2006/192/EC: Decision No 5/2004 of the ACP-EC Committee of Ambassadors of  17 December 2004  concerning the Financial Regulation of the Centre for the Development of Enterprise
Date: 2004-12-17
Institutions: ACP Committee of Ambassadors
Subjects: ACP-EU institution, Centre for the Development of Enterprise, financial regulation

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II

(Acts whose publication is not obligatory)

COUNCIL

DECISION No 5/2004 OF THE ACP-EC COMMITTEE OF AMBASSADORS

of 17 December 2004

concerning the Financial Regulation of the Centre for the Development of Enterprise

(2006/192/EC)

THE ACP-EC COMMITTEE OF AMBASSADORS,

HAS DECIDED AS FOLLOWS:

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 (1), hereinafter referred to as ‘the Agreement’ and in
particular Article 2(6) 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
Financial
Protocol to the Agreement,

the

I. GENERAL PRINCIPLES

PRINCIPLES OF UNITY, BUDGET ACCURACY, EQUILIBRIUM AND
UNIT OF ACCOUNT

Article 1

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

The revenue and expenditure shown in the budget shall be

2.
in balance.

Having regard to the Financial Regulation applicable to the
ninth European Development Fund (9th EDF),

Article 2

Whereas:

(1)

The Committee of Ambassadors, after the signature of
the Agreement, should lay down the Financial Regulation
of the Centre for the Development of Enterprise, here-
inafter referred to as ‘the Centre’.

The budget shall be drawn up and implemented in euro and the
accounts shall be presented in euro. However, for cash-flow
purposes, the accounting officer and,
in the case of imprest
accounts,
imprest administrators shall be authorised to carry
out operations in national currencies of ACP and EU countries.

Article 3

Revenue shall

include the contribution by the EDF, the
1.
amount
levied in taxes on the salaries, wages and other
emoluments paid by the Centre, and other miscellaneous
receipts.

(2)

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

(1) OJ L 317, 15.12.2000, p. 3.

Revenue shall include contributions from other donors to

2.
the budget of the Centre.

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In accordance with Article 4(3) of its Statutes and Rules of
3.
Procedure,
third
the Centre may also manage on behalf of
Parties resources intended for the execution of activities laid
down for it in the Agreement. The financial rules applicable
to the management of these resources are set out in Article
37 of this Financial Regulation.

Article 4

The estimates of expenditure shall include operating and inter-
vention expenditure. A clear distinction shall be made between
them.

PRINCIPLE OF ANNUALITY

Article 5

The financial year shall begin on 1 January and end on

1.
31 December.

Appropriations entered in the budget shall be authorised

2.
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
only. Appropriations carried over in this way shall be
clearly identified in the accounts of the current year;

(b) Under certain conditions applicable to long-term projects,
the Director may approve the carry-over of appropriations
for a second consecutive year. The accounts shall identify
appropriations carried over
the
Director shall
inform the Executive Board of his decision
at its next meeting;

in this way. However,

(c) At the end of each financial protocol of the Agreement, any
appropriations committed but not yet paid out shall be
carried over automatically to the next financial protocol of
the Agreement. Appropriations committed but not yet paid
out at the end of the Agreement shall be carried over, but
only during the transitional period between this Agreement
and the next or, if applicable, the twelve-month winding-up
period;

(d) In accordance with the rules applicable to the drawing-up of
the budget, appropriations that lapse at the end of one
subsequent
financial year
budgets.

shall be available again for

If, at the beginning of a financial year, the budget for that
3.
year has not been finally adopted, the Director shall, in order to
ensure continuity in the operation of
the Centre, authorise
commitment
to, authorisation of and payment of monthly
administrative and operating expenditure in accordance with
the procedures laid down in this Financial Regulation. Such

monthly expenditure for the current year may not, however,
exceed one
corresponding appropriations,
article by article, approved in the budget for the preceding year.

twelfth of

the

PRINCIPLE OF SOUND FINANCIAL MANAGEMENT

Article 6

Budget appropriations shall be used in accordance with
1.
the principle of sound financial management, that is to say
economy, efficiency and effectiveness.

2.
The principle of economy requires that the resources used
by the Centre to implement its activities shall be made available
in due time, in appropriate quantity and quality and at the best
price.

The principle of efficiency is concerned with the best rela-
tionship between resources employed and results achieved.

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

relevant

achievable,

Specific, measurable,

and timed
3.
objectives shall be set for all sectors of activity covered by the
budget. Achievement of those objectives shall be monitored by
performance indicators for each activity, and information shall
be provided to the Executive Board by the Director. This infor-
mation shall be provided annually at the latest in the documents
accompanying the preliminary draft budget and should be
provided
the
Commission justifying the annual amount requested by the
Centre from the EDF.

along with

documents

supplied

the

to

In order to improve decision-making,

4.
the Centre shall
regularly carry out ex ante and ex post evaluations of pro-
in accordance with a multi-annual
grammes or activities
programme of evaluation to be fixed in agreement with the
Commission. Evaluation results
included in the
documents supplied to the Commission justifying the annual
amount requested by the Centre from the EDF.

shall be

II. ESTABLISHMENT OF THE BUDGET

Article 7

1. Within the limits of the overall budget allocated to the
Centre by the financial protocol, increased by possible contri-
butions from other donors, and on the basis of the guidelines
laid down by the strategy approved by the Committee, the
Director shall draw up a draft annual work programme and
related budget. This draft shall be forwarded to the Executive
Board no later than 15 July of the year preceding its implemen-
tation.

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The annual work programme and related budget shall be
approved by the Executive Board by 31 July and submitted to
the Committee of Ambassadors for adoption. The budget shall
be forwarded to the Commission of the European Communities
(hereinafter referred to as the Commission), which shall initiate
the Community procedures in force as regards the contribution
requested from the EDF, on the basis of the separate allocation
provided for this purpose.

2.
The budget shall only be available for commitment as
from the date on which the competent Community authority
takes the financing decision on the contribution requested from
the EDF. The Centre shall be informed of this decision.

3.
The terms and conditions applicable to the contribution
from the EDF shall be fixed in a financing agreement signed
between the Centre and the Commission.

The budget shall include proper estimates of revenue from

4.
other donors.

Article 8

1.
The dates for the payment of the contribution from the
EDF shall be fixed in the financing agreement referred to in
Article 7(3). The contribution from preceding financial years
representing lapsed appropriations shall be deducted.

The budget

2.
(budget
headings), chapters, articles and items according to the nature
or purpose of the revenue or expenditure.

subdivided into titles

shall be

Article 11

1.
No revenue shall be collected or expenditure effected
unless credited to or charged against an appropriate article in
the budget.

No expenditure may be committed or authorised in excess of
the appropriations authorised for the financial year concerned
or of the appropriations carried over from previous financial
years.

Revenue and expenditure shall be entered in full

2.
accounts without any adjustment against each other.

in the

— By way of derogation from this rule, the following shall be

deducted from the amounts authorised:

(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.

— By way of derogation from this rule, the following may be

reused:

Article 9

(a) refunds of amounts paid in error;

Where necessary,
the Director shall submit a draft supple-
mentary or amending budget, which shall be examined and
approved in the same form and according to the same
procedures as the budget containing the original estimates.

(b) insurance payments received;

III. IMPLEMENTATION OF THE BUDGET

Article 10

implement

The Director shall

in accordance with the principles set out

the budget on his own
1.
in
responsibility,
section I, and within the limits of the appropriations authorised.
He shall report to the Executive Board on the administration of
the budget.

(c) proceeds from the sale of vehicles, equipment and instal-

lations disposed of when replaced;

(d) proceeds from the sale of the Centre’s publications.

Article 12

1.
Transfers from one title to another shall be decided by the
Director, except where transfers from or to articles related to
staff emoluments are concerned. He shall inform the Executive
Board of his decisions at its next meeting.

The authorised appropriations

2.
shall be used only in
accordance with the principles and rules laid down in the
Financial Regulation and in particular the principle of sound
financial management as defined in Article 6.

Transfers from one title to another, where articles related to
staff emoluments are concerned,
shall be decided by the
Executive Board, on the basis of a proposal from the Director.

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Transfers

from one chapter

2.
chapters shall de decided by the Director, who shall
the Executive Board accordingly.

to another and within
inform

inform the Executive Board of all such decisions in writing at
its next meeting.

Article 13

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

The financial control shall have access to all the supporting
documents and to any other document relating to the expen-
diture and revenue to be verified. It may carry out verifications
on the spot.

IV. FINANCIAL CONTROL

Article 14

1.
The financial control shall be composed of a financial
controller and, if necessary, one or more assistant controllers,
who must all be experienced in the financial regulations of
international organisations.

The controller shall report

2.
for administrative purposes
directly to the Director and the assistant controllers shall
report directly to the controller.

The controller and the assistant controllers

3.
shall be
appointed by the Executive Board. The controller and the
assistant controllers shall be bound by the Staff Regulations
relating to disciplinary
in force. However, any measures
action,
legal
employment or
termination of
proceedings must be endorsed by the Executive Board, on the
basis of a fully substantiated proposal from the Director.

suspension,

4.
Before any operation is authorised by an authorising
officer, the operational and financial aspects shall be verified
by the financial control. The purpose of this verification shall
be to ascertain that:

In carrying out

5.
the controller and the
their duties,
assistant controllers shall enjoy complete independence. They
shall not
receive any instruction nor have any restriction
imposed with regard to carrying out the duties assigned to
them by virtue of this Financial Regulation as a consequence
of their appointment.

6.
The Director may request the financial control to give its
opinion on matters relating to the diagnosis, organisation or
improvement of the Centre’s internal procedures. The Director
may also request the financial control to carry out verifications
of documents and, where appropriate, on-the-spot verifications
to check that operations financed by the budget have been
correctly implemented.

7.
At the end of each financial year, and no later than 30
April of the following year, the financial control shall prepare
an activity report in which it gives its opinion on the financial
management and on the implementation of the budget. It shall
submit its report to the Director, who shall forward it, along
with his comments if necessary, to the Executive Board at its
next meeting.

Article 15

(a)

the expenditure is in order and conforms to the relevant
provisions;

The external auditors referred to in Article 27 shall express
independent opinions on the quality of the management and
control systems.

(b) the principle of sound financial management referred to in

Article 6 has been applied.

V. ADMINISTRATION OF THE BUDGET

Article 16

This verification shall result in the granting or withholding of
approval.

The budget of

1.
the Centre shall be administered in
accordance with the principle that authorising officers and
accounting officers are different individuals.

The financial control shall withhold its approval if it considers
that the above conditions are not fulfilled. In each case where
approval is withheld, the financial control shall make a written
statement, stating the full reasons therefor, and shall notify the
Director.

Except where the availability of the appropriations is in doubt,
the Director may, by a decision stating the full reasons therefor
and taken on his sole responsibility, overrule such a refusal. This
decision shall be final and binding and shall be communicated
for information to the financial control. The Director shall

The

2.
accounting officer shall be mutually incompatible.

authorising

officer,

duties

of

controller

and

be

The

administered

appropriations

the
shall
3.
authorising officer, who alone shall be empowered to enter
into commitments
enti-
tlements to be collected and issue recovery and payment
orders. Collection and payment operations shall be carried out
by the accounting officer.

regarding expenditure, determine

by

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Article 17

1.
All measures which may give rise to expenditure payable
by the Centre shall be preceded by a proposal for commitment
from the authorising officer. The proposal, accompanied by the
original supporting documents, shall be sent to the financial
control for prior verification.

A provisional commitment may be entered into in respect

2.
of recurrent expenditure.

An account shall be kept of commitments and payment

3.
orders.

Article 18

1.
The purpose of
authorising officer shall be:

validation of

expenditure by

the

(a)

to verify the existence of the rights of the creditor;

(b) to determine or verify the existence and the amount of the

debt;

(c)

to verify the conditions under which payment falls due.

2.
to the
Validation of any expenditure shall be subject
submission of supporting documents showing the creditor’s
claim and, where appropriate, the service rendered.

Article 19

1.
Authorisation is the act whereby the authorising officer,
by the issue of a payment order, instructs the accounting officer
to pay an item of expenditure which he has validated.

Payment shall be made by the accounting officer within

2.
the limits of the funds available.

3.
In the event of a substantive error or of the validity of the
discharge being contested or of failure to observe the formalities
prescribed by this Financial Regulation, the accounting officer
shall
immediately inform the authorising officer and the
financial control. The Director may require in writing, and on
his own responsibility, that payment is made. The Director shall
inform the Executive Board of all such decisions in writing at its
next meeting.

Article 21

1.
Payments shall, as a general rule, be made through a bank
account, preferably by bank transfer or, where good grounds
exist, by cheque. The transactions shall be denominated in euro.
In exceptional cases, and if appropriate, another currency may
be used.

Cheques

2.
two
signatures, one of which must be that of the accounting officer.

and bank transfer orders

shall bear

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

In the absence of

the actual exchange rates used,

4.
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 the European Central Bank.

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

the authorising officer confirming that

Article 22

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

Copies of

3.
copies by the authorising officer may,
accepted in place of the originals.

the supporting documents, certified as true
in some cases, be

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

Payment orders shall be sent to the financial control for

4.
prior verification.

Article 20

3.

Each decision shall specify:

Payment

1.
discharged of its obligations towards its creditors.

the final action whereby the Centre is

is

— the name of the imprest administrator,

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— the responsibility of the administrator so designated,

— the maximum amount of the advance,

— the duration of the utilisation of the advance,

— the means whereby supporting documents shall be provided

and the time limit for so doing,

— the nature and maximum amount of each item of expen-

diture.

Each payment of an advance must also be preceded by a

4.
commitment.

5.
The authorising officer and the accounting officer shall
take whatever steps are necessary to ensure that clearances in
the advances granted are issued for the correct
respect of
amounts and within an appropriate lapse of time.

(e)

laying down and validating the accounting systems and
where appropriate validating systems laid down by the
authorising officer to supply or justify accounting infor-
mation;

(f)

treasury management.

3.
The accounting officer shall obtain from the authorising
officer, who shall guarantee its reliability, all the information
necessary for the production of accounts which accurately
represent the Centre’s financial assets and budget implemen-
tation.

4.
Subject to paragraph 5 of this Article and Article 22, the
accounting officer is the only person empowered to manage
monies and other assets. He shall be responsible for their safe-
keeping.

Article 23

The Director shall be the authorising officer for the appro-

1.
priations entered in the budget of the Centre.

5.
The accounting officer may delegate certain tasks to
subordinates subject to the Staff Regulations, where this is indis-
pensable for the performance of his duties.

The Director may delegate some of his duties to staff
2.
members under his authority. Each decision to delegate
powers shall state the duration and extent of the mandate to
act as authorising officer.

The Director may delegate certain duties related to imple-

3.
mentation to carefully selected appropriate third parties.

Article 24

The accounting officer shall be appointed by the Director

1.
with the endorsement of the Executive Board.

The instrument of delegation shall

6.
lay down the tasks
entrusted to the subordinates and their rights and obligations.

Article 25

1.
The recovery of any sum due to the Centre shall give rise
to the issue of a recovery order by the authorising officer.
Recovery orders shall be submitted to the internal control
body for prior verification.

2.

He shall be responsible in the Centre for:

The accounting officer shall assume responsibility for

2.
recovery orders forwarded to him by the authorising officer.

(a) proper implementation of payments, collection of revenue
and recovery of amounts established as being receivable;

(b) preparing and presenting the accounts in accordance with

Article 26;

(c) keeping the accounts in accordance with Article 26;

(d) implementing,

in

accordance with Article 26,

the
accounting rules and methods and the chart of accounts
in accordance with the provisions
the
Commission’s accounting officer;

adopted by

A receipt shall be issued in respect of all cash payments

3.
made to the accounting officer or imprest administrator.

VI. ACCOUNTS, FINANCIAL STATEMENTS, AUDIT, COURT OF
AUDITORS, OLAF

Article 26

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.

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

— authorised commitments to be carried over

to the

following financial year.

Entries shall be made on the basis of an accounting
2.
system comprising a nomenclature of budgetary items which
makes a clear distinction between the accounts that permit the
balance sheet to be drawn up and those that permit the revenue
and expenditure account to be drawn up. These entries may be
recorded in a computerised system, which will make it possible
to draw up a general monthly balance. All
imprests 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.

the controller and the
3. When the authorising officer,
accounting officer consider by mutual agreement
the
system offers guarantees that satisfy requirements in terms of
security, the Centre may use electronic processing.

that

4.
The separate accounts kept for the resources managed on
behalf of third Parties, as provided for in Article 37, shall be
consolidated in the balance sheet and the revenue and expen-
diture account of the Centre.

The Centre shall draw up a balance sheet and a revenue
5.
and expenditure account no later than 31 March of year N + 1.

The balance sheet shall show the assets and liabilities of the
Centre at 31 December of year N.

The revenue and expenditure account shall include:

(a) a revenue table comprising:

— expected receipts from the EDF based on approved
the current year and those carried

commitments of
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,

— actual payments or commitments charged against the

budget of the year N,

— a summary table showing actual payments for furniture,

equipment and other inventory items,

(c) notes on the financial statements comprising:

— accounting principles applied,

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

— detailed notes and calculations in support of the line

items in the statements.

Each quarter a statement shall be drawn up showing the
6.
situation as regards implementation of the current budget and
use of the appropriations carried over; this statement shall be
certified by the financial control and forwarded to the Executive
Board.

Article 27

The Executive Board shall appoint a firm of auditors of
1.
international repute for a period of three years from a list of at
least
the financial
statements of the Centre. However, the same firm of auditors
cannot be appointed for more than three consecutive years.

three proposed firms in order to audit

2.
The auditors shall audit the books and the cash held at the
Centre, verify that the inventories and balance sheets have been
drawn up in a proper manner and in good faith, in accordance
with proper accounting procedures, and ensure that the infor-
mation regarding the accounts of the Centre is correct.

The purpose of the audit shall be to establish that all revenue
due has been received and all expenditure incurred in a lawful
and proper manner and that the financial management has been
sound.

The auditors shall certify that the financial statements have been
drawn up in a proper manner according to international
accounting standards, and that they represent a true and fair
view of the financial position of the Centre.

3.
The auditors shall advise the Centre on dealing with risks
by issuing independent opinions on the quality of management
and control systems and by issuing recommendations
for
improving the conditions of
implementation of operations
and promoting sound financial management.

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The auditors shall be responsible for:

issuing them without justification. Such liability may only be
invoked when the violation was committed intentionally or was
the result of serious negligence on their part.

(a) assessing the

suitability

internal
management systems and the performance of the Centre
in implementing programmes and actions by reference to
the risks associated with them; and

and effectiveness of

(b) assessing the suitability and quality of the internal control
to every budgetary implementation

systems applicable
operation.

The auditors shall perform their duties on all the Centre’s
4.
activities and units. They shall enjoy full and unlimited access to
all information required to perform their duties.

5.
After the close of each financial year the auditors shall
draw up a report by 30 June at the latest. This report shall be
forwarded to the Director, who shall in turn forward it, with his
comments if necessary, to the Executive Board. The Executive
Board shall then forward the report to the Committee with its
recommendations.

Article 30

1.
The accounting officer and assistant accounting officers
shall render themselves liable to disciplinary action and, where
appropriate, to payment of compensation as regards payments
made by them in violation of Article 19.

They shall render themselves liable to disciplinary action and to
payment of compensation as regards any loss or damage of the
monies, assets and documents in their keeping, where such loss
or damage was caused intentionally or was the result of serious
negligence on their part.

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

(a) where they recover or pay amounts

in
conformity with the corresponding recovery or payment
orders;

that are not

On the basis of this report and the financial statements, the
Committee shall give the Director a discharge in respect of the
implementation of the budget.

(b) where they make payments to persons other than those

entitled.

Article 28

The Commission,
the Court of Auditors and OLAF may
undertake checks on the financing received by the Centre
from the EDF in accordance with the EDF Financial Regulation.
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 Agreement and those
of
the ninth EDF have been
respected.

the Financial Regulation of

Imprest administrators shall render themselves liable to
to payment of

2.
disciplinary action and, where appropriate,
compensation in the following cases:

(a) where they cannot provide proper supporting documents

for payments made by them;

(b) where they make payments to persons other than those

entitled.

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

Article 29

Authorising officers who, when determining entitlements to be
recovered, issuing recovery orders, entering into a commitment
of expenditure or signing a payment order, violate this Financial
Regulation, shall render themselves liable to disciplinary action
and, where appropriate, to payment of compensation. The same
shall apply if they fail to draw up a document establishing a
debt or if they neglect to issue recovery orders or are late in

Imprest administrators shall be liable to disciplinary action and
to payment of compensation in respect of any loss or damage
of the monies, assets and documents in their keeping, where
such loss or damage was caused intentionally or was the result
of serious negligence on their part.

Article 31

1.
The accounting officer, assistant accounting officers and
imprest administrators shall be insured against the risks inherent
in their respective duties.

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specify the categories of

The Centre shall cover the insurance costs relating thereto. It
shall
serving as
accounting officers, assistant accounting officers and imprest
administrators, as well as the conditions subject to which it
said staff
will
members to guard against the risks inherent in their respective
duties.

costs borne by the

staff members

insurance

cover

the

Special allowances shall be granted to the accounting
2.
officer, assistant accounting officers and imprest administrators.
The level of these allowances shall be laid down in a regulation
drawn up by the Centre. The amounts corresponding to these
allowances shall be credited each month to an account opened
by the Centre on behalf of each of these staff members in order
to establish a guarantee fund for the purpose of covering any
loss for which the person concerned might render himself
liable, insofar as such a loss has not been covered by refunds
from insurance companies.

The credit balance in these guarantee accounts shall be paid to
the persons concerned after the end of their appointment as
accounting officer, assistant accounting officer or
impress
administrator and after they have received the final discharge
in respect of their management.

to the

The discharge

3.
assistant
accounting officers and imprest administrators will be given
by the Director, based on the external auditors’ report within
two years after the closing of the financial year concerned.

accounting officer,

Article 32

The liability to payment of compensation and to disciplinary
action of the authorising officer, accounting officer, assistant
shall be
accounting officers
and imprest
determined in accordance with the Staff Regulations of
the
Centre.

administrators

VIII. PROCUREMENT PROCEDURES AND OTHER PROVISIONS

Article 33

A. APPLICABLE PROCUREMENT RULES

The award of contracts to be concluded by the Centre for
the supply of goods and services shall be governed by the
provisions of this Article, supplemented as necessary by the
provisions of the Agreement and the General Regulations
adopted on its basis by the ACP-EC Council of Ministers
and by the rules concerning the award of contracts in the
the
Financial Regulation applicable
i.e.
candidates must be nationals of Member States of
the
Community or of the ACP States, except in duly substan-
tiated cases accepted by the Director.

to the EDF;

B. DEFINITIONS

For the purposes of this Article the following definitions
shall apply:

1.

‘direct agreement’

Procedure in which the Centre consults the candidate of
its choice and negotiates the terms of the contract with
him;

2.

‘simplified procedure’

Procedure without prior publication of a notice and
terms of
(a
minimum of three) invited by the Centre may submit
tenders;

in which only

candidates

reference

3.

‘negotiated procedure’

Procedure without prior publication of a notice and
terms of reference in which the Centre consults the
candidate or candidates of its choice and negotiates the
terms of the contract with one or more of them. One or
more of the conditions set out in point C.1(e) below
must apply;

4.

‘restricted invitation to tender without publication of a
notice’

Procedure in which only candidates invited by the Centre
on the basis of its data file of suppliers may submit a
tender in response to terms of reference prepared by the
Centre;

5.

‘restricted invitation to tender with publication of a
notice’

Procedure in which only candidates invited by the Centre
may submit a tender in response to the notice and terms
of reference published by the Centre;

6.

‘open invitation to tender’

In the event of conflict, the rules referred to under A, shall
apply.

Procedure in which any natural or legal person or group
thereof may submit a tender in response to the notice
and terms of reference published by the Centre.

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C. CONTRACTS WITH SUPPLIERS OF GOODS AND SERVICES

1. Supply contracts

(b) The contracts may be concluded by direct agreement
when the total cost of the services to the Centre does
not exceed EUR 4 999.

(a) Contracts relating to the purchase or hire of supplies,
equipment or movable property shall be concluded
following an open tender. The candidates must be
nationals of Member States of the Community or
in duly substantiated
the ACP States, except
of
cases accepted by the Director;

(b) The contracts may be concluded by direct agreement
(a single offer) when the total amount of the contract
does not exceed EUR 4 999;

(c) They are concluded by a simplified procedure, with at
least three suppliers being consulted, when the total
amount of the contract is between EUR 5 000 and
EUR 29 999;

(d) They are concluded after a restricted invitation to
tender to at least three candidates, without publi-
cation of a notice, when the total amount of the
contract is between EUR 30 000 and EUR 149 999.

(e) They may be concluded by a negotiated procedure,
after agreement by the Director and on the basis of a
duly-substantiated file, when the amount of
the
contract exceeds EUR 4 999 and one or more of
the following conditions applies:

— for reasons of urgency that are not attributable to

the Centre,

— when there are specifically technical and duly

substantiated reasons,

— when the

contract

is
services or work that,
cannot be separate from the main contract,

for ancillary supplies,
reasons,
for

technical

— when the invitation to tender has proved unsuc-

cessful.

The conditions in which the derogations referred to in (e)
may be approved shall be specified in an internal
directive drawn up by the Executive Board, which shall
be informed of any such decisions immediately.

2. Contracts for the provision of services

(c) The

a

three

simplified
concluded by
are
contracts
procedure, with at
suppliers being
least
consulted, when the total cost of the services to the
Centre is between EUR 5 000 and EUR 199 999.
However, for contracts between EUR 150 000 and
EUR 199 999 the consultation shall take place on
the basis of detailed terms of reference.

(d) The

are

contracts

concluded by

a negotiated
procedure after agreement by the Director and on
the basis of a duly substantiated file, when the
the contract exceeds EUR 4 999 and
amount of
one or more of the conditions set out in point C.
1(e) applies.

3. The contractor shall be selected on the basis of the price
quoted, evidence of professional competence, experience
and financial soundness, and the time limit proposed for
completion of the contract.

4. Contracts shall be drawn up exclusively in euro.

5. In cases where the services covered by points 1 and 2 are
split up into several contracts, it is the total cost of the
services that must be taken into consideration in appli-
cation of this Article.

6. In specific cases, the Centre may delegate the organi-
sation of the simplified procedures and invitations to
tender to an external body, provided that the choice of
the companies contacted, the terms of reference and the
selection of the contractor remain its responsibility or, in
the event of co-financing, the joint responsibility of the
Centre and the other co-financiers.

Article 34

The Centre may make financial contributions to initiatives of
enterprises, entrepreneurs, intermediaries and service suppliers,
as follows:

(a) Contracts relating to the provision of services shall be
concluded following a restricted invitation to tender
to at least three candidates. These candidates must be
nationals of Member States of the Community or of
the ACP States, except
in duly-substantiated cases
accepted by the Director.

1. The Centre may contribute to the cost of services for eligible
projects for which the financing and management responsi-
bility are incumbent on a natural or legal person who is a
national of a Member State of the Community or of an ACP
State and who has submitted a request for assistance to the
Centre.

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2. The Centre shall assess the cost of the services, the choice of
suppliers, evidence of professional competence, experience
and financial soundness, the time limit for completion of
the programme
the work, and the expected impact of
it shall use a
proposed by the beneficiary. To that end,
weighted list of
to that which the
Commission uses to manage the EDF, adjusted to fit the
Centre’s objectives.

criteria

similar

3. If he is subcontracting, the beneficiary shall comply with

Article 33.

4. The agreements shall be drawn up exclusively in euro.

5. The methods of applying these contributions shall be set out

in an internal directive.

Article 35

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

2.
Any sale of movable property and equipment of a unit
purchase value in excess of EUR 1 000 shall be suitably
in accordance with an internal directive to be
advertised,
drawn up by the Director.

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

The Centre shall keep a physical and an accounting
4.
inventory, which shall be reconciled on a regular basis. This
reconciliation shall be cleared by the internal control body.

Article 36

This Financial Regulation shall be applicable in full
Centre’s decentralised structures.

to the

IX. MANAGEMENT ON BEHALF OF THIRD PARTIES

Article 37

1.
The Centre may also manage resources intended for the
execution of activities laid down for it in the Agreement on

behalf of third Parties. The list of these resources shall be given
in an annex to the budget of the Centre.

This Financial Regulation shall be applicable to the

2.
management of these resources.

the management of

However,
resources made
available by the Commission shall be governed by the
financial provisions laid down in the agreement signed by the
Commission and the Centre. If there are no such provisions,
this Financial Regulation shall remain applicable.

the other

3.
Proper estimates of the expenses that will be financed by
these resources shall also be annexed to the budget of the
Centre. A clear distinction shall be made between operating
and intervention expenses.

Separate accounts shall be kept for the management of

4.
these resources on behalf of third Parties.

5.
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 donor.

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

These financial statements shall be attached as an annex to

6.
the financial statements of the Centre.

Article 38

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 39

This Decision shall enter into force on 1 January 2005.

Done at Brussels, 17 December 2004.

For the ACP-EC Committee of Ambassadors
The Chairman

T. J. A. M. de BRUIJN