# C_2011366EN.01009301.xml

| 15.12.2011 | EN | Official Journal of the European Union | C 366/93 |
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15.12.2011

EN

Official Journal of the European Union

C 366/93

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REPORT

on the annual accounts of the Executive Agency for Health and Consumers for the financial year 2010, together with the Agency’s reply

2011/C 366/17

INTRODUCTION

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 1 January 2005 and ending in 2013 for the management of Union actions in the field of health and consumer policy (3). |
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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 1 January 2005 and ending in 2013 for the management of Union actions in the field of health and consumer policy (3).

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| 2. | The Agency’s 2010 administrative budget amounted to 6,8 million euro, compared with 6,4 million euro in the previous year. The number of staff employed by the agency at the end of the year was 45, as compared with 48 the previous year. |
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2.

The Agency’s 2010 administrative budget amounted to 6,8 million euro, compared with 6,4 million euro in the previous year. The number of staff employed by the agency at the end of the year was 45, as compared with 48 the previous year.

STATEMENT OF ASSURANCE

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 287(1), second subparagraph, of the Treaty on the Functioning of the European Union, the Court has audited the annual accounts (4) of the Agency, which comprise the ‘financial statements’ (5) and the ‘reports on the implementation of the budget’ (6) for the financial year ended 31 December 2010 and the legality and regularity of the transactions underlying those accounts. |
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3.

Pursuant to the provisions of Article 287(1), second subparagraph, of the Treaty on the Functioning of the European Union, the Court has audited the annual accounts (4) of the Agency, which comprise the ‘financial statements’ (5) and the ‘reports on the implementation of the budget’ (6) for the financial year ended 31 December 2010 and the legality and regularity of the transactions underlying those accounts.

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| 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). |
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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).

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The Director’s responsibility

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 the 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. |
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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 the 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.

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The Court’s responsibility

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.

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.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (11) International Auditing Standards and Codes of Ethics. Those standards require the Court to comply with ethical requirements and to plan and perform the audit so as to obtain reasonable assurance as to whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
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7.

The Court conducted its audit in accordance with the IFAC and ISSAI (11) International Auditing Standards and Codes of Ethics. Those standards require the Court to comply with ethical requirements and to plan and perform the audit so as to obtain reasonable assurance as to whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular.

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

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

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

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

Opinion on the reliability of the accounts

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (12) fairly present, in all material respects, its financial position as of 31 December 2010 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.

In the Court’s opinion, the Agency’s Annual Accounts (12) fairly present, in all material respects, its financial position as of 31 December 2010 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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Opinion on the legality and the regularity of the transactions underlying the accounts

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 2010 are, in all material respects, legal and regular. |
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11.

In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2010 are, in all material respects, legal and regular.

| 12. | The comment which follows does not call the Court’s opinions into question. |
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12.

The comment which follows does not call the Court’s opinions into question.

COMMENT ON THE BUDGETARY AND FINANCIAL MANAGEMENT

COMMENT ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | For Title III — Expenditure linked to the Agency’s operations, 1,1 million euro, or 59 % of commitments made, were carried forward to the budgetary year 2011. According to the accounting information, approximately 0,8 million euro of appropriations carried forward corresponds to contracts signed and not yet implemented at the year end. This situation was at odds with the budgetary principle of annuality, which requires that expenditure arising from such contracts shall be charged to the budget of the financial year in which it is effected. |
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13.

For Title III — Expenditure linked to the Agency’s operations, 1,1 million euro, or 59 % of commitments made, were carried forward to the budgetary year 2011. According to the accounting information, approximately 0,8 million euro of appropriations carried forward corresponds to contracts signed and not yet implemented at the year end. This situation was at odds with the budgetary principle of annuality, which requires that expenditure arising from such contracts shall be charged to the budget of the financial year in which it is effected.

This report was adopted by Chamber I, headed by Mr Olavi ALA-NISSILÄ, Member of the Court of Auditors, in Luxembourg at its meeting of 20 July 2011.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

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(1)  OJ L 369, 16.12.2004, p. 73.

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(2)  OJ L 173, 3.7.2008, p. 27.

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

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Annex

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

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(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 a description of the main accounting policies and other explanatory information.

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(6)  The reports on the implementation of the budget include the budget outturn account and its corresponding notes.

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(7)  OJ L 11, 16.1.2003, p. 1.

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(8)  Article 25 of Commission Regulation (EC) No 1653/2004 (OJ L 297, 22.9.2004, p. 6).

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(9)  Article 29 of Regulation (EC) No 1653/2004.

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(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 (OJ L 181, 10.7.2008, p. 15).

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

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(12)  The Final Accounts were drawn up on 16 June 2011 and received by the Court on 29 June 2011. The Final Accounts can be found on the following website http://eca.europa.eu or http://ec.europa.eu/eahc/about/about.html

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ANNEX

Executive Agency for Health and Consumers (Luxembourg)

Competences and activities

| Areas of Union competence deriving from the Treaty


  (Articles 168 and 169 of the Treaty on the Functioning of the European Union) | A high level of human health protection shall be ensured in the definition and implementation of all Union policies and activities.
  Union action, which shall complement national policies, shall be directed towards improving public health, preventing physical and mental illness and diseases, and obviating sources of danger to physical and mental 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, and monitoring, early warning of and combating serious cross-border threats to health. The Union shall complement the Member States' action in reducing drugs-related health damage, including information and prevention.
  In order to promote the interests of consumers and to ensure a high level of consumer protection, the Union 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. |
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| Competences of the Agency | 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. |

Areas of Union competence deriving from the Treaty

(Articles 168 and 169 of the Treaty on the Functioning of the European Union)

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

Union action, which shall complement national policies, shall be directed towards improving public health, preventing physical and mental illness and diseases, and obviating sources of danger to physical and mental 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, and monitoring, early warning of and combating serious cross-border threats to health. The Union shall complement the Member States' action in reducing drugs-related health damage, including information and prevention.

In order to promote the interests of consumers and to ensure a high level of consumer protection, the Union 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.

Competences of the Agency

Objectives

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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 Union 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. |
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The Agency also manages all the phases in the lifetime of the implementing measures delegated to it in the framework of the programme of Union 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 Union programmes mentioned below, the Agency is responsible for implementing the following tasks as defined in the delegation act adopted on 9 September 2008 (1):

| | Public Health Programme 2003-2008 — Decision No 1786/2002/EC |
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Public Health Programme 2003-2008 — Decision No 1786/2002/EC

| | Public Health Programme 2008-2013 — Decision No 1350/2007/EC |
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Public Health Programme 2008-2013 — Decision No 1350/2007/EC

| | Consumers Programme 2007-2013 — Decision No 1926/2006/EC |
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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; |
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Food Safety Training Measures — Regulation (EC) No 882/2004 and Directive 2000/29/EC:

(a)

managing all the phases of the cycle of projects;

| (b) | monitoring projects implemented under these programmes and measures, including the necessary steps; |
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(b)

monitoring projects implemented under these programmes and measures, including the necessary steps;

| (c) | collecting, processing and distributing data and in particular compiling, analysing and transmitting to the Commission all information required to guide implementation of the Union programmes and measures, promote coordination and synergy with other programmes of the European Union, the Member States or international organisations; |
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(c)

collecting, processing and distributing data and in particular compiling, analysing and transmitting to the Commission all information required to guide implementation of the Union programmes and measures, promote coordination and synergy with other programmes of the European Union, the Member States or international organisations;

| (d) | organising meetings, seminars, talks, and training measures; |
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(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; |
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(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) | disseminate the results of the information operations planned and implemented by the Commission; |
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(f)

disseminate the results of the information operations planned and implemented by the Commission;

| (g) | producing overall control and supervision data; |
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(g)

producing overall control and supervision data;

| (h) | participating in preparatory work on financing decisions. |
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(h)

participating in preparatory work on financing decisions.

Governance

1 —   Steering Committee

Comprises five members appointed by the European Commission. The members of the Steering Committee are appointed for 2 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 4 years.

3 —   External audit

The European Court of Auditors.

4 —   Discharge Authority

The European Parliament following a recommendation from the Council.

Resources made available to the Agency in 2010 (2009)

Final Budget

The Agency's administrative budget for 2010 amounted to 6,77 million euro.

Staff at 31 December 2010

On 31 December 2010, the Agency employed 45 statutory staff members, including 11 temporary staff and 34 contract staff.

Products and services 2010 (2009)

1.   Monitoring of the 2005, 2006, 2007, 2008 and 2009 grants provided under the Public Health programme (PHP) 2003-2008, successfully finalised negotiations for grants under the 2009 Calls for proposals, including projects, Conferences, Operating Grants, Joint Actions and managed Call for proposals 2010. Finalised grants and contracts awarded under the 2008 calls for proposals and for tenders of the 2007-2013 Consumer Programme (CP) and monitored contracts awarded under 2007, 2008 and 2009 calls for tender under Better Training for Safer Food Initiative.

2.1.   PHP work programme

| — | Execution of the 2010 Call for proposals ‘Public Health programme’. 177 proposals were received. Of those 115 were applications for projects, 10 for Joint Actions, 25 for Operating Grants and 27 for Conferences. |
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Execution of the 2010 Call for proposals ‘Public Health programme’. 177 proposals were received. Of those 115 were applications for projects, 10 for Joint Actions, 25 for Operating Grants and 27 for Conferences.

| — | Management of contracts with international organisations, including the running of projects transferred by DG SANCO to the Agency. |
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Management of contracts with international organisations, including the running of projects transferred by DG SANCO to the Agency.

| — | Launching and contracting of the Calls for tender in the Work Programme 2010 of the Health Programme. Nine Calls for tender were launched for DG SANCO. |
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Launching and contracting of the Calls for tender in the Work Programme 2010 of the Health Programme. Nine Calls for tender were launched for DG SANCO.

| — | Organisation of Expert Meetings. Two workshops were organised for the project coordinators. Twice per year meeting with the National Focal Points (NFPs) was organised. In the framework of the EUPHA Conference, EAHC co-hosted with DG SANCO a workshop discussing the EU-added-value of co-funded public health projects. The objective of the workshop was to disseminate key concepts/ ideas which will be integral part of the forthcoming calls for proposals. A workshop, with the SANCO expert group on indoor air, environmental health project coordinators and Member State representatives in collaboration with DG SANCO and the Belgian presidency, was held in early December in Brussels. A workshop on evidence produced by EU co-funded public health projects, feeding directly into policy at EU, national, regional or local level was held in December 2010. |
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Organisation of Expert Meetings. Two workshops were organised for the project coordinators. Twice per year meeting with the National Focal Points (NFPs) was organised. In the framework of the EUPHA Conference, EAHC co-hosted with DG SANCO a workshop discussing the EU-added-value of co-funded public health projects. The objective of the workshop was to disseminate key concepts/ ideas which will be integral part of the forthcoming calls for proposals. A workshop, with the SANCO expert group on indoor air, environmental health project coordinators and Member State representatives in collaboration with DG SANCO and the Belgian presidency, was held in early December in Brussels. A workshop on evidence produced by EU co-funded public health projects, feeding directly into policy at EU, national, regional or local level was held in December 2010.

2.2.   CP work programme

| — | Calls for proposals. Seven Calls for proposals were launched in 2010. |
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Calls for proposals. Seven Calls for proposals were launched in 2010.

| — | Exchange of Officials (GPSD/CPC). The Agency co-funded 22 grants, which gave the opportunity to enforcement officials from LT, SI, FR, SK, AT, EE, DE, ES and CY to share experiences and knowledge about the implementation of Directive 2001/95/EC on General Product Safety and of Regulation (EC) No 2006/2004 on consumer protection cooperation with counterparts in UK, DE, AT, CY, PT, SK, ES, IT, FR, BE and NL. |
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Exchange of Officials (GPSD/CPC). The Agency co-funded 22 grants, which gave the opportunity to enforcement officials from LT, SI, FR, SK, AT, EE, DE, ES and CY to share experiences and knowledge about the implementation of Directive 2001/95/EC on General Product Safety and of Regulation (EC) No 2006/2004 on consumer protection cooperation with counterparts in UK, DE, AT, CY, PT, SK, ES, IT, FR, BE and NL.

| — | Joint Actions (GPSD/CPC). Agency co-funded a project that aims at exchanging and implementing best practices between the Member States, thereby improving cross-border cooperation and increasing consumer product safety. The product specific activities involved market surveillance on: food imitation child appealing products, children's fancy dresses, laser pointers, ladders and visibility clothing and accessories. |
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Joint Actions (GPSD/CPC). Agency co-funded a project that aims at exchanging and implementing best practices between the Member States, thereby improving cross-border cooperation and increasing consumer product safety. The product specific activities involved market surveillance on: food imitation child appealing products, children's fancy dresses, laser pointers, ladders and visibility clothing and accessories.

| — | Operating Grants for European Consumer Organisations. Within the frame of the Call concerning Operating Grants for European consumer organisations and consumer organisations in the standardisation process, the Agency signed partnership grant agreements with BEUC (Bureau Européen des Unions de Consommateurs) and ANEC. (European Association for the Coordination of Consumer Representation in Standardisation), respectively. |
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Operating Grants for European Consumer Organisations. Within the frame of the Call concerning Operating Grants for European consumer organisations and consumer organisations in the standardisation process, the Agency signed partnership grant agreements with BEUC (Bureau Européen des Unions de Consommateurs) and ANEC. (European Association for the Coordination of Consumer Representation in Standardisation), respectively.

| — | ECC-Net. Call for proposals concerning the financial contribution to the European Consumer Centres was launched. As a result of it, the Agency signed 28 grant agreements. |
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ECC-Net. Call for proposals concerning the financial contribution to the European Consumer Centres was launched. As a result of it, the Agency signed 28 grant agreements.

| — | Calls for tender. Calls for tender and four requests for specific services were launched. |
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Calls for tender. Calls for tender and four requests for specific services were launched.

| — | European School Diary. The Europa Diary is a school Diary, for students in secondary school, aimed as a tool for homework and other school related notes. Several Commission General Directorates and other EU institution contribute with content and funding. During 2010, a Framework contract was awarded and signed with contractor Generation Europe Foundation for the development, printing and distribution of the 2011/2012 edition of the Europa Diary and Teacher's guide. As manager of the Framework contract, the Agency coordinated and monitored the implementation of this project: it approved 21 contracts from different Commission Directorates-General and the Economic and Social Committee. |
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European School Diary. The Europa Diary is a school Diary, for students in secondary school, aimed as a tool for homework and other school related notes. Several Commission General Directorates and other EU institution contribute with content and funding. During 2010, a Framework contract was awarded and signed with contractor Generation Europe Foundation for the development, printing and distribution of the 2011/2012 edition of the Europa Diary and Teacher's guide. As manager of the Framework contract, the Agency coordinated and monitored the implementation of this project: it approved 21 contracts from different Commission Directorates-General and the Economic and Social Committee.

| — | Dolceta. Dolceta is an online consumer education tool for the citizens in the 27 Member States. The Call for tender for this service was launched in 2010. |
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Dolceta. Dolceta is an online consumer education tool for the citizens in the 27 Member States. The Call for tender for this service was launched in 2010.

| — | Consumer Market Studies. Three specific contracts, within the context of the consumer market studies framework contract were signed. Also a contract to carry out a survey market monitoring of 51 consumer markets was signed. |
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Consumer Market Studies. Three specific contracts, within the context of the consumer market studies framework contract were signed. Also a contract to carry out a survey market monitoring of 51 consumer markets was signed.

2.3.   BTSF work programme

| — | Monitoring of the contracts transferred by DG SANCO related to projects awarded under the 2007 and 2008 Calls for tender and contracts awarded from the tender 2009. Following an agreement with DG SANCO a block of six contracts signed under the BTSF was transferred to the Agency. The Agency monitored programmes defined within 7 new contracts awarded from the Calls for tender launched in 2009. |
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Monitoring of the contracts transferred by DG SANCO related to projects awarded under the 2007 and 2008 Calls for tender and contracts awarded from the tender 2009. Following an agreement with DG SANCO a block of six contracts signed under the BTSF was transferred to the Agency. The Agency monitored programmes defined within 7 new contracts awarded from the Calls for tender launched in 2009.

| — | Launching 2010 Calls for tender and signing contracts. Budget available for the training programmes — 13 320 000 euro. 10 Calls for tender or invitation to tender were launched. |
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Launching 2010 Calls for tender and signing contracts. Budget available for the training programmes — 13 320 000 euro. 10 Calls for tender or invitation to tender were launched.

3.   Generation and dissemination of information on the Public Health programme, Consumer Programme, projects financed by BTSF programme and the Executive Agency's activities in 2010.

Source: Information supplied by the Agency.

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(1)  Commission Decision of 9 September 2008 — delegating powers to the Agency.

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THE AGENCY'S REPLY

| 13. | The Agency takes note of the Court's finding that the carried forward appropriations, particularly Title III of the Agency's operating budget, should be further reduced. To this aim the Agency shall further revise its budget planning and reporting tool, and initiate actions of the Work Programme earlier in the year. Consequently, rates of executed payment appropriations should increase at year end. |
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13.

The Agency takes note of the Court's finding that the carried forward appropriations, particularly Title III of the Agency's operating budget, should be further reduced. To this aim the Agency shall further revise its budget planning and reporting tool, and initiate actions of the Work Programme earlier in the year. Consequently, rates of executed payment appropriations should increase at year end.

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