EN Official Journal of the European Union C 332/23

REPORT

on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2004 together with the Agency's replies

(2005/C 332/04)

CONTENTS

1-2 INTRODUCTION

3-6 THE COURT'S OPINION

7-9 OBSERVATIONS

Tables 1 to 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 summarises the Agency's competences and activities based on information provided by the Agency.

2. For information, the annual accounts drawn up by the Agency for the financial year 2004 are summarised in Tables 2, 3 and 4.

THE COURT'S OPINION

3. The Court's 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); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

4. The Agency's accounts for the financial year ended 31 December 2004 (3) were drawn up by its Executive Director, pursuant to Article 14 of Regulation (EC) No 2062/94, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions.

5. The Court conducted an audit in accordance with its policies and standards, which are based on international auditing standards that have been adapted to the Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and the underlying transactions are legal and regular.

6. The Court has obtained a reasonable basis to support the following opinion.

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2004 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's opinion into question.

OBSERVATIONS

7. The Agency has not yet put in place detailed rules for the implementation of its new financial regulation or provided for internal control procedures based on risk analysis (4).

8. Four framework contracts signed more than four years ago were used in 2004 for contracts amounting in total to 208 000 euro. Article 117 of the detailed rules for the implementation of the Financial Regulation (5) applicable to the general budget limits the duration of such contracts to four years.

9. The revenue and expenditure account for the financial year 2003 shows, before economic adjustments, a loss of 1 987 000 euro connected with the implementation of the Agency's budget. This balance ought to have been included in an amending budget for the financial year 2004 (6).

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 5 October 2005. For the Court of Auditors Hubert WEBER President

(1) OJ L 216, 20.8.1994, p. 1. Regulation 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) These accounts were drawn up on 6 September 2005 and received by the Court on 19 September 2005.

(4) Article 38 of the Agency's financial regulation.

(5) Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 (OJ L 357, 31.12.2002). The provisions of this regulation apply to the Agency on the basis of Article 74 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 laying down the financial framework for the bodies mentioned in Article 185 of the Financial Regulation applicable to the general budget.

(6) Article 16 of the Agency's financial regulation.

Table 1 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) Governance Resources made available to the Agency in 2004 (2003 data) Products and services supplied in 2004 Social provisions Objectives Tasks 1. Administrative Board Final budget: Development of the network 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) — 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. — 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. Composition — 1 representative of each Member State; — 1 representative of the employers’ organisations of each Member State; — 1 representative of the employees’ organisations of each Member State; — 3 representatives of the Commission. Task To adopt the Agency's work programme, budget 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 European Court of Auditors. 5. Discharge authority Parliament on a recommendation by the Council. 10,7 million euro (14,6 million euro) including: — Community subsidy, DG Employment: 98 % (92 %) — Community subsidy, DG Enlargement: 0 % (7 %) — miscellaneous revenue: 2 % (1 %) Staff at 31 December 2004: 38 (33) posts in the establishment plan, of which, posts filled: 29 (29) 22 (25) other posts (auxiliary contracts, seconded national experts, local staff and employment-agency staff) Total staff: 51 (54) assigned to operational tasks: 34 (34) administrative tasks: 9 (12) mixed tasks: 8 (8) Approximately 850 partners through national focal points, four expert groups, three topic centres, participation of PHARE and EFTA countries. Dissemination of information — European Week for Safety and Health at work: ‘building safety’; — participation in 67 exhibitions/conferences, — electronic media: bi-monthly newsletter to 24 000 subscribers, website (2,9 million visitors) — publications (3,3 million copies of publications distributed): 7 information reports, 14 fact sheets, 1 issue of the ‘Forum’ magazine, 24 press releases. Third programme for SMEs (2003-2004): 40 projects finalised. Source: Information provided by the Agency.

Table 2 European Agency for Safety and Health at Work — Implementation of the budget for the financial year 2004 (1000 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 (2004 budget and financial year 2003) entered committed paid carried over cancelled outstanding commitments paid cancelled appropriations committed paid carried over cancelled Community subsidies 10 588 9 542 Title I Staff 4 347 3 708 3 379 60 908 87 67 20 4 434 3 795 3 446 60 928 Other subsidies 180 66 Title II Administration 1 373 1 241 966 248 159 186 158 28 1 559 1 427 1 124 248 187 Other revenue 0 111 Title III Operating activities 5 048 5 019 2 407 2 549 92 5 858 5 019 839 10 906 10 877 7 426 2 549 931 PHARE revenue 0 121 PHARE expenditure — — — — — 502 358 144 502 502 358 0 144 Total 10 768 9 840 Total 10 768 9 968 6 752 2 857 1 159 6 633 5 602 1 031 17 401 16 601 12 354 2 857 2 190 NB: Variations in totals are due to the effects of rounding. Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts.

Table 3 European Agency for Safety and Health at Work — Revenue and expenditure account for the financial years 2004 and 2003 (1000 euro) 2004 2003 Revenue Community subsidies 9 542 11 641 Other subsidies 66 66 Other revenue 111 157 PHARE revenue 121 824 Total revenue (a) 9 840 12 688 Expenditure Staff — Title I of the budget Payments 3 379 3 245 Appropriations carried over 60 87 Administration — Title II of the budget Payments 966 1 146 Appropriations carried over 248 186 Operating activities — Title III of the budget Payments (1) 2 426 2 559 Appropriations carried over 2 549 5 859 PHARE expenditure Payments 0 548 Appropriations carried over 0 502 Total expenditure (b) 9 628 14 131 Outturn for the financial year (c = a – b) (2) 212 –1 443 Balance carried over from the previous financial year –1 987 –1 108 Appropriations carried over and cancelled 887 766 Sums to be reused from the previous financial year and not used 0 1 RO (PHARE II) appropriations not used 144 0 Payments against commitment cancelled in 2002 0 – 191 Exchange-rate differences 0 4 PHARE amount to be refunded to the Commission –39 0 Adjustment entries 2 –16 Outturn for the financial year before economic adjustments (d) – 779 –1 987 Budget revenue to be recovered 0 850 Other revenue to be recovered 0 3 Acquisitions of fixed assets 58 207 Depreciation – 175 – 186 Stock –6 0 Scrapping of fixed assets –91 0 Depreciation 88 0 Miscellaneous expenditure –34 –1 Economic adjustments (e) – 161 873 Balance for the financial year (d + e) – 940 –1 113 NB: Variations in totals are due to the effects of rounding. Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts.

Table 4 European Agency for Safety and Health at Work — Balance sheet at 31 December 2004 and 31 December 2003 (1000 euro) Assets 2004 2003 Liabilities 2004 2003 Fixed assets Own capital Computer software 66 95 Own capital (3) 431 431 IT equipment 90 136 Budget outturn for the financial year 1 207 – 879 Fittings and furniture 169 215 Adjustment outturn – 161 873 Subtotal 325 445 Balance for the previous financial year –1 113 –1 108 Stocks Subtotal 364 – 683 Office supplies 0 6 Current liabilities Subtotal 0 6 Non-automatic carry-overs 0 135 Current assets Automatic carry-overs 2 857 6 498 Community subsidies 809 1 035 Commission 145 282 Sundry accounts receivable 19 62 Sundry accounts payable 67 128 Subtotal 828 1 097 Payroll deductions 0 73 Cash accounts Subtotal 3 069 7 117 Bank and cash 2 305 4 889 Provisions for risks and charges Cash 3 1 Cases pending 34 0 Subtotal 2 308 4 890 Subtotal 34 0 Suspense accounts Suspense accounts Advances 6 6 Revenue for re-use 0 11 Subtotal 6 6 Subtotal 0 11 Total 3 467 6 445 Total 3 467 6 445 NB: Variations in totals are due to the effects of rounding. Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts. (1) This sum includes payments made from the appropriations to be re-used in 2004 (18 573 euro). (2) Calculated in accordance with 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). NB: Variations in totals are due to the effects of rounding. Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts. (3) The amount of own capital, fixed 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 December 2002 and 31 December 2003 and the adjustments on the valuation, recognition and downgrading of fixed assets. NB: Variations in totals are due to the effects of rounding. Source: The Agency's data — This table summarises the data provided by the Agency in its annual accounts.