EN Official Journal of the European Union C 324/1

REPORT

on the annual accounts of the European Agency for Safety and Health at Work for the 2003 financial year together with the Agency's replies

(2004/C 324/01)

CONTENTS

1 INTRODUCTION

2-5 THE COURT'S OPINION

6-11 OBSERVATIONS

Tables 1-4

The Agency's replies

INTRODUCTION

1. The European Agency for Safety and Health at Work (hereinafter referred to as the Agency) was established by Council Regulation (EC) No 2062/94 of 18 July 1994 (1). The Agency's task is to collect and disseminate information on national and Community priorities in the field of safety and health at work, to support national and Community organisations involved in the formulation and implementation of policy and to provide information on preventive measures. Table 1 contains a summary of the Agency's responsibilities and activities based on information provided by the Agency.

THE COURT'S OPINION

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

3. The Court has examined the Agency’s annual accounts for the financial year ended 31 December 2003. In accordance with Article 14(1) of Council Regulation (EC) No 2062/94, the budget was implemented on the responsibility of the Director. This responsibility included the drawing-up and presentation of the accounts (3) in accordance with the internal financial rules provided for under Article 15 of Council Regulation (EC) No 2062/94. The Court is required under Article 248 of the Treaty establishing the European Community to examine these accounts.

4. The Court carried out its audit in accordance with its auditing policies and standards, which have been adapted from generally accepted international auditing standards to reflect the specific nature of the Community context. It examined the accounting documents and applied the audit procedures it considered necessary in this context.

5. The Court thus obtained reasonable assurance that the annual accounts for the financial year ended on 31 December 2003 were reliable and that the underlying transactions, taken as a whole, were legal and regular. The content of the following observations does not call into question the audit opinion expressed by the Court in this report.

OBSERVATIONS

6. The implementation of the appropriations for the financial year 2003 and of the appropriations carried over from the previous financial year is shown in Table 2. The revenue and expenditure account and balance sheet drawn up by the Agency for 2003 are set out in summary form in Tables 3 and 4.

7. The carry-overs of appropriations mainly concern Title III of the budget and, despite a significant reduction, represent more than 45 % of the commitments entered into. The Court once again draws the Agency’s attention to the necessity of improving the monitoring of its activities.

8. For the financial year ending on 31 December 2003 the Agency began to apply the accounting principles set out in its new financial regulation. Nevertheless, the data concerning the financial year 2002 were not reprocessed, so it is not possible to compare the two financial years.

9. In its report concerning the financial year 2002 (4), the Court noted shortcomings in checks on a programme of subsidies for the collation and dissemination of good practices to reduce the risks to health and safety in small and medium-sized enterprises. In 2003 the Agency paid 3,1 million euro on the basis of an analysis of the activity reports and financial reports concerning 53 projects under this programme. The declarations of expenditure of 20 of these projects were audited by the Court. As the date of the end of the programme approached, the Agency reduced its demands in terms of financial documentation in support of requests for final payment. The result was that, in the case of five of the 20 files examined, payments had been made to the extent of 348 000 euro on the basis of nothing more than a declaration of expenditure, without adequate supporting documents and in some cases with none (5). In its reply to the Court's report concerning the financial year 2002 (6), the Agency was examining the possibility of carrying out checks at project holder level. No such check was carried out in 2003.

10. As the Court pointed out in its opinion on the financial year 2002 (7), the audit of the budgetary accounts again revealed shortcomings in the definition of ex ante financial checks and the relevant formal procedures.

11. According to Article 4 of the Agency's basic regulation, the national authorities are to inform the Agency of the names of the institutions with which the Agency is able to cooperate and which can act as topic centres. The Agency has financed two centres (8) which cover a large range of topics. One of them cooperates with 14 institutions and the other with 12. The main added value of the studies carried out by the centres is the fact that they collect data which are sometimes difficult to obtain and analyse at European level. The Agency should strengthen its system for checking expenditure declared by topic centres, in particular by asking for them to be certified by an external auditor.

This Report was adopted by the Court of Auditors in Luxembourg at its meeting of 29 and 30 September 2004. For the Court of Auditors Juan Manuel FABRA VALLÉS President

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

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

(3) In accordance with Article 14(3) of the Agency's Financial Regulation, the final accounts for the financial year 2003 were drawn up on 27 July 2004 and forwarded to the Court of Auditors, which received them on 24 September 2004. A short form of these accounts is presented in the tables annexed to this report.

(4) See paragraph 12 of the report concerning the financial year 2002 (OJ C 319, 30.12.2003, p. 10).

(5) In four cases, no supporting document was attached to the request and in one case the supporting documents covered only part of the amount requested.

(6) See paragraph 13 of the reply to the report concerning the financial year 2002 (OJ C 319, 30.12.2003, p. 14).

(7) See paragraph 9 of the report concerning the financial year 2002 (OJ C 319, 30.12.2003, p. 9).

(8) A third centre was set up in June 2003 solely for the collection of data in the candidate countries; this centre ceased operations in April 2004.

Table 1 European Agency for Safety and Health at Work (Bilbao) Areas of Community competence according to the Treaty The Agency's competences as defined by Council Regulation (EC) No 2062/94 of 18 July 1994 Governance Funds placed at the Agency's disposal in 2003 (data for 2002) Products and services supplied in 2003 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 of the Member States in the following fields: (a) improvement in particular of the working environment to protect workers' health and safety; (b) working conditions. (…) (Extracts from Articles 136 and 137 of the Treaty) Objectives — To provide the Community bodies, the Member States and those involved in the field with information of use in the field of safety and health at work in order to encourage improvements, especially in the working environment, as regards the protection of the safety and health of workers. Tasks — To collect and disseminate information on national and Community priorities and on research — to promote cooperation and the exchange of information, including information on training programmes — to supply the Community bodies and the Member States with information they require to formulate and implement policies, in particular as regards the impact on small and medium-sized enterprises — to make available information from and to third countries and international organisations — to provide information on preventive activities — to contribute to the development of future Community action programmes — to set up a network comprising national focal points and topic centres. 1. Administrative Board Composition — One representative of each Member State — One representative of the employers' organisations of each Member State — One representative of the employees' organisations of each Member State — Three representatives of the Commission Task — To adopt the Agency's work programme and annual general report 2. The Director — Appointed by the Administrative Board on a proposal from the Commission 3. Committees Obligatory consultation of the Commission and the Advisory Committee on Safety, Hygiene and Protection at Work in respect of the work programme 4. External audit Court of Auditors 5. Discharge authority Parliament on a recommendation by the Council Final budget: 14,6 million euro (13,2 million euro) including: — Community subsidy, Employment DG: 91,58 % (98,41 %) — Community subsidy, Enlargement DG: 7,19 % (0 %) — miscellaneous revenue: 1,23 % (1,59 %) Staff as at 31 December 2003: 33 (31) posts in the establishment plan, of which, posts filled: 29 (29) 25 (21) other posts (auxiliary contracts, seconded national experts, local staff, temporary staff) Total staff: 54 (50) Of these, number carrying out operational tasks: 34 (32) administrative tasks: 12 (9) assorted tasks: 8 (9) Development of the network Approximately 600 partners associated with national focal points, nine expert groups, three topic centres, participation of PHARE and EFTA countries Dissemination of information European Week for Safety and Health at work: ‘dangerous substances’; — Participation in 58 exhibitions/conferences, — Electronic media: twice-weekly newsletter to 20 000 subscribers, website (1,7 million visitors) — Publications: 9 information reports and working documents, 11 fact sheets, 1 issue of the ‘Forum’ magazine, 3 newsletters — paper version, 19 press releases Third programme for SMEs (2003 to 2004): 40 projects selected Second programme for SMEs (2002 to 2003): 51 projects finalised Source:information supplied by the Agency.

Table 2 European Agency for Safety and Health at Work — Implementation of the budget for the 2003 financial year (million euro) Revenue Expenditure Source of revenue Revenue entered in the final budget for the financial year Revenue collected Expenditure allocation Appropriations in the final budget Appropriations carried over from the previous financial year Available appropriations (2003 budget and financial year 2002) entered committed paid carried over cancelled outstanding appropriations paid cancelled appropriations committed paid carried over cancelled Community subsidies 13,4 11,6 Title I Staff 3,7 3,5 3,2 0,1 0,4 0,1 0,1 0,1 3,9 3,5 3,3 0,1 0,5 Own revenue 0,0 0,0 Title II Administration 1,4 1,4 1,1 0,2 0,0 0,2 0,2 0,1 1,6 1,4 1,3 0,2 0,1 Other subsidies 0,2 0,1 Title III Operating activities 8,5 8,3 2,6 5,9 0,0 5,8 5,2 0,6 14,3 8,3 7,8 5,9 0,6 Other revenue p.m. 0,2 Phare expenditure 1,1 1,0 0,5 0,5 0,0 0,0 0,0 0,0 1,1 1,0 0,5 0,5 0,0 Phare revenue 1,1 0,8 Total 14,6 12,7 Total 14,6 14,1 7,5 6,6 0,5 6,2 5,5 0,8 20,8 14,1 13,0 6,6 1,2 N.B.:Differences in totals are due to the effects of rounding. Source:The Agency's data — The tables present, in summary form, the data provided by the Agency in its own accounts.

Table 3 European Agency for Safety and Health at Work — Revenue and expenditure account for the financial years 2003 and 2002 (1000 euro) 2003 2002 Revenue Community subsidies 11 641 12 324 Other subsidies 66 252 Other revenue 157 81 PHARE revenue 824 0 Total revenue (a) 12 688 12 657 Expenditure Staff — Title I of the budget Payments 3 245 3 024 Appropriations carried over 87 136 Administration — Title II of the budget Payments 1 146 1 140 Appropriations carried over 186 247 Operating activities — Title III of the budget Payments 2 559 2 030 Appropriations carried over 5 859 5 623 PHARE expenditure Payments 548 0 Appropriations carried over 502 0 Total expenditure (b) 14 131 12 199 Outturn for the financial year (c = a – b) (1) –1 443 458 Balance carried over from the previous financial year –1 108 –2 185 Appropriations carried over from the previous financial year and cancelled 766 609 Sums to be re-used carried over from the previous financial year and not used 1 0 Payments against commitment cancelled in 2002 – 191 0 Exchange-rate differences 4 4 Adjustment entries –16 7 Outturn for the financial year before economic adjustment (d) –1 987 –1 108 Budget revenue to be recovered 850 0 Other revenue to be recovered 3 0 Acquisitions of fixed assets 207 0 Depreciation (2) – 186 0 Miscellaneous expenditure –1 0 Economic adjustments (e) 873 0 Balance for the financial year (d + e) (3) –1 113 –1 108 NB:Differences in totals are due to the effects of rounding. Source:The Agency's data — The tables present, in summary form, the data provided by the Agency in its own accounts.

Table 4 European Agency for Safety and Health at Work — Balance sheet at 31 December 2003 and 31 December 2002 (million euro) Assets 2003 2002 Liabilities 2003 2002 Fixed assets Own capital Computer software 95 145 Own capital (4) 431 1 229 IT equipment 136 428 Balance for the financial year –1 113 –1 108 Fittings and furniture 215 614 Subtotal – 682 121 Transportation equipment 0 26 Medium and long-term liabilities Subtotal 445 1 214 Liabilities against assigned revenue 0 369 Medium and long-term assets Subtotal 0 369 Community subsidies 0 369 Current liabilities Subtotal 0 369 Non-automatic carry-overs 135 193 Stocks Automatic carry-overs 6 498 5 813 Office supplies 6 15 Commission 282 7 Subtotal 6 15 Sundry accounts payable 128 19 Current assets Payroll deductions 73 24 Community subsidies 1 035 681 Liabilities against assigned revenue 0 736 Sundry accounts receivable 62 53 Subtotal 7 117 6 791 Recoverable VAT 0 5 Suspense accounts Subtotal 1 097 739 Recovery orders 11 21 Cash accounts Revenue for re-use 0 17 Bank and cash 4 889 4 922 Subtotal 11 37 Imprest account 1 61 Subtotal 4 890 4 982 Suspense accounts Advances 6 0 Subtotal 6 0 Total 6 445 7 319 Total 6 445 7 319 NB:Differences in totals are due to the effects of rounding. Source:The Agency's data — The tables present, in summary form, the data provided by the Agency in its own accounts. (1) Calculation according to the principles of Article 15 of Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 (OJ L 130, 31.5.2000, p. 8). (2) In 2003 the Agency depreciated its fixed assets for the first time. (3) The negative balance is due to the fact that carry-overs are still being treated as expenditure, without any economic adjustment. A rough estimate of the adjustment to be applied suggests that the actual balance for the financial year is of the order of a million euro. NB:Differences in totals are due to the effects of rounding. Source:The Agency's data — The tables present, in summary form, the data provided by the Agency in its own accounts. (4) The total for capital at 31 December 2003 corresponds to the sum of the gross value of fixed assets at 31 December 2002 minus historical depreciation for the period 1996 to 2002 plus the variation in the value of stock between 31.12.2002 and 31.12.2003 and adjustments on the valuation, recognition and downgrading of fixed assets. The depreciation for 2003 has been included in the result for the year and therefore has not been deducted directly from capital. NB:Differences in totals are due to the effects of rounding. Source:The Agency's data — The tables present, in summary form, the data provided by the Agency in its own accounts.