises on New and Emerging Risks (ESENER). |
| --- | --- |

—

Completion of Phases I and II of the European Survey of Enterprises on New and Emerging Risks (ESENER).

| — | Publication of reports (occupational skin diseases and dermal exposure, exposure to vibration). |
| --- | --- |

—

Publication of reports (occupational skin diseases and dermal exposure, exposure to vibration).

| — | Data collection on waste management and on respiratory diseases. |
| --- | --- |

—

Data collection on waste management and on respiratory diseases.

Working environment information

| — | Data collection of good practice case studies and links to good practice information providers on road transport. |
| --- | --- |

—

Data collection of good practice case studies and links to good practice information providers on road transport.

| — | Establishment of a network of European organisations which can provide OSH economic incentives. |
| --- | --- |

—

Establishment of a network of European organisations which can provide OSH economic incentives.

| — | Publication of an MSD prevention report. |
| --- | --- |

—

Publication of an MSD prevention report.

| — | Publication of a wide range of products for the Healthy Workplace Campaign 2008/2009 (HWC). |
| --- | --- |

—

Publication of a wide range of products for the Healthy Workplace Campaign 2008/2009 (HWC).

| — | Establishment of a risk-assessment resource database on the Agency’s website for the HWC 2008/2009. |
| --- | --- |

—

Establishment of a risk-assessment resource database on the Agency’s website for the HWC 2008/2009.

| — | Publications of good practice information materials for the Horeca sector. |
| --- | --- |

—

Publications of good practice information materials for the Horeca sector.

| — | Six E-facts on Cleaning Workers. |
| --- | --- |

—

Six E-facts on Cleaning Workers.

| — | Extension of the Agency’s website good practice area, in particular in the fields of construction, health care and accident prevention. |
| --- | --- |

—

Extension of the Agency’s website good practice area, in particular in the fields of construction, health care and accident prevention.

| — | Participation in seminars, conferences and other events. |
| --- | --- |

—

Participation in seminars, conferences and other events.

Communication, campaigning and promotion

| — | ‘Lighten the Load’ summit — campaign on musculoskeletal disorders. |
| --- | --- |

—

‘Lighten the Load’ summit — campaign on musculoskeletal disorders.

| — | ‘Healthy Workplaces Campaign. Good for You. Good for Business’ — European campaign on risk assessment. |
| --- | --- |

—

‘Healthy Workplaces Campaign. Good for You. Good for Business’ — European campaign on risk assessment.

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

—

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

| — | Monitoring and evaluation: evaluation report of European campaigns on young workers, musculoskeletal disorders and small and medium-sized enterprises. |
| --- | --- |

—

Monitoring and evaluation: evaluation report of European campaigns on young workers, musculoskeletal disorders and small and medium-sized enterprises.

Networking and coordination

| — | Further development of focal point network. |
| --- | --- |

—

Further development of focal point network.

| — | Liaison with European and international organisations. |
| --- | --- |

—

Liaison with European and international organisations.

| — | Institutional capacity building in candidate and potential candidate countries. |
| --- | --- |

—

Institutional capacity building in candidate and potential candidate countries.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | The Agency notes the Court’s comments and will improve its monitoring and planning of operational expenditure to avoid committing significant funds at the year-end.
  Although the commitments and specific contracts referred to were signed towards the year-end, the process to specify the contracts had been started in July but the complexities of the projects meant that it took much longer than originally anticipated to finalise them, resulting in the significant carry-over highlighted by the Court. |
| --- | --- |

13.

The Agency notes the Court’s comments and will improve its monitoring and planning of operational expenditure to avoid committing significant funds at the year-end.

Although the commitments and specific contracts referred to were signed towards the year-end, the process to specify the contracts had been started in July but the complexities of the projects meant that it took much longer than originally anticipated to finalise them, resulting in the significant carry-over highlighted by the Court.

| 14. | A public procurement for a new framework contract for the organisation and management of public campaigns has been prepared and launched in July 2009.
  The fact that annual expenditure on the current contract has run at higher rates than initially forecast is mainly explained by the need to discontinue a long-standing subsidy scheme (with an annual budget in the region of 1 million euros) for the Agency’s network of focal points on the recommendation of external evaluators and the Internal Audit Service. Making further use of this framework contract was a key element in the alternative support scheme put in place in 2008 to replace the subsidy scheme without impacting adversely on the Agency’s ability to run pan-European campaigns. |
| --- | --- |

14.

A public procurement for a new framework contract for the organisation and management of public campaigns has been prepared and launched in July 2009.

The fact that annual expenditure on the current contract has run at higher rates than initially forecast is mainly explained by the need to discontinue a long-standing subsidy scheme (with an annual budget in the region of 1 million euros) for the Agency’s network of focal points on the recommendation of external evaluators and the Internal Audit Service. Making further use of this framework contract was a key element in the alternative support scheme put in place in 2008 to replace the subsidy scheme without impacting adversely on the Agency’s ability to run pan-European campaigns.

---

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

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 19 June 2009 and received by the Court on 30 June 2009. 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://osha.europa.eu/en/about/finance/

11

Official Journal of the European Union

(12)  Framework service contract for the organisation and management of public campaigns (total foreseen value: 6 million euro).

12

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/55 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/55

---

REPORT

on the annual accounts of the European Maritime Safety Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/11

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 56 |
| STATEMENT OF ASSURANCE ... | 3-12 | 56 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13-14 | 57 |
| OTHER MATTERS ... | 15 | 57 |
| Table ... | 58 |
| The Agency’s replies ... | 59 |

Paragraph

Page

INTRODUCTION ...

1-2

56

STATEMENT OF ASSURANCE ...

3-12

56

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13-14

57

OTHER MATTERS ...

15

57

Table ...

58

The Agency’s replies ...

59

INTRODUCTION

| 1. | The European Maritime Safety Agency (hereinafter ‘the Agency’), located in Lisboa, was set up by Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 (1). The Agency’s tasks are to ensure a high level of maritime safety and the prevention of pollution by ships, provide the Commission and the Member States with technical assistance, and monitor the implementation of Community legislation and to evaluate its effectiveness (2). |
| --- | --- |

1.

The European Maritime Safety Agency (hereinafter ‘the Agency’), located in Lisboa, was set up by Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 (1). The Agency’s tasks are to ensure a high level of maritime safety and the prevention of pollution by ships, provide the Commission and the Member States with technical assistance, and monitor the implementation of Community legislation and to evaluate its effectiveness (2).

| 2. | The Agency’s 2008 budget amounted to 50,2 million euro compared with 48,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 211 as compared with 179 the previous year. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 50,2 million euro compared with 48,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 211 as compared with 179 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgment including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | The procedures for drawing up the budget were not sufficiently rigorous and led to a significant number of budgetary transfers (12). More than 2 million euro of appropriations for personnel expenditure were transferred to administrative expenditure budget lines between June and November 2008. This made it possible to increase the amount of appropriations carried forward to 2009 and reduced the amount to be repaid to the Commission. Moreover, the high level of cancellation of payment appropriations for operational activities, 7,5 million euro, indicates weaknesses in their planning and their monitoring. |
| --- | --- |

13.

The procedures for drawing up the budget were not sufficiently rigorous and led to a significant number of budgetary transfers (12). More than 2 million euro of appropriations for personnel expenditure were transferred to administrative expenditure budget lines between June and November 2008. This made it possible to increase the amount of appropriations carried forward to 2009 and reduced the amount to be repaid to the Commission. Moreover, the high level of cancellation of payment appropriations for operational activities, 7,5 million euro, indicates weaknesses in their planning and their monitoring.

| 14. | As in 2007 (13) legal commitments were entered into before the corresponding budgetary commitments (14). |
| --- | --- |

14.

As in 2007 (13) legal commitments were entered into before the corresponding budgetary commitments (14).

OTHER MATTERS

| 15. | The Agency did not prepare a multi-annual work programme setting performance indicators as required by the Financial Regulation. Its annual work programme is not related to its commitment budget and is largely based on payment forecasts. Budget modifications are made without simultaneous revisions of the work programme even when these have a significant impact. The introduction of an activity based budgeting system would make it easier to establish a clear link between the work programme and the financial forecasts. |
| --- | --- |

15.

The Agency did not prepare a multi-annual work programme setting performance indicators as required by the Financial Regulation. Its annual work programme is not related to its commitment budget and is largely based on payment forecasts. Budget modifications are made without simultaneous revisions of the work programme even when these have a significant impact. The introduction of an activity based budgeting system would make it easier to establish a clear link between the work programme and the financial forecasts.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Maritime Safety Agency (Lisboa)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Regulation (EC) No 1406/2002 of the European Parliament and of the Council as amended by Regulations (EC) No 1644/2003 and (EC) No 724/2004 | Governance | Resources made available to the Agency 2008

  (Data for 2007) | Products and services supplied in 2008 |
| --- | --- | --- | --- | --- |
| Common transport policy


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


  (Article 80 of the Treaty) | Objectives







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

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 1406/2002 of the European Parliament and of the Council as amended by Regulations (EC) No 1644/2003 and (EC) No 724/2004

Governance

Resources made available to the Agency 2008

(Data for 2007)

Products and services supplied in 2008

Common transport policy

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

(Article 80 of the Treaty)

(Article 80 of the Treaty)

Objectives

Objectives

—

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

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

—

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

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

—

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

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

—

To introduce operational methods for combating pollution in European waters.

Tasks

Tasks

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

—

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

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

—

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

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

—

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

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

—

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

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

—

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

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

—

To develop and operate any information system necessary.

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

—

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

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

—

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

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

—

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

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

—

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

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

—

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

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

—

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

1.   Administrative Board

Administrative Board

Composition

Composition

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

Tasks

Tasks

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

—

To adopt the budget and the work programme.

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

—

To examine requests from Member States for assistance.

2.   Executive Director

Executive Director

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

3.   External audit

External audit

Court of Auditors.

4.   Discharge Authority

Discharge Authority

Parliament acting on a recommendation by the Council.

Budget

Budget

50,2 million euro

(48,2 million euro)

(48,2 million euro)

Staff

Staff

| | Permanent and temporary staff:
  181 (153) |
| --- | --- |

Permanent and temporary staff:

181 (153)

(153)

| | Other Staff: | Contract staff:
  17 (13) |
| --- | --- | --- |

Other Staff:

Contract staff:

17 (13)

(13)

| | SNEs:
  13 (13) |
| --- | --- |

SNEs:

13 (13)

(13)

| — | 33 Workshops/other events |
| --- | --- |

—

33 Workshops/other events

| — | 24 training courses (including 4 for Port State Control (PSC) officers |
| --- | --- |

—

24 training courses (including 4 for Port State Control (PSC) officers

| — | 431 national experts trained |
| --- | --- |

—

431 national experts trained

| — | 75 inspections and visits |
| --- | --- |

—

75 inspections and visits

| — | 2 335 satellite images ordered and analysed through CleanSeaNet |
| --- | --- |

—

2 335 satellite images ordered and analysed through CleanSeaNet

| — | 11 anti-pollution vessels contracts |
| --- | --- |

—

11 anti-pollution vessels contracts

| — | 31 drills and 6 exercises with the anti-pollution vessels |
| --- | --- |

—

31 drills and 6 exercises with the anti-pollution vessels

| — | SafeSeaNet system fully operational |
| --- | --- |

—

SafeSeaNet system fully operational

| — | Other major systems under development:
  THETIS (Information System for Port State Control (PSC) Officers EU Long Range Identification and Tracking Data Centre |
| --- | --- |

—

Other major systems under development:

THETIS (Information System for Port State Control (PSC) Officers EU Long Range Identification and Tracking Data Centre

Source: Information supplied by the Agency.

Source

THE AGENCY’S REPLIES

| 13. | The Agency takes note of the observation of the Court and will continue its effort to improve its planning and monitoring and consequently to reduce the number of budgetary modifications. Transfers for administrative expenditure — commanded by ad-hoc requirements related to the move to the final office building — are limited to the 2008/2009 timeframe. The total of the budgetary transfers in 2008 did not exceed the 10 % threshold requiring an Administrative Board decision. |
| --- | --- |

13.

The Agency takes note of the observation of the Court and will continue its effort to improve its planning and monitoring and consequently to reduce the number of budgetary modifications. Transfers for administrative expenditure — commanded by ad-hoc requirements related to the move to the final office building — are limited to the 2008/2009 timeframe. The total of the budgetary transfers in 2008 did not exceed the 10 % threshold requiring an Administrative Board decision.

| 14. | Following an Internal Audit of the Agency’s commitment and payment procedures, additional measures to reinforce the control over these procedures have been taken. Moreover, the Agency initiated the implementation of ABAC Contracts. |
| --- | --- |

14.

Following an Internal Audit of the Agency’s commitment and payment procedures, additional measures to reinforce the control over these procedures have been taken. Moreover, the Agency initiated the implementation of ABAC Contracts.

| 15. | The Agency agrees with the observation of the Court of Auditors. For 2009 the work programme includes specific reference to both commitment and payment appropriations forecasted for the different activities. Moreover, the Agency is currently developing Key Performance Indicators for its activities. These KPI’s will -at a later stage- be included in the annual work programme. At the same time, the Agency is finalizing a five-year strategy which will represent the multi-annual work programme of the Agency. |
| --- | --- |

15.

The Agency agrees with the observation of the Court of Auditors. For 2009 the work programme includes specific reference to both commitment and payment appropriations forecasted for the different activities. Moreover, the Agency is currently developing Key Performance Indicators for its activities. These KPI’s will -at a later stage- be included in the annual work programme. At the same time, the Agency is finalizing a five-year strategy which will represent the multi-annual work programme of the Agency.

---

(1)  OJ L 208, 5.8.2002, p. 1.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(9)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in chapter 1 of Title VII of Commission Regulation (EC, Euratom) No 2343/2002 as last amended by Commission Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.07.2008, p. 23) and are integrated as such in the Financial Regulation of the Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 11 June 2009 and received by the Court on 2 July 2009. 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.emsa.europa.eu

11

Official Journal of the European Union

(12)  52 transfers of appropriations in 2008.

12

(13)  Paragraph 8 of the 2007 annual report (OJ C 311 of 5.12.2008 p. 58).

13

(14)  Four cases with a total value of 5,2 million euro out of a total of 46,4 million euro committed in 2008.

14

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| 15.12.2009 | EN | Official Journal of the European Union | C 304/60 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/60

---

REPORT

on the annual accounts of the European Environment Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/12

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 61 |
| STATEMENT OF ASSURANCE ... | 3-12 | 61 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13 | 62 |
| OTHER MATTERS... | 14 | 62 |
| Table ... | 63 |
| The Agency’s replies ... | 64 |

Paragraph

Page

INTRODUCTION ...

1-2

61

STATEMENT OF ASSURANCE ...

3-12

61

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13

62

OTHER MATTERS...

14

62

Table ...

63

The Agency’s replies ...

64

INTRODUCTION

| 1. | The European Environment Agency (hereinafter ‘the Agency’), located in Copenhagen, was established by Council Regulation (EEC) No 1210/90 of 7 May 1990 (1). It is responsible for setting up an observation network that provides the Commission, the Parliament, the Member States and, more generally, the public with reliable information on the state of the environment. This information should, in particular, enable the European Union and the Member States to take action to safeguard the environment and assess the effectiveness of such action (2). |
| --- | --- |

1.

The European Environment Agency (hereinafter ‘the Agency’), located in Copenhagen, was established by Council Regulation (EEC) No 1210/90 of 7 May 1990 (1). It is responsible for setting up an observation network that provides the Commission, the Parliament, the Member States and, more generally, the public with reliable information on the state of the environment. This information should, in particular, enable the European Union and the Member States to take action to safeguard the environment and assess the effectiveness of such action (2).

| 2. | The Agency’s 2008 budget amounted to 37,1 million euro compared with 35,1 million euro the previous year. The number of staff employed by the Agency at the end of the year was 123 as compared with 116 the previous year. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 37,1 million euro compared with 35,1 million euro the previous year. The number of staff employed by the Agency at the end of the year was 123 as compared with 116 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under her own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | In 2008, the Agency decided to re-fit its rented premises. The total estimated cost was 147 thousand euro. A tendering procedure should have been launched for this work but, instead, the Agency covered the costs of the work done by a firm chosen by the building’s owners. |
| --- | --- |

13.

In 2008, the Agency decided to re-fit its rented premises. The total estimated cost was 147 thousand euro. A tendering procedure should have been launched for this work but, instead, the Agency covered the costs of the work done by a firm chosen by the building’s owners.

OTHER MATTERS

| 14. | For the grant agreements, there is a need to better clarify time charged by the partners. To mitigate the risk of unjustified payments, clearer instructions should be given to the beneficiaries for rate calculations and a clear link should be established between costs charged and costs estimated in the implementation plans. |
| --- | --- |

14.

For the grant agreements, there is a need to better clarify time charged by the partners. To mitigate the risk of unjustified payments, clearer instructions should be given to the beneficiaries for rate calculations and a clear link should be established between costs charged and costs estimated in the implementation plans.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Environment Agency (Copenhagen)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Council Regulation (EEC) No 1210/90 | Governance | Resources made available to the Agency in 2008

  (Data for 2007) | Main products and services supplied in 2008 |
| --- | --- | --- | --- | --- |
| Environment policy

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

  (Article 174 of the Treaty) | Objectives







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






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

Areas of Community competence deriving from the Treaty

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

Governance

Resources made available to the Agency in 2008

(Data for 2007)

Main products and services supplied in 2008

Environment policy

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

(Article 174 of the Treaty)

Objectives

—

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

(a)

take the requisite measures to protect the environment;

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

(b)

assess the results of such measures;

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

(c)

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

Tasks

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

—

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

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

—

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

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

—

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

| — | To promote the incorporation of European environmental data into international programmes. |
| --- | --- |

—

To promote the incorporation of European environmental data into international programmes.

| — | To publish a report on the state of, trends in and prospects for the environment every 5 years. |
| --- | --- |

—

To publish a report on the state of, trends in and prospects for the environment every 5 years.

| — | To stimulate the development of environmental forecasting techniques, exchanges of information on technologies for preventing or reducing damage to the environment, methods of assessing the costs of damage to the environment and the costs of environmental preventive, protection and restoration policies. |
| --- | --- |

—

To stimulate the development of environmental forecasting techniques, exchanges of information on technologies for preventing or reducing damage to the environment, methods of assessing the costs of damage to the environment and the costs of environmental preventive, protection and restoration policies.

1 —   Management Board

Consisting of:

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

—

One representative per Member State,

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

—

two representatives of the Commission,

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

—

two scientists appointed by the European Parliament.

Tasks

| — | To adopt the work programme and ensure it is implemented. |
| --- | --- |

—

To adopt the work programme and ensure it is implemented.

2 —   Executive Director

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

3 —   Scientific Committee

Consisting of qualified figures in the field of the environment.

4 —   External audit

Court of Auditors.

5 —   Discharge authority

Parliament acting on recommendation by the Council.

Budget

37,1 million euro

(35,1 million euro)

Community subsidy

85 % (82 %)

Staff at 31 December 2008

Number of posts in the Establishment plan:

123 (116)

Posts occupied: 116 (111) plus 51 (55) other posts (contracts staff and seconded national experts).

Total staff numbers: 123 (116) assigned to the following tasks:

| — | operational 80 (73) |
| --- | --- |

—

operational 80 (73)

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

—

administrative 42 (42)

| — | mixed 1 (1) |
| --- | --- |

—

mixed 1 (1)

| — | Climate for a transport change. TERM 2007: indicators tracking transport and environment in the European Union. |
| --- | --- |

—

Climate for a transport change. TERM 2007: indicators tracking transport and environment in the European Union.

| — | Application of the Emissions Trading Directive by EU Member States — reporting year 2007. |
| --- | --- |

—

Application of the Emissions Trading Directive by EU Member States — reporting year 2007.

| — | Air pollution by ozone across Europe during summer 2007. |
| --- | --- |

—

Air pollution by ozone across Europe during summer 2007.

| — | Annual European Community greenhouse gas inventory 1990 — 2006 and inventory report 2008. |
| --- | --- |

—

Annual European Community greenhouse gas inventory 1990 — 2006 and inventory report 2008.

| — | Annual European Community LRTAP Convention emission inventory report 1990-2006. |
| --- | --- |

—

Annual European Community LRTAP Convention emission inventory report 1990-2006.

| — | Greenhouse gas emission trends and projections in Europe 2008. |
| --- | --- |

—

Greenhouse gas emission trends and projections in Europe 2008.

| — | Maximising the environmental benefits of Europe’s bioenergy potential. |
| --- | --- |

—

Maximising the environmental benefits of Europe’s bioenergy potential.

| — | Energy and environment report 2008 |
| --- | --- |

—

Energy and environment report 2008

| — | NEC Directive status report 2007. |
| --- | --- |

—

NEC Directive status report 2007.

| — | The EEA also continued to collaborate closely with DG Environment, ESTAT and the JRC in the ‘Group of Four’ to streamline environmental reporting. The EEA takes the lead in the following five areas: climate change, air quality, water and marine environment, biodiversity and land use. |
| --- | --- |

—

The EEA also continued to collaborate closely with DG Environment, ESTAT and the JRC in the ‘Group of Four’ to streamline environmental reporting. The EEA takes the lead in the following five areas: climate change, air quality, water and marine environment, biodiversity and land use.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | Since it is a requirement of our rental agreement to seek the approval of the lessor for any major building work an open procedure launched by the Agency was not appropriate. In the future, such events will be documented in the Exceptions register. |
| --- | --- |

13.

Since it is a requirement of our rental agreement to seek the approval of the lessor for any major building work an open procedure launched by the Agency was not appropriate. In the future, such events will be documented in the Exceptions register.

| 14. | EEA has regularly given instruction to all consortia on how to calculate costs. These will be reviewed and improved as appropriate. The EEA will also take additional measures to ensure that changes between costs charged and costs estimated in the implementation plans are more clearly explained. |
| --- | --- |

14.

EEA has regularly given instruction to all consortia on how to calculate costs. These will be reviewed and improved as appropriate. The EEA will also take additional measures to ensure that changes between costs charged and costs estimated in the implementation plans are more clearly explained.

---

(1)  OJ L 120, 11.5.1990, p. 1.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 18 May 2009 and received by the Court on 29 June 2009. 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.eea.europa.eu/about-us/documents/administrativedocuments/eea-accounts-for-the-year-2008/

11

Official Journal of the European Union

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| 15.12.2009 | EN | Official Journal of the European Union | C 304/65 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/65

---

REPORT

on the annual accounts of the Education, Audiovisual and Culture Executive Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/13

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 66 |
| STATEMENT OF ASSURANCE ... | 3-12 | 66 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13 | 67 |
| Table ... | 68 |
| The Agency’s replies ... | 70 |

Paragraph

Page

INTRODUCTION ...

1-2

66

STATEMENT OF ASSURANCE ...

3-12

66

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13

67

Table ...

68

The Agency’s replies ...

70

INTRODUCTION

| 1. | The Education, Audiovisual and Culture Executive Agency (hereinafter ‘the Agency’), located in Brussels, was set up by Commission Decision 2005/56/EC of 14 January 2005 (1). The Agency manages programmes decided by the Commission in the educational, audiovisual and cultural fields, including undertaking the detailed implementation of technical projects (2). |
| --- | --- |

1.

The Education, Audiovisual and Culture Executive Agency (hereinafter ‘the Agency’), located in Brussels, was set up by Commission Decision 2005/56/EC of 14 January 2005 (1). The Agency manages programmes decided by the Commission in the educational, audiovisual and cultural fields, including undertaking the detailed implementation of technical projects (2).

| 2. | The Agency’s 2008 administrative budget amounted to 38,2 million euro compared with 36 million euro the previous year.The number of staff employed by the Agency at the end of the year was 362 as compared with 301 the previous year. |
| --- | --- |

2.

The Agency’s 2008 administrative budget amounted to 38,2 million euro compared with 36 million euro the previous year.The number of staff employed by the Agency at the end of the year was 362 as compared with 301 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 14 of Council Regulation (EC) No 58/2003 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) as prepared by the Agency’s accounting officer that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | The appropriations carried forward to 2009 amounted to 6,2 million euro (16 % of the budget). An analysis of the commitment carried forward showed that approximately one million euro of these appropriations concern activities not directly related to 2008. This situation is at odds with the principle of annuality. |
| --- | --- |

13.

The appropriations carried forward to 2009 amounted to 6,2 million euro (16 % of the budget). An analysis of the commitment carried forward showed that approximately one million euro of these appropriations concern activities not directly related to 2008. This situation is at odds with the principle of annuality.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Education, Audiovisual and Culture Executive Agency (Brussels)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Commission Decision 2005/56/EC of 14 January 2005 | Governance | Resources made available to the Agency in 2008 | Activities and outputs in 2008 |
| --- | --- | --- | --- | --- |
| The Community shall contribute to the development of quality education.

  (Article 149(1) of the Treaty)

  The Community shall implement a vocational training policy.

  (Article 150(1) of the Treaty)

  The Community shall contribute to the flowering of the cultures of the Member States.

  (Article 151(1) of the Treaty)

  The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community’s industry exist.

  (Article 157(1) of the Treaty) | Objectives

  In the framework of the education, culture and industry policies, numerous measures have been taken to promote education, vocational training, audiovisual, culture, youth and active citizenship in the European Union. The main objectives of these measures are to reinforce social cohesion and to contribute to competitiveness, to economic growth and to an ever closer union amongst the people of Europe.
  These measures include a variety of Community programmes.
  The Agency is responsible for managing certain strands of these programmes (e.g. ‘Lifelong learning’, ‘Culture’, ‘Youth in Action’, ‘Europe for Citizens’, ‘MEDIA’, ‘Erasmus Mundus’ and ‘External Cooperation Windows’). In this respect, it implements the community aid, except for programme evaluation, strategic studies and any other task which require discretionary powers in translating political choices. | Tasks







  — | To manage, throughout their duration, the specific projects entrusted to it in the context of implementation of Community programmes. |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Commission Decision 2005/56/EC of 14 January 2005

Governance

Resources made available to the Agency in 2008

Activities and outputs in 2008

The Community shall contribute to the development of quality education.

(Article 149(1) of the Treaty)

The Community shall implement a vocational training policy.

(Article 150(1) of the Treaty)

The Community shall contribute to the flowering of the cultures of the Member States.

(Article 151(1) of the Treaty)

The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community’s industry exist.

(Article 157(1) of the Treaty)

Objectives

In the framework of the education, culture and industry policies, numerous measures have been taken to promote education, vocational training, audiovisual, culture, youth and active citizenship in the European Union. The main objectives of these measures are to reinforce social cohesion and to contribute to competitiveness, to economic growth and to an ever closer union amongst the people of Europe.

These measures include a variety of Community programmes.

The Agency is responsible for managing certain strands of these programmes (e.g. ‘Lifelong learning’, ‘Culture’, ‘Youth in Action’, ‘Europe for Citizens’, ‘MEDIA’, ‘Erasmus Mundus’ and ‘External Cooperation Windows’). In this respect, it implements the community aid, except for programme evaluation, strategic studies and any other task which require discretionary powers in translating political choices.

Tasks

—

To manage, throughout their duration, the specific projects entrusted to it in the context of implementation of Community programmes.

| — | To adopt the instruments of budget implementation for revenue and expenditure and to carry out, where the Commission has empowered it to do so, the operations necessary for the manągement of the Community programmes and, in particular, those linked to the award of grants and contracts. |
| --- | --- |

—

To adopt the instruments of budget implementation for revenue and expenditure and to carry out, where the Commission has empowered it to do so, the operations necessary for the manągement of the Community programmes and, in particular, those linked to the award of grants and contracts.

| — | To gather, analyse and pass on to the Commission all the information needed to guide the implementation of the Community programmes. |
| --- | --- |

—

To gather, analyse and pass on to the Commission all the information needed to guide the implementation of the Community programmes.

| — | To implement, at Community level, the network of information on education in Europe (Eurydice) for the collection, analysis and dissemination of information and the production of studies and publications. |
| --- | --- |

—

To implement, at Community level, the network of information on education in Europe (Eurydice) for the collection, analysis and dissemination of information and the production of studies and publications.

1 —   Steering Committee

Comprises five members appointed by the European Commission.

It adopts the Agency’s annual work programme after approval by the European Commission. In addition, it adopts the administrative budget of the Agency and its annual activity report.

2 —   Director

Appointed by the European Commission.

3 —   External audit

Court of Auditors.

4 —   Discharge authority

European Parliament acting a on recommendation by the Council.

Budget

1)   Operational budget

488 million euro for the management of Community programmes and projects delegated to the Executive Agency and implemented by the Agency on the Commission’s responsibility.

2)   Administrative budget

38 million euro for operating the Executive Agency as an independent body (99,8 % subsidy entered in the general budget of the European Communities).

Staff at 31 December 2008

1)   Temporary staff

92 posts for temporary staff in the establishment plan

Post occupied: 85

2)   Contractual staff

303 contractual staff

Posts occupied: 277

3)   Total staff: 362

4)   Jobs allocation:

| | Operational: 295 |
| --- | --- |

Operational: 295

| | Administrative: 65 |
| --- | --- |

Administrative: 65

| | Mixed: 2 |
| --- | --- |

Mixed: 2

a)   Activities and outputs in 2008

| — | In accordance with its mandate and in compliance with the principle of sound financial management, the Executive Agency has achieved the management of certain strands of the new generation of programmes (2007-2013) in the educational, audiovisual and cultural fields, including studies, national organisms and additional calls for proposals. The Executive Agency also implemented the actions delegated from 2007 in the area of external cooperation in higher education and training. |
| --- | --- |

—

In accordance with its mandate and in compliance with the principle of sound financial management, the Executive Agency has achieved the management of certain strands of the new generation of programmes (2007-2013) in the educational, audiovisual and cultural fields, including studies, national organisms and additional calls for proposals. The Executive Agency also implemented the actions delegated from 2007 in the area of external cooperation in higher education and training.

| — | In parallel, the Agency pursued the management of the ongoing Erasmus Mundus programme (2004-2008) and the tasks aiming at the completion of the previous generation of programmes expiring end 2006. |
| --- | --- |

—

In parallel, the Agency pursued the management of the ongoing Erasmus Mundus programme (2004-2008) and the tasks aiming at the completion of the previous generation of programmes expiring end 2006.

| — | The Executive Agency enhanced cooperation with its parent DGs: EAC, INFSO and AIDCO. |
| --- | --- |

—

The Executive Agency enhanced cooperation with its parent DGs: EAC, INFSO and AIDCO.

b)   Results achieved in 2008 (indicators)

| — | 34 calls for proposals and 3 programme guides were published for all programmes 2007-2013; the relevant selection processes were organized on schedule. About 3 900 projects were selected for grant award, and 5 000 contracts were signed (out of which 1 100 concern renewal of projects and designated beneficiaries).
  Around 7 800 payments were carried out and 5 250 projects closed in 2008. |
| --- | --- |

—

34 calls for proposals and 3 programme guides were published for all programmes 2007-2013; the relevant selection processes were organized on schedule. About 3 900 projects were selected for grant award, and 5 000 contracts were signed (out of which 1 100 concern renewal of projects and designated beneficiaries).

Around 7 800 payments were carried out and 5 250 projects closed in 2008.

| — | Budget execution rates reached 99 % for commitment appropriations and 97 % for payment appropriations (operational budget). |
| --- | --- |

—

Budget execution rates reached 99 % for commitment appropriations and 97 % for payment appropriations (operational budget).

| — | 9 calls for tenders/procurement procedures were launched for the performance of studies and services. |
| --- | --- |

—

9 calls for tenders/procurement procedures were launched for the performance of studies and services.

| — | A range of simplification measures was implemented to improve management processes and procedures towards beneficiaries and to harmonize and accelerate internal working procedures. They include in particular contractualisation by decision, the introduction of lump sum and flat rate payments and the electronic submission of proposals. |
| --- | --- |

—

A range of simplification measures was implemented to improve management processes and procedures towards beneficiaries and to harmonize and accelerate internal working procedures. They include in particular contractualisation by decision, the introduction of lump sum and flat rate payments and the electronic submission of proposals.

| — | Recruitment measures were initiated in 2008 to take over the management of the European Eurydice unit from 1.9.2008. |
| --- | --- |

—

Recruitment measures were initiated in 2008 to take over the management of the European Eurydice unit from 1.9.2008.

| — | Communication activities were implemented consistent with those launched by the parent DGs; a range of projects’ kick off meetings and 4 InfoDays took place in 2008. |
| --- | --- |

—

Communication activities were implemented consistent with those launched by the parent DGs; a range of projects’ kick off meetings and 4 InfoDays took place in 2008.

| — | 200 audits were closed whereas 93 new audits were planned and launched in 2008. |
| --- | --- |

—

200 audits were closed whereas 93 new audits were planned and launched in 2008.

Source: Information supplied by the Agency.

THE AGENCY'S REPLIES

| 13. | The appropriations carried forward to 2009 amounted to 6.2 million euro (16 % of the budget), which amounts to a reduction of 4 % when compared to 2008.
  These appropriations cover the activities taking place in 2009 for which preparatory activities had commenced already in 2008.
  Nonetheless, the Agency will continue its efforts to reduce the volume of appropriations being carried over. |
| --- | --- |

13.

The appropriations carried forward to 2009 amounted to 6.2 million euro (16 % of the budget), which amounts to a reduction of 4 % when compared to 2008.

These appropriations cover the activities taking place in 2009 for which preparatory activities had commenced already in 2008.

Nonetheless, the Agency will continue its efforts to reduce the volume of appropriations being carried over.

---

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

1

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

2

Table

(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.

3

(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.

4

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

5

(6)  OJ L 11, 16.1.2003, p. 5.

6

(7)  Article 25 of Commission Regulation (EC) No 1653/2004 of 21 September 2004 (OJ L 297, 22.9.2004, p. 6).

7

(8)  Article 29 of Regulation (EC) No 1653/2004.

8

(9)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in chapter 1 of Title VI of Regulation (EC) No 1653/2004 as last amended by Commission Regulation (EC) No 651/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 15).

9

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

10

(11)  The Final Annual Accounts were drawn up on 7 May 2009 and received by the Court on 16 June 2009. 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.europa.eu/agencies/executive_agencies/eacea/index_en.htm

11

Official Journal of the European Union

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/71 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/71

---

REPORT

on the annual accounts of the Trans-European Transport Network Executive Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/14

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 72 |
| STATEMENT OF ASSURANCE... | 3-12 | 72 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13 | 73 |
| OTHER MATTERS... | 14 | 73 |
| Table... | 74 |
| The Agency’s replies... | 76 |

Paragraph

Page

INTRODUCTION...

1-2

72

STATEMENT OF ASSURANCE...

3-12

72

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13

73

OTHER MATTERS...

14

73

Table...

74

The Agency’s replies...

76

INTRODUCTION

| 1. | The Executive Agency for the Trans-European Transport Network (hereinafter ‘the Agency’), located in Brussels, was set up by the Commission Decision 2007/60/EC of 26 October 2006 (1) and amended by the Commission Decision 2008/593/EC (2). The Agency was established for a period beginning on 1 November 2006 and ending on 31 December 2015 for the management of Community actions in the field of the trans-European transport network. The Agency acquired its financial independence on 15 April 2008 (3). |
| --- | --- |

1.

The Executive Agency for the Trans-European Transport Network (hereinafter ‘the Agency’), located in Brussels, was set up by the Commission Decision 2007/60/EC of 26 October 2006 (1) and amended by the Commission Decision 2008/593/EC (2). The Agency was established for a period beginning on 1 November 2006 and ending on 31 December 2015 for the management of Community actions in the field of the trans-European transport network. The Agency acquired its financial independence on 15 April 2008 (3).

| 2. | The Agency’s 2008 budget amounted to 5,2 million euro.The number of staff employed by the Agency at the end of the year was 67. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 5,2 million euro.The number of staff employed by the Agency at the end of the year was 67.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (4) of the Agency, which comprise the ‘financial statements’ (5) and the ‘reports on implementation of the budget’ (6) for the period of 15 April 2008 to 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 14 of Council Regulation (EC) No 58/2003 (7). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (8). The Director is responsible for putting in place (9) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (10) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (11) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (12) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the period then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the period of 15 April 2008 to 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | For several budgetary commitments the appropriations carried forward in 2008 were not fully justified. The Agency should ensure that all provisional commitments without corresponding legal commitments are decommitted at the end of the year. |
| --- | --- |

13.

For several budgetary commitments the appropriations carried forward in 2008 were not fully justified. The Agency should ensure that all provisional commitments without corresponding legal commitments are decommitted at the end of the year.

OTHER MATTERS

| 14. | The recruitment plan for 2008 comprised 99 people, of whom 32 were temporary staff and 67 contractual staff. Nevertheless, by the end of 2008 the Agency had achieved only 68 % of its recruitment plan, employing 67 persons (23 temporary staff and 44 contract staff). The Agency should improve the programming and reduce the recruitment backlog (32 vacancies) in 2009. The partial achievement of the 2008 recruitment plan may endanger the fulfilment of the Agency’s tasks and objectives in a timely and regular manner. |
| --- | --- |

14.

The recruitment plan for 2008 comprised 99 people, of whom 32 were temporary staff and 67 contractual staff. Nevertheless, by the end of 2008 the Agency had achieved only 68 % of its recruitment plan, employing 67 persons (23 temporary staff and 44 contract staff). The Agency should improve the programming and reduce the recruitment backlog (32 vacancies) in 2009. The partial achievement of the 2008 recruitment plan may endanger the fulfilment of the Agency’s tasks and objectives in a timely and regular manner.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Trans-European Transport Network Executive Agency (Brussels)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Commission Decision 2007/60/EC of 26 October 2006 | Governance | Resources made available to the Agency in 2008 | Products and services |
| --- | --- | --- | --- | --- |
| The Community shall contribute to the establishment and development of trans-European networks in the area of transport.
  Community action shall aim at promoting the interconnection and interoperability of national networks as well as access to such networks.
  The Community shall establish a series of guidelines covering the objectives, priorities and broad lines of measures envisaged in the sphere of trans-European networks; these guidelines shall identify projects of common interest.
  The Community shall implement any measures that may prove necessary to ensure the interoperability of the networks.
  Community action may support projects of common interest supported by Member States, particularly through feasibility studies, loan guarantees or interest-rate subsidies; the Community may also contribute, through the Cohesion Fund, to the financing of specific projects in Member States in the area of transport infrastructure.
  The Community’s activities shall take into account the potential economic viability of the projects.
  The Community may decide to cooperate with third countries to promote projects of mutual interest and to ensure the interoperability of networks.

  (Articles 154 and 155 of the Treaty) | Objectives

  TEN-TEA is responsible for managing the technical and financial implementation of the Commission’s TEN-T Programme. Its role is to improve the effectiveness of TEN-T implementation at a lower cost; to strengthen the links between the TEN-T and communities of experts; to mobilise a high level of expertise and make the recruitment of specialised staff easier; to ensure a better coordination of funds with other Community instruments; to enable the simplification and flexibility of TEN-T implementation; to raise the profile of Community action in the field of TEN-T; and in general to add value to the management of the TEN-T Programme. | Tasks







  (a) | ensure the technical and financial management of projects and events which are co-financed under the TEN-T budget; |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Commission Decision 2007/60/EC of 26 October 2006

Governance

Resources made available to the Agency in 2008

Products and services

The Community shall contribute to the establishment and development of trans-European networks in the area of transport.

Community action shall aim at promoting the interconnection and interoperability of national networks as well as access to such networks.

The Community shall establish a series of guidelines covering the objectives, priorities and broad lines of measures envisaged in the sphere of trans-European networks; these guidelines shall identify projects of common interest.

The Community shall implement any measures that may prove necessary to ensure the interoperability of the networks.

Community action may support projects of common interest supported by Member States, particularly through feasibility studies, loan guarantees or interest-rate subsidies; the Community may also contribute, through the Cohesion Fund, to the financing of specific projects in Member States in the area of transport infrastructure.

The Community’s activities shall take into account the potential economic viability of the projects.

The Community may decide to cooperate with third countries to promote projects of mutual interest and to ensure the interoperability of networks.

(Articles 154 and 155 of the Treaty)

Objectives

TEN-TEA is responsible for managing the technical and financial implementation of the Commission’s TEN-T Programme. Its role is to improve the effectiveness of TEN-T implementation at a lower cost; to strengthen the links between the TEN-T and communities of experts; to mobilise a high level of expertise and make the recruitment of specialised staff easier; to ensure a better coordination of funds with other Community instruments; to enable the simplification and flexibility of TEN-T implementation; to raise the profile of Community action in the field of TEN-T; and in general to add value to the management of the TEN-T Programme.

Tasks

(a)

ensure the technical and financial management of projects and events which are co-financed under the TEN-T budget;

| (b) | collect, analyse and transmit to the Commission all information required for the implementation and programming of the TEN-T; |
| --- | --- |

(b)

collect, analyse and transmit to the Commission all information required for the implementation and programming of the TEN-T;

| (c) | provide technical support to project promoters and the financial institution responsible for managing the loan guarantee instrument for the TEN-T projects; |
| --- | --- |

(c)

provide technical support to project promoters and the financial institution responsible for managing the loan guarantee instrument for the TEN-T projects;

| (d) | provide any technical and administrative support requested by the Commission.
  Its parent, DG TREN, continues to address all policymaking and institutional tasks related to the TEN-T. |
| --- | --- |

(d)

provide any technical and administrative support requested by the Commission.

Its parent, DG TREN, continues to address all policymaking and institutional tasks related to the TEN-T.

1 —   Steering Committee

The Agency’s activities are supervised by a Steering Committee which is currently composed of five members and one observer. The members of the Steering Committee are appointed for two years. The Steering Committee meets in principle four times a year. Certain measures or decisions need its approval before they can be implemented. This applies for example to the administrative budget, the establishment plan, the Work Programme, the Annual Activity Report, the provisional accounts of all revenue and expenditure, the external evaluation report and the adoption of several special rules and measures etc. On a number of other actions, the committee is kept informed. In exceptional and urgent cases, decisions are taken through a written procedure.

2 —   Director

Appointed by the European Commission for five years.

3 —   External audit

Court of Auditors.

4 —   Discharge Authority

Parliament acting on recommendation by the Council.

Budget

| A. | 8,0 billion euro (100 % general budget of the European Union) for the TEN-T budget linked to the 2007–2013 Financial Perspective.
  780,0 million euro in outstanding commitments linked to the 2000–2006 Financial Perspective.
  The Agency implements the operating budget under the responsibility of the Commission. |
| --- | --- |

A.

8,0 billion euro (100 % general budget of the European Union) for the TEN-T budget linked to the 2007–2013 Financial Perspective.

780,0 million euro in outstanding commitments linked to the 2000–2006 Financial Perspective.

The Agency implements the operating budget under the responsibility of the Commission.

| B. | 5,2 million euro (100 % Community subsidy) for the administrative budget for which the Agency is autonomous. |
| --- | --- |

B.

5,2 million euro (100 % Community subsidy) for the administrative budget for which the Agency is autonomous.

Staff at 31 December 2008

TA posts:

| | 32 posts listed in the establishment plan of which 23 (72 %) occupied. |
| --- | --- |

32 posts listed in the establishment plan of which 23 (72 %) occupied.

| | Contract staff: 67 posts planned of which 44 (66 %) were occupied. |
| --- | --- |

Contract staff: 67 posts planned of which 44 (66 %) were occupied.

Total staff: 99 (67 occupied)

Responsible for:

| (a) | Operational tasks: 61 (44 occupied); |
| --- | --- |

(a)

Operational tasks: 61 (44 occupied);

| (b) | Administrative tasks: 38 (23 occupied). |
| --- | --- |

(b)

Administrative tasks: 38 (23 occupied).

During the first quarter of 2008, the transfer of files from DG TREN took place with the Agency taking over responsibility for 390 files, representing 780 million euro of open commitments and 138 requests for payment for an amount of 238 million euro. In addition, approximately 100 amendments to the open Decisions were to be made.

Although no part of the formal responsibility of the Agency at the time and not planned, due to lack of resources in DG TREN, the Agency also assisted with additional tasks. These included assistance and logistical support in the evaluation of the 2008 call for proposals for projects of common interest in the field of TEN-T, preparation of the selection process in DG TREN and participation in the negotiation process with the beneficiaries for the 139 Financing Decisions under the 2007 call for proposals.

Following the modification of the Agency’s mandate it became responsible for the TEN-T budget linked to the 2007–2013 Financial Perspective (global funding of 8 billion euro). In collaboration with DG TREN, it was agreed that the Agency would be responsible for the preparation of all the Annual 2007 Decisions and contribute to the Multiannual Decisions. In practice, the Agency also played the leading role in the preparation of many of the Multiannual Decisions. In addition the Agency also undertook the preparation of all corresponding funding commitments. All 139 Decisions were adopted by the end of the reporting period and nearly 80 % of the pre-financing payments referring to 2007 and 2008 instalments were made using 100 % of the available amount.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | The Agency agrees with the Court’s observation that the carry forward of some appropriations was not fully justified. This was due to the heavy workload in its first year of autonomy. The necessary procedures will be put in place to prevent this from happening at the end of 2009. |
| --- | --- |

13.

The Agency agrees with the Court’s observation that the carry forward of some appropriations was not fully justified. This was due to the heavy workload in its first year of autonomy. The necessary procedures will be put in place to prevent this from happening at the end of 2009.

| 14. | The lower than expected recruitment rate at the end of 2008 was mainly due to the delayed approval of the extension of the Agency’s mandate. The Agency is of the opinion that these delays did not have a substantial impact on the fulfilment of its tasks and objectives, since certain tasks and responsibilities were linked to the extended mandate, and were also transferred later than planned. The Agency’s target is to fill the current vacant posts by the end of 2009. |
| --- | --- |

14.

The lower than expected recruitment rate at the end of 2008 was mainly due to the delayed approval of the extension of the Agency’s mandate. The Agency is of the opinion that these delays did not have a substantial impact on the fulfilment of its tasks and objectives, since certain tasks and responsibilities were linked to the extended mandate, and were also transferred later than planned. The Agency’s target is to fill the current vacant posts by the end of 2009.

---

(1)  OJ L 32, 6.2.2007, p. 88.

1

(2)  OJ L 190, 18.7.2008, p. 35.

2

(3)  The Table summarises the Agency’s competences and activities. It is presented for information purposes.

3

Table

(4)  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.

4

(5)  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.

5

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

6

(7)  OJ L 11, 16.1.2003, p. 1.

7

(8)  Article 25 of Commission Regulation (EC) No 1653/2004 of 21 September 2004 (OJ L 297, 22.9.2004, p. 6).

8

(9)  Article 29 of Regulation (EC) No 1653/2004.

9

(10)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VI of Regulation (EC) No 1653/2004 as last amended by Commission Regulation (EC) No 651/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 15).

10

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

11

(12)  The Final Annual Accounts were drawn up on 25 June 2009 and received by the Court on 29 June 2009. 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://tentea.ec.europa.eu/en/about_us/missionintroduction/key_documents.htm

12

Official Journal of the European Union

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/77 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/77

---

REPORT

on the annual accounts of the Executive Agency for Competitiveness and Innovation for the financial year 2008, together with the Agency’s replies

2009/C 304/15

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 78 |
| STATEMENT OF ASSURANCE ... | 3-12 | 78 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13 | 79 |
| Table ... | 80 |
| The Agency’s replies ... | 82 |

Paragraph

Page

INTRODUCTION ...

1-2

78

STATEMENT OF ASSURANCE ...

3-12

78

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13

79

Table ...

80

The Agency’s replies ...

82

INTRODUCTION

| 1. | The Executive Agency for Competitiveness and Innovation (hereinafter referred to as ‘the Agency’), located in Brussels, is the former Intelligent Energy Executive Agency (IEEA). Its mandate and the duration thereof were altered following Commission Decision 2007/372/EC of 31 May 2007 (1) amending Decision 2004/20/EC of 23 December 2003 (2). The Agency was established for a limited period beginning on 1 January 2004 and now ending on 31 December 2015 with the aim of managing Community actions in the field of energy, entrepreneurship and innovation, and sustainable freight transport (3). |
| --- | --- |

1.

The Executive Agency for Competitiveness and Innovation (hereinafter referred to as ‘the Agency’), located in Brussels, is the former Intelligent Energy Executive Agency (IEEA). Its mandate and the duration thereof were altered following Commission Decision 2007/372/EC of 31 May 2007 (1) amending Decision 2004/20/EC of 23 December 2003 (2). The Agency was established for a limited period beginning on 1 January 2004 and now ending on 31 December 2015 with the aim of managing Community actions in the field of energy, entrepreneurship and innovation, and sustainable freight transport (3).

| 2. | The Agency’s 2008 budget amounted to 11,5 million euro compared with 6,9 million euro the previous year. The number of staff employed by the Agency at the end of the year was 131 as compared with 69 the previous year. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 11,5 million euro compared with 6,9 million euro the previous year. The number of staff employed by the Agency at the end of the year was 131 as compared with 69 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (4) of the Agency, which comprise the ‘financial statements’ (5) and the ‘reports on implementation of the budget’ (6) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 14 of Council Regulation (EC) No 58/2003 (7). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (8). The Director is responsible for putting in place (9) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (10) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (11) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgment including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (12) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | The initial budget of 14,8 million euro was reduced by 3,3 million euro in October 2008 (13). The main reasons for the modifications made to the initial budget were delays in the recruitment of staff and, to a lesser extent, revised forecasts of the number of missions planned and building rental costs being lower than expected. |
| --- | --- |

13.

The initial budget of 14,8 million euro was reduced by 3,3 million euro in October 2008 (13). The main reasons for the modifications made to the initial budget were delays in the recruitment of staff and, to a lesser extent, revised forecasts of the number of missions planned and building rental costs being lower than expected.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Executive Agency for Competitiveness and Innovation (Brussels)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Commission Decision 2004/20/EC amended by Commission Decision 2007/372/EC | Governance | Resources available to the Agency in 2008

  (Data for 2007) | Activities and services provided in 2008 |
| --- | --- | --- | --- | --- |
| 1. | The Community policy on the environment shall contribute to preserving, protecting and improving the quality of the environment; protecting human health; prudent and rational utilisation of natural resources; and promoting measures at international level to deal with regional or worldwide environmental problems.

  (Article 174 of the Treaty) |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Commission Decision 2004/20/EC amended by Commission Decision 2007/372/EC

Governance

Resources available to the Agency in 2008

(Data for 2007)

Activities and services provided in 2008

1.

The Community policy on the environment shall contribute to preserving, protecting and improving the quality of the environment; protecting human health; prudent and rational utilisation of natural resources; and promoting measures at international level to deal with regional or worldwide environmental problems.

(Article 174 of the Treaty)

| 2. | The Community policy on industry shall ensure that the conditions necessary for the competitiveness of the Community’s industry exist by speeding up the adjustment of industry to structural changes, encouraging an environment favourable to initiative and to the development of and cooperation between undertakings, fostering better exploitation of the industrial potential of policies of innovation, research and technological development. The Member States shall consult each other in liaison with the Commission and, where necessary, shall coordinate their action. The Commission may take any useful initiative to promote such coordination.

  (Article 157 of the Treaty) |
| --- | --- |

2.

The Community policy on industry shall ensure that the conditions necessary for the competitiveness of the Community’s industry exist by speeding up the adjustment of industry to structural changes, encouraging an environment favourable to initiative and to the development of and cooperation between undertakings, fostering better exploitation of the industrial potential of policies of innovation, research and technological development. The Member States shall consult each other in liaison with the Commission and, where necessary, shall coordinate their action. The Commission may take any useful initiative to promote such coordination.

(Article 157 of the Treaty)

| 3. | The common transport policy shall lay down common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States. It shall also set out the conditions under which non-resident carriers may operate transport services within a Member State, and lay down measures to improve transport safety.

  (Articles 71(1) and 80(2)) |
| --- | --- |

3.

The common transport policy shall lay down common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States. It shall also set out the conditions under which non-resident carriers may operate transport services within a Member State, and lay down measures to improve transport safety.

(Articles 71(1) and 80(2))

Objectives

Within the framework of the Lisbon strategy for growth and jobs, the European Union has taken measures to promote and develop competitiveness and innovation. These measures include the establishment of the Competitiveness and Innovation Framework Programme (CIP) 2007-2013 (Decision No 1639/2006/EC), notably with the programmes Intelligent Energy — Europe (IEE) and Entrepreneurship and Innovation (EIP). They also include the Marco Polo (MP) programme (Regulation (EC) No 1692/2006).

The main objectives are to foster competitiveness of enterprises, in particular SMEs; to promote all forms of innovation, including eco-innovation; to promote energy efficiency and new and renewable energy sources in all sectors, including transport.

Under these Community programmes, the Agency is responsible for implementing the tasks concerning Community aid, except for programme evaluation, monitoring of legislation and strategic studies, or any other action which comes under the exclusive competence of the European Commission.

Tasks

In the context of implementing the Community programmes for which the delegation of tasks from the Commission to the Agency was effective in 2008:

| — | To manage all phases in the lifetime of specific projects. |
| --- | --- |

—

To manage all phases in the lifetime of specific projects.

| — | To adopt the instruments of budget implementation and to carry out, where the Commission has empowered it to do so, all operations necessary to manage the Community programme and, in particular, those linked to the award of contracts and grants. |
| --- | --- |

—

To adopt the instruments of budget implementation and to carry out, where the Commission has empowered it to do so, all operations necessary to manage the Community programme and, in particular, those linked to the award of contracts and grants.

| — | To gather, analyse and pass on to the Commission all the information needed to guide the implementation of the programme as well as to promote coordination and synergy among the programmes. |
| --- | --- |

—

To gather, analyse and pass on to the Commission all the information needed to guide the implementation of the programme as well as to promote coordination and synergy among the programmes.

| — | As regards the EIP, to be in charge of project management and network animation of the Enterprise Europe Network, eco-innovation pilot and market replication projects, and innovation actions with a high degree of standardisation (IP Base project). |
| --- | --- |

—

As regards the EIP, to be in charge of project management and network animation of the Enterprise Europe Network, eco-innovation pilot and market replication projects, and innovation actions with a high degree of standardisation (IP Base project).

1 —   Steering Committee

Comprises five members appointed by the European Commission. It adopts the Agency’s annual work programme after approval by the European Commission. In addition, it adopts the administrative budget of the Agency and its annual activity report.

2 —   Director

Appointed by the European Commission.

3 —   External Audit

The Court of Auditors.

4 —   Discharge authority

Parliament, acting on a recommendation by the Council.

Budget

| A) | 204,8 (137,3) million euro (100 % general budget of the European Union of which 55,8 (63,8) million euro for IEE; 27,9 (0,0) million euro for eco-innovation; 38,3 (0,0) million euro for MP; 82,8 (73,5) million euro for EIP. The EACI implements the operating budget under the responsibility of the Commission.) |
| --- | --- |

A)

204,8 (137,3) million euro (100 % general budget of the European Union of which 55,8 (63,8) million euro for IEE; 27,9 (0,0) million euro for eco-innovation; 38,3 (0,0) million euro for MP; 82,8 (73,5) million euro for EIP. The EACI implements the operating budget under the responsibility of the Commission.)

| B) | 11,5 (6,9) million euro (100 % Community subsidy) for the administrative budget for which the EACI is autonomous. |
| --- | --- |

B)

11,5 (6,9) million euro (100 % Community subsidy) for the administrative budget for which the EACI is autonomous.

Staff at 31 December 2008

TA posts: 36 (35) listed in the establishment plan, of which 27 (22) occupied.

Contract staff: 108 (77) posts planned, of which 104 (47) were occupied.

Total staff: 131 (69)

Responsible for

| a) | Operational tasks:
  110 (54) |
| --- | --- |

a)

Operational tasks:

110 (54)

| b) | Administrative tasks:
  21 (15) |
| --- | --- |

b)

Administrative tasks:

21 (15)

For the Intelligent Energy Europe (IEE) programme, the Agency monitored 409 ongoing IEE projects and signed 73 new grant agreements related to the 2007 call for proposals. For the 2008 call, the Agency selected 54 projects out of 342 submitted proposals. The call was promoted through the IEE website, electronic news alerts and 37 Info Days (460 participants at the European Info Day and 1 500 participants at the 15 national Info Days attended by the Agency).

The Agency spread information about the programme and its results via the IEE website (1,2 million page views, 400 000 downloads), a new searchable project database, 4 new video reports (> 18 million viewers, > 150 TV broadcasts), 5 new project brochures (87 000 copies distributed), the Intelligent Energy News Review (80 000 copies distributed) and 6 electronic news alerts (10 000 subscribers). Through workshops the Agency fed back results from IEE projects to the Commission, e.g. on the energy performance of the buildings Directive.

For the EIP programme:

Launched at the beginning of 2008, the Enterprise Europe Network offers a ‘one-stop shop’ to meet the business and innovation needs of SMEs and companies in the EU. In 2008, the Agency became ‘fully autonomous’ for the delegated project management and network animation tasks.

By the end of 2008, grant agreements were signed with all 83 consortia.

After the hand-over from the Commission in April 2008, the Agency organised more than 8 working groups, 2 training sessions for network partners with more than 90 participants and — together with the French EU Presidency — the Annual Conference of the Network with more than 800 participants. The Agency also developed the graphical charter of the network.

For the eco-innovation market replication projects, the Agency prepared and published the 2008 call. The evaluation of the 134 submitted proposals was nearly completed by the end of 2008. The 2008 call was promoted via 1 European and 10 national Info Days (1 260 participants) and a new dedicated website (> 300 000 page views). The efforts to promote the scheme also included a new graphical charter, an electronic news alert system (3 000 subscribers) and new posters and flyers (12 000 copies distributed).

For the Marco Polo programme:

In March 2008, the Agency became responsible for monitoring 43 ongoing projects; in the course of 2008, 20 new grant agreements were signed related to the 2007 call for proposals. The Agency managed the evaluation of the 2008 call, with 46 proposals received and 30 selected. Efforts to promote the programme included a renewed website (some 250 000 page views), a new graphical charter, 7 electronic news alerts (800 subscribers), new posters (2 000 copies distributed), two regional conferences in Valencia and Venice (400 participants), improved media work (40 press articles, more than 1,5 million readers) and the development of the first video (release in 2009).

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | The initial 2008 budget was based on estimated staff numbers indicated in the ‘fiche financière’ of the Commission decision to extend the Agency's tasks. In the event staff were recruited during the year according to the successive handover of tasks from the parent Directorates General. |
| --- | --- |

13.

The initial 2008 budget was based on estimated staff numbers indicated in the ‘fiche financière’ of the Commission decision to extend the Agency's tasks. In the event staff were recruited during the year according to the successive handover of tasks from the parent Directorates General.

---

(1)  OJ L 140, 1.6.2007, p. 52.

1

(2)  OJ L 5, 9.1.2004, p. 85.

2

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

3

Table

(4)  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.

4

inter alia

(5)  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.

5

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

6

(7)  OJ L 11, 16.1.2003, p. 5.

7

(8)  Article 25 of Commission Regulation (EC) No 1653/2004 of 21 September 2004 (OJ L 297, 22.9.2004, p. 6).

8

(9)  Article 29 of Regulation (EC) No 1653/2004.

9

(10)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VI of Regulation (EC) No 1653/2004 as last amended by Commission Regulation (EC) No 651/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 15).

10

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

11

(12)  The Final Annual Accounts were drawn up on 29 May 2009 and received by the Court on 30 June 2009. 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.europa.eu/agencies/executive_agencies/eaci/index_en.htm

12

Official Journal of the European Union

(13)  Amending Budget 1/2008 (OJ L 342, 19.12.2008, p. 31).

13

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/83 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/83

---

REPORT

on the annual accounts of the Executive Agency for Health and Consumers for the financial year 2008, together with the Agency’s replies

2009/C 304/16

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 84 |
| STATEMENT OF ASSURANCE ... | 3-12 | 84 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13 | 85 |
| Table ... | 86 |
| The Agency’s replies ... | 88 |

Paragraph

Page

INTRODUCTION ...

1-2

84

STATEMENT OF ASSURANCE ...

3-12

84

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13

85

Table ...

86

The Agency’s replies ...

88

INTRODUCTION

| 1. | The Executive Agency for Health and Consumers (hereinafter ‘the Agency’), located in Luxembourg, was set up by Commission Decision 2004/858/EC (1) and amended by Commission Decision 2008/544/EC (2). The Agency was established for a period beginning on 1 January 2005 and ending in 2013 for the management of Community actions in the field of health and consumer policy (3). |
| --- | --- |

1.

The Executive Agency for Health and Consumers (hereinafter ‘the Agency’), located in Luxembourg, was set up by Commission Decision 2004/858/EC (1) and amended by Commission Decision 2008/544/EC (2). The Agency was established for a period beginning on 1 January 2005 and ending in 2013 for the management of Community actions in the field of health and consumer policy (3).

| 2. | The Agency’s 2008 administrative budget amounted to 4,4 million euro compared with 4,1 million euro the previous year. The number of staff employed by the Agency at the end of the year was 42 as compared with 28 the previous year. |
| --- | --- |

2.

The Agency’s 2008 administrative budget amounted to 4,4 million euro compared with 4,1 million euro the previous year. The number of staff employed by the Agency at the end of the year was 42 as compared with 28 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (4) of the Agency, which comprise the ‘financial statements’ (5) and the ‘reports on implementation of the budget’ (6) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 14 of Council Regulation (EC) No 58/2003 (7). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (8). The Director is responsible for putting in place (9) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (10) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (11) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (12) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | The Agency entered into two agreements at the end of December 2008 (13) based on negotiated procedures and, according to the rules, contacted respectively five and three candidates. However, the principles of transparency and equal treatment were not fully applied in these cases, as the invitations to bid were sent on different dates, in one case on the day when the contract was awarded. This situation shows that the Agency should improve the transparency and the planning of its procurement procedures throughout the year and apply more strictly the principle of equal treatment of all participants in tendering procedures. |
| --- | --- |

13.

The Agency entered into two agreements at the end of December 2008 (13) based on negotiated procedures and, according to the rules, contacted respectively five and three candidates. However, the principles of transparency and equal treatment were not fully applied in these cases, as the invitations to bid were sent on different dates, in one case on the day when the contract was awarded. This situation shows that the Agency should improve the transparency and the planning of its procurement procedures throughout the year and apply more strictly the principle of equal treatment of all participants in tendering procedures.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Executive Agency for Health and Consumers (Luxembourg)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Commission Decision (2004/858/EC) of 15 December 2004 amended by Commission Decision (2008/544/EC) of 20 June 2008 | Governance | Resources made available to the Agency in 2008 | Products and services supplied in 2008 |
| --- | --- | --- | --- | --- |
| A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education. The Community shall complement the Member States’ action in reducing drugs-related health damage, including information and prevention.

  (Article 152 of the Treaty)

  In order to promote the interests of consumers and to ensure a high level of consumer protection, the Community shall contribute to protecting the health, safety and economic interests of consumers, as well as to promoting their right to information, education and to organise themselves in order to safeguard their interests.

  (Article 153 of the Treaty) | Objectives

  The Agency is responsible for carrying out the implementation tasks for the management of the second Public Health Programme 2008-2013 as adopted by Decision No 1350/2007/EC, the Consumer programme for 2007-2013 as adopted by Decision No 1926/2006/EC and the food safety training measures covered by Regulation (EC) No 882/2004 and Directive 2000/29/EC.
  The Agency also manages all the phases in the lifetime of the implementing measures delegated to it in the framework of the programme of Community action in the field of public health 2003-2008, adopted by Decision No 1786/2002/EC of the European Parliament and of the Council of 23 September 2002. | Tasks

  Under the Community programmes mentioned below, The Agency is responsible for implementing the following tasks as defined in the delegation act adopted on of 9 September 2008 (14): | Public Health Programme 2003-2008 — Decision No 1786/2002/EC |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Commission Decision (2004/858/EC) of 15 December 2004 amended by Commission Decision (2008/544/EC) of 20 June 2008

Governance

Resources made available to the Agency in 2008

Products and services supplied in 2008

A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education. The Community shall complement the Member States’ action in reducing drugs-related health damage, including information and prevention.

(Article 152 of the Treaty)

In order to promote the interests of consumers and to ensure a high level of consumer protection, the Community shall contribute to protecting the health, safety and economic interests of consumers, as well as to promoting their right to information, education and to organise themselves in order to safeguard their interests.

(Article 153 of the Treaty)

Objectives

The Agency is responsible for carrying out the implementation tasks for the management of the second Public Health Programme 2008-2013 as adopted by Decision No 1350/2007/EC, the Consumer programme for 2007-2013 as adopted by Decision No 1926/2006/EC and the food safety training measures covered by Regulation (EC) No 882/2004 and Directive 2000/29/EC.

The Agency also manages all the phases in the lifetime of the implementing measures delegated to it in the framework of the programme of Community action in the field of public health 2003-2008, adopted by Decision No 1786/2002/EC of the European Parliament and of the Council of 23 September 2002.

Tasks

Under the Community programmes mentioned below, The Agency is responsible for implementing the following tasks as defined in the delegation act adopted on of 9 September 2008 (14):

Public Health Programme 2003-2008 — Decision No 1786/2002/EC

| | Public Health Programme 2008-2013 — Decision No 1350/2007/EC |
| --- | --- |

Public Health Programme 2008-2013 — Decision No 1350/2007/EC

| | Consumers Programme 2007-2013 — Decision No 1926/2006/EC |
| --- | --- |

Consumers Programme 2007-2013 — Decision No 1926/2006/EC

| | Food Safety Training Measures — Regulation (EC) No 882/2004 and Directive 2000/29/EC:






  (a) | managing all the phases of the cycle of projects (for monitoring and dissemination purposes, the Agency shall take the necessary steps to create a database of projects or to continue an existing one, incorporating a project description and the final results); |
| --- | --- | --- |

Food Safety Training Measures — Regulation (EC) No 882/2004 and Directive 2000/29/EC:

(a)

managing all the phases of the cycle of projects (for monitoring and dissemination purposes, the Agency shall take the necessary steps to create a database of projects or to continue an existing one, incorporating a project description and the final results);

| (b) | monitoring projects implemented under these programmes and measures including the necessary checks; |
| --- | --- |

(b)

monitoring projects implemented under these programmes and measures including the necessary checks;

| (c) | collecting, processing and distributing data and in particular compiling, analysing and transmitting to the Commission all information required to guide implementation of the Community programmes and measures, promote coordination and synergy with other programmes of the Communities, the Member States or international organisations; |
| --- | --- |

(c)

collecting, processing and distributing data and in particular compiling, analysing and transmitting to the Commission all information required to guide implementation of the Community programmes and measures, promote coordination and synergy with other programmes of the Communities, the Member States or international organisations;

| (d) | organising meetings, seminars, talks, and training measures; |
| --- | --- |

(d)

organising meetings, seminars, talks, and training measures;

| (e) | helping to evaluate the programme’s impact, in particular the annual and/or mid term evaluation of implementation of the programmes, and implementing the follow-up actions on evaluations decided by the Commission; |
| --- | --- |

(e)

helping to evaluate the programme’s impact, in particular the annual and/or mid term evaluation of implementation of the programmes, and implementing the follow-up actions on evaluations decided by the Commission;

| (f) | disseminating the results of the information operations planned and implemented by the Commission; |
| --- | --- |

(f)

disseminating the results of the information operations planned and implemented by the Commission;

| (g) | producing overall control and supervision data; |
| --- | --- |

(g)

producing overall control and supervision data;

| (h) | participating in preparatory work on financing decisions. |
| --- | --- |

(h)

participating in preparatory work on financing decisions.

1 —   Steering Committee

Comprises five members appointed by the European Commission. The members of the Steering Committee are appointed for two years.

It adopts the Agency’s annual work programme after approval by the European Commission. In addition, it adopts the administrative budget of the Agency and its annual activity report.

2 —   Director

Appointed by the European Commission for four years.

3 —   External audit

The European Court of Auditors.

4 —   Discharge Authority

The European Parliament following a recommendation from the Council.

Budget

The Agency’s administrative budget for 2008 amounted to 4,4 million euro.

Staff at 31 December 2008

On 31 December 2008, the Agency employed 42 statutory staff members, including 8 temporary staff and 34 contract staff.

| 1. | Monitor the grant agreements awarded under the 2005, 2006 and 2007 Public Health Programme Calls. |
| --- | --- |

1.

Monitor the grant agreements awarded under the 2005, 2006 and 2007 Public Health Programme Calls.

| 2. | Execution of the 2008 Call for proposals ‘Public Health programme’ — 2008. The Agency organised 14 info days and the evaluation of the received proposals. By the end of the year, 27 out of 65 grant agreements were signed. |
| --- | --- |

2.

Execution of the 2008 Call for proposals ‘Public Health programme’ — 2008. The Agency organised 14 info days and the evaluation of the received proposals. By the end of the year, 27 out of 65 grant agreements were signed.

| 3. | Generation and dissemination of information on the Public Health programme and the Executive Agency’s activities. The Agency redesigned its website in 2008. |
| --- | --- |

3.

Generation and dissemination of information on the Public Health programme and the Executive Agency’s activities. The Agency redesigned its website in 2008.

| 4. | Organisation of expert meetings. 24 meetings were organised inviting around 1 200 experts. |
| --- | --- |

4.

Organisation of expert meetings. 24 meetings were organised inviting around 1 200 experts.

| 5. | At the end of 2008, the Agency was managing a portfolio of 256 cost-shared projects, representing a total EC contribution of 119 million euro. |
| --- | --- |

5.

At the end of 2008, the Agency was managing a portfolio of 256 cost-shared projects, representing a total EC contribution of 119 million euro.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | Both cases relate to the acquisition of standard software licences or packages for which only the tenderers’ retail prices were requested. For both cases, the award decision was only taken after all price quotations from the tenderers were received.
  In 2009 the procurement procedures have been improved and EAHC has established a revised planning for its IT expenditure execution. |
| --- | --- |

13.

Both cases relate to the acquisition of standard software licences or packages for which only the tenderers’ retail prices were requested. For both cases, the award decision was only taken after all price quotations from the tenderers were received.

In 2009 the procurement procedures have been improved and EAHC has established a revised planning for its IT expenditure execution.

---

(1)  OJ L 369, 15.12.2004, p. 73.

1

(2)  OJ L 173, 3.7.2008, p. 27.

2

(3)  The Table summarises the Agency’s competences and activities. It is presented for information purposes.

3

Table

(4)  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.

4

(5)  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.

5

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

6

(7)  OJ L 11, 16.1.2003, p. 1.

7

(8)  Article 25 of Commission Regulation (EC) No 1653/2004 of 21 September 2004 (OJ L 297, 22.9.2004, p. 6).

8

(9)  Article 29 of Regulation (EC) No 1653/2004.

9

(10)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in chapter 1 of Title VI of Regulation (EC) No 1653/2004 as last amended by Commission Regulation (EC) No 651/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 15).

10

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

11

(12)  The Final Annual Accounts were drawn up on 2 June 2009 and received by the Court on 26 June 2009. 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://ec.europa.eu/eahc/about/about.html

12

Official Journal of the European Union

(13)  Total value: 66 000 euro.

13

(14)  Commission Decision of 9 September 2008 delegating powers to the Agency.

14

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/89 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/89

---

REPORT

on the annual accounts of the European Railway Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/17

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 90 |
| STATEMENT OF ASSURANCE ... | 3-12 | 90 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13 | 91 |
| OTHER MATTERS ... | 14-17 | 91 |
| Table ... | 92 |
| The Agency’s replies... | 94 |

Paragraph

Page

INTRODUCTION ...

1-2

90

STATEMENT OF ASSURANCE ...

3-12

90

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13

91

OTHER MATTERS ...

14-17

91

Table ...

92

The Agency’s replies...

94

INTRODUCTION

| 1. | The European Railway Agency (hereinafter ‘the Agency’), located in Lille-Valenciennes, was created by Regulation (EC) No 881/2004 of the European Parliament and of the Council of 29 April 2004 (1). The Agency’s aim is to enhance the level of interoperability of railway systems and to develop a common approach to safety in order to contribute to creating a more competitive European railway sector with a high level of safety (2). |
| --- | --- |

1.

The European Railway Agency (hereinafter ‘the Agency’), located in Lille-Valenciennes, was created by Regulation (EC) No 881/2004 of the European Parliament and of the Council of 29 April 2004 (1). The Agency’s aim is to enhance the level of interoperability of railway systems and to develop a common approach to safety in order to contribute to creating a more competitive European railway sector with a high level of safety (2).

| 2. | The Agency’s 2008 budget amounted to 18 million euro compared with 16,6 million euro the previous year. The number of staff employed by the Agency at the end of the year was 113 compared with 99 the previous year. |
| --- | --- |

2.

The Agency’s 2008 budget amounted to 18 million euro compared with 16,6 million euro the previous year. The number of staff employed by the Agency at the end of the year was 113 compared with 99 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | More than 4,1 million euro appropriations were carried forward to 2009 (12). The audit of a sample of the largest commitments for which the related appropriations have been carried forward to 2009 showed that they concerned services and works (13) which were ordered very late in 2008 and were expected to be delivered in 2009. This high level of appropriations carried forward indicates difficulties in the programming and the budgeting of the Agency’s activities. |
| --- | --- |

13.

More than 4,1 million euro appropriations were carried forward to 2009 (12). The audit of a sample of the largest commitments for which the related appropriations have been carried forward to 2009 showed that they concerned services and works (13) which were ordered very late in 2008 and were expected to be delivered in 2009. This high level of appropriations carried forward indicates difficulties in the programming and the budgeting of the Agency’s activities.

OTHER MATTERS

| 14. | The review of the Agency’s Annual Work programme showed several shortcomings. Objectives are not always formulated in a ‘SMART’ (specific, measurable, achievable, relevant, timely) way but rather in a way which does not allow the identification of shortfalls against objectives and the assessment of achievements. Inconsistencies in the presentation of figures pertaining to staff and budgetary resources allocated to activities were also noted. This situation, combined with the absence of performance indicators, hampers an assessment of the annual performance of the Agency. |
| --- | --- |

14.

The review of the Agency’s Annual Work programme showed several shortcomings. Objectives are not always formulated in a ‘SMART’ (specific, measurable, achievable, relevant, timely) way but rather in a way which does not allow the identification of shortfalls against objectives and the assessment of achievements. Inconsistencies in the presentation of figures pertaining to staff and budgetary resources allocated to activities were also noted. This situation, combined with the absence of performance indicators, hampers an assessment of the annual performance of the Agency.

| 15. | An audit of a sample of procurement procedures carried out during the year showed weaknesses. The formal requirements set out in the tender specifications were not respected and not consistently assessed by the evaluation committees; at the level of selection criteria (two cases) (14) and at the level of award criteria (one case) (15). This hampered the transparency of the procedures. |
| --- | --- |

15.

An audit of a sample of procurement procedures carried out during the year showed weaknesses. The formal requirements set out in the tender specifications were not respected and not consistently assessed by the evaluation committees; at the level of selection criteria (two cases) (14) and at the level of award criteria (one case) (15). This hampered the transparency of the procedures.

| 16. | The Agency is still carrying out its operations in two locations: Lille and Valenciennes. As the Court mentioned in its report for the financial year 2006 (16), this situation exposes the Agency to significant additional costs (17) which could be avoided if all operations were concentrated in one location. Since then, the Agency has taken steps to formalise a seat agreement whereby the additionnal costs emerging from the dual location would be compensated by the French authorities. These efforts have so far been unsuccessful. |
| --- | --- |

16.

The Agency is still carrying out its operations in two locations: Lille and Valenciennes. As the Court mentioned in its report for the financial year 2006 (16), this situation exposes the Agency to significant additional costs (17) which could be avoided if all operations were concentrated in one location. Since then, the Agency has taken steps to formalise a seat agreement whereby the additionnal costs emerging from the dual location would be compensated by the French authorities. These efforts have so far been unsuccessful.

| 17. | In 2009, the Agency will move to a building owned by the municipality of Valenciennes. The duration of the contract is 25 years, provided that a seat agreement is signed with the French Government. Because no seat agreement has been formalised to date, the budgetary authority (18) has limited the duration of the new lease contract to one year, automatically renewable for a maximum of one further year. The lack of certainty on the duration of the contract hinders the planning for the installation of the new premises and the related acquisition procedures and, in consequence, the budgetary programming. |
| --- | --- |

17.

In 2009, the Agency will move to a building owned by the municipality of Valenciennes. The duration of the contract is 25 years, provided that a seat agreement is signed with the French Government. Because no seat agreement has been formalised to date, the budgetary authority (18) has limited the duration of the new lease contract to one year, automatically renewable for a maximum of one further year. The lack of certainty on the duration of the contract hinders the planning for the installation of the new premises and the related acquisition procedures and, in consequence, the budgetary programming.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Railway Agency (Lille/Valenciennes)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Regulation (EC) No 881/2004 of the European Parliament and of the Council | Governance | Resources available to the Agency in 2008
  (Data for 2007) | Activities and services provided in 2008 |
| --- | --- | --- | --- | --- |
| Common Transport Policy
  For the purpose of implementing Article 70, and taking into account the distinctive features of transport, the Council shall, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, lay down:






  (a) | common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States; |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 881/2004 of the European Parliament and of the Council

Governance

Resources available to the Agency in 2008

(Data for 2007)

Activities and services provided in 2008

Common Transport Policy

For the purpose of implementing Article 70, and taking into account the distinctive features of transport, the Council shall, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, lay down:

(a)

common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States;

| (b) | the conditions under which non-resident carriers may operate transport services within a Member State; |
| --- | --- |

(b)

the conditions under which non-resident carriers may operate transport services within a Member State;

| (c) | measures to improve transport safety; |
| --- | --- |

(c)

measures to improve transport safety;

| (d) | any other appropriate provisions. |
| --- | --- |

(d)

any other appropriate provisions.

(Article 71 of the Treaty)

Objectives

To contribute on technical matters, to the implementation of the Community legislation aimed at:

| — | improving the competitive position of the railway systems, |
| --- | --- |

—

improving the competitive position of the railway systems,

| — | developing a common approach to safety on the European railway system. |
| --- | --- |

—

developing a common approach to safety on the European railway system.

In order to contribute to creating a European railway area without frontiers and guaranteeing a high level of safety.

Tasks

1 —   Address recommendations to the Commission on

| — | the common safety methods (CMS) and common safety targets (CSTs) provided in the Railway Safety Directive (2004/49/EC), |
| --- | --- |

—

the common safety methods (CMS) and common safety targets (CSTs) provided in the Railway Safety Directive (2004/49/EC),

| — | safety certificates and measures in the field of safety, |
| --- | --- |

—

safety certificates and measures in the field of safety,

| — | development of technical specifications for interoperability, |
| --- | --- |

—

development of technical specifications for interoperability,

| — | monitoring interoperability, |
| --- | --- |

—

monitoring interoperability,

| — | certification of maintenance workshops, |
| --- | --- |

—

certification of maintenance workshops,

| — | vocational competencies, |
| --- | --- |

—

vocational competencies,

| — | registration of rolling stock. |
| --- | --- |

—

registration of rolling stock.

2 —   Issue opinions on

| — | national safety rules, |
| --- | --- |

—

national safety rules,

| — | monitoring the quality of work of notified bodies, |
| --- | --- |

—

monitoring the quality of work of notified bodies,

| — | interoperability of the trans-European network. |
| --- | --- |

—

interoperability of the trans-European network.

3 —   Coordination of national bodies

| — | coordination of national safety authorities and national investigation bodies (as described in Directive 2004/49/EC, Articles 17 and 21). |
| --- | --- |

—

coordination of national safety authorities and national investigation bodies (as described in Directive 2004/49/EC, Articles 17 and 21).

4 —   Publications and databases

| — | report on safety performance (every two years), |
| --- | --- |

—

report on safety performance (every two years),

| — | report on progress with interoperability (every two years), |
| --- | --- |

—

report on progress with interoperability (every two years),

| — | public database of safety documents, |
| --- | --- |

—

public database of safety documents,

| — | public register of documents on interoperability. |
| --- | --- |

—

public register of documents on interoperability.

1 —   Administrative Board

Comprises one representative from each Member State, four representatives from the Commission and six representatives, without the right to vote, from the professional sectors concerned.

2 —   Director

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

3 —   External audit

Court of Auditors.

4 —   Discharge Authority

The Parliament following a recommendation from the Council.

Budget

18 million euro

(16,6 million euro)

Staff at 31 December 2008

Posts listed in the establishment plan: 116 (116)

Posts occupied on 31.12.2008: 106 (95)

Other staff: 7 (4)

Total staff: 113 (99)

of which assigned to:

| — | operational tasks: 69 (66) |
| --- | --- |

—

operational tasks: 69 (66)

| — | administrative tasks: 44 (33) |
| --- | --- |

—

administrative tasks: 44 (33)

| — | Recommendation on common safety methods to be used in the framework of common safety targets, |
| --- | --- |

—

Recommendation on common safety methods to be used in the framework of common safety targets,

| — | Recommendation on the revision of Annex I to Directive 2004/49/EC, |
| --- | --- |

—

Recommendation on the revision of Annex I to Directive 2004/49/EC,

| — | The first biennial report on the safety performance of the railways of the European Union, |
| --- | --- |

—

The first biennial report on the safety performance of the railways of the European Union,

| — | Recommendation on a common format for train drivers licences and registers, |
| --- | --- |

—

Recommendation on a common format for train drivers licences and registers,

| — | Recommendation on harmonised requirements for Part B Safety Certificates, |
| --- | --- |

—

Recommendation on harmonised requirements for Part B Safety Certificates,

| — | Recommendation on the conventional rail technical specifications for interoperability (TSI) infrastructure, |
| --- | --- |

—

Recommendation on the conventional rail technical specifications for interoperability (TSI) infrastructure,

| — | Recommendation on the conventional rail TSI energy, |
| --- | --- |

—

Recommendation on the conventional rail TSI energy,

| — | Recommendation on the certification of maintenance workshops, |
| --- | --- |

—

Recommendation on the certification of maintenance workshops,

| — | Recommendation on the system requirement specification for baseline 3 of the European Railway Traffic Management System (ERTMS) specification, |
| --- | --- |

—

Recommendation on the system requirement specification for baseline 3 of the European Railway Traffic Management System (ERTMS) specification,

| — | Draft TSI on locomotives and passenger rolling stock, |
| --- | --- |

—

Draft TSI on locomotives and passenger rolling stock,

| — | First draft of the recommendation on Section 1 of Annex VII of Directive 2008/57/EC (cross acceptance checklist), |
| --- | --- |

—

First draft of the recommendation on Section 1 of Annex VII of Directive 2008/57/EC (cross acceptance checklist),

| — | Intermediate report on the TSI telematic applications for passengers, |
| --- | --- |

—

Intermediate report on the TSI telematic applications for passengers,

| — | Feasibility study on the interoperability of the 1 520 mm rail system; |
| --- | --- |

—

Feasibility study on the interoperability of the 1 520 mm rail system;

| — | Evaluation of the notification of the lists of national technical rules, |
| --- | --- |

—

Evaluation of the notification of the lists of national technical rules,

| — | Draft report on the way national safety rules are published and made available, |
| --- | --- |

—

Draft report on the way national safety rules are published and made available,

| — | Draft report on impact assessment and recommendations concerning the requirement for derailment detection proposed by the Committee on dangerous goods, |
| --- | --- |

—

Draft report on impact assessment and recommendations concerning the requirement for derailment detection proposed by the Committee on dangerous goods,

| — | Setting-up of the register of documents on interoperability, |
| --- | --- |

—

Setting-up of the register of documents on interoperability,

| — | Biennial safety conference. |
| --- | --- |

—

Biennial safety conference.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | Out of the 4,1 million euro appropriations carried over from 2008 to 2009, more than 1,5 million concern contracts signed in the last two months of 2008. The late signatures are a consequence of delays in the procurement procedures and of the transfers made at the end of October 2008 following an analysis of the budget execution. The other 2,6 million concern ongoing contracts for which the invoices were not yet received and provisional commitments covering costs in relation to staff missions and experts. The Agency will continue to make efforts to improve the planning of the procurement procedures and the monitoring of the budget execution throughout in the year. |
| --- | --- |

13.

Out of the 4,1 million euro appropriations carried over from 2008 to 2009, more than 1,5 million concern contracts signed in the last two months of 2008. The late signatures are a consequence of delays in the procurement procedures and of the transfers made at the end of October 2008 following an analysis of the budget execution. The other 2,6 million concern ongoing contracts for which the invoices were not yet received and provisional commitments covering costs in relation to staff missions and experts. The Agency will continue to make efforts to improve the planning of the procurement procedures and the monitoring of the budget execution throughout in the year.

| 14. | As of the budget procedure 2010, ERA has introduced a process whereby the preparation of the annual budget and work programme are fully integrated so as to ensure a maximum of consistency. Furthermore ERA will endeavour to be increasingly precise in the definition of the objectives, activities and their timetable.
  From 2009 on, any significant change in priorities are reported to the Administrative Board and reflected in a proposal to amend the work programme accordingly. Moreover, from 2009, DG TREN has asked ERA and the other agencies within its domain to define performance indicators and to report on them regularly. |
| --- | --- |

14.

As of the budget procedure 2010, ERA has introduced a process whereby the preparation of the annual budget and work programme are fully integrated so as to ensure a maximum of consistency. Furthermore ERA will endeavour to be increasingly precise in the definition of the objectives, activities and their timetable.

From 2009 on, any significant change in priorities are reported to the Administrative Board and reflected in a proposal to amend the work programme accordingly. Moreover, from 2009, DG TREN has asked ERA and the other agencies within its domain to define performance indicators and to report on them regularly.

| 15. | Based on an analysis of past difficulties encountered in the area of procurement, an action plan has been set up. The actions include inter alia training and assistance to the members of the evaluation committees and harmonisation of the way tenders are evaluated using check-lists. |
| --- | --- |

15.

Based on an analysis of past difficulties encountered in the area of procurement, an action plan has been set up. The actions include inter alia training and assistance to the members of the evaluation committees and harmonisation of the way tenders are evaluated using check-lists.

| 16. | The Agency makes all possible efforts to conclude a Seat Agreement with the Host State. However, so far no formal reaction to ERA’s proposal for an agreement has been received. |
| --- | --- |

16.

The Agency makes all possible efforts to conclude a Seat Agreement with the Host State. However, so far no formal reaction to ERA’s proposal for an agreement has been received.

| 17. | See answer to paragraph 16. As long as the seat agreement is not signed, the Agency agrees that it will face important problems with its procurement procedures, in particular with those related to the building in Valenciennes. |
| --- | --- |

17.

See answer to paragraph 16. As long as the seat agreement is not signed, the Agency agrees that it will face important problems with its procurement procedures, in particular with those related to the building in Valenciennes.

---

(1)  OJ L 220, 21.6.2004, p. 3.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 26 June 2009 and received by the Court on 2 July 2009. 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 www.era.europa.eu

11

Official Journal of the European Union

(12)  About 3,9 million euro of appropriations carried forward to 2009 concern administrative and operational expenditure. This represents 57 % of the annual budget of 6,9 million euro for Title II and Title III Appropriations.

12

(13)  These concern inter alia contracted studies, IT-related expenditure and furnishing of premises.

13

(14)  Total value: 334 000 euro.

14

(15)  Value: 800 000 euro over 4 years.

15

(16)  Paragraph 8 (OJ C 309, 19.12.2007, p. 68).

16

(17)  In 2006, these additional costs were estimated at more than 400 000 euro.

17

(18)  Letter from the Chairman of the Parliament Committee on Budgets to the President of the Agency’s Administrative Board dated 26 November 2008, ref D(2008) 67307.

18

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/95 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/95

---

REPORT

on the annual accounts of the European Food Safety Authority for the financial year 2008, together with the Authority’s replies

2009/C 304/18

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 96 |
| STATEMENT OF ASSURANCE... | 3-12 | 96 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13-15 | 97 |
| OTHER MATTERS... | 16 | 97 |
| Table... | 98 |
| The Authority’s replies... | 99 |

Paragraph

Page

INTRODUCTION...

1-2

96

STATEMENT OF ASSURANCE...

3-12

96

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13-15

97

OTHER MATTERS...

16

97

Table...

98

The Authority’s replies...

99

INTRODUCTION

| 1. | The European Food Safety Authority (hereinafter referred to as ‘the Authority’), located in Parma, was established by Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 (1). Its main tasks are to supply the scientific information needed for Community legislation to be drawn up, to collect and analyse data that allow risks to be identified and monitored and to provide independent information on these risks (2). |
| --- | --- |

1.

The European Food Safety Authority (hereinafter referred to as ‘the Authority’), located in Parma, was established by Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 (1). Its main tasks are to supply the scientific information needed for Community legislation to be drawn up, to collect and analyse data that allow risks to be identified and monitored and to provide independent information on these risks (2).

| 2. | The Authority’s 2008 budget amounted to 66,4 million euro compared with 52,2 million euro the previous year. The number of staff employed by the Authority at the end of the year was 395 as compared with 310 the previous year. |
| --- | --- |

2.

The Authority’s 2008 budget amounted to 66,4 million euro compared with 52,2 million euro the previous year. The number of staff employed by the Authority at the end of the year was 395 as compared with 310 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Authority, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Authority under her own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Authority and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgment including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Authority’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Authority for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | More than 15,5 million euro of 2008 commitments (23 % of 2008 budget) were carried forward to 2009, compared with the 8,5 million euro in the previous year (16 % of 2007 budget). The high level of commitments carried forward was mainly due to delays in either the implementation or commencement of actions in the following areas: software development, scientific cooperation with external experts, grants for studies and data collection and exposure projects. This situation is at odds with the annuality principle. |
| --- | --- |

13.

More than 15,5 million euro of 2008 commitments (23 % of 2008 budget) were carried forward to 2009, compared with the 8,5 million euro in the previous year (16 % of 2007 budget). The high level of commitments carried forward was mainly due to delays in either the implementation or commencement of actions in the following areas: software development, scientific cooperation with external experts, grants for studies and data collection and exposure projects. This situation is at odds with the annuality principle.

| 14. | At the year end about 2,1 million euro (37 %) of commitments for operational activities carried over from 2007 had to be cancelled. The high cancellation rate was mainly caused by significant delays regarding the implementation of 2007 grant agreements during 2008. This situation indicates a need to better control the contractual deadlines of grant agreements. The Authority should set and monitor appropriate performance indicators for its grant agreements. |
| --- | --- |

14.

At the year end about 2,1 million euro (37 %) of commitments for operational activities carried over from 2007 had to be cancelled. The high cancellation rate was mainly caused by significant delays regarding the implementation of 2007 grant agreements during 2008. This situation indicates a need to better control the contractual deadlines of grant agreements. The Authority should set and monitor appropriate performance indicators for its grant agreements.

| 15. | For the provision of a very complex software, the Authority launched an open procedure in July 2008 (12) with rather tight deadline for submission of offers (67 days). The Authority received only one offer from the company which had previously been contracted for the provision of the same services. |
| --- | --- |

15.

For the provision of a very complex software, the Authority launched an open procedure in July 2008 (12) with rather tight deadline for submission of offers (67 days). The Authority received only one offer from the company which had previously been contracted for the provision of the same services.

OTHER MATTERS

| 16. | For each main activity planned, the Authority’s 2008 work programme lists actions, priority objectives and performance indicators. However, no clear link between objectives and indicators is established. Objectives and indicators are neither result-oriented nor measurable which makes it difficult to identify shortfalls and to assess achievements. Genuinely activity-based management would allow a continuous improvement of resource allocation and performance monitoring. In doing so, the Authority should define precise and measurable objectives together with relevant performance indicators and promote the achieving of results. |
| --- | --- |

16.

For each main activity planned, the Authority’s 2008 work programme lists actions, priority objectives and performance indicators. However, no clear link between objectives and indicators is established. Objectives and indicators are neither result-oriented nor measurable which makes it difficult to identify shortfalls and to assess achievements. Genuinely activity-based management would allow a continuous improvement of resource allocation and performance monitoring. In doing so, the Authority should define precise and measurable objectives together with relevant performance indicators and promote the achieving of results.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Food Safety Authority (Parma)

| Areas of Community competence deriving from the Treaty | Competences of the Authority (Regulation (EC) No 178/2002 of the European Parliament and of the Council) | Governance | Resources made available to the Authority in 2008

  (Data for 2007) | Products and services in 2008

  (Data for 2007) |
| --- | --- | --- | --- | --- |
| Free movement of goods


  (Article 37 of the Treaty)

  Contribution to a high level of protection of health, safety and protection of the environment and of consumers, taking account of any new development based on scientific facts.

  (Article 95 of the Treaty)


  Common trade policy


  (Article 133 of the Treaty) | Objectives







  — | To provide scientific opinions and scientific and technical support for the legislation and policies which have a direct or indirect impact on food and feed safety. |

Areas of Community competence deriving from the Treaty

Competences of the Authority (Regulation (EC) No 178/2002 of the European Parliament and of the Council)

Governance

Resources made available to the Authority in 2008

(Data for 2007)

Products and services in 2008

(Data for 2007)

Free movement of goods

(Article 37 of the Treaty)

Contribution to a high level of protection of health, safety and protection of the environment and of consumers, taking account of any new development based on scientific facts.

(Article 95 of the Treaty)

Common trade policy

(Article 133 of the Treaty)

Objectives

—

To provide scientific opinions and scientific and technical support for the legislation and policies which have a direct or indirect impact on food and feed safety.

| — | To provide independent information on risks relating to food safety. |
| --- | --- |

—

To provide independent information on risks relating to food safety.

| — | To contribute to the achievement of a high level of protection of human life and health. |
| --- | --- |

—

To contribute to the achievement of a high level of protection of human life and health.

| — | To collect and analyse data needed to allow characterisation and monitoring of risks. |
| --- | --- |

—

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

Tasks

| — | To issue scientific opinions and studies. |
| --- | --- |

—

To issue scientific opinions and studies.

| — | To promote uniform risk-assessment methodologies. |
| --- | --- |

—

To promote uniform risk-assessment methodologies.

| — | To assist the Commission. |
| --- | --- |

—

To assist the Commission.

| — | To search analyse and summarise the requisite scientific and technical data. |
| --- | --- |

—

To search analyse and summarise the requisite scientific and technical data.

| — | To identify and characterise emerging risks. |
| --- | --- |

—

To identify and characterise emerging risks.

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

—

To establish a network of organisations operating in similar fields.

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

—

To provide scientific and technical assistance in crisis management.

| — | To improve international cooperation. |
| --- | --- |

—

To improve international cooperation.

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

—

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

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

—

To take part in the Commission’s rapid alert system.

1 —   Management Board

Composition

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

Duties

To adopt the work programme and the budget and ensure that they are implemented.

2 —   Executive Director

Appointed by the Management Board on the basis of a list of candidates proposed by the Commission, following a hearing before the European Parliament.

3 —   Advisory Forum

Composition

One representative per Member State.

Duties

To advise the Executive Director.

4 —   Scientific Committee and scientific panels

To draw up the Authority’s scientific opinions.

5 —   External audit

Court of Auditors.

6 —   Discharge authority

Parliament acting on recommendation by the Council.

Budget

66,4 (52,2) million euro of which Community subvention 100 % (100 %)

Staff at 31 December 2008

335 (300) posts foreseen in the establishment plan of which occupied: 318 (273)

+ 77 (37) other staff (auxiliary, contractuals, SNE)

Total staff: 395 (310) of which for

| — | Operational duties: 298 (218) |
| --- | --- |

—

Operational duties: 298 (218)

| — | Administrative duties: 97 (92) |
| --- | --- |

—

Administrative duties: 97 (92)

Risk assessment and scientific advice

| — | Opinions: 311 |
| --- | --- |

—

Opinions: 311

| — | Statements: 12 |
| --- | --- |

—

Statements: 12

| — | Other technical and scientific reports: 37 |
| --- | --- |

—

Other technical and scientific reports: 37

Total scientific opinions and statements: 360 (229)

Enhance risk assessment methodologies and coordinate scientific networks

| — | Guidance documents: 29 (1) |
| --- | --- |

—

Guidance documents: 29 (1)

| — | Data collection reports: 21 (1) |
| --- | --- |

—

Data collection reports: 21 (1)

| — | Other technical and scientific reports: 79 (55) |
| --- | --- |

—

Other technical and scientific reports: 79 (55)

Communicate scientific advice and facilitate dialogue with interested parties

| — | Scientific opinions supported by communication activities: 20 % |
| --- | --- |

—

Scientific opinions supported by communication activities: 20 %

| — | Public consultations: 38 (63) |
| --- | --- |

—

Public consultations: 38 (63)

| — | Web visits: 2,1 million (1,5) |
| --- | --- |

—

Web visits: 2,1 million (1,5)

| — | Highlights subscribers: 21 140(17 500) |
| --- | --- |

—

Highlights subscribers: 21 140(17 500)

| — | Media coverage in articles and audiovisual news pieces: 11 652(7 194) |
| --- | --- |

—

Media coverage in articles and audiovisual news pieces: 11 652(7 194)

| — | Media queries: 676 (425) |
| --- | --- |

—

Media queries: 676 (425)

| — | Press releases: 30 (24) |
| --- | --- |

—

Press releases: 30 (24)

| — | Web News stories: 39 (39) |
| --- | --- |

—

Web News stories: 39 (39)

| — | Interviews: 123 (44) |
| --- | --- |

—

Interviews: 123 (44)

Source: Information supplied by the Authority.

THE AUTHORITY’S REPLIES

| 13. | Although the Authority respected the legality and regularity aspect of the annuality principle, it is committed to further improve its budget management in particular by reducing the carry-over of commitments and by implementing differentiated appropriations for grants in its 2009 budget. |
| --- | --- |

13.

Although the Authority respected the legality and regularity aspect of the annuality principle, it is committed to further improve its budget management in particular by reducing the carry-over of commitments and by implementing differentiated appropriations for grants in its 2009 budget.

| 14. | Since January 2009, the Authority integrated specific progress indicators for grants into its monthly reporting in order to improve the monitoring of their implementation. In addition, the introduction of differentiated appropriations into the 2009 budget for grants will better reflect the multiannuality of grant agreements and avoid cancellations. |
| --- | --- |

14.

Since January 2009, the Authority integrated specific progress indicators for grants into its monthly reporting in order to improve the monitoring of their implementation. In addition, the introduction of differentiated appropriations into the 2009 budget for grants will better reflect the multiannuality of grant agreements and avoid cancellations.

| 15. | Although the Authority strictly followed the relevant provisions of its financial implementing rules, it will, for future procedures, give more importance to the complexity of the service when defining the period for tender preparation. |
| --- | --- |

15.

Although the Authority strictly followed the relevant provisions of its financial implementing rules, it will, for future procedures, give more importance to the complexity of the service when defining the period for tender preparation.

| 16. | The activity based management was first introduced in the management plan in 2008. Since January 2009, the introduction of the Risk Assessment Workflow (RAW) reinforces and allows close monitoring of the Authority’s science and administrative activities. |
| --- | --- |

16.

The activity based management was first introduced in the management plan in 2008. Since January 2009, the introduction of the Risk Assessment Workflow (RAW) reinforces and allows close monitoring of the Authority’s science and administrative activities.

---

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

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(9)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in chapter 1 of Title VII of Commission Regulation (EC, Euratom) No 2343/2002 as last amended by Commission 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 Authority.

9

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

10

(11)  The Final Annual Accounts were drawn up on 18 June 2009 and received by the Court on 29 June 2009. 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.efsa.europa.eu/EFSA/AboutEfsa/HowWeWork/Funding/efsa_locale-1178620753812_Accounts.htm

11

Official Journal of the European Union

(12)  Estimated value: 4,4 million euro.

12

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/100 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/100

---

REPORT

on the annual accounts of the European GNSS Supervisory Authority for the financial year 2008, together with the Authority’s replies

2009/C 304/19

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 101 |
| STATEMENT OF ASSURANCE ... | 3-16 | 101 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 17-18 | 102 |
| Table ... | 103 |
| The Authority’s replies ... | 106 |

Paragraph

Page

INTRODUCTION ...

1-2

101

STATEMENT OF ASSURANCE ...

3-16

101

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

17-18

102

Table ...

103

The Authority’s replies ...

106

INTRODUCTION

| 1. | The European GNSS (Global Navigation Satellite System) Supervisory Authority (hereinafter ‘the Authority’), located in Brussels, was set up as a Community agency by Council Regulation (EC) No 1321/2004 of 12 July 2004 (1) to manage the public interests relating to the European GNSS programmes and to act as the regulatory authority for the programme during the deployment and operational phases of the Galileo Programme. Regulation (EC) No 683/2008 of the European Parliament and of the Council of 9 July 2008 (2) reduced the responsibilities of the Authority to the control of the security of Galileo systems and to the preparation of their commercialisation. The Commission may possibly entrust specific tasks to the Authority (3). |
| --- | --- |

1.

The European GNSS (Global Navigation Satellite System) Supervisory Authority (hereinafter ‘the Authority’), located in Brussels, was set up as a Community agency by Council Regulation (EC) No 1321/2004 of 12 July 2004 (1) to manage the public interests relating to the European GNSS programmes and to act as the regulatory authority for the programme during the deployment and operational phases of the Galileo Programme. Regulation (EC) No 683/2008 of the European Parliament and of the Council of 9 July 2008 (2) reduced the responsibilities of the Authority to the control of the security of Galileo systems and to the preparation of their commercialisation. The Commission may possibly entrust specific tasks to the Authority (3).

| 2. | The Authority’s 2008 adopted budget amounted to 22,7 million euro compared with 436,5 million euro the previous year. The number of staff employed by the Authority at the end of the year was 52 as compared to 49 the previous year. |
| --- | --- |

2.

The Authority’s 2008 adopted budget amounted to 22,7 million euro compared with 436,5 million euro the previous year. The number of staff employed by the Authority at the end of the year was 52 as compared to 49 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (4) of the Authority, which comprise the ‘financial statements’ (5) and the ‘reports on implementation of the budget’ (6) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (7). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Authority under his own responsibility and within the limits of authorised appropriations (8). The Director is responsible for putting in place (9) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Authority and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Authority’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Emphasis of matter

| 11. | The Court draws attention to the matters described in paragraph 12.The Court’s opinion on the reliability of the accounts is not qualified in respect of this matter. |
| --- | --- |

11.

| 12. | In spite of the entry into force on 25 July 2008 of Regulation (EC) No 683/2008 of the European Parliament and of the Council, no activities or assets had been transferred to the Commision by the end of 2008. The Authority has decided to present (12) the results of its activities without taking into account the fact that the Authority’s management of the Galileo and EGNOS programmes would be discontinued after the finalisation of the transfer of assets and funds to the Commission foreseen at the end of the first quarter of 2009. |
| --- | --- |

12.

In spite of the entry into force on 25 July 2008 of Regulation (EC) No 683/2008 of the European Parliament and of the Council, no activities or assets had been transferred to the Commision by the end of 2008. The Authority has decided to present (12) the results of its activities without taking into account the fact that the Authority’s management of the Galileo and EGNOS programmes would be discontinued after the finalisation of the transfer of assets and funds to the Commission foreseen at the end of the first quarter of 2009.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 13. | In the Court’s opinion, the transactions underlying the Authority’s annual accounts for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

13.

Emphasis of matter

| 14. | The Court draws attention to the matter described in paragraph 15. The Court’s opinion on the legality and regularity of the transactions underlying the Authority’s annual accounts is not qualified in respect of this matter. |
| --- | --- |

14.

The Court draws attention to the matter described in paragraph 15. The Court’s opinion on the legality and regularity of the transactions underlying the Authority’s annual accounts is not qualified in respect of this matter.

| 15. | Regulation (EC) No 683/2008 came into force on 25 July 2008 which implied that the Authority was no longer responsible for the management of the Galileo and EGNOS programmes. Despite this, the Commission transferred 95 million euro to the Authority’s bank account on 24 December 2008 (13). No proper amending budget was established. |
| --- | --- |

15.

| 16. | The comments which follow do not call the Court’s opinions into question. |
| --- | --- |

16.

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 17. | The very significant reduction of the Authority’s budget adopted in 2008, from 436,5 million euro in 2007 to the budget of 22,7 million euro was linked to the entry into force on 25 July 2008 of Regulation (EC) No 683/2008 of the European Parliament and of the Council. According to this Regulation the Commission is responsible for the management of the funds and the implementation of the European satellite navigation programmes (EGNOS and Galileo). No activities or assets had been transferred to the Commission by the end of 2008 and the new split of responsibilities between the Commission and the Authority was not reflected in their respective annual accounts. |
| --- | --- |

17.

The very significant reduction of the Authority’s budget adopted in 2008, from 436,5 million euro in 2007 to the budget of 22,7 million euro was linked to the entry into force on 25 July 2008 of Regulation (EC) No 683/2008 of the European Parliament and of the Council. According to this Regulation the Commission is responsible for the management of the funds and the implementation of the European satellite navigation programmes (EGNOS and Galileo). No activities or assets had been transferred to the Commission by the end of 2008 and the new split of responsibilities between the Commission and the Authority was not reflected in their respective annual accounts.

| 18. | As a consequence, the Authority’s accounts show an amount of 58,4 million euro as prefinancings received from the Commission. This amount should have been considered as a debt towards the Commission. Moreover, the accounts should not include 55,6 million euro of payables to the European Space Agency which result from the European Communities contributions to the Galileo IOV and EGNOS programmes which are of the Commission’s responsibility. |
| --- | --- |

18.

As a consequence, the Authority’s accounts show an amount of 58,4 million euro as prefinancings received from the Commission. This amount should have been considered as a debt towards the Commission. Moreover, the accounts should not include 55,6 million euro of payables to the European Space Agency which result from the European Communities contributions to the Galileo IOV and EGNOS programmes which are of the Commission’s responsibility.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European GNSS Supervisory Authority (Brussels)

| Areas of Community competence deriving from the Treaty | The Authority’s powers as defined in Council Regulation (EC) No 1321/2004 and as amended by Regulation (EC) No 683/2008 of the European Parliament and of the Council | Governance | Resources made available to the Authority in 2008

  (Data 2007) | Products and services 1.1.2008 to 8.7.2008 |
| --- | --- | --- | --- | --- |
| Competitiveness for growth and employment. | Objectives







  — | To manage the public interests relating to the European GNSS programmes. |

Areas of Community competence deriving from the Treaty

The Authority’s powers as defined in Council Regulation (EC) No 1321/2004 and as amended by Regulation (EC) No 683/2008 of the European Parliament and of the Council

Governance

Resources made available to the Authority in 2008

(Data 2007)

Products and services 1.1.2008 to 8.7.2008

Competitiveness for growth and employment.

Objectives

—

To manage the public interests relating to the European GNSS programmes.

| — | To be the regulatory authority for the European GNSS programmes. |
| --- | --- |

—

To be the regulatory authority for the European GNSS programmes.

Tasks

The Authority shall:

| (a) | ensure security accreditation and the operation of the Galileo security centre; |
| --- | --- |

(a)

ensure security accreditation and the operation of the Galileo security centre;

| (b) | contribute to the preparation of the commercialisation of the systems, including the necessary market analysis; |
| --- | --- |

(b)

contribute to the preparation of the commercialisation of the systems, including the necessary market analysis;

| (c) | accomplish other tasks that may be entrusted to it by the Commission. |
| --- | --- |

(c)

accomplish other tasks that may be entrusted to it by the Commission.

1 —   Administrative Board

Composition

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

—

one representative per Member State,

| — | one representative from the Commission. |
| --- | --- |

—

one representative from the Commission.

Tasks

| — | Appoints the Director, |
| --- | --- |

—

Appoints the Director,

| — | adopts the annual work programme, |
| --- | --- |

—

adopts the annual work programme,

| — | adopts the budget, |
| --- | --- |

—

adopts the budget,

| — | adopts the annual report on the activities and prospects of the Authority. |
| --- | --- |

—

adopts the annual report on the activities and prospects of the Authority.

2 —   Executive Director

Appointed by the Administrative Board.

3 —   System Safety and Security Committee

Composed of one representative per Member State and one representative from the Commission.

4 —   External audit

Court of Auditors.

5 —   Discharge authority

European Parliament on a recommendation by the Council.

Budget

22,7 million euro (436,5 million euro)

Staff at 31 December 2008

50 (46) establishment plan posts of which filled: 49 (39) + 10 (3) other servants (contract agents ad seconded national agents and interim staff)

Number of staff

52 (49) of which assuming:

| — | operational tasks: 31 (30), |
| --- | --- |

—

operational tasks: 31 (30),

| — | administrative tasks: 13 (11), |
| --- | --- |

—

administrative tasks: 13 (11),

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

—

mixed tasks: 8 (8).

Galileo system

| — | Management of the Configuration Control Board, control of the coherence of the Mission Requirements Document (MRD) and the System Requirements Document (SRD), coordination with ESA and the European Commission, |
| --- | --- |

—

Management of the Configuration Control Board, control of the coherence of the Mission Requirements Document (MRD) and the System Requirements Document (SRD), coordination with ESA and the European Commission,

| — | definition and procurement of tools for modelling and analysis of RNSS signals, |
| --- | --- |

—

definition and procurement of tools for modelling and analysis of RNSS signals,

| — | analysis of intra and inter-system interference and link budgets, |
| --- | --- |

—

analysis of intra and inter-system interference and link budgets,

| — | follow-up of the project management by ESA for the IOV, |
| --- | --- |

—

follow-up of the project management by ESA for the IOV,

| — | assistance to the Commission in the supervision of the deployment phase and on frequency coordination, |
| --- | --- |

—

assistance to the Commission in the supervision of the deployment phase and on frequency coordination,

| — | system certification — selection, nomination and supervision of the Galileo certification bodies, |
| --- | --- |

—

system certification — selection, nomination and supervision of the Galileo certification bodies,

| — | designing of the Galileo safety case, |
| --- | --- |

—

designing of the Galileo safety case,

| — | preparation of ICAO Standards and Recommended Practices (SARPS) for Galileo. |
| --- | --- |

—

preparation of ICAO Standards and Recommended Practices (SARPS) for Galileo.

EGNOS system

| — | Control of the Mission Requirements Document, assessment and approval of new requirements, coordination with ESA and the EGNOS Service Provider, |
| --- | --- |

—

Control of the Mission Requirements Document, assessment and approval of new requirements, coordination with ESA and the EGNOS Service Provider,

| — | follow-up of the Operational Qualification Review, |
| --- | --- |

—

follow-up of the Operational Qualification Review,

| — | preparation of the monitoring of the EGNOS system performance, |
| --- | --- |

—

preparation of the monitoring of the EGNOS system performance,

| — | implementation of the extension to the Mediterranean region, |
| --- | --- |

—

implementation of the extension to the Mediterranean region,

| — | supervision of the completion of the EGNOS Design Safety Case and EGNOS Operations Safety Case, |
| --- | --- |

—

supervision of the completion of the EGNOS Design Safety Case and EGNOS Operations Safety Case,

| — | supervision of the process for the certification of the service provider, |
| --- | --- |

—

supervision of the process for the certification of the service provider,

| — | extension of the system certification to other domains of utilisation than the civil aviation. |
| --- | --- |

—

extension of the system certification to other domains of utilisation than the civil aviation.

Programmes

| — | Support to the European Commission in the implementation of the EGNOS and Galileo programmes, |
| --- | --- |

—

Support to the European Commission in the implementation of the EGNOS and Galileo programmes,

| — | establisment of the EGNOS Service Provision contract and monitoring of its implementation, |
| --- | --- |

—

establisment of the EGNOS Service Provision contract and monitoring of its implementation,

| — | definition of EGNOS’ performance indicators and of various elements of the EGNOS services, |
| --- | --- |

—

definition of EGNOS’ performance indicators and of various elements of the EGNOS services,

| — | EGNOS third party liability — protection of the GSA and Community exposure to liability stemming from the provision of EGNOS signals in space, in line with the European GNSS liability policy. |
| --- | --- |

—

EGNOS third party liability — protection of the GSA and Community exposure to liability stemming from the provision of EGNOS signals in space, in line with the European GNSS liability policy.

Security

| — | Security accreditation of the systems, |
| --- | --- |

—

Security accreditation of the systems,

| — | assisting the Commission in preparing the operation of the GNSS Security Monitoring Centre (GSMC), |
| --- | --- |

—

assisting the Commission in preparing the operation of the GNSS Security Monitoring Centre (GSMC),

| — | research and development to ensure compliance of GNSS service with security requirements of safety critical applications, |
| --- | --- |

—

research and development to ensure compliance of GNSS service with security requirements of safety critical applications,

| — | definition of the specifications and instructions for manufacturing PRS receivers and of guidelines for the implementation of PRS management rules in the Member States. |
| --- | --- |

—

definition of the specifications and instructions for manufacturing PRS receivers and of guidelines for the implementation of PRS management rules in the Member States.

Market development

| — | Recommendations and actions regarding the development of markets for EGNOS and Galileo, |
| --- | --- |

—

Recommendations and actions regarding the development of markets for EGNOS and Galileo,

| — | assessment of the environment in which satellite navigation applications can develop, propose strategies and encourage market take up: definition of market development tools. |
| --- | --- |

—

assessment of the environment in which satellite navigation applications can develop, propose strategies and encourage market take up: definition of market development tools.

Research and development

| — | Management of projects under the Sixth Framework Programme and Seventh Framework Programme for research, |
| --- | --- |

—

Management of projects under the Sixth Framework Programme and Seventh Framework Programme for research,

| — | implementation/update of a web-based knowledge management and dissemination tool. |
| --- | --- |

—

implementation/update of a web-based knowledge management and dissemination tool.

Source: Information supplied by the Authority.

THE AUTHORITY’S REPLIES

| 17 and 18. | The activities were transferred with effect on 1 January 2009, as requested by the Commission. The scope of assets to be transferred was endorsed by the Authority’s Administrative Board on 19 March 2009, but the modalities of the transfer could not be agreed with the Commission before the end of June. The GSA has requested the Commission, on 3 July 2009, to formally confirm its acceptance of the transfer of assets with effect on 31 July 2009. |
| --- | --- |

17 and 18.

The activities were transferred with effect on 1 January 2009, as requested by the Commission. The scope of assets to be transferred was endorsed by the Authority’s Administrative Board on 19 March 2009, but the modalities of the transfer could not be agreed with the Commission before the end of June. The GSA has requested the Commission, on 3 July 2009, to formally confirm its acceptance of the transfer of assets with effect on 31 July 2009.

Therefore, the presentation of the accounts 2008 was affected by the above and could not reflect the changes that should take place after the balance sheet date.

---

(1)  OJ L 246, 20.7.2004, p. 1.

1

(2)  OJ L 196, 24.7.2008, p. 1.

2

(3)  The Table summarises the Authority’s competences and activities. It is presented for information purposes.

3

Table

(4)  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.

4

(5)  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.

5

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

6

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

7

(8)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

8

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

9

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

10

(11)  The Final Annual Accounts were drawn up on 16 June 2009 and received by the Court on 19 June 2009. 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.gsa.europa.eu

11

Official Journal of the European Union

(12)  ‘Principal events and key points’, page 3 of the Authority’s Annual Accounts.

12

(13)  See, also, Note 8 to the Authority’s Annual Accounts, page 17.

13

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/107 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/107

---

REPORT

on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2008, together with the Centre’s replies

2009/C 304/20

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 108 |
| STATEMENT OF ASSURANCE... | 3-12 | 108 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13-14 | 109 |
| Table... | 110 |
| The Centre’s replies... | 111 |

Paragraph

Page

INTRODUCTION...

1-2

108

STATEMENT OF ASSURANCE...

3-12

108

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13-14

109

Table...

110

The Centre’s replies...

111

INTRODUCTION

| 1. | The Translation Centre for the Bodies of the European Union (hereinafter ‘the Centre’), located in Luxembourg, was established by Council Regulation (EC) No 2965/94 (1). The Centre’s role is to provide the EU bodies, and any other EU Institutions and Bodies which call upon its services, with the translation services necessary for their activities (2). |
| --- | --- |

1.

The Translation Centre for the Bodies of the European Union (hereinafter ‘the Centre’), located in Luxembourg, was established by Council Regulation (EC) No 2965/94 (1). The Centre’s role is to provide the EU bodies, and any other EU Institutions and Bodies which call upon its services, with the translation services necessary for their activities (2).

| 2. | The Centre’s 2008 budget amounted to 59,9 million euro compared with 46,1 million euro the previous year.The number of staff employed by the Centre at the end of the year was 189 as compared to 176 in the previous year. |
| --- | --- |

2.

The Centre’s 2008 budget amounted to 59,9 million euro compared with 46,1 million euro the previous year.The number of staff employed by the Centre at the end of the year was 189 as compared to 176 in the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Centre, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Centre under her own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Centre and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Centre’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Centre for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | For the year 2008, the budgetary surplus was 11,5 million euro, increasing the accumulated budgetary surplus to 26,7 million euro, of which 15,3 million euro is necessary to cover the still ongoing dispute (12) with the Commission regarding the employer’s pension contributions for staff. The Centre should take the necessary measures to address the continuous increase in its surplus (13). |
| --- | --- |

13.

For the year 2008, the budgetary surplus was 11,5 million euro, increasing the accumulated budgetary surplus to 26,7 million euro, of which 15,3 million euro is necessary to cover the still ongoing dispute (12) with the Commission regarding the employer’s pension contributions for staff. The Centre should take the necessary measures to address the continuous increase in its surplus (13).

| 14. | The 2008 establishment plan provided for 233 posts, 33 more than the 2007 establishment plan. However, in December 2008 only 189 posts (81 %) had been filled with officials and temporary staff. This situation indicates weaknesses in the planning of recruitment procedures. |
| --- | --- |

14.

The 2008 establishment plan provided for 233 posts, 33 more than the 2007 establishment plan. However, in December 2008 only 189 posts (81 %) had been filled with officials and temporary staff. This situation indicates weaknesses in the planning of recruitment procedures.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Translation Centre for the Bodies of the European Union (Luxembourg)

| Areas of Community competence | Competences of the Centre Council Regulation (EC) No 2965/94 | Governance | Resources made available to the Centre in 2008

  (Data for 2007) | Products and services provided in 2008

  (Data for 2007) |
| --- | --- | --- | --- | --- |
| The representatives of the Member States’ governments adopted by mutual agreement a declaration concerning the creation, under the aegis of the Commission’s translation departments in Luxembourg, of a Translation Centre for the bodies of the Union, which would provide the necessary translation services for the operation of the bodies and services whose seats were established by the Decision of 29 October 1993. | Objectives

  To provide the necessary translation services for the operation of the following bodies:






  — | the European Environment Agency; |

Areas of Community competence

Competences of the Centre Council Regulation (EC) No 2965/94

Governance

Resources made available to the Centre in 2008

(Data for 2007)

Products and services provided in 2008

(Data for 2007)

The representatives of the Member States’ governments adopted by mutual agreement a declaration concerning the creation, under the aegis of the Commission’s translation departments in Luxembourg, of a Translation Centre for the bodies of the Union, which would provide the necessary translation services for the operation of the bodies and services whose seats were established by the Decision of 29 October 1993.

Objectives

To provide the necessary translation services for the operation of the following bodies:

—

the European Environment Agency;

| — | the European Training Foundation; |
| --- | --- |

—

the European Training Foundation;

| — | the European Monitoring Centre for Drugs and Drug Addiction, |
| --- | --- |

—

the European Monitoring Centre for Drugs and Drug Addiction,

| — | the European Medicines Agency; |
| --- | --- |

—

the European Medicines Agency;

| — | the Office for Harmonisation in the Internal Market (Trademarks and Designs); |
| --- | --- |

—

the Office for Harmonisation in the Internal Market (Trademarks and Designs);

| — | the European Police Office (Europol) and the Europol Drugs Unit; |
| --- | --- |

—

the European Police Office (Europol) and the Europol Drugs Unit;

Bodies set up by the Council other than the above may use the Centre’s services. The institutions and bodies of the European Union which already have their own Translation Services may, if need be, call upon the Centre’s services on a voluntary basis.

The Centre plays a full part in the work of the Interinstitutional Translation Committee.

Tasks

| — | To make arrangements for cooperation with the bodies and institutions. |
| --- | --- |

—

To make arrangements for cooperation with the bodies and institutions.

| — | To participate in the work of the Interinstitutional Translation Committee. |
| --- | --- |

—

To participate in the work of the Interinstitutional Translation Committee.

1 –   Management Board

Composition

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

—

one representative per Member State;

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

—

two representatives from the Commission;

| — | one representative from each body or institution calling upon the Centre’s services. |
| --- | --- |

—

one representative from each body or institution calling upon the Centre’s services.

Task

Adopts the Centre’s annual work programme and annual report.

2 –   Director

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

3 –   External audit

Court of Auditors.

4 –   Internal audit

Commission’s internal auditor.

5 –   Discharge authority

Parliament acting on a recommendation from the Council.

Budget

59,94 (46,12) million euro.

Staff at 31 December 2008

233 (200) provided in the establishment plan, of which 189 (176) were occupied.

Allocated to

| — | operational tasks: 97 (88) |
| --- | --- |

—

operational tasks: 97 (88)

| — | administrative tasks: 92 (88) |
| --- | --- |

—

administrative tasks: 92 (88)

Number of pages translated

747 416(732 673)

Number of pages by languages

| — | official languages: 742 256(729 286) |
| --- | --- |

—

official languages: 742 256(729 286)

| — | other languages: 5 160(3 963) |
| --- | --- |

—

other languages: 5 160(3 963)

Number of pages per client

| — | Bodies 731 944: (496 665) |
| --- | --- |

—

Bodies 731 944: (496 665)

| — | Institutions: 15 472(8 773) |
| --- | --- |

—

Institutions: 15 472(8 773)

Number of pages translated by freelances: 441 223(226 822)

Source: Information supplied by the Centre.

THE CENTRE'S REPLIES

| 13. | The Centre is making every effort to resolve this problem, which is mainly linked to the lack of precision in the forecasts for translation requests received from its clients. In mid-2009 the Centre therefore asked its clients to revise their forecasts for 2009, in order to precise the current budget. More importantly, the Centre is currently carrying out a cost analysis in order to improve its price structure. In 2009, after the adoption of the amending budget, the Centre will reimburse the budget surplus of 11,45 million euros to its clients. |
| --- | --- |

13.

The Centre is making every effort to resolve this problem, which is mainly linked to the lack of precision in the forecasts for translation requests received from its clients. In mid-2009 the Centre therefore asked its clients to revise their forecasts for 2009, in order to precise the current budget. More importantly, the Centre is currently carrying out a cost analysis in order to improve its price structure. In 2009, after the adoption of the amending budget, the Centre will reimburse the budget surplus of 11,45 million euros to its clients.

| 14. | Over the years and in 2008 in particular, the lack of office space did not permit to recruit in accordance with the establishment plan. In 2009 the Centre rented supplementary premises to accommodate additional staff. In addition, a new recruitment system has been introduced to make the recruitment procedure more efficient. |
| --- | --- |

14.

Over the years and in 2008 in particular, the lack of office space did not permit to recruit in accordance with the establishment plan. In 2009 the Centre rented supplementary premises to accommodate additional staff. In addition, a new recruitment system has been introduced to make the recruitment procedure more efficient.

---

(1)  OJ L 314, 7.12.1994, p. 1.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Centre.

9

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

10

(11)  The Final Annual Accounts were drawn up on 16 June 2009 and received by the Court on 10 July 2009. 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.cdt.europa.eu

11

Official Journal of the European Union

(12)  Paragraph 10 of the 2005 Report (OJ C 312, 19.12.2006, p. 50).

12

(13)  Paragraph 7 of the 2006 Report (OJ C 309, 19.12.2007, p. 95).

13

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/112 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/112

---

REPORT

on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2008, together with the Centre’s replies

2009/C 304/21

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 113 |
| STATEMENT OF ASSURANCE ... | 3-12 | 113 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13 | 114 |
| OTHER MATTERS... | 14-15 | 114 |
| Table ... | 115 |
| The Centre’s replies... | 117 |

Paragraph

Page

INTRODUCTION ...

1-2

113

STATEMENT OF ASSURANCE ...

3-12

113

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13

114

OTHER MATTERS...

14-15

114

Table ...

115

The Centre’s replies...

117

INTRODUCTION

| 1. | The European Centre for Disease Prevention and Control (hereinafter ‘the Centre’), located in Stockholm, was set up by Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 (1). Its main tasks are to collect and disseminate data on the prevention and control of human diseases and to provide scientific opinions on this subject. It is also required to coordinate the European network of bodies operating in this field (2). |
| --- | --- |

1.

The European Centre for Disease Prevention and Control (hereinafter ‘the Centre’), located in Stockholm, was set up by Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 (1). Its main tasks are to collect and disseminate data on the prevention and control of human diseases and to provide scientific opinions on this subject. It is also required to coordinate the European network of bodies operating in this field (2).

| 2. | The Centre’s 2008 budget amounted to 40,6 million euro compared with 28,9 million euro the previous year. The number of staff employed by the Centre at the end of the year was 154 as compared with 122 the previous year. |
| --- | --- |

2.

The Centre’s 2008 budget amounted to 40,6 million euro compared with 28,9 million euro the previous year. The number of staff employed by the Centre at the end of the year was 154 as compared with 122 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Centre, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Center under her own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Centre and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Centre’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Centre for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | The Centre carried forward 16,2 million euro of which approximately 2,9 million euro concerned services and works that, although legally contracted in 2008, were to be fully executed in 2009. This situation is at odds with the principle of annuality. |
| --- | --- |

13.

The Centre carried forward 16,2 million euro of which approximately 2,9 million euro concerned services and works that, although legally contracted in 2008, were to be fully executed in 2009. This situation is at odds with the principle of annuality.

OTHER MATTERS

| 14. | The 2008 establishment plan contained 130 posts. At year-end 2008 only 101 of the 130 authorised posts had been filled. This situation creates a risk of downsizing the Centre’s activities due to a lack of staff and indicates weaknesses in the planning of recruitment procedures. |
| --- | --- |

14.

The 2008 establishment plan contained 130 posts. At year-end 2008 only 101 of the 130 authorised posts had been filled. This situation creates a risk of downsizing the Centre’s activities due to a lack of staff and indicates weaknesses in the planning of recruitment procedures.

| 15. | At 31 December 2008 there was still no seat agreement between the Centre and the Swedish government as there were still many outstanding issues that needed further negotiations. One of these issues was that the Centre’s staff were not issued a Swedish personal identification number (‘personnummer’). This situation limits their access to various public and private services. The current situation may affect the Centre’s capacity to recruit and keep staff. |
| --- | --- |

15.

At 31 December 2008 there was still no seat agreement between the Centre and the Swedish government as there were still many outstanding issues that needed further negotiations. One of these issues was that the Centre’s staff were not issued a Swedish personal identification number (‘personnummer’). This situation limits their access to various public and private services. The current situation may affect the Centre’s capacity to recruit and keep staff.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Centre for Disease Prevention and Control (Stockholm)

| Areas of Community competence deriving from the Treaty | Competences of the Centre as specified in Council Regulation (EC) No 851/2004 | Governance | Resources made available to the Centre In 2008

  (Data for 2007) | Products and services supplied in 2008 |
| --- | --- | --- | --- | --- |
| A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education.

  (Article 152 of the Treaty) | Objectives







  — | Strengthen Europe’s defences against infectious diseases; specifically, to identify, assess and communicate current and emerging threats to human health from communicable diseases. |

Areas of Community competence deriving from the Treaty

Competences of the Centre as specified in Council Regulation (EC) No 851/2004

Governance

Resources made available to the Centre In 2008

(Data for 2007)

Products and services supplied in 2008

A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education.

(Article 152 of the Treaty)

Objectives

—

Strengthen Europe’s defences against infectious diseases; specifically, to identify, assess and communicate current and emerging threats to human health from communicable diseases.

| — | Therefore the Centre shall operate dedicated surveillance networks, provide scientific opinions, operate the early warning and response system (EWRS) and provide scientific and technical assistance and training. |
| --- | --- |

—

Therefore the Centre shall operate dedicated surveillance networks, provide scientific opinions, operate the early warning and response system (EWRS) and provide scientific and technical assistance and training.

Tasks

| — | Operate dedicated disease surveillance networks and enhance networking activities. The Centre has a specific role in data collection, validation, analysis and dissemination. |
| --- | --- |

—

Operate dedicated disease surveillance networks and enhance networking activities. The Centre has a specific role in data collection, validation, analysis and dissemination.

| — | Provide authoritative expert advice and scientific opinions and studies on communicable diseases. |
| --- | --- |

—

Provide authoritative expert advice and scientific opinions and studies on communicable diseases.

| — | Operate the Early Warning and Response System. Develop procedures for identifying emerging health threats. |
| --- | --- |

—

Operate the Early Warning and Response System. Develop procedures for identifying emerging health threats.

| — | Strengthen Member States capacity in preparedness planning and in training. |
| --- | --- |

—

Strengthen Member States capacity in preparedness planning and in training.

| — | Inform the general public and interested parties of its work. |
| --- | --- |

—

Inform the general public and interested parties of its work.

1.   Management Board

Composition

One member designated by each Member State, two members designated by the European Parliament and three representatives of the Commission.

Tasks

The Board adopts the Centre’s annual programme and budget and monitors their implementation.

2.   Director

Appointed by the Management Board on the basis of a list of candidates proposed by the Commission.

3.   Advisory Forum

Composition

A representative of each Member State and three non-voting representatives of the Commission.

Tasks

The Forum is to assure the scientific excellence of the work and the independence of the activities and opinions of the Centre.

4.   External audit

Court of Auditors.

5.   Discharge Authority

Parliament acting on recommendation by the Council.

Budget

40,7 million euro (28 million euro)

Staff at 31 December 2008

Authorised: 130 (90)

Occupied: 101 (80)

Other posts: 53 (42)

TOTAL: 154 (122)

assigned to the following duties:

| — | operational tasks: 91 (75) |
| --- | --- |

—

operational tasks: 91 (75)

| — | administrative and support tasks: 63 (47) |
| --- | --- |

—

administrative and support tasks: 63 (47)

| — | 251 threats monitored using the Threat Tracking Tool (TTT). |
| --- | --- |

—

251 threats monitored using the Threat Tracking Tool (TTT).

| — | A weekly communicable diseases threat report and a weekly epidemiological bulletin published. |
| --- | --- |

—

A weekly communicable diseases threat report and a weekly epidemiological bulletin published.

| — | Support to epidemic intelligence for two large mass-gathering events in Europe. |
| --- | --- |

—

Support to epidemic intelligence for two large mass-gathering events in Europe.

| — | Preparation of 31 original threat assessments. |
| --- | --- |

—

Preparation of 31 original threat assessments.

| — | Organisation of two simulation exercises. |
| --- | --- |

—

Organisation of two simulation exercises.

| — | 41 fellows coached through the European Programme for Intervention Epidemiology Training (EPIET). |
| --- | --- |

—

41 fellows coached through the European Programme for Intervention Epidemiology Training (EPIET).

| — | 250 public health experts from 30 EU-EEA countries participated in ECDC short training modules. |
| --- | --- |

—

250 public health experts from 30 EU-EEA countries participated in ECDC short training modules.

| — | Organisation of the second European Scientific Conference on Applied Infectious Disease Epidemiology (Escaide) in November 2008 in Berlin. |
| --- | --- |

—

Organisation of the second European Scientific Conference on Applied Infectious Disease Epidemiology (Escaide) in November 2008 in Berlin.

| — | Support to 4 Member States in conducting assessments of their training needs and resources |
| --- | --- |

—

Support to 4 Member States in conducting assessments of their training needs and resources

| — | 21 scientific documents published in 2008. |
| --- | --- |

—

21 scientific documents published in 2008.

| — | Organisation of the first European Antibiotic Awareness Day with participation of 32 countries. |
| --- | --- |

—

Organisation of the first European Antibiotic Awareness Day with participation of 32 countries.

| — | Produced scientific guidance: Guidance for the introduction of HPV vaccines in EU countries, Guidance on priority risk groups for influenza vaccination. |
| --- | --- |

—

Produced scientific guidance: Guidance for the introduction of HPV vaccines in EU countries, Guidance on priority risk groups for influenza vaccination.

| — | Conducted survey and built database of public health microbiology reference laboratories in EU. |
| --- | --- |

—

Conducted survey and built database of public health microbiology reference laboratories in EU.

| — | 2nd Annual epidemiological report published. |
| --- | --- |

—

2nd Annual epidemiological report published.

Source: information supplied by the Centre.

THE CENTRE’S REPLIES

| 13. | The Centre agrees with the Court that the level of carry forward is high. Nevertheless it wishes to highlight that more than 80 % relates to operational activities already initiated in 2008 and for which implementation goes through 2009. The management is focusing on concluding most of the procurement and contracting activities early in the year in order to improve the budget implementation and lower the level of carry forward. |
| --- | --- |

13.

The Centre agrees with the Court that the level of carry forward is high. Nevertheless it wishes to highlight that more than 80 % relates to operational activities already initiated in 2008 and for which implementation goes through 2009. The management is focusing on concluding most of the procurement and contracting activities early in the year in order to improve the budget implementation and lower the level of carry forward.

| 14. | The Centre agrees that there were delays in the recruitment of temporary agents and this is partly due to the fact that recruitment in some areas proved to be longer and more difficult than expected and implied the re-advertisement of some posts (in 2008 there were 16 re-advertisements).
  The Centre has taken measures to improve the situation through broader dissemination of vacancy notices and a faster implementation of the recruitment plan with most 2009 posts being published by April. |
| --- | --- |

14.

The Centre agrees that there were delays in the recruitment of temporary agents and this is partly due to the fact that recruitment in some areas proved to be longer and more difficult than expected and implied the re-advertisement of some posts (in 2008 there were 16 re-advertisements).

The Centre has taken measures to improve the situation through broader dissemination of vacancy notices and a faster implementation of the recruitment plan with most 2009 posts being published by April.

| 15. | Discussion on the seat agreement and in particular the issue of the ‘personnummer’ has been a recurrent item on the agenda of the Centre’s Management Board. A new legislation was finally adopted by the Swedish Parliament in March 2009 entering into force in July 2009 and providing for allocation of a personnummer to ECDC staff. The Centre will closely monitor the outcome of its implementation and it is expected it should improve and facilitate staff access to services. |
| --- | --- |

15.

Discussion on the seat agreement and in particular the issue of the ‘personnummer’ has been a recurrent item on the agenda of the Centre’s Management Board. A new legislation was finally adopted by the Swedish Parliament in March 2009 entering into force in July 2009 and providing for allocation of a personnummer to ECDC staff. The Centre will closely monitor the outcome of its implementation and it is expected it should improve and facilitate staff access to services.

---

(1)  OJ L 142, 30.4.2004, p. 1.

1

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

2

Table

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

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Centre.

9

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

10

(11)  The Final Annual Accounts were drawn up on 27 April 2009 and received by the Court on 6 July 2009. 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://ecdc.europa.eu/en/aboutus/Pages/AboutUs_KeyDocuments.aspx

11

Official Journal of the European Union

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/118 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/118

---

REPORT

on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2008, together with the Centre’s replies

2009/C 304/22

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 119 |
| STATEMENT OF ASSURANCE ... | 3-12 | 119 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13 | 120 |
| OTHER MATTERS ... | 14 | 120 |
| Table ... | 121 |
| The Centre’s replies ... | 123 |

Paragraph

Page

INTRODUCTION ...

1-2

119

STATEMENT OF ASSURANCE ...

3-12

119

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13

120

OTHER MATTERS ...

14

120

Table ...

121

The Centre’s replies ...

123

INTRODUCTION

| 1. | The European Centre for the Development of Vocational Training (hereinafter ‘the Centre’), located in Thessaloniki, was established by Council Regulation (EEC) No 337/75 (1). Its core mandate is to serve the development of vocational training at Community level. In order to achieve this objective, it has the task of compiling and disseminating documentation on vocational training systems (2). |
| --- | --- |

1.

The European Centre for the Development of Vocational Training (hereinafter ‘the Centre’), located in Thessaloniki, was established by Council Regulation (EEC) No 337/75 (1). Its core mandate is to serve the development of vocational training at Community level. In order to achieve this objective, it has the task of compiling and disseminating documentation on vocational training systems (2).

| 2. | The Centre’s 2008 budget amounted to 18,3 million euro compared with 17,4 million euro the previous year.The number of staff employed by the Centre at the end of the year was 128, the same as in the previous year. |
| --- | --- |

2.

The Centre’s 2008 budget amounted to 18,3 million euro compared with 17,4 million euro the previous year.The number of staff employed by the Centre at the end of the year was 128, the same as in the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Centre, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Centre under her own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Centre and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Centre’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Centre for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | More than 3,5 million euro were carried forward. Although operating activities (title III) were managed through differentiated appropriations, 1,4 million euro (or 25 %) of the payment appropriations were carried forward. This indicated weaknesses in the programming and monitoring of the differentiated appropriations for operating activities. |
| --- | --- |

13.

More than 3,5 million euro were carried forward. Although operating activities (title III) were managed through differentiated appropriations, 1,4 million euro (or 25 %) of the payment appropriations were carried forward. This indicated weaknesses in the programming and monitoring of the differentiated appropriations for operating activities.

OTHER MATTERS

| 14. | For each main activity, the Centre’s 2008 work programme lists operational objectives and actions and links them to performance indicators. Often, objectives and indicators were neither clearly result-oriented nor measurable. In order to have a real activity based management allowing a continuous improvement of resource allocation and performance analysis, the Centre should implement a project time recording system for its agents and foster its orientation towards results being achieved. |
| --- | --- |

14.

For each main activity, the Centre’s 2008 work programme lists operational objectives and actions and links them to performance indicators. Often, objectives and indicators were neither clearly result-oriented nor measurable. In order to have a real activity based management allowing a continuous improvement of resource allocation and performance analysis, the Centre should implement a project time recording system for its agents and foster its orientation towards results being achieved.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Centre for the Development of Vocational Training (Thessaloniki)

| Area of Community competence deriving from the Treaty | Competence of the Centre as specified in Articles 2 and 3 of Council Regulation (EEC) No 337/75 | Governance | Resources made available to the Centre in 2008

  (Data for 2007) | Products and services supplied in 2008 |
| --- | --- | --- | --- | --- |
| The Community implements a vocational training policy to support and supplement the action of the Member States as regards the content and organisation of vocational training.
  Action aims to:






  — | facilitate adaptation to industrial changes, in particular through vocational training and retraining, |

Area of Community competence deriving from the Treaty

Competence of the Centre as specified in Articles 2 and 3 of Council Regulation (EEC) No 337/75

Governance

Resources made available to the Centre in 2008

(Data for 2007)

Products and services supplied in 2008

The Community implements a vocational training policy to support and supplement the action of the Member States as regards the content and organisation of vocational training.

Action aims to:

—

facilitate adaptation to industrial changes, in particular through vocational training and retraining,

| — | improve initial and continuing vocational training in order to facilitate vocational integration and reintegration into the labour market, |
| --- | --- |

—

improve initial and continuing vocational training in order to facilitate vocational integration and reintegration into the labour market,

| — | facilitate access to vocational training and encourage mobility of instructors and trainees and particularly young people, |
| --- | --- |

—

facilitate access to vocational training and encourage mobility of instructors and trainees and particularly young people,

| — | stimulate cooperation on training between educational or training establishments and firms, |
| --- | --- |

—

stimulate cooperation on training between educational or training establishments and firms,

| — | develop exchanges of information and experience on issues common to the training systems of the Member States. |
| --- | --- |

—

develop exchanges of information and experience on issues common to the training systems of the Member States.

(From Article 150 of the Treaty)

The Centre’s mandate

In its capacity as the European Union reference centre for vocational training and education, the Centre provides political decision-makers, researchers and professionals with information aimed at developing a clearer understanding of current trends that will thus enable them to reach more soundly based decisions with a view to future action.

The Centre assists the European Commission in promoting and developing vocational training and education at Community level.

Tasks

| — | To compile selected documentation and produce data analysis. |
| --- | --- |

—

To compile selected documentation and produce data analysis.

| — | To contribute to research development and coordination. |
| --- | --- |

—

To contribute to research development and coordination.

| — | To utilise and disseminate relevant information. |
| --- | --- |

—

To utilise and disseminate relevant information.

| — | To encourage and support a concerted approach to matters relating to the development of vocational training. |
| --- | --- |

—

To encourage and support a concerted approach to matters relating to the development of vocational training.

| — | To provide a forum for a broad and diverse public. |
| --- | --- |

—

To provide a forum for a broad and diverse public.

1 —   Governing Board (GB)

Composition

For each Member State:

| — | one member representing the Government, |
| --- | --- |

—

one member representing the Government,

| — | one member representing the employers′ organisations, |
| --- | --- |

—

one member representing the employers′ organisations,

| — | one member representing the employees′ organisations and three members representing the European Commission. |
| --- | --- |

—

one member representing the employees′ organisations and three members representing the European Commission.

2 —   Bureau

Composition

The chairman and the three vice-chairmen of the GB (one from each of the groups), one coordinator per group and one representative of the Commission.

3 —   Director

Appointed by the Commission from a list of candidates submitted by the Governing Board; is responsible for the management of the Centre and implements the decisions of the Governing Board and the Bureau.

4 —   Internal control

Commission’s Internal Audit Service.

5 —   External audit

Court of Auditors.

6 —   Discharge authority

Parliament acting on recommendation from the Council.

Budget

18,38 million euro

(17,40 million euro)

Community contribution: 93 % (96 %)

Staff at 31 December 2008

Number of posts in establishment plan: 99 (97)

| | Posts occupied: 97 (89) |
| --- | --- |

Posts occupied: 97 (89)

| | Other staff: contract staff, seconded national experts. |
| --- | --- |

Other staff: contract staff, seconded national experts.

Total staff: 128 (128)

| | operational: 87 |
| --- | --- |

operational: 87

| | administrative: 41 |
| --- | --- |

administrative: 41

(in 2007:

| | operational: 89 |
| --- | --- |

operational: 89

| | administrative: 39) |
| --- | --- |

administrative: 39)

The impact of the Centre in providing analysis and research results for evidence based policy-making is best illustrated by the fact that 21 major policy documents (for example Council Conclusions on future priorities for enhanced European cooperation in Vocational Education Training (VET) or Commission Communication on new skills for new jobs) not only reflected the Centre’s work but also requested the Centre to further contribute or monitor, etc. This shows also appreciation for the work done.

The draft policy report contributed greatly to the preparation of the ministerial conference of the French presidency and the Bordeaux communiqué in November. The Centre worked closely with both 2008 presidencies and provided major input (publications, background material, keynote speeches, etc.) to all the major events relating to VET (for example guidance conference in Lyon).

The Centre’s work on skills needs to be further developed. At the request of the EC President, the forecast was extended to 2020. The publication ‘Skill needs in Europe: focus on 2020’ was downloaded over 140 000 times. In November 2008, the Centre’s proposal to introduce future skill needs as a forward looking indicator to analyse employment was adopted by the Employment Committee indicators group.

After the adoption of the European Qualification Framework (EQF), implementation in Member States of the European tools for VET has accelerated. The Centre has contributed substantially towards the development of these tools (EQF, European Credit transfer system, Quality assurance, Guidance, Europass) and continued to support the EC working groups and clusters and to host the Europass website. Its use by European citizens continued to increase; in 2008, over 6 million visits to the website were recorded and more than 2 million European CVs have been completed online. An external evaluation confirmed the positive development.

A revised study visits programme has been successfully implemented.

With more than 65 workshops and conferences, 24 new publications, a newly established press service (19 press releases in 2008), 8 policy briefs the Centre continued to provide a platform for VET stakeholders and provided updated information on VET in the European Union.

More complete information is available in the Annual Report 2008.

Source: Information supplied by the Centre.

THE CENTRE’S REPLIES

| 13. | The carry over of payment appropriations was partly necessary because of unsuccesful procurement procedures to be relaunched end 2008. The unforeseen delay and the successful completion of the relaunched procurements were the main reasons why the payment appropriations foreseen in the 2009 budget were not enough to meet the 2009 cash flow needs for the increased payment obligations. The Centre has in the meantime further developed its monitoring system for payment appropriations and its planning system in particular for procurement. |
| --- | --- |

13.

The carry over of payment appropriations was partly necessary because of unsuccesful procurement procedures to be relaunched end 2008. The unforeseen delay and the successful completion of the relaunched procurements were the main reasons why the payment appropriations foreseen in the 2009 budget were not enough to meet the 2009 cash flow needs for the increased payment obligations. The Centre has in the meantime further developed its monitoring system for payment appropriations and its planning system in particular for procurement.

| 14. | Several initiatives have been taken to improve the objective setting and to move towards a result oriented performance measurement system, starting already in 2008. In 2009 a comprehensive performance measurement system consistent with SMART objectives set, including output, outcome and impact indicators will be implemented. This is already reflected in the 2009 work programme. Human resources are currently allocated to the different activities within the framework of the ABB, based on the results of an internal planning and monitoring process for the project needs. The introduction of a pilot time recording system is planned for 2010. |
| --- | --- |

14.

Several initiatives have been taken to improve the objective setting and to move towards a result oriented performance measurement system, starting already in 2008. In 2009 a comprehensive performance measurement system consistent with SMART objectives set, including output, outcome and impact indicators will be implemented. This is already reflected in the 2009 work programme. Human resources are currently allocated to the different activities within the framework of the ABB, based on the results of an internal planning and monitoring process for the project needs. The introduction of a pilot time recording system is planned for 2010.

---

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

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Centre.

9

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

10

(11)  The Final Annual Accounts were drawn up on 15 June 2009 and received by the Court on 30 June 2009. 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.cedefop.europa.eu/about/budget_discharge.asp

11

Official Journal of the European Union

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/124 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/124

---

REPORT

on the annual accounts of the European Police College for the financial year 2008, together with the College’s replies

2009/C 304/23

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 125 |
| STATEMENT OF ASSURANCE... | 3-15 | 125 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 16-21 | 126 |
| Table... | 127 |
| The College’s replies... | 130 |

Paragraph

Page

INTRODUCTION...

1-2

125

STATEMENT OF ASSURANCE...

3-15

125

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

16-21

126

Table...

127

The College’s replies...

130

INTRODUCTION

| 1. | The European Police College (hereinafter ‘the College’), located in Bramshill, was established by Council Decision 2000/820/JHA, as repealed in 2005 and replaced by Council Decision 2005/681/JHA (1). The College’s task is to function as a network and bring together the national police training institutes in the Member States to provide training sessions, based on common standards, for senior police officers (2). |
| --- | --- |

1.

The European Police College (hereinafter ‘the College’), located in Bramshill, was established by Council Decision 2000/820/JHA, as repealed in 2005 and replaced by Council Decision 2005/681/JHA (1). The College’s task is to function as a network and bring together the national police training institutes in the Member States to provide training sessions, based on common standards, for senior police officers (2).

| 2. | The College’s 2008 budget amounted to 8,7 million euro compared with 6,5 million euro the previous year. The number of staff employed by the College at the end of the year was 27 as compared to 21 in the previous year. |
| --- | --- |

2.

The College’s 2008 budget amounted to 8,7 million euro compared with 6,5 million euro the previous year. The number of staff employed by the College at the end of the year was 27 as compared to 21 in the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the College, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the College under his own responsibility and within the limits of the authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the College’s Annual Accounts and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and the regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the College’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Emphasis of matter

| 11. | Without calling into question the opinion expressed in paragraph 10, the Court notes that difficulties experienced in 2008 in migrating the old accounting system to ABAC and the late implementation of a proper accounting system still put at risk the quality of the financial information concerning the carry-overs from the previous year, the use of assigned revenue and the link with certain figures in the balance sheet for 2007. |
| --- | --- |

11.

Qualified opinion on the legality and the regularity of the transactions underlying the accounts

| 12. | In the Court’s opinion, except for the matters presented in paragraphs 13 to 15, the transactions underlying the College’s Annual Accounts for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

12.

Basis for qualified opinion on the legality and the regularity of the transactions underlying the accounts

| 13. | The College directly contracted (12) consulting services with a provider on the basis of a framework contract of the Commission exclusively intended for training services. This procurement procedure is irregular. Moreover, the contractual provisions allow the College to renew or extend the contract without limitation. |
| --- | --- |

13.

| 14. | Expenditure for the organisation of courses and seminars represent a significant part (13) of the College’s budget. The audit of such expenditure revealed a high number of breaches of the applicable administrative and financial rules such as the absence of justifications of the costs incurred, the absence of confirmation of attendance, original invoices and documents necessary for the reimbursement of accommodation, travel costs for experts not queried etc. |
| --- | --- |

14.

| 15. | For a sample of 15 commitments, the audit showed the absence of:






  — | legal commitment in three cases (14), |
| --- | --- | --- |

15.

—

legal commitment in three cases (14),

| — | budgetary commitment before the legal commitment in nine cases (15). |
| --- | --- |

—

budgetary commitment before the legal commitment in nine cases (15).

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 16. | More than 2,7 million euro of the 2008 payment appropriations had to be carried forward. This situation is against the principle of annuality and indicates weaknesses in the programming and the monitoring of the implementation of the budget. |
| --- | --- |

16.

More than 2,7 million euro of the 2008 payment appropriations had to be carried forward. This situation is against the principle of annuality and indicates weaknesses in the programming and the monitoring of the implementation of the budget.

| 17. | During 2008 a commitment of 175 000 euro was made in relation to a recovery order made by the European Commission in respect of an advance payment made before 2006 to the College’s predecessor. The commitment was carried forward to 2009. |
| --- | --- |

17.

During 2008 a commitment of 175 000 euro was made in relation to a recovery order made by the European Commission in respect of an advance payment made before 2006 to the College’s predecessor. The commitment was carried forward to 2009.

| 18. | The audit of a sample of commitments (see also paragraph 15) showed that, in three cases, there was no audit trail to retrace the financial execution such that it was not possible to match their closing balances in the accounts at 31 December 2008. |
| --- | --- |

18.

The audit of a sample of commitments (see also paragraph 15) showed that, in three cases, there was no audit trail to retrace the financial execution such that it was not possible to match their closing balances in the accounts at 31 December 2008.

| 19. | On 23 May 2008, the College closed its old accounting system and migrated to ABAC. The migration to the new system effectively started on 14 July 2008. In the meantime, a manual system was set up. Not all the adjustments related to the period covered by the manual system were effected on time. Namely, commitments (for a total of 20 000 euro) are understated in ABAC although they are now included in the SAP financial accounting system. |
| --- | --- |

19.

On 23 May 2008, the College closed its old accounting system and migrated to ABAC. The migration to the new system effectively started on 14 July 2008. In the meantime, a manual system was set up. Not all the adjustments related to the period covered by the manual system were effected on time. Namely, commitments (for a total of 20 000 euro) are understated in ABAC although they are now included in the SAP financial accounting system.

| 20. | Two fixed assets management systems are in place, sometimes duplicating the recording of assets. No labels and no unique inventory numbers are used. |
| --- | --- |

20.

Two fixed assets management systems are in place, sometimes duplicating the recording of assets. No labels and no unique inventory numbers are used.

| 21. | In its report concerning the 2007 financial year (16), the Court had noted cases where appropriations were used to finance private expenditure. The College replied that an ex-post control would be carried out by an external company. Such a control had not been launched mid-2009. |
| --- | --- |

21.

In its report concerning the 2007 financial year (16), the Court had noted cases where appropriations were used to finance private expenditure. The College replied that an ex-post control would be carried out by an external company. Such a control had not been launched mid-2009.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 29 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Police College (Bramshill)

| Areas of Community Competence deriving from the Treaty | Competences of the College as defined in Council Decision 2005/681/JHA | Governance | Resources made available to CEPOL in 2008

  (data for 2007) | Main products and services supplied in 2008 |
| --- | --- | --- | --- | --- |
| Approximation of laws

  Treaty on European Union, in particular Article 30(1) and Article 34(2) thereof. | Objectives

  The aim of the College shall be to help train senior police officers in the Member States by optimising cooperation between the College’s various components. It shall support and develop a European approach to the main problems facing Member States in the fight against crime, crime prevention and the maintenance of law and order and public security, in particular the cross-border dimensions of those problems. | Tasks







  — | To increase knowledge of the national police systems and structures of other Member States and of cross-border police cooperation within the European Union. |

Areas of Community Competence deriving from the Treaty

Competences of the College as defined in Council Decision 2005/681/JHA

Governance

Resources made available to CEPOL in 2008

(data for 2007)

Main products and services supplied in 2008

Approximation of laws

Treaty on European Union, in particular Article 30(1) and Article 34(2) thereof.

Objectives

The aim of the College shall be to help train senior police officers in the Member States by optimising cooperation between the College’s various components. It shall support and develop a European approach to the main problems facing Member States in the fight against crime, crime prevention and the maintenance of law and order and public security, in particular the cross-border dimensions of those problems.

Tasks

—

To increase knowledge of the national police systems and structures of other Member States and of cross-border police cooperation within the European Union.

| — | To improve knowledge of international and Union instruments, particularly in the following sectors:






  (a) | the institutions of the European Union, their functioning and role, as well as the decision-making mechanisms and legal instruments of the European Union, in particular as regards their implications for law-enforcement cooperation; |
| --- | --- | --- |

—

To improve knowledge of international and Union instruments, particularly in the following sectors:

(a)

the institutions of the European Union, their functioning and role, as well as the decision-making mechanisms and legal instruments of the European Union, in particular as regards their implications for law-enforcement cooperation;

| (b) | Europol’s objectives, structure and functioning, as well as ways to maximise cooperation between Europol and relevant law-enforcement services in the Member States in the fight against organised crime; |
| --- | --- |

(b)

Europol’s objectives, structure and functioning, as well as ways to maximise cooperation between Europol and relevant law-enforcement services in the Member States in the fight against organised crime;

| (c) | Eurojust’s objectives, structure and functioning. |
| --- | --- |

(c)

Eurojust’s objectives, structure and functioning.

| — | To provide appropriate training with regard to respect for democratic safeguards, with particular reference to the rights of defence. |
| --- | --- |

—

To provide appropriate training with regard to respect for democratic safeguards, with particular reference to the rights of defence.

1 —   Governing Board

Composed of:

| — | one delegation from each Member State. |
| --- | --- |

—

one delegation from each Member State.

Each delegation shall have one vote. Representatives of the European Commission and of the General Secretariat of the Council of the European Union and Europol shall be invited to attend meetings as non-voting observers.

2 —   Director

Manages the College, is appointed and removed by the Governing Board.

3 —   External audit

Court of Auditors.

4 —   Internal Auditor

Internal Audit Service of the Commission.

5 —   Discharge authority

Parliament acting on recommendation by the Council.

Human Resources

At the opening of 2008, the College had 22 members of staff and 2 seconded national experts.

Budget

The budget available for the College activities was as follows:

Total budget 8 700 000 euro

With the following allocations between budget titles

TITLE 1 Expenditure relating to persons working within the College

3 237 500 euro

TITLE 2 Buildings, equipment and miscellaneous expenditure

493 500 euro

TITLE 3 Operational expenditure

4 969 000 euro

Courses and seminars

The College organised 87 courses and seminars. Activities increased on 2007 with 2 078 participants. The College Secretariat organised nine activities in support of the network.

Two major conferences were organised in Paris under the aegis of the College. The College Annual Conference: ‘Crime, Police and Justice in the 21st Century’. The meeting of the General Directors of the Police, Customs and Security Services from the MEDA regions and the EU Member States, organised under the Euromed Police II project developed by the College.

Cooperation

The College continued to formalise cooperation with key institutions. A cooperation agreement with Interpol was signed in December 2008. The College continued work on furthering agreements with Frontex and Eurojust. Agreements will be signed in 2009.

European Dimension

The College conference ‘European Dimension — Enhancing Europe in Police Training’ took place in October 2008 in France.

Electronic Network (e-Net)

The implementation of the College’s e-Net was concluded.

Common curricula

Three ‘new’ common curricula were developed (civilian crisis management, drug trafficking and management of diversity). The revision of the common curriculum on counter-terrorism was finalised.

Evaluation

A new system for evaluating the College activities was developed and a post-course evaluation system introduced.

Exchange programme

The College/Agis exchange programme came to a successful conclusion with the publication of ‘Exchanging places: sharing police knowledge and practice in the European Union’.

Research and science

The College developed the concept for a ‘European Police Science and Research Bulletin’. The 2008 CEPOL European Police Research and Science Conference focused on ‘Comparative policing research from a European perspective’ with a focus on organised crime.

Euromed Police II project

Nine preparatory meetings, eight seminars and five study visits took place for senior police officers in the MEDA countries. A meeting of the General Directors of the police, customs and security services from the MEDA regions and the EU Member States was organised. A specific section of the College restricted website on e-Net was developed and became operational in November 2008.

Source: Information supplied by the Agency.

THE COLLEGE’S REPLIES

| 11. | The College takes note of the observations of the Court. The College has taken all the necessary measures to minimise the risks linked to the migration to the ABAC system. The commitment system implemented in 2008 is closely monitored and improved to avoid error. The College will take measures to improve the quality of its Financial Statements. The 2007 figures have been taken from the Commission’s consolidation reporting package. The differences identified by the Court do not affect the economic outturn of the year. |
| --- | --- |

11.

The College takes note of the observations of the Court. The College has taken all the necessary measures to minimise the risks linked to the migration to the ABAC system. The commitment system implemented in 2008 is closely monitored and improved to avoid error. The College will take measures to improve the quality of its Financial Statements. The 2007 figures have been taken from the Commission’s consolidation reporting package. The differences identified by the Court do not affect the economic outturn of the year.

| 13. | The College takes note of the observation of the Court and will avoid such procedures in the future. It is not its intention to renew or extend the contract mentioned by the Court. |
| --- | --- |

13.

The College takes note of the observation of the Court and will avoid such procedures in the future. It is not its intention to renew or extend the contract mentioned by the Court.

| 14. | The College accepts the Court’s comments. Monitoring and control systems already in place and will continue to be improved and implemented in order to avoid such situations in the future. |
| --- | --- |

14.

The College accepts the Court’s comments. Monitoring and control systems already in place and will continue to be improved and implemented in order to avoid such situations in the future.

| 15. | The College notes the observation on the commitment system. The ex-ante controls on transactions have been reinforced in 2009 to avoid such situations in the future. |
| --- | --- |

15.

The College notes the observation on the commitment system. The ex-ante controls on transactions have been reinforced in 2009 to avoid such situations in the future.

| 16. | The College notes the Court’s comments. Measures have been taken to improve the monitoring of operational expenditure to avoid committing significant funds at the year-end and to avoid excessive carry-over. |
| --- | --- |

16.

The College notes the Court’s comments. Measures have been taken to improve the monitoring of operational expenditure to avoid committing significant funds at the year-end and to avoid excessive carry-over.

| 17. | Despite article 23 of the Council decision establishing the College (17), the Commission sent a 175 000 euro debit note to the College and announced its intention to deduct this amount from the 2009 subsidy. This commitment and its carry forward was necessary to compensate the amount offset by the Commission. |
| --- | --- |

17.

Despite article 23 of the Council decision establishing the College (17), the Commission sent a 175 000 euro debit note to the College and announced its intention to deduct this amount from the 2009 subsidy. This commitment and its carry forward was necessary to compensate the amount offset by the Commission.

| 18. | The College recognises that they were inconsistencies concerning the three commitments mentioned by the Court. The total error amounts to 1 169 euro to be compared to a total value of 318 210 euro of the 15 commitments sample. |
| --- | --- |

18.

The College recognises that they were inconsistencies concerning the three commitments mentioned by the Court. The total error amounts to 1 169 euro to be compared to a total value of 318 210 euro of the 15 commitments sample.

| 19. | Commitments in ABAC are understated by 20 044,10 euro due to the impossibility of modifying the initial upload made in ABAC in July, which however has been modified in the accounting system SAP. |
| --- | --- |

19.

Commitments in ABAC are understated by 20 044,10 euro due to the impossibility of modifying the initial upload made in ABAC in July, which however has been modified in the accounting system SAP.

| 20. | The College takes note of the observation. To correct this situation, the College has in 2009 implemented ABAC assets and has drafted an inventory policy which is under review for approval in view of a proper registering and accounting of the inventory. |
| --- | --- |

20.

The College takes note of the observation. To correct this situation, the College has in 2009 implemented ABAC assets and has drafted an inventory policy which is under review for approval in view of a proper registering and accounting of the inventory.

| 21. | The final part of the recovery process regarding personal expenditure in 2007 was completed in June 2009, except for the seconded national experts who left the College the previous years. When the recovery is fully completed an ex-post control, will be carried out following a tender process. |
| --- | --- |

21.

The final part of the recovery process regarding personal expenditure in 2007 was completed in June 2009, except for the seconded national experts who left the College the previous years. When the recovery is fully completed an ex-post control, will be carried out following a tender process.

---

(1)  OJ L 256, 1.10.2005, p. 63.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 College.

9

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

10

(11)  The Final Annual Accounts were drawn up on 1 July 2009 and received by the Court on 15 October 2009. 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 https://www.cepol.europa.eu/index.php?id=final-accounts

11

Official Journal of the European Union

(12)  Value of the contract: 96 000 euro.

12

(13)  3,2 million euro in 2008.

13

(14)  Total value 39 500 euro.

14

(15)  Total value 244 200 euro.

15

(16)  Paragraph 15 (OJ C 311, 5.12.2008, p. 136).

16

(17)  Council Decision 2005/681/JHA of 20 September 2005.

17

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/131 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/131

---

REPORT

on the annual accounts of Eurojust for the financial year 2008, together with Eurojust’s replies

2009/C 304/24

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 132 |
| STATEMENT OF ASSURANCE... | 3-12 | 132 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13-16 | 133 |
| Table... | 134 |
| Eurojust’s replies... | 135 |

Paragraph

Page

INTRODUCTION...

1-2

132

STATEMENT OF ASSURANCE...

3-12

132

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13-16

133

Table...

134

Eurojust’s replies...

135

INTRODUCTION

| 1. | Eurojust, located in The Hague, was set up by Council Decision 2002/187/JHA (1) with a view to stepping up the fight against serious organised crime. Its objective is to improve the coordination of investigations and prosecutions covering the territories of several Member States of the European Union, as well as that of non-member States (2). |
| --- | --- |

1.

Eurojust, located in The Hague, was set up by Council Decision 2002/187/JHA (1) with a view to stepping up the fight against serious organised crime. Its objective is to improve the coordination of investigations and prosecutions covering the territories of several Member States of the European Union, as well as that of non-member States (2).

| 2. | The Eurojust 2008 budget amounted to 24,8 million euro compared with 18,9 million euro the previous year. The number of staff employed by Eurojust at the end of the year was 222 as compared with 179 the previous year. |
| --- | --- |

2.

The Eurojust 2008 budget amounted to 24,8 million euro compared with 18,9 million euro the previous year. The number of staff employed by Eurojust at the end of the year was 222 as compared with 179 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of Eurojust, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of Eurojust under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the Eurojust’s annual accounts and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Eurojust’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the Eurojust’s annual accounts for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | The level of appropriations carried forward to the following year, 3,5 million euro, was much lower than in 2007 (from 25 % to 13 % of final budget appropriations), but the level of cancellations of the appropriations carried over from the previous financial year, 1 million euro (25 % of the appropriations carried over) was high. This situation was at odds with the principle of annuality. |
| --- | --- |

13.

The level of appropriations carried forward to the following year, 3,5 million euro, was much lower than in 2007 (from 25 % to 13 % of final budget appropriations), but the level of cancellations of the appropriations carried over from the previous financial year, 1 million euro (25 % of the appropriations carried over) was high. This situation was at odds with the principle of annuality.

| 14. | As already mentioned by the Court (12), the high rate of vacant posts (26 %) although less significant than in 2007 (33 %), still indicates shortcomings in the planning and implementation of recruitment procedures. In addition, this had implications on the use of Title I appropriations, where an amount of 1,8 million euro was transferred from appropriations for the salaries of temporary and contract staff, mostly to increase (by 238 %) the appropriations for interim staff. This situation was at odds with the principle of specification. |
| --- | --- |

14.

As already mentioned by the Court (12), the high rate of vacant posts (26 %) although less significant than in 2007 (33 %), still indicates shortcomings in the planning and implementation of recruitment procedures. In addition, this had implications on the use of Title I appropriations, where an amount of 1,8 million euro was transferred from appropriations for the salaries of temporary and contract staff, mostly to increase (by 238 %) the appropriations for interim staff. This situation was at odds with the principle of specification.

| 15. | With regard to procurement, in most cases no prior estimation of the market value was done before the procedure was launched. In addition, an analysis of the register of exceptions (i.e. deviations from established policies, procedures or controls) showed recurrent and severe weaknesses at the level of the monitoring of contracts and the programming of procurements. In particular, 14 exceptions were authorised in 2008 by the Director, 11 of which allowing an irregular extension of contracts (beyond the maximum duration permitted or beyond the budgetary ceiling fixed). This situation (13) already commented on in the 2005, 2006 and 2007 Annual Reports (14), seriously calls into question the capacity of the various services involved to liaise properly and indicates a lack of guidance and control by the authorising officer. |
| --- | --- |

15.

With regard to procurement, in most cases no prior estimation of the market value was done before the procedure was launched. In addition, an analysis of the register of exceptions (i.e. deviations from established policies, procedures or controls) showed recurrent and severe weaknesses at the level of the monitoring of contracts and the programming of procurements. In particular, 14 exceptions were authorised in 2008 by the Director, 11 of which allowing an irregular extension of contracts (beyond the maximum duration permitted or beyond the budgetary ceiling fixed). This situation (13) already commented on in the 2005, 2006 and 2007 Annual Reports (14), seriously calls into question the capacity of the various services involved to liaise properly and indicates a lack of guidance and control by the authorising officer.

| 16. | With regard to staff selection procedures, in general the work of selection boards was not clearly documented, since minutes or final grids for the ranking of candidates were often missing. In one case, an internal candidate was appointed on a Head of Unit post although the minimum requirements in terms of professional experience were not respected. These situations did not ensure the transparent and non-discriminatory treatment of external and internal candidates. |
| --- | --- |

16.

With regard to staff selection procedures, in general the work of selection boards was not clearly documented, since minutes or final grids for the ranking of candidates were often missing. In one case, an internal candidate was appointed on a Head of Unit post although the minimum requirements in terms of professional experience were not respected. These situations did not ensure the transparent and non-discriminatory treatment of external and internal candidates.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Eurojust (The Hague)

| Areas of competence deriving from the Treaty on European Union | Competences of Eurojust as defined in Council Decision 2002/187/JHA | Governance | Resources made available to Eurojust in 2008

  (Data for 2007) | Products and services supplied in 2008

  (Data for 2007) |
| --- | --- | --- | --- | --- |
| Third pillar body created by Council Decision.
  The Union’s objective is to provide citizens with a high level of safety within an area of freedom, security and justice.
  The Council encourages cooperation through Eurojust by enabling it to facilitate proper coordination between the Member States′ national prosecuting authorities.

  (Extracts from Articles 29 and 31)

  Eurojust’s main areas of responsibility are the same as Europol’s, that is, the fight against terrorism, organised crime, in particular drug-trafficking, illegal immigration, illicit vehicle trafficking, trafficking in human beings, the counterfeiting of money, trafficking in radioactive substances, computer crime, acts detrimental to the Union’s financial interests and money-laundering. | Objectives

  Article 3 Eurojust Decision






  — | To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions. |

Areas of competence deriving from the Treaty on European Union

Competences of Eurojust as defined in Council Decision 2002/187/JHA

Governance

Resources made available to Eurojust in 2008

(Data for 2007)

Products and services supplied in 2008

(Data for 2007)

Third pillar body created by Council Decision.

The Union’s objective is to provide citizens with a high level of safety within an area of freedom, security and justice.

The Council encourages cooperation through Eurojust by enabling it to facilitate proper coordination between the Member States′ national prosecuting authorities.

(Extracts from Articles 29 and 31)

Eurojust’s main areas of responsibility are the same as Europol’s, that is, the fight against terrorism, organised crime, in particular drug-trafficking, illegal immigration, illicit vehicle trafficking, trafficking in human beings, the counterfeiting of money, trafficking in radioactive substances, computer crime, acts detrimental to the Union’s financial interests and money-laundering.

Objectives

Article 3 Eurojust Decision

—

To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions.

| — | To improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests. |
| --- | --- |

—

To improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests.

| — | To support the competent authorities of the Member States in order to render their investigations and prosecutions more effective. |
| --- | --- |

—

To support the competent authorities of the Member States in order to render their investigations and prosecutions more effective.

| — | To provide support with procedures involving a Member State and a non-member State. |
| --- | --- |

—

To provide support with procedures involving a Member State and a non-member State.

| — | To provide support with procedures involving a Member State and the Community. |
| --- | --- |

—

To provide support with procedures involving a Member State and the Community.

Tasks

Articles 5, 6 and 7 Eurojust Decision

To organise cooperation between the various national legal systems, Eurojust acts:

| — | through its national members; or |
| --- | --- |

—

through its national members; or

| — | as a College. |
| --- | --- |

—

as a College.

If the competent authorities of the Member State concerned decide not to respond to the requests which Eurojust has issued as a College, they shall inform Eurojust of the reasons for their decision.

1 —   The College is responsible for the organisation and operation of Eurojust.

2 —   The College is composed of national members who are seconded by each Member State in accordance with its legal system and who are prosecutors, judges or police officers of equivalent competence.

3 —   The College elects its President from among the national members.

4 —   The Joint Supervisory Body checks the processing of personal data.

5 —   The Administrative Director is unanimously appointed by the College.

6 —   External audit

Court of Auditors.

7 —   Discharge authority

Parliament acting on a recommendation by the Council.

Budget

24,8 Million euro (18,9).

Staff at 31 December 2008

175 (147) planned in the EP

From which occupied: 130 (98)

+

43 (32) other positions:

(12 contract agents, 12 seconded national experts, 19 interims)

49 others (National members, Liaison prosecutors, deputies and assistants)

Total staff: 222 (179)

Operational tasks: 117 (95)

Administrative tasks: 80 (65)

Combined tasks: 25 (19)

Number of meetings: 131 (91)

Standard meetings: 168 (236)

Complex cases: 1 025(849)

Total number of cases: 1 193(1 085)

Fraud: 810

Fraud %: 68 % (69 %)

Drug trafficking: 223 (207)

Drug trafficking %: 19 % (19 %)

Terrorism: 23 (23)

Terrorism %: 2 % (2 %)

Murder: 86 (80)

Murder %: 7 % (7 %)

Trafficking in human beings: 83 (71)

Trafficking in human beings: 7 % (7 %)

Source: Information supplied by Eurojust.

EUROJUST’S REPLIES

| 13. | Half of the 1 million euro cancelled was due to external factors relating to host state obligations and casework coordination. Eurojust will endeavour to have a clearer picture from external parties in 2009, thus reducing cancellations of appropriations. |
| --- | --- |

13.

Half of the 1 million euro cancelled was due to external factors relating to host state obligations and casework coordination. Eurojust will endeavour to have a clearer picture from external parties in 2009, thus reducing cancellations of appropriations.

| 14. | Eurojust continues to address the shortcomings in recruitment procedures. The number of interim staff has been drastically reduced and therefore the need for transfer of appropriations greatly decreased as a result. Such a high transfer will therefore not be necessary in 2009. |
| --- | --- |

14.

Eurojust continues to address the shortcomings in recruitment procedures. The number of interim staff has been drastically reduced and therefore the need for transfer of appropriations greatly decreased as a result. Such a high transfer will therefore not be necessary in 2009.

| 15. | All procedures launched since then do provide for an estimate value. The setting up of a planning system in 2009 has resulted in a better programming of the procurement process. In addition, a procurement action plan is being implemented which addresses the weaknesses identified by the Court. |
| --- | --- |

15.

All procedures launched since then do provide for an estimate value. The setting up of a planning system in 2009 has resulted in a better programming of the procurement process. In addition, a procurement action plan is being implemented which addresses the weaknesses identified by the Court.

| 16. | Eurojust is addressing the weaknesses relating to the minutes and final grids. In addition, the situation addressed by the Court has since been regularised and a new recruitment procedure will be launched in 2009. |
| --- | --- |

16.

Eurojust is addressing the weaknesses relating to the minutes and final grids. In addition, the situation addressed by the Court has since been regularised and a new recruitment procedure will be launched in 2009.

---

(1)  Decision of 28 February 2002 setting up Eurojust (OJ L 63, 6.3.2002, p. 1).

1

(2)  The Table summarises Eurojust’s competences and activities. It is presented for information purposes.

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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 Eurojust.

9

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

10

(11)  The Final Annual Accounts were drawn up on 30 June 2009 and received by the Court on 6 July 2009. 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.eurojust.europa.eu/adm_budg_finance.htm

11

Official Journal of the European Union

(12)  See paragraph 9 of the 2007 annual report (OJ C 311, 5.12.2008, p. 143).

12

(13)  Total value: 390 000 euros.

13

(14)  E.g. see paragraph 8 of the 2007 annual report (OJ C 311, 5.12.2008, p. 143), paragraph 8 of the 2006 annual report (OJ C 309, 19.12.2007, p. 112) and paragraph 11 of the 2005 annual report (OJ C 312, 19.12.2006, p. 69).

14

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/136 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/136

---

REPORT

on the annual accounts of the European Training Foundation for the financial year 2008, together with the Foundation’s replies

2009/C 304/25

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 137 |
| STATEMENT OF ASSURANCE... | 3-12 | 137 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13-14 | 138 |
| Table... | 139 |
| The Foundation’s replies... | 141 |

Paragraph

Page

INTRODUCTION...

1-2

137

STATEMENT OF ASSURANCE...

3-12

137

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13-14

138

Table...

139

The Foundation’s replies...

141

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

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).

| 2. | The Foundation’s 2008 budget amounted to 22,4 million euro compared with 21,1 million euro the previous year. The number of staff employed by the Foundation at the end of the year was 124 as compared with 131 the previous year. |
| --- | --- |

2.

The Foundation’s 2008 budget amounted to 22,4 million euro compared with 21,1 million euro the previous year. The number of staff employed by the Foundation at the end of the year was 124 as compared with 131 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Foundation, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Foundation under her own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and proceduresre levant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Foundation and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Foundation’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Foundation for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

In the Court’s opinion, the transactions underlying the annual accounts of the Foundation for the financial year ended 31 December 2008 are, in all material respects, legal and regular.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | The audited recruitment procedures showed various shortcomings. The overall reports prepared by the Recruitment Assessment Boards do not provide sufficient information on the procedures followed. Justifications for decisions and the dates of the same were omitted, rendering it difficult to assess the regularity of these procedures and hampering the transparency of the procedures. |
| --- | --- |

13.

The audited recruitment procedures showed various shortcomings. The overall reports prepared by the Recruitment Assessment Boards do not provide sufficient information on the procedures followed. Justifications for decisions and the dates of the same were omitted, rendering it difficult to assess the regularity of these procedures and hampering the transparency of the procedures.

| 14. | In at least two cases, agents entitled to receive the expatriation allowance (12) were denied this allowance on the basis of an incorrect interpretation of the rules in force. The Foundation should correct these cases and perform the necessary verifications in order to be fully assured that other agents are not in a similar situation. |
| --- | --- |

14.

In at least two cases, agents entitled to receive the expatriation allowance (12) were denied this allowance on the basis of an incorrect interpretation of the rules in force. The Foundation should correct these cases and perform the necessary verifications in order to be fully assured that other agents are not in a similar situation.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Training Foundation (Turin)

| Areas of Community competence deriving from the Treaty | Competences of the Foundation as defined in Council Regulation (EEC) No 1360/90 | Governance | Resources made available to the Foundation in 2008

  (Data for 2007) | Product and services supplied in 2008 |
| --- | --- | --- | --- | --- |
| The Community shall carry out, within its spheres of competence, economic, financial and technical cooperation measures with third countries. Such measures shall be complementary to those carried out by the Member States and consistent with the development policy of the Community.

  (Article 181A of the Treaty | Objectives







  — | To contribute to the development of the professional training systems of central and eastern Europe, the independent States of the former Soviet Union benefiting from the economic reform and recovery assistance programme, and the territories and Mediterranean third countries benefiting from financial and technical accompanying measures for the reform of their economic and social structures. |

Areas of Community competence deriving from the Treaty

Competences of the Foundation as defined in Council Regulation (EEC) No 1360/90

Governance

Resources made available to the Foundation in 2008

(Data for 2007)

Product and services supplied in 2008

The Community shall carry out, within its spheres of competence, economic, financial and technical cooperation measures with third countries. Such measures shall be complementary to those carried out by the Member States and consistent with the development policy of the Community.

(Article 181A of the Treaty

Objectives

—

To contribute to the development of the professional training systems of central and eastern Europe, the independent States of the former Soviet Union benefiting from the economic reform and recovery assistance programme, and the territories and Mediterranean third countries benefiting from financial and technical accompanying measures for the reform of their economic and social structures.

| — | To promote the coordination of the assistance provided to eligible countries. |
| --- | --- |

—

To promote the coordination of the assistance provided to eligible countries.

Tasks

In accordance with the general guidelines laid down by the Community, the ETF operates in the field of training, covering professional, initial and lifelong training and the retraining of young people and adults via the following tasks:

| — | assistance in defining training needs and priorities through the implementation of technical assistance measures in the training field and cooperation with the appropriate designated bodies in the eligible countries, |
| --- | --- |

—

assistance in defining training needs and priorities through the implementation of technical assistance measures in the training field and cooperation with the appropriate designated bodies in the eligible countries,

| — | acts as a clearing house to provide the Community, its Member States and interested third countries with information on current initiatives and future needs in the training field and provides a framework for channelling offers of assistance. |
| --- | --- |

—

acts as a clearing house to provide the Community, its Member States and interested third countries with information on current initiatives and future needs in the training field and provides a framework for channelling offers of assistance.

Governing Board

| — | One representative of each Member State, |
| --- | --- |

—

One representative of each Member State,

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

—

three representatives of the Commission,

| — | chaired by the Commission. |
| --- | --- |

—

chaired by the Commission.

Director

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

—

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

Advisory Forum

| — | Appointed by the Governing Board, |
| --- | --- |

—

Appointed by the Governing Board,

| — | two experts from each Member State, |
| --- | --- |

—

two experts from each Member State,

| — | two experts from each eligible country, |
| --- | --- |

—

two experts from each eligible country,

| — | two experts from the social partners at European level. |
| --- | --- |

—

two experts from the social partners at European level.

External Audit

European Court of Auditors.

Internal Audit

Commission’s internal audit department.

Discharge authority

European Parliament on a recommendation from the Council.

Budget

19,2 (21,1) million euro of which 18 (19,7) million euro funded by a Commission subsidy and 1,2 (1,4) million euro funded by other bodies as assigned revenue.

Staff at 31 December 2008

| — | 96 (100) temporary posts in the establishment plan, of which 86 (91) posts occupied, |
| --- | --- |

—

96 (100) temporary posts in the establishment plan, of which 86 (91) posts occupied,

| — | 38 (40) other staff (auxiliaries, local agents, contract agents), |
| --- | --- |

—

38 (40) other staff (auxiliaries, local agents, contract agents),

| — | total staff: 124 (131), assigned to the following duties:






  — | operational tasks: 64 (72), |
| --- | --- | --- |

—

total staff: 124 (131), assigned to the following duties:

—

operational tasks: 64 (72),

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

—

administrative tasks: 38,5 (40),

| — | mixed tasks: 21,5 (19). |
| --- | --- |

—

mixed tasks: 21,5 (19).

Activities

The assistance provided by the ETF 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 2008, 111 new direct requests for support were received from the Commission. Most came from the delegations (49 %). The Commission’s satisfaction rate with the ETF’s response was 97 %.

The most frequent applications were those in the field of policies and contributions in the preparation of European Neighbourhood Instruments (32 %), followed by formulation (21 %), programming (11 %), the identification of projects (10 %) and follow-up.

Operational activities are classified in outputs (2008 figures) according to the following categories:

| | Policy reviews and analysis: 73 outputs
  37 (IPA), 20 (ENPI), 8 (DCI), 8 (ILP) |
| --- | --- |

Policy reviews and analysis: 73 outputs

37 (IPA), 20 (ENPI), 8 (DCI), 8 (ILP)

| | Capacity building actions: 83 outputs
  35 (IPA), 32 (ENPI), 16 (DCI) |
| --- | --- |

Capacity building actions: 83 outputs

35 (IPA), 32 (ENPI), 16 (DCI)

| | Support to programming cycle: 25 outputs
  11 (IPA), 9 (ENPI), 5 (DCI) |
| --- | --- |

Support to programming cycle: 25 outputs

11 (IPA), 9 (ENPI), 5 (DCI)

| | Dissemination and networking: 32 outputs
  13 (IPA), 9 (ENPI), 7 (DCI), 3 (ILP) |
| --- | --- |

Dissemination and networking: 32 outputs

13 (IPA), 9 (ENPI), 7 (DCI), 3 (ILP)

| | Effectiveness analysis: 10 outputs
  6 (IPA), 1 (ENPI), 2 (DCI), 1 (ILP) |
| --- | --- |

Effectiveness analysis: 10 outputs

6 (IPA), 1 (ENPI), 2 (DCI), 1 (ILP)

| | Total 102 (IPA), 71 (ENPI), 38 (DCI), 12 (ILP)

  223 outputs |
| --- | --- |

Total 102 (IPA), 71 (ENPI), 38 (DCI), 12 (ILP)

223 outputs

Instruments used

| IPA | : | Instrument for Pre-Accession Assistance |
| --- | --- | --- |
| ENPI | : | European Neighbourhood and Partnership Instrument |
| DCI | : | Development Cooperation Instrument |
| ILP | : | Innovation and Learning Programmes |

IPA

:

Instrument for Pre-Accession Assistance

ENPI

:

European Neighbourhood and Partnership Instrument

DCI

:

Development Cooperation Instrument

ILP

:

Innovation and Learning Programmes

Source: Information supplied by the Foundation.

THE FOUNDATION’S REPLIES

| 13. | The Foundation has undertaken a thorough review of its recruitment procedures in response to the findings of an internal audit carried out by the Internal Audit Service (IAS) in 2008 and has implemented a series of actions, including enhancing documentation and transparency in selection processes. |
| --- | --- |

13.

The Foundation has undertaken a thorough review of its recruitment procedures in response to the findings of an internal audit carried out by the Internal Audit Service (IAS) in 2008 and has implemented a series of actions, including enhancing documentation and transparency in selection processes.

| 14. | The Foundation acknowledges the Court’s opinion on expatriation allowance and has reviewed the individual cases concerned and made the appropriate adaptations. |
| --- | --- |

14.

The Foundation acknowledges the Court’s opinion on expatriation allowance and has reviewed the individual cases concerned and made the appropriate adaptations.

---

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

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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.

9

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

10

(11)  The Final Annual Accounts were drawn up on 15 June 2009 and received by the Court on 30 June 2009. 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

11

Official Journal of the European Union

(12)  They are non-Italian nationals and arrived in Italy during the period of reference defined to determine the right to the expatriation allowance.

12

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/142 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/142

---

REPORT

on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2008, together with the Foundation’s replies

2009/C 304/26

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION... | 1-2 | 143 |
| STATEMENT OF ASSURANCE... | 3-12 | 143 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT... | 13-16 | 144 |
| Table... | 145 |
| The Foundation’s replies... | 147 |

Paragraph

Page

INTRODUCTION...

1-2

143

STATEMENT OF ASSURANCE...

3-12

143

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT...

13-16

144

Table...

145

The Foundation’s replies...

147

INTRODUCTION

| 1. | The European Foundation for the Improvement of Living and Working Conditions (hereinafter ‘the Foundation’), located in Dublin, was set up by Council Regulation (EEC) No 1365/75 of 26 May 1975 (1). Its aim is to contribute to the planning and establishment of better living and working conditions in the European Union by increasing and disseminating knowledge which is relevant to this subject (2). |
| --- | --- |

1.

The European Foundation for the Improvement of Living and Working Conditions (hereinafter ‘the Foundation’), located in Dublin, was set up by Council Regulation (EEC) No 1365/75 of 26 May 1975 (1). Its aim is to contribute to the planning and establishment of better living and working conditions in the European Union by increasing and disseminating knowledge which is relevant to this subject (2).

| 2. | The Foundation’s 2008 budget amounted to 21 million euro compared with 20,2 million euro the previous year. The number of staff employed by the Foundation at the end of the year was 87 as compared with 95 the previous year. |
| --- | --- |

2.

The Foundation’s 2008 budget amounted to 21 million euro compared with 20,2 million euro the previous year. The number of staff employed by the Foundation at the end of the year was 87 as compared with 95 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Foundation, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Foundation under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Foundation and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Foundation’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Foundation for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | For operational expenditure, the amount carried forward, 4,9 million euro, was more than 55 % of the appropriations. This situation was at odds with the principle of annuality. It indicates weaknesses in the programming of the operational activities of the Foundation. |
| --- | --- |

13.

For operational expenditure, the amount carried forward, 4,9 million euro, was more than 55 % of the appropriations. This situation was at odds with the principle of annuality. It indicates weaknesses in the programming of the operational activities of the Foundation.

| 14. | The justification of the budgetary transfers was insufficient: no estimation of the needs was provided. Moreover, the Governing Board was not informed about them. |
| --- | --- |

14.

The justification of the budgetary transfers was insufficient: no estimation of the needs was provided. Moreover, the Governing Board was not informed about them.

| 15. | The closure of the 2008 accounts was handled by a short-term employee recruited through an employment agency. The hand-over report submitted by the previous Accounting Officer was unsatisfactory and incomplete and a proper transition between the previous Accounting Officer and the new one was not ensured. As a result, the quality of the financial statements in several areas (e.g. fixed assets, accrued expenses, assigned revenue, VAT, etc.) was unsatisfactory, showed inconsistencies with the 2007 accounts and therefore required important adjustments during the audit. |
| --- | --- |

15.

The closure of the 2008 accounts was handled by a short-term employee recruited through an employment agency. The hand-over report submitted by the previous Accounting Officer was unsatisfactory and incomplete and a proper transition between the previous Accounting Officer and the new one was not ensured. As a result, the quality of the financial statements in several areas (e.g. fixed assets, accrued expenses, assigned revenue, VAT, etc.) was unsatisfactory, showed inconsistencies with the 2007 accounts and therefore required important adjustments during the audit.

| 16. | With regard to procurement procedures, in one case (12) the use of a negotiated procedure was not justified. In two other cases (13), the Foundation irregularly extended contracts beyond the maximum duration permitted. The Foundation should aim to improve the monitoring of its contracts and the programming of its procurement procedures, launching new tenders well before the corresponding contracts come to an end. |
| --- | --- |

16.

With regard to procurement procedures, in one case (12) the use of a negotiated procedure was not justified. In two other cases (13), the Foundation irregularly extended contracts beyond the maximum duration permitted. The Foundation should aim to improve the monitoring of its contracts and the programming of its procurement procedures, launching new tenders well before the corresponding contracts come to an end.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Foundation for the Improvement of Living and Working Conditions (Dublin)

| Areas of Community competence deriving from the Treaty | Competences of the Foundation as defined in Council Regulation (EEC) No 1365/75 as amended by Regulation (EC) No 1111/2005 | Governance | Resources available to the Foundation in 2008

  (data for 2007) | Activities and services provided |
| --- | --- | --- | --- | --- |
| ‘The Community and the Member States, having in mind fundamental social rights, (...) shall have as their objectives (...) improved living and working conditions, (...) the Community shall support and complement the activities of the Member States in the following fields: (...) (b) working conditions; (c) social security and the social protection of workers; (d) protection of workers where their employment contract is terminated; (e) the information and consultation of workers; (f) representation and the collective defence of the interests of workers and employers, including co-determination; (g) conditions of employment for third-country nationals; (h) the integration of persons excluded from the labour market; (i) equality between men and women (...)’

  (Articles 136 and 137 of the Treaty) | Objectives:

  The aim of the Foundation shall be to contribute to the establishment of better living and working conditions by increasing and disseminating knowledge which is relevant to this subject. In particular, it is required to consider the following areas:






  — | man at work, |

Areas of Community competence deriving from the Treaty

Competences of the Foundation as defined in Council Regulation (EEC) No 1365/75 as amended by Regulation (EC) No 1111/2005

Governance

Resources available to the Foundation in 2008

(data for 2007)

Activities and services provided

‘The Community and the Member States, having in mind fundamental social rights, (...) shall have as their objectives (...) improved living and working conditions, (...) the Community shall support and complement the activities of the Member States in the following fields: (...) (b) working conditions; (c) social security and the social protection of workers; (d) protection of workers where their employment contract is terminated; (e) the information and consultation of workers; (f) representation and the collective defence of the interests of workers and employers, including co-determination; (g) conditions of employment for third-country nationals; (h) the integration of persons excluded from the labour market; (i) equality between men and women (...)’

(Articles 136 and 137 of the Treaty)

Objectives:

The aim of the Foundation shall be to contribute to the establishment of better living and working conditions by increasing and disseminating knowledge which is relevant to this subject. In particular, it is required to consider the following areas:

—

man at work,

| — | organisation of work and particularly job design, |
| --- | --- |

—

organisation of work and particularly job design,

| — | problems peculiar to certain categories of workers, |
| --- | --- |

—

problems peculiar to certain categories of workers,

| — | long-term aspects of the improvement of the environment, |
| --- | --- |

—

long-term aspects of the improvement of the environment,

| — | the distribution of human activities in space and in time. |
| --- | --- |

—

the distribution of human activities in space and in time.

Tasks:

| — | to foster the exchange of information and experience in these fields, |
| --- | --- |

—

to foster the exchange of information and experience in these fields,

| — | to facilitate contact between universities, study and research institutes, economic and social administrations and organisations, |
| --- | --- |

—

to facilitate contact between universities, study and research institutes, economic and social administrations and organisations,

| — | to carry out studies or to conclude study ontracts and to ovide assistance for pilot projects, |
| --- | --- |

—

to carry out studies or to conclude study ontracts and to ovide assistance for pilot projects,

| — | to cooperate as closely as possible with existing specialised institutes in the Member States and at international level. |
| --- | --- |

—

to cooperate as closely as possible with existing specialised institutes in the Member States and at international level.

1.   The Governing Board (GB)

| — | from each Member State: one government representative, one representative from employers’ organisations and one workers’ representative, |
| --- | --- |

—

from each Member State: one government representative, one representative from employers’ organisations and one workers’ representative,

| — | three representatives from the Commission. |
| --- | --- |

—

three representatives from the Commission.

2.   The Bureau of the GB

| — | consists of 11 members; three members from each of the social partners and the governments, two from the Commission, |
| --- | --- |

—

consists of 11 members; three members from each of the social partners and the governments, two from the Commission,

| — | it monitors the implementation of decisions of the GB and takes measures for the proper management between GB meetings. |
| --- | --- |

—

it monitors the implementation of decisions of the GB and takes measures for the proper management between GB meetings.

3.   The Director is appointed by the Commission from a list of candidates submitted by the GB, he implements the decisions of the GB and the Bureau of the GB and manages the Foundation.

4.   The Advisory Committees are composed of up to three members from the Commission, governments and the social partners, with the aim to advise on the implementation of major projects and the assessment of results.

5.   External audit

Court of Auditors.

6.   Discharge authority

Parliament acting on recommendation of the Council.

Budget

21,0 million euro

(20,2 million euro)

Staff at 31 December 2008

101 posts provided for in the establishment plan, of which 78 (84) were occupied

Other Staff:

Seconded National Experts and employment Agencies staff: 0 (1)

Contract Agents: 9 (10)

Total Staff employed: 87 (95)

Operating activities: 56 (55)

Administrative tasks: 27 (36)

Mixed: 4 (4)

Monitoring and surveys

| — | European Industrial Relations Observatory (EIRO) 572 information updates added, European Working Conditions Observatory (EWCO) 159 information updates added and European Restructuring Monitor (ERM) 1 532 restructuring fact sheets added. |
| --- | --- |

—

European Industrial Relations Observatory (EIRO) 572 information updates added, European Working Conditions Observatory (EWCO) 159 information updates added and European Restructuring Monitor (ERM) 1 532 restructuring fact sheets added.

| — | 4th European Working Conditions Survey: secondary analysis (published: ageing workforce, work organisation, use of technology). |
| --- | --- |

—

4th European Working Conditions Survey: secondary analysis (published: ageing workforce, work organisation, use of technology).

| — | 2nd European Quality of Life Survey (EQLS); completion of field work (31 countries; 35 000 interviewed), analysis of data; first results published (Resume). |
| --- | --- |

—

2nd European Quality of Life Survey (EQLS); completion of field work (31 countries; 35 000 interviewed), analysis of data; first results published (Resume).

| — | European Company Survey; preparation of field work. |
| --- | --- |

—

European Company Survey; preparation of field work.

Employment and restructuring

| — | European Restructuring Monitor case studies. |
| --- | --- |

—

European Restructuring Monitor case studies.

| — | Impact of globalisation on selected sectors (Transport; Textiles; Energy). |
| --- | --- |

—

Impact of globalisation on selected sectors (Transport; Textiles; Energy).

| — | Undeclared work (measures from five countries). |
| --- | --- |

—

Undeclared work (measures from five countries).

| — | Changes in employment structure (Report ‘More and better jobs’). |
| --- | --- |

—

Changes in employment structure (Report ‘More and better jobs’).

| — | Links between innovation, productivity and employment. |
| --- | --- |

—

Links between innovation, productivity and employment.

Work-life balance and working conditions

| — | Working conditions and social dialogue. |
| --- | --- |

—

Working conditions and social dialogue.

| — | Flexibility and security over the life course. |
| --- | --- |

—

Flexibility and security over the life course.

| — | Global comparison of working conditions. |
| --- | --- |

—

Global comparison of working conditions.

| — | Older women workers in Europe. |
| --- | --- |

—

Older women workers in Europe.

Industrial relations and partnership

| — | Codes of conduct and international framework agreements. |
| --- | --- |

—

Codes of conduct and international framework agreements.

| — | Dynamics of European sectoral social dialogue.
  Working time and industrial relations; pay and industrial relations. |
| --- | --- |

—

Dynamics of European sectoral social dialogue.

Working time and industrial relations; pay and industrial relations.

| — | Stakeholder enquiry service:
  Liability in subcontracting processes in the European construction sector. |
| --- | --- |

—

Stakeholder enquiry service:

Liability in subcontracting processes in the European construction sector.

| — | Employability and flexicurity. |
| --- | --- |

—

Employability and flexicurity.

| — | Continuing vocational training and industrial relations. |
| --- | --- |

—

Continuing vocational training and industrial relations.

Social cohesion and quality of life

| — | Role of local authorities in the integration of migrants. |
| --- | --- |

—

Role of local authorities in the integration of migrants.

| — | Demographic change and employment in social services. |
| --- | --- |

—

Demographic change and employment in social services.

Communication and sharing ideas and experience

437 publications, 1,59 million users sessions (average of 4 370/day); 35 press activities; 2 149 article cuttings with advertising value equivalent (AVE) of 4,08 m euro, reaching 112 156 300 people, up from 58 765 900 in 2006; 242 journalist enquiries.

Promotion campaigns: four resource packs (Ageing, Globalisation, Flexicurity, Migration).

| — | 4 Roadshows (F, NL, CZ, GR). |
| --- | --- |

—

4 Roadshows (F, NL, CZ, GR).

| — | Company Network Seminar: ‘Flexibility policies at the company level: a common interest?’ Foundation Seminar Series: ‘Developing workers’ skills – actors and actions’ — National Outreach Centres covering AU, BE, ES, FI, FR, HU, IT, LUX, SP, UK. |
| --- | --- |

—

Company Network Seminar: ‘Flexibility policies at the company level: a common interest?’ Foundation Seminar Series: ‘Developing workers’ skills – actors and actions’ — National Outreach Centres covering AU, BE, ES, FI, FR, HU, IT, LUX, SP, UK.

| — | 57 exhibitions and 52 visits to the Foundation. |
| --- | --- |

—

57 exhibitions and 52 visits to the Foundation.

Source: Information supplied by the Foundation.

THE FOUNDATION’S REPLIES

| 13. | Already in our annual programming an amount of 45 % of Title 3 was planned to be carried forward due to the duration of study contracts and our payment schedule. The weakness to be improved exists but is much smaller than indicated (about 10 %). |
| --- | --- |

13.

Already in our annual programming an amount of 45 % of Title 3 was planned to be carried forward due to the duration of study contracts and our payment schedule. The weakness to be improved exists but is much smaller than indicated (about 10 %).

| 14. | All budgetary transfers are now backed up by supporting documentation and the Bureau of the Governing Board will be regularly informed. |
| --- | --- |

14.

All budgetary transfers are now backed up by supporting documentation and the Bureau of the Governing Board will be regularly informed.

| 15. | The old Accounting Officer had to give 3 months notice which is not enough to recruit a new Official/Temporary Agent. A certified accountant was therefore recruited on a temporary basis to ensure a proper closure of the Annual accounts. All problems in the accounts arising from the hand-over between the old and new Accounting Officer have now been corrected. |
| --- | --- |

15.

The old Accounting Officer had to give 3 months notice which is not enough to recruit a new Official/Temporary Agent. A certified accountant was therefore recruited on a temporary basis to ensure a proper closure of the Annual accounts. All problems in the accounts arising from the hand-over between the old and new Accounting Officer have now been corrected.

| 16. | For the insurance and travel agency services Eurofound launched procedures for multiannual contracts which have been concluded in the meantime. For the legal services the contractor was retained for reasons of business continuity (Eurofound had pending legal cases). A new tender procedure is currently in progress to set up a multiannual framework contract for legal services. Our project management system includes a separate template for the planning of procurement and for the management of contracts to assist the timely programming of procurement procedures |
| --- | --- |

16.

For the insurance and travel agency services Eurofound launched procedures for multiannual contracts which have been concluded in the meantime. For the legal services the contractor was retained for reasons of business continuity (Eurofound had pending legal cases). A new tender procedure is currently in progress to set up a multiannual framework contract for legal services. Our project management system includes a separate template for the planning of procurement and for the management of contracts to assist the timely programming of procurement procedures

---

(1)  OJ L 139, 30.5.1975, p. 1.

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission 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.

9

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

10

(11)  The Final Annual Accounts were drawn up on 30 June 2009 and received by the Court on 2 July 2009. 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.eurofound.europa.eu

11

Official Journal of the European Union

(12)  Renewal of the service contract for the provision of insurance services (37 000 euro).

12

(13)  Service contracts for the provision of travel agency services (157 000 euro) and for the provision of legal services (25 000 euro).

13

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/148 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/148

---

REPORT

on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2008, together with the Centre’s replies

2009/C 304/27

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 149 |
| STATEMENT OF ASSURANCE ... | 3-12 | 149 |
| OTHER MATTERS ... | 13 | 150 |
| Table ... | 151 |
| The Centre’s replies ... | 153 |

Paragraph

Page

INTRODUCTION ...

1-2

149

STATEMENT OF ASSURANCE ...

3-12

149

OTHER MATTERS ...

13

150

Table ...

151

The Centre’s replies ...

153

INTRODUCTION

| 1. | The European Monitoring Centre for Drugs and Drug Addiction (hereinafter ‘the Centre’), located in Lisbon, was established by Council Regulation (EEC) No 302/93 of 8 February 1993 (1). Its main task is to collect data on drugs and drug addiction in order to prepare and publish information that is objective, reliable and comparable at European level. The information is intended to provide a basis for analysing the demand for drugs and ways of reducing it, as well as, in general, phenomena associated with the drug market (2). |
| --- | --- |

1.

The European Monitoring Centre for Drugs and Drug Addiction (hereinafter ‘the Centre’), located in Lisbon, was established by Council Regulation (EEC) No 302/93 of 8 February 1993 (1). Its main task is to collect data on drugs and drug addiction in order to prepare and publish information that is objective, reliable and comparable at European level. The information is intended to provide a basis for analysing the demand for drugs and ways of reducing it, as well as, in general, phenomena associated with the drug market (2).

| 2. | The Centre’s 2008 budget amounted to 15,1 million euro, as compared with 14,4 million euro the previous year. The number of the staff employed by the Centre at the end of the year was 104 compared with 98 the previous year. |
| --- | --- |

2.

The Centre’s 2008 budget amounted to 15,1 million euro, as compared with 14,4 million euro the previous year. The number of the staff employed by the Centre at the end of the year was 104 compared with 98 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Centre, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
| --- | --- |

4.

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Centre under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the Centre’s annual accounts and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Centre’s annual accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the Centre’s annual accounts for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

OTHER MATTERS

| 13. | The Centre’s 2008 work programme lists, for each strategic priority, several operational objectives, actions and outputs. Objectives are often neither clearly linked to outputs nor measurable and outcome indicators are missing, which makes it difficult to monitor progress at the level of activity. The work programme does not detail the estimated human and financial resources necessary to implement the planned actions. In order to ensure full activity-based management, allowing continuous improvement of resource allocation and performance analysis, the Centre should establish measurable objectives with relevant indicators, allocate its resources based on estimated project needs and promote the achieving of results. |
| --- | --- |

13.

The Centre’s 2008 work programme lists, for each strategic priority, several operational objectives, actions and outputs. Objectives are often neither clearly linked to outputs nor measurable and outcome indicators are missing, which makes it difficult to monitor progress at the level of activity. The work programme does not detail the estimated human and financial resources necessary to implement the planned actions. In order to ensure full activity-based management, allowing continuous improvement of resource allocation and performance analysis, the Centre should establish measurable objectives with relevant indicators, allocate its resources based on estimated project needs and promote the achieving of results.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Monitoring Centre for Drugs and Drug Addiction (Lisbon)

| Areas of Community competence deriving from the Treaty | The Centre’s powers as defined in Regulation (EC) No 1920/2006 of the European Parliament and of the Council of 12 December 2006 | Governance | Resources available to the Centre in 2008

  (Data for 2007) | Products and services supplied in 2008

  (Data for 2007) |
| --- | --- | --- | --- | --- |
| The Community complements the Member States’ actions in reducing drugs-related health damage, including information and prevention.

  (Article 152 of the Treaty) | Objectives

  To provide the European Union and its Member States with factual, objective, reliable and comparable information at Community level concerning drugs, drug addiction and their consequences.
  The Monitoring Centre should focus on the following priority areas:






  1. | monitoring the state of the drugs problem, and emerging trends, in particular those involving multi-drug use; |

Areas of Community competence deriving from the Treaty

The Centre’s powers as defined in Regulation (EC) No 1920/2006 of the European Parliament and of the Council of 12 December 2006

Governance

Resources available to the Centre in 2008

(Data for 2007)

Products and services supplied in 2008

(Data for 2007)

The Community complements the Member States’ actions in reducing drugs-related health damage, including information and prevention.

(Article 152 of the Treaty)

Objectives

To provide the European Union and its Member States with factual, objective, reliable and comparable information at Community level concerning drugs, drug addiction and their consequences.

The Monitoring Centre should focus on the following priority areas:

1.

monitoring the state of the drugs problem, and emerging trends, in particular those involving multi-drug use;

| 2. | monitoring the solutions and providing information on best practices; |
| --- | --- |

2.

monitoring the solutions and providing information on best practices;

| 3. | assessing the risks of new psychoactive substances and maintaining a rapid information system; |
| --- | --- |

3.

assessing the risks of new psychoactive substances and maintaining a rapid information system;

| 4. | developing tools and instruments to help Member States to monitor and evaluate their national policies and the Commission to monitor and evaluate EU policies. |
| --- | --- |

4.

developing tools and instruments to help Member States to monitor and evaluate their national policies and the Commission to monitor and evaluate EU policies.

Tasks

| — | To collect and analyse data. |
| --- | --- |

—

To collect and analyse data.

| — | To improve data-comparison methods. |
| --- | --- |

—

To improve data-comparison methods.

| — | To disseminate data. |
| --- | --- |

—

To disseminate data.

| — | To cooperate with European and international bodies and organisations and with third countries. |
| --- | --- |

—

To cooperate with European and international bodies and organisations and with third countries.

| — | To identify new developments and changing trends. |
| --- | --- |

—

To identify new developments and changing trends.

1 —   The Management Board

Comprises one representative from each Member State, two representatives of the Commission and two independent experts designated by the European Parliament.

It adopts the work programme, the general activities report and the budget.

2 —   Director

Appointed by the Management Board at the Commission’s proposal.

3 —   Scientific Committee

Delivers opinions. It consists of at most 15 well-known scientists appointed in view of their excellence by the Management Board following a call for expressions of interest. The Management Board may also appoint a panel of experts to the extended Scientific Committee for risk assessment of new psychoactive substances.

4 —   External audit

Court of Auditors.

5 —   Discharge authority

Parliament acting on a recommendation from the Council.

Budget

15,1 million euro (14,4 million euro). Community subsidy 93 % (93 %).

Staff at 31 December 2008

Number of posts in establishment plan: 82 (82)

Posts occupied: 78 (73)

- 26 (25) other staff (auxiliary contracts, contract staff and temporary replacements)

Total staff: 104 (98)

Assigned to the following duties:

| | operational: 62 (60) |
| --- | --- |

operational: 62 (60)

| | administrative and IT support: 32 (29) |
| --- | --- |

administrative and IT support: 32 (29)

| | mixed: 10 (9) |
| --- | --- |

mixed: 10 (9)

Network

The Centre runs a computerised network for the collection and exchange of information called the ‘European Information Network on Drugs and Drug Addiction’ (Reitox); this network connects national drug information networks, specialist centres in the Member States and the information systems of international organisations working with the Centre.

Publications

| — | Annual report on the state of the drug problem in Europe; 23 (23) language versions, publication and interactive website, |
| --- | --- |

—

Annual report on the state of the drug problem in Europe; 23 (23) language versions, publication and interactive website,

| — | Selected issues 3 (3) issues, publication, multilingual summaries EN), |
| --- | --- |

—

Selected issues 3 (3) issues, publication, multilingual summaries EN),

| — | Statistical bulletin and interactive website containing over 350 (350) tables, 100 (100) graphs, |
| --- | --- |

—

Statistical bulletin and interactive website containing over 350 (350) tables, 100 (100) graphs,

| — | General report of activities — annual, EN, |
| --- | --- |

—

General report of activities — annual, EN,

| — | Drugnet Europe newsletter — 4 issues, EN (4), |
| --- | --- |

—

Drugnet Europe newsletter — 4 issues, EN (4),

| — | Drugs in Focus (policy briefings) — 1 (3) issue, 25 language versions, |
| --- | --- |

—

Drugs in Focus (policy briefings) — 1 (3) issue, 25 language versions,

| — | EMCDDA Scientific monograph — 1 (0), two volumes, EN, |
| --- | --- |

—

EMCDDA Scientific monograph — 1 (0), two volumes, EN,

| — | EMCDDA Insights — 3 (0), EN, |
| --- | --- |

—

EMCDDA Insights — 3 (0), EN,

| — | EMCDDA technical datasheets — 3 (0), |
| --- | --- |

—

EMCDDA technical datasheets — 3 (0),

| — | Drug profiles — 5 new and 6 updated (6), DE, EN, FR, |
| --- | --- |

—

Drug profiles — 5 new and 6 updated (6), DE, EN, FR,

| — | Technical and scientific studies, including articles and scientific summaries 53 (57), |
| --- | --- |

—

Technical and scientific studies, including articles and scientific summaries 53 (57),

| — | Data collection, validation, storage and retrieval system (Fonte). |
| --- | --- |

—

Data collection, validation, storage and retrieval system (Fonte).

Other websites

Set-up/updating/content development of public EMCDDA website including:

| — | country overviews, |
| --- | --- |

—

country overviews,

| — | drug treatment overviews, |
| --- | --- |

—

drug treatment overviews,

| — | european legal database on drugs, |
| --- | --- |

—

european legal database on drugs,

| — | evaluation instruments bank, |
| --- | --- |

—

evaluation instruments bank,

| — | best practice portal (exchange on drug demand reduction action). |
| --- | --- |

—

best practice portal (exchange on drug demand reduction action).

Promotional brochures: 6 (3) products.

Media products: 177 (174) miscellaneous products.

Participation in international conferences/meetings: 203 (230).

Organisation of technical and scientific meetings: 35 (41).

Source: Information supplied by the Centre.

THE CENTRE’S REPLIES

| 13. | In line with the Court’s recommendations, the EMCDDA’s 2009 work programme ensures a better link between priorities, objectives and activities to be implemented. It also allocates financial and human resources to the different priorities and activities on the basis of the estimated costs for implementation. Mid-term progress reporting was carried out to monitor the state of implementation. Moreover, for the 2010–2012 planning cycle the activity-based management (ABM) approach was improved by promoting result-oriented processes, establishing more measurable objectives and developing appropriate performance indicators. |
| --- | --- |

13.

In line with the Court’s recommendations, the EMCDDA’s 2009 work programme ensures a better link between priorities, objectives and activities to be implemented. It also allocates financial and human resources to the different priorities and activities on the basis of the estimated costs for implementation. Mid-term progress reporting was carried out to monitor the state of implementation. Moreover, for the 2010–2012 planning cycle the activity-based management (ABM) approach was improved by promoting result-oriented processes, establishing more measurable objectives and developing appropriate performance indicators.

---

(1)  OJ L 36, 12.2.1993, p. 1. This Regulation and its amendments were repealed by Regulation (EC) No 1920/2006 of the European Parliament and of the Council (OJ L 376, 27.12.2006, p. 1).

1

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

2

Table

(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.

3

(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.

4

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

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

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

8

(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 Commission Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 23) and are integrated as such into the Financial Regulation of the Centre.

9

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

10

(11)  The Final Annual Accounts were drawn up on 17 June 2009 and received by the Court on 6 July 2009. 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.emcdda.europa.eu/html.cfm/index81990EN.html

11

Official Journal of the European Union

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/154 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/154

---

REPORT

on the annual accounts of the Community Plant Variety Office for the financial year 2008, together with the Office’s replies

2009/C 304/28

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 155 |
| STATEMENT OF ASSURANCE ... | 3-12 | 155 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13-16 | 156 |
| Table ... | 157 |
| The Office’s replies... | 158 |

Paragraph

Page

INTRODUCTION ...

1-2

155

STATEMENT OF ASSURANCE ...

3-12

155

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13-16

156

Table ...

157

The Office’s replies...

158

INTRODUCTION

| 1. | The Community Plant Variety Office (hereinafter ‘the Office’), located in Angers, was created by Council Regulation (EC) No 2100/94 of 27 July 1994 (1). Its main task is to register and examine applications for the granting of Community industrial property rights for plant varieties and to ensure that the necessary technical examinations are carried out by the competent offices in the Member States. (2). |
| --- | --- |

1.

The Community Plant Variety Office (hereinafter ‘the Office’), located in Angers, was created by Council Regulation (EC) No 2100/94 of 27 July 1994 (1). Its main task is to register and examine applications for the granting of Community industrial property rights for plant varieties and to ensure that the necessary technical examinations are carried out by the competent offices in the Member States. (2).

| 2. | The Office’s 2008 budget amounted to 12,5 million euro compared with 13,4 million euro the previous year. The number of staff employed by the Office at the end of the year was 44 as compared with 44,5 the previous year. |
| --- | --- |

2.

The Office’s 2008 budget amounted to 12,5 million euro compared with 13,4 million euro the previous year. The number of staff employed by the Office at the end of the year was 44 as compared with 44,5 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Office, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement is addressed to the Administrative Council of the Office in accordance with Article 111 of Council Regulation (EC) No 2100/94. |
| --- | --- |

4.

The Management’s responsibility

| 5. | As authorising officer, the President implements the revenue and expenditure of the budget in accordance with the financial rules of the Office under his own responsibility and within the limits of authorised appropriations (6). The President is responsible for putting in place (7) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (8) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Office and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (9) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgement including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Office’s Annual Accounts (10) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Office for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | Administrative appropriations were committed in 2007, carried forward to 2008, decommitted and cancelled, then recommitted and finally carried forward to 2009 (11). Considering the principle of annuality and the non-differentiated nature of administrative appropriations, the corresponding amounts should have been reinstated through an amending budget. |
| --- | --- |

13.

Administrative appropriations were committed in 2007, carried forward to 2008, decommitted and cancelled, then recommitted and finally carried forward to 2009 (11). Considering the principle of annuality and the non-differentiated nature of administrative appropriations, the corresponding amounts should have been reinstated through an amending budget.

| 14. | The Office’s Accounting Officer did not validate the budgetary module of the new IT accounting system. Weaknesses in the system were identified during the 2008 closure of accounts process and required accounting adjustments. These weaknesses must be addressed in order to allow the validation of this module. |
| --- | --- |

14.

The Office’s Accounting Officer did not validate the budgetary module of the new IT accounting system. Weaknesses in the system were identified during the 2008 closure of accounts process and required accounting adjustments. These weaknesses must be addressed in order to allow the validation of this module.

| 15. | For two full cost grant agreements (12), indirect costs incurred by the contractors and exceeding the flat-rate ceiling of 7 % were considered eligible. According to the contracts (13), the Office should have asked for justification of the considerable amounts involved (14). |
| --- | --- |

15.

For two full cost grant agreements (12), indirect costs incurred by the contractors and exceeding the flat-rate ceiling of 7 % were considered eligible. According to the contracts (13), the Office should have asked for justification of the considerable amounts involved (14).

| 16. | For the provision of furniture (15), the Office directly awarded the contract to a specific supplier, without being able to provide relevant documentation or evidence as to the award criteria, or the evaluation conducted amongst the different alternatives presented by a technical advisor selected by the Office for this purpose. This practice hampered the transparency of the procedure. |
| --- | --- |

16.

For the provision of furniture (15), the Office directly awarded the contract to a specific supplier, without being able to provide relevant documentation or evidence as to the award criteria, or the evaluation conducted amongst the different alternatives presented by a technical advisor selected by the Office for this purpose. This practice hampered the transparency of the procedure.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Community Plant Variety Office (Angers)

| Areas of Community competence deriving from the Treaty | Competences of the Office as defined in Council Regulation (EC) No 2100/94 | Governance | Resources made available to the Office in 2008

  (Data for 2007) | Products and services supplied in 2008

  (Data for 2007) |
| --- | --- | --- | --- | --- |
| Free movement of goods

  Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property shall not constitute a means of arbitrary discrimination or a disguised restriction on trade between the Member States.

  (Extract from Article 30 of the Treaty) | Objectives







  — | To apply the system of Community plant variety rights as the sole and exclusive form of Community industrial property rights for plant varieties. |

Areas of Community competence deriving from the Treaty

Competences of the Office as defined in Council Regulation (EC) No 2100/94

Governance

Resources made available to the Office in 2008

(Data for 2007)

Products and services supplied in 2008

(Data for 2007)

Free movement of goods

Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property shall not constitute a means of arbitrary discrimination or a disguised restriction on trade between the Member States.

(Extract from Article 30 of the Treaty)

Objectives

—

To apply the system of Community plant variety rights as the sole and exclusive form of Community industrial property rights for plant varieties.

Tasks

| — | To decide whether to refuse or grant applications for Community plant variety rights. |
| --- | --- |

—

To decide whether to refuse or grant applications for Community plant variety rights.

| — | To decide on objections. |
| --- | --- |

—

To decide on objections.

| — | To decide on appeals. |
| --- | --- |

—

To decide on appeals.

| — | To decide on the revocation or cancellation of a Community plant variety right. |
| --- | --- |

—

To decide on the revocation or cancellation of a Community plant variety right.

1 —   The President

Directs the Office. He is appointed by the Council from a list of candidates proposed by the Commission after obtaining the opinion of the Administrative Council.

2 —   The Administrative Council

Oversees the Office’s work programme and draws up rules governing the Office’s working methods. It is composed of one representative of each Member State and one representative of the Commission, plus their alternates.

3 —   Decisions regarding the grant of Community plant variety rights are adopted by Committees composed of three members of staff of the Office and by the Board of Appeal in appeal proceedings.

4 —   Control of the legality of the Office’s acts

Review by the Commission of the legality of the acts of the Office’s President in respect of which Community law does not provide for any control on legality by another body and of the acts of the Administrative Council relating to the Office’s budget.

5 —   External audit

Court of Auditors.

6 —   Discharge authority

Administrative Council.

Budget

12,5 (13,4) million euro

Staff at 31 December 2008

Number of posts in establishment plan: 43 (42)

Posts occupied: 43 (42)

+ 1 (2,5) other posts (national experts on secondment, local staff, employment agency staff)

Total staff: 44 (44,5)

Assigned to the following duties:

| Operational | : | 17 |
| --- | --- | --- |
| Administrative | : | 21 |
| Mixed | : | 6 |

Operational

:

17

Administrative

:

21

Mixed

:

6

Applications received: 3 012(2 977)

Rights granted: 2 162(2 616)

Community rights in force at 31 December 2008: 15 599(14 598)

Source: Information supplied by the Office.

THE OFFICE’S REPLIES

| 13. | Due to unexpected delays, the works could not be completed within the lifespan of their budgetary commitments. For the Office to honour its legal obligations without distorting artificially the budget accounts, the outstanding amounts were therefore recommitted on the 2008 rather than on the 2009 budget. By doing so, in the opinion of the Office, budget rules were not breached. |
| --- | --- |

13.

Due to unexpected delays, the works could not be completed within the lifespan of their budgetary commitments. For the Office to honour its legal obligations without distorting artificially the budget accounts, the outstanding amounts were therefore recommitted on the 2008 rather than on the 2009 budget. By doing so, in the opinion of the Office, budget rules were not breached.

| 14. | The Accounting Officer has ensured that the weaknesses identified during the closure were corrected by the software supplier and, on the basis of extensive testing, has fully validated the budgetary module of the new IT accounting software. The validation was sent to the Court on 25 June 2009. |
| --- | --- |

14.

The Accounting Officer has ensured that the weaknesses identified during the closure were corrected by the software supplier and, on the basis of extensive testing, has fully validated the budgetary module of the new IT accounting software. The validation was sent to the Court on 25 June 2009.

| 15. | The grant agreements provide that audits may take place until 5 years after the payment of the balance and that if an audit establishes overpaid amounts these shall be claimed back. In view of the remarks of the Court the Office will organise such an audit in the coming months. |
| --- | --- |

15.

The grant agreements provide that audits may take place until 5 years after the payment of the balance and that if an audit establishes overpaid amounts these shall be claimed back. In view of the remarks of the Court the Office will organise such an audit in the coming months.

| 16. | The Office would, of course, have followed a competitive procedure if this had not been made impossible by the exclusive distribution system for the type of furniture chosen. For this reason and in line with Article 126.1b of the implementing rules of the Financial Regulation the Office considered the negotiated procedure fully justified. This justification was duly documented. |
| --- | --- |

16.

The Office would, of course, have followed a competitive procedure if this had not been made impossible by the exclusive distribution system for the type of furniture chosen. For this reason and in line with Article 126.1b of the implementing rules of the Financial Regulation the Office considered the negotiated procedure fully justified. This justification was duly documented.

---

(1)  OJ L 227, 1.9.1994, p. 27.

1

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

2

Table

(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.

3

(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.

4

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

5

(6)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

6

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

7

(8)  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 Commission Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.07.2008, p. 23) and are integrated as such in the Financial Regulation of the Office.

8

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

9

(10)  The Final Annual Accounts were drawn up on 26 June 2009 and received by the Court on 7 July 2009. 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.cpvo.europa.eu/main/en/home/about-the-cpvo/financing

10

Official Journal of the European Union

(11)  Mainly covering renovation work of a building and a new accounting IT system (total value 248 000 euro).

11

(12)  Total amount of 670 000 euro (50 % financed by the Office).

12

(13)  Article I.9 of the special conditions stipulates that overhead costs are eligible provided they can be supported by accounting evidence.

13

(14)  In one case the overall amount for indirect costs paid over the threshold was more than 40 000 euro.

14

(15)  Negotiated procedure for the provision of office furniture for the new Office’s premises (80 000 euro).

15

---

| 15.12.2009 | EN | Official Journal of the European Union | C 304/159 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/159

---

REPORT

on the annual accounts of the Office for Harmonization in the Internal Market for the financial year 2008, together with the Office’s replies

2009/C 304/29

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 160 |
| STATEMENT OF ASSURANCE ... | 3-12 | 160 |
| OTHER MATTERS ... | 13 | 161 |
| Table ... | 162 |
| The Office’s replies ... | 163 |

Paragraph

Page

INTRODUCTION ...

1-2

160

STATEMENT OF ASSURANCE ...

3-12

160

OTHER MATTERS ...

13

161

Table ...

162

The Office’s replies ...

163

INTRODUCTION

| 1. | The Office for Harmonization in the Internal Market (hereinafter ‘the Office’), located in Alicante, was set up by Council Regulation (EC) No 40/94 (1) of 20 December 1993. Its mandate is to implement the Community legislation on trade marks and designs, which gives undertakings uniform protection throughout the entire area of the European Union (2). |
| --- | --- |

1.

The Office for Harmonization in the Internal Market (hereinafter ‘the Office’), located in Alicante, was set up by Council Regulation (EC) No 40/94 (1) of 20 December 1993. Its mandate is to implement the Community legislation on trade marks and designs, which gives undertakings uniform protection throughout the entire area of the European Union (2).

| 2. | The Office’s 2008 budget amounted to 318,4 million euro compared to 275,6 million euro the previous year. The number of staff employed by the Office at the end of the year was 643 as compared with 647 the previous year. |
| --- | --- |

2.

The Office’s 2008 budget amounted to 318,4 million euro compared to 275,6 million euro the previous year. The number of staff employed by the Office at the end of the year was 643 as compared with 647 the previous year.

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Office, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
| --- | --- |

3.

| 4. | This Statement is adressed to the Office Budget Committee in accordance with Article 137 of Council Regulation (EC) No 40/94. |
| --- | --- |

4.

The President’s responsibility

| 5. | As authorising officer, the President implements the revenue and expenditure of the budget in accordance with the financial rules of the Office under his own responsibility and within the limits of authorised appropriations (6). The President is responsible for putting in place (7) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (8) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
| --- | --- |

5.

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Office and the legality and regularity of the transactions underlying them. |
| --- | --- |

6.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (9) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
| --- | --- |

7.

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgment including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
| --- | --- |

8.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
| --- | --- |

9.

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Office’s Annual Accounts (10) fairly present, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
| --- | --- |

10.

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the Office’s annual accounts for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
| --- | --- |

11.

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

12.

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

OTHER MATTERS

| 13. | For the past two years (11) the Court has observed the need for the Office to propose to the Commission to establish a level of fees which reflects more accurately its real costs (12). The accumulated budgetary surplus (13) has increased from 201 million euro in 2006 to 273 million euro in 2007 and 350 million euro in 2008. The impact of measures envisaged by the Office to prevent further increases in its surplus and, in the longer term, to bring the Office’s expenses more closely into line with its resources cannot yet be evaluated. |
| --- | --- |

13.

For the past two years (11) the Court has observed the need for the Office to propose to the Commission to establish a level of fees which reflects more accurately its real costs (12). The accumulated budgetary surplus (13) has increased from 201 million euro in 2006 to 273 million euro in 2007 and 350 million euro in 2008. The impact of measures envisaged by the Office to prevent further increases in its surplus and, in the longer term, to bring the Office’s expenses more closely into line with its resources cannot yet be evaluated.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Office for Harmonization in the Internal Market (Alicante)

| Area of Community competence deriving from the Treaty | Competences of the Office as specified in Council Regulation (EC) No 40/94 | Governance | Resources made available to the Office in 2008

  (Data for 2007) | Products and services supplied in the 2008 financial year

  (Data for 2007) |
| --- | --- | --- | --- | --- |
| Free movement of goods

  Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property must not constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.

  (From Article 30 of the Treaty)

  Restrictions on freedom to provide services within the Community are prohibited in respect of nationals of Member States who are established in a State of the Community other than that of the person for whom the services are intended.

  (From Article 49 of the Treaty) | Objectives

  To implement the Community legislation on trade marks and designs, which gives undertakings the right to uniform protection throughout the entire area of the European Union. | Tasks







  — | To receive and enter applications for registration. |

Area of Community competence deriving from the Treaty

Competences of the Office as specified in Council Regulation (EC) No 40/94

Governance

Resources made available to the Office in 2008

(Data for 2007)

Products and services supplied in the 2008 financial year

(Data for 2007)

Free movement of goods

Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property must not constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.

(From Article 30 of the Treaty)

Restrictions on freedom to provide services within the Community are prohibited in respect of nationals of Member States who are established in a State of the Community other than that of the person for whom the services are intended.

(From Article 49 of the Treaty)

Objectives

To implement the Community legislation on trade marks and designs, which gives undertakings the right to uniform protection throughout the entire area of the European Union.

Tasks

—

To receive and enter applications for registration.

| — | To examine the conditions for entry in the Register and compatibility with Community legislation. |
| --- | --- |

—

To examine the conditions for entry in the Register and compatibility with Community legislation.

| — | To search at the industrial property offices of the Member States for any pre-existing national trade marks. |
| --- | --- |

—

To search at the industrial property offices of the Member States for any pre-existing national trade marks.

| — | To publish applications. |
| --- | --- |

—

To publish applications.

| — | To examine any opposition by third parties. |
| --- | --- |

—

To examine any opposition by third parties.

| — | To register or reject applications. |
| --- | --- |

—

To register or reject applications.

| — | To examine applications for revocation or invalidity. |
| --- | --- |

—

To examine applications for revocation or invalidity.

| — | To handle appeals against decisions. |
| --- | --- |

—

To handle appeals against decisions.

1 —   Administrative Board

Composition

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

—

One representative of each Member State.

| — | One representative of the Commission and their alternates. |
| --- | --- |

—

One representative of the Commission and their alternates.

Tasks

| — | To advise the President on matters for which the Office is responsible. |
| --- | --- |

—

To advise the President on matters for which the Office is responsible.

| — | To prepare lists of candidates (Article 120) for President, Vice-Presidents and Chairmen and members of the Boards of Appeal. |
| --- | --- |

—

To prepare lists of candidates (Article 120) for President, Vice-Presidents and Chairmen and members of the Boards of Appeal.

2 —   President of the Office

| — | Appointed by the Council from a list of at most three candidates which has been prepared by the Administrative Board. |
| --- | --- |

—

Appointed by the Council from a list of at most three candidates which has been prepared by the Administrative Board.

3 —   Budget Committee

Composition

| — | One representative of each Member State and one representative of the Commission, and their alternates. |
| --- | --- |

—

One representative of each Member State and one representative of the Commission, and their alternates.

Tasks

| — | To adopt the budget and the financial regulation, grant discharge to the President and determine the cost of search reports. |
| --- | --- |

—

To adopt the budget and the financial regulation, grant discharge to the President and determine the cost of search reports.

4 —   Decisions related to the applications

Decisions are taken by:

| (a) | the Examiners; |
| --- | --- |

(a)

the Examiners;

| (b) | the Opposition Divisions; |
| --- | --- |

(b)

the Opposition Divisions;

| (c) | the Administration of Trade Marks and Legal Division; |
| --- | --- |

(c)

the Administration of Trade Marks and Legal Division;

| (d) | the Cancellation Divisions; |
| --- | --- |

(d)

the Cancellation Divisions;

| (e) | the Boards of Appeal. |
| --- | --- |

(e)

the Boards of Appeal.

5 —   External audit

Court of Auditors.

6 —   Discharge authority

The Office’s Budget Committee.

Budget

318 million euro

(276 million euro)

Staff at 31 December 2008

643 (647) posts in the establishment plan, posts occupied: 606 (619) + 118 (89) other staff (auxiliary contracts, seconded national experts, local and employment agency staff, special advisers)

Total staff: 724 (708)

Trade marks

Numbers of applications: 87 400(88 200)

Number of registrations: 81 400(68 000)

Cases of opposition: 18 700(16 400)

of which cases settled: 13 600(12 200)

Appeals to the Boards of Appeal: 1 815(1 970)

Appeals pending: 1 618(1 670)

Average time of registration (excluding opposition or appeal)

| — | before publication: 6 (7,5) months |
| --- | --- |

—

before publication: 6 (7,5) months

| — | between publication and registration: 5,5 (6,5) months |
| --- | --- |

—

between publication and registration: 5,5 (6,5) months

Designs

Designs received: 72 700(78 000)

Designs registered: 78 400(77 000)

Source: Information supplied by the Office.

THE OFFICE’S REPLIES

| 13. | Amendments to the Fees Regulation came into effect on 1 May 2009. Budget forecasts made by the Office show that the new fees should result in the budget coming into balance in the near future, depending on volumes of applications. It has also been agreed that the Commission will review every 2 years whether there is a need for further adjustments to fees to maintain a balanced budget. |
| --- | --- |

13.

Amendments to the Fees Regulation came into effect on 1 May 2009. Budget forecasts made by the Office show that the new fees should result in the budget coming into balance in the near future, depending on volumes of applications. It has also been agreed that the Commission will review every 2 years whether there is a need for further adjustments to fees to maintain a balanced budget.

---

(1)  OJ L 11, 14.1.1994. p. 1.

1

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

2

Table

(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.

3

(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.

4

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

5

(6)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

6

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

7

(8)  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 Commission 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 Office.

8

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

9

(10)  The Final Annual Accounts were drawn up on 19 June 2009 and received by the Court on 1 July 2009. 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.oami.europa.eu

10

Official Journal of the European Union

(11)  OJ C 311, 5.12.2008, p. 179 and OJ C 309, 19.12.2007, p. 141.

11

(12)  Article 134(2) of Council Regulation (EC) No 40/94 of 20 December 1993.

12

(13)  Carried over budgetary results plus reserve fund according to Article 16 of the Office’s Financial Regulation.

13

---

Corrigenda

| 15.12.2009 | EN | Official Journal of the European Union | C 304/164 |
| --- | --- | --- | --- |

15.12.2009

EN

Official Journal of the European Union

C 304/164

---

Corrigendum to the Annual Report of the Court of Auditors on the implementation of the budget concerning the financial year 2008, together with the institutions’ replies

(
  Official Journal of the European Union C 269 of 10 November 2009
  )

2009/C 304/30

On page 222, paragraph 11.25:

for:

| ‘THE COURT’S OBSERVATIONS






  11.25. | The Court found no material errors that might call into question the reliability of the accounts that it audited (Karlsruhe and Mol schools and the Central Office), which were drawn up under the provisions of the Financial Regulation of 24 October 2006 applicable to the budget of the European Schools, and the legality and regularity of the transactions underlying these accounts. However, based on the Court’s review, the consolidated accounts are not presented fairly and transparent, in all material respects, in accordance with the relevant accounting standards, with regard to (a) the unsatisfactory application of the accrual based accounting principle and (b) the inclusion of the surplus of the previous year as a revenue of the present year.’ |
| --- | --- |

‘THE COURT’S OBSERVATIONS

11.25.

The Court found no material errors that might call into question the reliability of the accounts that it audited (Karlsruhe and Mol schools and the Central Office), which were drawn up under the provisions of the Financial Regulation of 24 October 2006 applicable to the budget of the European Schools, and the legality and regularity of the transactions underlying these accounts. However, based on the Court’s review, the consolidated accounts are not presented fairly and transparent, in all material respects, in accordance with the relevant accounting standards, with regard to (a) the unsatisfactory application of the accrual based accounting principle and (b) the inclusion of the surplus of the previous year as a revenue of the present year.’

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| ‘THE COURT’S OBSERVATIONS






  11.25. | The Court found no material errors that might call into question the reliability of the accounts that it audited (Karlsruhe and Mol schools and the Central Office), which were drawn up under the provisions of the Financial Regulation of 24 October 2006 applicable to the budget of the European Schools, and the legality and regularity of the transactions underlying these accounts. However, based on the Court’s review, the consolidated accounts are not presented fairly and transparent, in all material respects, in accordance with the relevant accounting standards, with regard to (a) the unsatisfactory application of the accrual based accounting principle and (b) the inclusion of the surplus of the previous year as a revenue of the present year. |
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‘THE COURT’S OBSERVATIONS

11.25.

The Court found no material errors that might call into question the reliability of the accounts that it audited (Karlsruhe and Mol schools and the Central Office), which were drawn up under the provisions of the Financial Regulation of 24 October 2006 applicable to the budget of the European Schools, and the legality and regularity of the transactions underlying these accounts. However, based on the Court’s review, the consolidated accounts are not presented fairly and transparent, in all material respects, in accordance with the relevant accounting standards, with regard to (a) the unsatisfactory application of the accrual based accounting principle and (b) the inclusion of the surplus of the previous year as a revenue of the present year.

11.25.   REPLY OF THE EUROPEAN SCHOOLS

The points raised by the Court will be examined as parts of the forthcoming review of the European Schools’ Financial Regulation.’

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