Brussels, 23.03.2005

COM(2005) 101 final

Proposal for a

COUNCIL DECISION

on the position to be adopted by the Community within the ACP-EC Committee of Ambassadors concerning the financial regulation and the statutes and rules of procedure of the Technical Centre for Agricultural and Rural Co-operation

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Cotonou Agreement of June 2000 provides for the strengthening and consolidation of the role of the Technical Centre for Agricultural and Rural Co-operation (CTA) in ACP institutional capacity development, particularly information management, in order to improve access to technologies for increasing agricultural productivity, marketing, food security and rural developement.

In Annexe III, the Cotonou Agreement provides for the updating of the statutes and rules of procedure of the Centre as well as Financial and staff regulations.

Member States are requested to examine the following proposal. Member States are requested to adopt the following decision on the Community position to be adopted by the ACP-EC Committee of Ambassadors on the financial regulation and the statutes and rules of procedure of the Technical Centre for Agricultural and Rural Co-operation.

Proposal for a

COUNCIL DECISION

on the position to be adopted by the Community within the ACP-EC Committee of Ambassadors concerning the financial regulation and the statutes and rules of procedure of the Technical Centre for Agricultural and Rural Co-operation

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 310 in conjunction with the second subparagraph of Article 300(2) thereof,

Having regard to the proposal from the Commission[1],

Whereas:

(1) According to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000[2] and in particular its Annex III, the statutes and rules of procedures and the financial regulation of the Technical Centre for Agricultural and Rural Co-operation, hereinafter referred to as the Centre, should be adopted,

HAS DECIDED AS FOLLOWS:

Article 1

The Community shall take the following position within the ACP-EC Committee of Ambassadors on the statutes and rules of procedures of the Centre, based on the draft decision of the ACP-EC Committee of Ambassadors attached in Annex 1.

Article 2

The Community shall take the following position within the ACP-EC Committee of Ambassadors on the financial regulation of the Centre based on the draft decision of the ACP-EC Committee of Ambassadors attached in Annex II.

Done at Brussels,

For the Council

The President

ANNEX I

Draft for

DECISION No …/… OF THE ACP-EC COMMITTEE OF AMBASSADORS ………

on the Statutes and rules of procedure of the Technical Centre for Agricultural and Rural Cooperation (CTA)

THE ACP-EC COMMITTEE OF AMBASSADORS,

Having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000[3], hereinafter referred to as “the Agreement” and in particular Article 3 (4) of Annex III thereto,

Having regard to the Internal Agreement of 12 September 2000 between Representatives of the Governments of the Member States, meeting within the Council, on the Financing and Administration of community Aid under the Financial protocol to the Agreement,

Whereas:

(1) Article 3(4) of Annex III to the Agreement requires the Committee of Ambassadors to lay down, after the signature of the Agreement, the Statutes and rules of procedure of the Technical Centre for Agricultural and Rural co-operation (hereinafter referred to as the “Centre”), including its supervisory bodies

(2) The second subparagraph of Article 1 of Protocol 2 on privileges and immunities to the Agreement extends such privileges and immunities to the staff of the Centre

(3) An Executive Board should be set up to act as a supervisory body for the Centre, within the meaning of Article 3(4)(a) of Annex III to the Agreement,

HAS DECIDED AS FOLLOWS:

Article 1

1. The Technical Centre for Agricultural and Rural Cooperation, hereinafter referred to as “the Centre” has legal personality and shall enjoy in all states party to the Cotonou Agreement the most extensive legal capacity accorded to legal persons under their laws.

2. The Centre’s staff shall enjoy the customary privileges, immunities and facilities provided for in Protocol 2 on privileges and immunities and referred to in Declarations VI and VII annexed to the Agreement.

3. The Centre shall be non-profit-making.

4. The Centre’s headquarters shall provisionally be situated in Wageningen (Netherlands), with a local office in Brussels.

Article 2

The Centre’s functions are laid down by Article 3(1), 3(2) and 3(3) of Annex III to the Agreement.

Article 3

1. The ACP-EC Committee of Ambassadors hereinafter referred to as “the Committee” shall be the supervisory authority of the Centre in accordance with Article 3(4) and 3(5) of Annex III of the Agreement.

2. A Management Board is established in accordance with Article 4.

3. The Centre shall perform its activities in close cooperation with the institutions and other bodies referred to in the Agreement or the annexed declarations. The Centre may, where necessary, call upon regional and international institutions, particularly those which are situated in the European Community or ACP states and which deal with matters relating to agricultural and rural development.

4. The Centre’s activities shall be periodically evaluated on the Management Board’s initiative.

Article 4

1. A Management Board shall be set up to support, monitor and control the technical, administrative and financial aspects of all the Centre’s activities.

2.1. The Management Board shall be composed, on a parity basis, of six members with extensive experience of managing agricultural and rural-development institutions: they should have technical or scientific qualifications and qualifications relevant to the management and dissemination of agricultural and rural information.

2.2. The members of the Management Board shall be nationals of the states party to the Agreement and shall be selected by the parties concerned on the basis of the qualification requirements. Their appointment shall be confirmed by the Committee of Ambassadors. The six members shall be appointed by the Committee for a period of up to five years, subject to a mid-term review.

2.3. A representative from the European Commission, a representative from the General Secretariat of the Council of EU and a representative from the ACP Secretariat shall be present at the deliberations of the Management Board as observers.

2.4. The members of the Management Board shall elect the Chairman and Vice-Chairman for a period of up to five years in accordance with the provisions laid down in its rules of procedure. The position of Chairman shall be filled by a person from the party (ACP or EC) that has not provided the Centre’s Director. The post of Vice-Chairman shall be filled by a person from the party that has not provided the Chairman.

2.5. The Management Board shall take its decisions by a simple majority of the members present or represented in accordance with its rules of procedure. Each member of the Management Board shall have one vote.

In the case of a split vote, the Chairman shall cast the deciding vote.

2.6. Minutes shall be drawn up after each meeting and discussions shall be confidential.

3.1 The Management Board shall closely monitor the Centre’s activities. It shall hold up to four ordinary meetings a year. It may also meet whenever it needs to in order to perform its duties, at the Committee or the President’s initiative or at the request of the Director.

3.2. The Director of the Centre shall play a consultative role in the workings of the Management Board. The Centre shall act as secretariat to the Management Board..

The Management Board may invite other members of the Centre’s management and staff and/or outside experts to advise on specific questions.

3.3. The Management Board shall:

a) give the Director advice and support in managing the Centre and ensure that the rules and objectives laid down by the Committee are properly implemented;

b) on a proposal from the Director of the Centre:

(i) adopt the Centre’s overall strategy for submission to the Committee for approval ;

(ii) approve annual and multi-annual activity programmes;

(iii) approve the organisational structure, personnel policy and the organisationchart;

(iv) approve the recruitment of new staff and the renewal, extension or terminationof existing staff contracts;

(v) approve the Centre’s annual budgets;

(vi) adopt the annual financial statements on the basis of the audit reportestablished by the office appointed to audit the accounts; and

(vii) approve annual reports and forward them to the Committee so they can checkthat the Centre’s activities are consistent with the objectives laid down by theAgreement and the overall strategy;

c) report to the Committee on any important matters that arise in the course ofperforming its duties

3.4. The Management Board shall be answerable to the Committee.

4. On a proposal from the Director, the Management Board shall endorse the choice of an audit office to examine the CTA’s financial statements and accounts.

5. The Management Board lay down its rules of procedure.

Article 5

1. The Centre shall be led by a Director appointed by the Committee for a period of up to five years.

The Committee shall instruct its co-chairmen to sign the Director’s contract. The contract shall be drawn up and managed in accordance with the rules applicable to the Centre’s staff. The Committee of Ambassadors shall be empowered to take any necessary decisions concerning the Director.

2. The Director shall be the Centre’s legal representative and shall implement the guidelines put in place by the Committee . He shall be answerable to the Committee.

3. After obtaining the agreement of the Management Board, the Director shall submit the Centre’s annual work programmes and budgets, reflecting the Centre’s functions as listed in Article 2, to the Management Board for approval.

4. The Director shall regularly give the Management Board an account of the Centre’s activities.

5. Each year, the Director shall present the Centre’s activities and accounts in a report which he shall submit to the Committee, after obtaining the approval of the Management Board, within six months.

6. The Director shall be responsible for the organisation and management of the Centre. He shall report to the Management Board on any measures concerning the Centre’s rules of procedure which may be adopted to facilitate application of regulations concerning the Centre.

Article 6

The Centre’s budget shall be funded in accordance with the rules laid down by Annex 1 to the Agreement’s Financial Protocol. The budget may also be endowed with other resources.

Article 7

These operating rules may be amended by the Committee of Ambassadors on a recommendation from the Management Board.

Article 8

The ACP states, the Member States and the European Community, as appropriate, shall be required to take the necessary measures to implement this decision.

Article 8 a

This decision replaces and annuls Decision 1/91 of the ACP-EEC Committee of Ambassadors of 19 April 1991 concerning the rules of operations of the CTA and the Decision 3/91 of the ACP-EEC Committee of Ambassadors of 19 April 1991 laying down the Statutes and operating procedures of the Advisory Committee of the CTA.

Article 9

This decision shall enter into force on the day of its adoption.

Done at Brussels,

For the ACP-EC Committee of Ambassadors The Chairman

ANNEX II

Proposal for

DECISION N° …/… OF THE ACP-EC COMMITTEE OF AMBASSADORS

concerning

the Financial Regulation of the Technical Centre for Agricultural and Rural Co-operation-CTA

THE ACP-EC COMMITTEE OF AMBASSADORS,

Having regard to the Partnership Agreement between the Members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Members States, of the other part, signed in Cotonou on 23 June 2000, hereinafter referred to as the “Agreement” and in particular Article 3 (4) (b) and (d) of Annex III[4], there to,

Having regard to the Internal Agreement of 12 September 2000 between Representatives of the Governments of the Member States, meeting with the Council, on the Financing and Administration of Community Aid under the Financial Protocol to the Agreement,

Having regard to the Financial Regulation applicable to the 9th European Development Fund[5],

Having regard to the proposal from the Commission drawn up in agreement with the Technical Centre for Agricultural and Rural Co-operation,

Whereas:

- the Committee of Ambassadors after the signature of the Cotonou Agreement should lay down the financial regulation of the Technical Centre for Agricultural and Rural Co-operation, hereinafter referred to as “the Centre”,

- Whereas the Committee of Ambassadors should lay down the procedures for the adoption of the Centre’s budget,

HAS ADOPTED THE FINANCIAL REGULATION OF THE TECHNICAL CENTRE FOR AGRICULTURAL AND RURAL CO-OPERATION:

I. GENERAL PRINCIPLES

P RINCIPLES OF UNITY, BUDGET ACCURACY, EQUILIBRIUM AND UNIT OF ACCOUNT

Article 1

1. All items or revenue and expenditure of the Centre shall be included in estimates to be based on a costed annual work programme to be drawn up for each financial year and shall be entered in the budget.

2. The revenue and expenditure shown in the budget shall be in balance.

Article 2

The budget shall be established and implemented in Euro and the accounts shall be presented in Euro. However, for its management needs, the Centre is authorised to carry out operations in the national currencies of EU and ACP countries.

Article 3

1. Revenue shall include the contribution by the European Development Fund hereinafter EDF, the amount levied in taxes on the salaries, wages and other emoluments paid by the Centre, and other miscellaneous receipts.

2. Revenue may also include contributions from other donors to the budget of the Centre.

3. The Centre is also authorised to manage resources on behalf of third parties and intended to co-finance activities defined in Annex III of the Cotonou Agreement. The financial regulations applying to the management of these resources are set out in Article 34 of these regulations.

Article 4

The estimates of expenditure shall include administrative and operating expenditures. These are clearly separated in the budget.

Article 5

1. The financial year shall run from 1 January to 31 December of each year.

2. Appropriations entered in the budget shall be authorized for a period of one financial year.

a) However, appropriations duly committed during a financial year but not paid by 31 December of that year shall be carried over automatically to the following financial year. Appropriations which have been carried over to the following financial year shall be distinguished in the accounts of the current year.

b) Appropriations de-committed at the end of a financial year are transferred to the Five Year Period Allocation planned for the Centre in the Partnership Agreement ACP-EC.

3. If, at the beginning of a financial year, the budget has not yet been adopted, the Director may in order to ensure the continuity of the Centre’s operations, incur monthly expenses on condition that they do not exceed one-twelfth of the appropriations entered under this title in the budget for the previous financial year.

However, for the operating expenses payable quarterly in advance and approved in the previous financial year’s budget, the commitment operations may be implemented per chapter provided they do not exceed a quarter of the overall appropriations authorized for the previous financial year.

PRINCIPLE OF SOUND FINANCIAL MANAGEMENT

Article 6

1. The resources made available by the EDF are used in accordance with sound financial management , that is to say based on the principles of economy, efficiency and effectiveness.

2. The principle of economy requires that resources should be made available in good time and as cost effectively as possible, and that means should be appropriate in terms of quantity and quality.

The principle of efficiency requires the means implemented to be directly proportional to the results expected obtained.

The principle of effectiveness is concerned with attaining the specific objective set and achieving the intended results.

3. Objectives should be clearly defined and their implementation monitored with the help of measurable indicators. Where appropriate, projects to be funded from European Development Fund resources should be supported by ex ante assessments.

II. ESTABLISHMENT OF THE BUDGET

Article 7

1. In the framework of the Strategic Plan and within the limits of the overall budget allocated to the Centre by the financial protocol, the Director will prepare an annual programme and a budget which will be submit to the Committee of Ambassadors hereinafter referred to as “the Committee”, no later than 1 July of the year preceding that of its implementation.

2. The Centre will transmit a copy of draft Programme and Budget to the European Commission which shall initiate the Community procedures necessary for their approval.

3. The budget shall be adopted by the Committee of Ambassadors.

Article 8

1. The payment arrangements governing the European Development Fund’s contribution are to be set out in a grant agreement signed between the Commission and the Centre.

2. The contribution of previous financial years corresponding to cancelled credits shall be repaid to the EDF by the Centre on the basis of audited financial statements.

3. The budget shall be subdivided into titles, chapters, articles and items according to the nature or purpose of the revenue or expenditure.

Article 9

When necessary, the Director may submit a draft supplementary or amended budget which shall be established in the same form and subject to the same procedure as the budget of which estimates it amends.

III . IMPLEMENTATION OF THE BUDGET

Article 10

1. The Director shall ensure that the budget is implemented on his own responsibility and within the limit of the appropriations allocated. He shall report on his management to the Committee of Ambassadors.

2. The Director must apply the budget appropriations in accordance with the principles of sound financial management as defined in Article 6.

Article 11

1. No revenue or expenditure may be effected unless charged to the appropriate article of the budget.

No expenditure may be committed or authorized in excess of the appropriations authorized for the financial year concerned.

2. Revenue and expenditure shall be entered in full in the accounts without any adjustment against each other.

By way of derogation from that rule, the following shall be deducted from the amounts authorized:

(a) fines imposed on a party to a contract,

(b) adjustment of amounts paid in error, which may be achieved by means of deduction when a subsequent validation is effected under the chapter, article and financial year in respect of which the excess payment was made,

(c) the value of vehicles, equipment and installations taken in part exchange upon purchase of new items of the same kind; the net purchase price shall be entered in the accounts as the historical cost for the valuation of the inventory.

(d) the discounts deducted from the involves and accounts

Again by way of derogation from the rule, the following amounts may be re-used against the same category (line) of the initial expense:

(a) refunds of amounts paid in error;

(b) insurance payments received;

(c) proceeds from the sale of vehicles, equipment and installations disposed of when replaced;

(d) the receipts obtained from the sale of publications and films;

(e) the exchange rates differences recorded during budgetary implementation may be compensated. The final result, whether positive or negative, shall appear in the financial statement.

Article 12

Transfers from one title to another shall be submitted for the approval of the Committee of Ambassadors.

Transfers from one chapter to another and from one article to another within a chapter shall be decided on by the Director, who shall inform the Committee accordingly.

Article 13

The revenue of the Centre shall be paid into one or more accounts opened in the name of the Centre.

IV. FINANCIAL CONTROL

Article 14

1. The Director, official entitled to authorise payments, shall put in place, in accordance with the minimum rules decided by the Centre and taking into consideration the risks and the nature of the actions financed, an organisational structure as well as suitable management and financial control procedures and systems for the implementation of his tasks, including if applicable, ex post controls. Before an operation is authorised, its operational and financial aspects must be verified by a staff member other than the person who initiated the operation. Responsibilities for initiating and controlling operations are to be treated as two separate functions.

2. Any staff member involved in the financial management and control of operations and who considers that a decision that his manager requests him to apply or accept is irregular or contrary to the principles of good financial management or professional rules that he is obliged to respect, shall inform his manager accordingly, in writing.

Should the manager nevertheless oblige the agent to proceed, he shall put this injunction in writing. The agent shall then inform the Director accordingly. In the absence of any action within a reasonable period of time (with a maximum of 6 weeks), which depends upon both the urgency and the importance of the matter, the staff member shall inform the Committee of Ambassadors.

The same procedure shall apply if a member of staff involved in the financial management and control of operations considers an activity taking place in this context to be illegal, to be fraudulent or corrupt.

V. ADMINISTRATION OF THE BUDGET

Article 15

1. The budget of the Centre shall be administered in accordance with the principle that authorizing officers and accounting officers fulfil separate functions. The appropriations shall be administered by the authorizing officer, who alone shall have the power to enter into commitments regarding expenditure, establish sums due to be collected and issue revenue and payment orders.

2. Collection and payment operations shall be carried out by the accounting officer.

3. The authorizing officer may not exercise the functions of accounting officer.

Article 16

1. All measures which may give rise to expenditure payable by the Centre must be preceded by a commitment proposal accompanied by supporting documents shall be transmitted in advance to the financial controller for his prior approval.

2. Recurrent expenditure may be covered by a provisional commitment.

3. An account shall be kept of commitments and payment orders.

Article 17

1. Purpose of validation of expenditure by the authorizing officer shall be:

a) to verify the existence of the rights of the creditor,

b) to determine and check the existence and the amount of the debt claim,

c) to check the conditions on which payment is due.

2. Any payment of expenditure incurred shall be based on supporting documents etc. confirming the claimant’s right to payment for services effectively provided, goods effectively delivered or work effectively executed, or on the basis of other documents justifying payment.

All payment decisions must be approved by the competent authorising officer.

Article 18

1. Authorization shall be the act whereby the authorizing officer, by the issue of a payment order, instructs the accounting officer to pay an item of expenditure which he has cleared.

2. The payment order shall be accompanied by the original supporting documents, which shall bear or be accompanied by the approval of the authorizing officer confirming that the amounts to be paid are correct and that the supplies have been received or that the service has been performed.

3. Copies of the supporting documents, certified as true copies by the authorizing officer, may, in some cases, be accepted in place of the originals.

4. The payment order shall be transmitted to the accounting officer for payment.

5. If applicable the payment order transmitted to the accountant shall be accompanied by a certificate to the effect that the relevant assets have been recorded in the inventory.

Article 19

1. Payment shall be the final act whereby the Centre is discharged of its obligations towards its creditors.

2. Payment shall be made by the accounting officer within the limits of the funds available.

In the event of an error of substance or of the validity of the discharge being contested or of failure to comply with the procedures prescribed by this Financial Regulation, the accounting officer shall suspend payment. He shall immediately inform the authorizing officer of the suspension and his reasons therefore.

When payments are suspended, the Director may require in writing, and on his own responsibility, that payment be effected.

Article 20

1. Payments shall, as a general rule, be effected through a bank or post office giro account, preferably by bank transfer or, where good grounds exist, by cheque. The currency utilised is the Euro, apart from exceptional cases duly justified and approved by the Centre.

2. Cheques and post office or bank transfers shall bear two signatures, the accounting officer and the authorizing officer or a representative.

3. For duly substantiated reasons, the Director may authorise cash payments. A receipt shall be obtained in respect of these payments.

4. In the case of the computerised management of revenues and expenditure, the signatures may be added by computerised or electronic means.

5. In the absence of the actual exchange rates used, the conversion rates to be used for the calculation in Euro of payments to be made, or of revenue to be collected in local ACP currencies, shall be those in force on the first working day of the month in which the real date of the operation falls, as recorded by Centre’s Bank or post office.

Article 21

1. For the payment of certain categories of expenditure, defined in the internal regulations under implementation procedures, imprest accounts may be set up in accordance with the conditions laid down by the Centre.

2. Each decision to grant an imprest account shall be taken by the Director on the basis of a proposal from the staff member in charge of the file. Prior to submission to the Director, each proposal must be approved by the accounting officer.

3. The measures governing imprest accounts shall contain specific provisions concerning in particular:

a) the appointment of administrators of imprest accounts,

b) the responsibility of the administrators of imprest accounts,

c) the nature and maximum amount of each item of expenditure to be incurred and the time limit,

d) the maximum amount of the imprest which may be advanced,

e) how, and the time within which, supporting documents must be produced.

4. The authorising officer and the accounting officer shall take whatever steps are necessary to ensure that clearances in respect of the advances granted are issued for the correct amounts and within an appropriate lapse of time.

Article 22

1. The Director shall be the authorizing officer for the appropriations entered in the budget of the Centre.

2. The Director may delegate some of his duties to an agent under his authority. Each decision to delegate powers shall state the duration and extent of the mandate.

Article 23

1. The Director shall appoint an accountant who is responsible for:

a) the correct execution of payments, the collection of revenues and the recovery of debts;

b) the preparation and presentation of the financial statements in accordance with Article 25;

c) keeping the accounts in accordance with Article 25;

d) defining the accounting rules and methods as well as the accounting plan;

e) defining and validating the accounting systems as well as, if applicable, the systems defined by the authorising officer and intended to provide and justify the accounting information;

f) treasury management.

2. The accountant shall obtain from the authorising officer, who guarantees its reliability, all the information necessary for drawing up accounts which present a true and fair view of the Centre’s financial assets and the implementation of the budget.

3. Subject to paragraph 1 of this Article and Article 21, the accountant is the only person authorised to handle cash and securities. He is responsible for their safe-keeping.

4. The accountant may, for the accomplishment of the tasks entrusted to him, delegate certain functions to employees of the Centre placed under his direct responsibility. The relevant authority or power of attorney shall define the tasks entrusted to the proxies.

Article 24

1. The recovery of any sum due to the Centre shall give rise to the issue, by the authorising officer, of a revenue order.

2. The accounting officer shall assume responsibility for revenue orders forwarded to him by the authorising officer.

3. A receipt shall be issued in respect of all cash payments made to the accounting officer or imprest administrator.

VI. ACCOUNTS, RENDERING AND CHECKING OF FINANCIAL STATEMENTS, AUDIT, COURT OF AUDITORS, OLAF

Article 25

1. The accounts shall be kept in Euro, by the double entry method and on the basis of the calendar year. They shall show all revenue and expenditure from 1 January to 31 December of each year and shall include the original supporting documents.

The accounts shall be closed at the end of the financial year to enable financial statements to be drawn up for the Centre.

2. Entries shall be made on the basis of an accounting system comprising a nomenclature of budgetary items which made a clear distinction between the accounts which permit the balance sheet to be drawn up and those which permit the revenue and expenditure account to be drawn up. These entries shall be recorded in books or on cards, which shall make it possible to draw up a general monthly balance. All advance payments shall be entered in a suspense account and cleared no later than the end of the following financial year, except in the case of standing imprests.

3. The Centre shall establish no later than 30 April of each year a balance sheet and a revenue and expenditure account.

The balance sheet shall show the Centre’s assets and liabilities as at 31 December of the previous financial year.

The revenue and expenditure account shall include:

a) A “Revenue” table comprising:

- expected receipts from the European Development Funds based on approved commitments of the current year and those carried over from previous years;

- actual receipts from taxes on salaries and from interest earned;

- other actual receipts.

b) An “Expenditure” table comprising:

- actual payments on commitments of the year carried over from previous financial years;

- commitments and actual payments charged against the budget of the year N;

- a summary table showing actual payments for furniture, equipment and other inventory items;

- authorised commitments to be carried over to the following financial year.

c) Notes on the financial statements comprising:

- accounting principles applied;

- summary tables of appropriations committed, paid, cancelled and carried over in respect of the preceding and current years;

- detailed notes and calculations in support of the line items in the statements.

4. Each quarter a statement shall be drawn up and sent to the Committee showing the situation as regards implementation of the current budget and use of the appropriations carried over; this statement shall be certified by the accounting officer and forwarded to the Management Board.

Article 26

External auditors

The Management Board of the Centre shall appoint a firm of auditors for a maximum of 3 year in anyone instance on the basis of a recommendation of the Centre’s Director, following a call for tenders.

The auditors’ mandate is to audit the books and the cash of the Centre, to verify that the inventories and balance sheets have been drawn up in a regular manner and in good faith and to ensure that the information given regarding the accounts of the Centre is correct.

The purpose of the audit, which shall be based on records and, if necessary, performed on the spot, shall be to establish that all revenue has been received and all expenditure incurred in a lawful and regular manner and that the financial management has been sound.

After the close of each financial year, the auditors shall, no later than 1st October following the closing of the previous financial year , report to the Management Board on the performance of their mandate.

On the basis of this report and the Financial Statements for the financial year, the Management Board shall give the Director a discharge in respect of the implementation of the budget.

Article 27

The European Commission (on behalf of the Community), the Court of Auditors and European Anti-Fraud Office – OLAF -, may control the financing received by the Centre from the EDF in accordance with the EDF’s financial regulations.

The Court of Auditors may check that revenue has been received and expenditure incurred in a lawful and proper manner and that the provisions of the Cotonou Agreement and that of the financial regulation of the 9th EDF have been respected.

VII. RESPONSIBILITIES OF THE AUTHORIZING OFFICERS, ACCOUNTING OFFICER AND IMPREST ADMINISTRATORS

Article 28

Authorizing officers who, when establishing entitlements to be recovered or issuing recovery orders, entering into a commitment of expenditure or signing a payment order do so without complying with this Financial Regulation, shall render themselves liable to disciplinary action and, where appropriate, to payment of compensation. The same shall apply if they omit to draw up a document establishing a debt or if they neglect to issue recovery orders or are, without justification, late in issuing them.

The authorising officer shall render himself liable to disciplinary action and, where appropriate, to payment of compensation only where a mistake was committed intentionally or was the result of serious negligence on his part.

Article 29

1. The accounting officer shall render himself liable to disciplinary action and, where appropriate, to payment of compensation as regards payments made by him in disregard of Article 19.

He shall render himself liable to disciplinary action and to payment of compensation as regards any loss or deterioration of the monies, assets and documents in his charge where such loss or deterioration was caused intentionally or results from serious negligence on his part.

Under the same conditions, he shall be responsible for the correct execution of orders received by them in respect of the use and the administration of bank and post office cheque accounts, and in particular:

a) where the recoveries or payments made by him do not agree with the amount on the corresponding recovery or payment orders;

b) where he effects payment to a party other than the payee entitled.

2. Imprest administrators shall render themselves liable to disciplinary action and, where appropriate, to payment of compensation in the following cases:

a) where they cannot show due warrant with proper documents for payments made by them;

b) where payments are made to parties other than entitled payees.

They shall be liable to disciplinary action and to payment of compensation in respect of any loss or deterioration of the monies, assets and documents in their charge where such loss or deterioration was caused intentionally or results from serious negligence on their part.

Article 30

1. The accounting officer and imprest administrators shall insure themselves against the risks arising under this Article.

The Centre shall cover the insurance costs relating thereto. It shall specify the categories of officials serving as accounting officer and imprest administrators as well as the conditions subject to which it will cover the insurance costs borne by the said officials to guard against the risks inherent in their duties.

2. Special allowances shall be granted to the accounting officers and administrators of advance funds. The level of these allowances shall be laid down in a regulation drawn up by the Centre. The sums corresponding to these allowances shall be credited each month to an account opened by the Centre on behalf of each official in order to establish a guarantee fund for the purpose of covering any cash or bank shortage for which the person concerned might render himself liable, in so far as such a shortage has not been covered by refunds from insurance companies.

The credit balance in these guarantee accounts shall be paid over to the persons concerned after they terminate their appointment as accounting officer or imprest administrator and receive the final discharge in respect of their management.

3. The discharge to the accounting officer and imprest administrator will be given by the Director, based on the external auditors’ report, within two years of the transmission of the financial statements to the Committee of Ambassadors.

Article 31

The liability to payment of compensation and disciplinary action of authorizing officers, accounting officers and imprest administrators shall be determined in accordance with the provisions of the rules applicable to the staff of the Centre.

Article 32

Conflict of interests

In connection with the implementation of the budget, all staff members are prohibited from acting in cases where their own interests could be in conflict with those of the Centre. If such a case should arise, the staff member concerned must refrain from acting and refer to his superior authority.

A conflict of interests exists where the staff member cannot carry out his functions in connection with the implementation of the budget in an impartial and objective way, for family or emotional reasons, because of his national or political affinities, economic interests or for any other reason where his interests are linked to those of the beneficiary.

VIII. GENERAL PROVISIONS

Article 33

The award of contracts will follow the general regulations concerning services, works and supplies as approved by the ACP-EC Council of Ministers. (*)

(*) (Decision 2/2002 of the ACP-EC Council of Ministers of 7 October 2002 concerning the implementation of the articles 28, 29 and 30 of the annex IV of the Cotonou Agreement –OJ L 320/1)

Article 34

Management on behalf of third parties

1. Pursuant to its mandate, the CTA is authorized to manage appropriations on behalf of third parties. The list of these resources shall be given in an annex to the budget of the Centre.

2. The Financial Regulation shall be applicable to the management of these resources.

3. Separate accounts shall be kept for the management of these resources on behalf of third parties.

4. The financial statements of each fund managed by the Centre on behalf of a third party shall include a balance sheet and a revenue and expenditure account, indicating the situation as at 31 December of the financial year concerned. They shall be certified in accordance with the provisions of the agreement signed between the Centre and the third party.

If there are no such provisions, the certification shall be carried out by the external auditors of the Centre.

5. The financial statements shall be attached as an annex to the financial statements of the Centre.

Article 35

1. A permanent quantitative inventory shall be kept of all movable and immovable property belonging to the Centre. Only movable property whose value is Euro 350 or more shall be entered in the inventory. The inventory number shall be entered on each invoice before the invoice is paid.

2. Any sale of movable property and equipment of a unit purchase value in excess of Euro 350 shall be suitably advertised.

3. A record signed by both the Director of the Centre and the person responsible for the equipment shall be drawn up whenever any property or article in the inventory is disposed of, scrapped or is missing on account of loss, theft, or for any other reason.

4. The Centre shall keep a physical inventory and an accounting inventory which shall be reconciled regularly. This reconciliation must be approved by the external auditors.

Article 36

The ACP States, the Member States and the Community shall be bound, each to the extent to which it is concerned, to take the measures necessary to implement this Decision.

Article 36 a

The financial regulations of the Centre subject of the Decision No 2/91 of 19 April 1991 is cancelled.

Article 37

This Decision shall enter into force on the day of its adoption.

Done at Brussels,

For the Committee of Ambassadors The Chairman

[1] OJ C […], […], p. […].

[2] OJ L 317, 15.12.2000, p. 3.

[3] OJ L 317, 15.12.2000 p. 3 Agreement as amended by decision No 1/2003 of the ACP-EC Council of Ministres (OJ L 141, 07.06.2003, p. 25)

[4] OJ L 317, 15.12.2000, p. 3

[5] OJ L 83/1, 01.04.2003, p. 1