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
Date: 2005-03-23
Institutions: European Commission
Subjects: ACP-EU Committee of Ambassadors, agricultural policy, non-governmental organisation, rural development, the EU's international role

COMMISSION OF THE EUROPEAN COMMUNITIES 

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) 

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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. 

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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 Commission1, 

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 20002 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 

1 
2 

OJ C […], […], p. […]. 
OJ L 317, 15.12.2000, p. 3. 

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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 20003, 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 

The  second  subparagraph  of  Article  1  of  Protocol  2  on  privileges  and  immunities  to 

(2) 
the Agreement extends such privileges and immunities to the staff of the Centre 

An  Executive  Board  should  be  set  up  to  act  as  a  supervisory  body  for  the  Centre, 

(3) 
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. 

The  Centre’s  staff  shall  enjoy  the  customary  privileges,  immunities  and  facilities 
2. 
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. 

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) 

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The  Centre’s  headquarters  shall  provisionally  be  situated 

4. 
(Netherlands), with a local office in Brussels. 

in  Wageningen 

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

Article 2 

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. 

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

4. 
initiative. 

Article 4 

A  Management  Board  shall  be  set  up  to  support,  monitor  and  control  the  technical, 

1. 
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.  

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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. 

The  Director  of  the  Centre  shall  play  a  consultative  role  in  the  workings  of  the 

3.2. 
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) 
approval ; 

adopt  the  Centre’s  overall  strategy  for  submission  to  the  Committee  for 

(ii) 

approve annual and multi-annual activity programmes; 

(iii) 

approve  the  organisational  structure,  personnel  policy  and  the  organisation  

chart; 

(iv) 

approve the recruitment of new staff and the renewal, extension or termination  

of existing staff contracts; 

(v) 

approve the Centre’s annual budgets; 

(vi) 

adopt  the  annual  financial  statements  on  the  basis  of  the  audit  report  

established by the office appointed to audit the accounts; and 

(vii) 

the  Centre’s  activities  are  consistent  with 

approve annual reports and forward them to the Committee so they can check  
the  

laid  down  by 

the  objectives 

that 
Agreement and the overall strategy; 

c) 

report  to  the  Committee  on  any  important  matters  that  arise  in  the  course  of  

performing its duties 

3.4. 

The Management Board shall be answerable to the Committee. 

On a proposal from the Director, the Management Board shall endorse the choice of 

4. 
an audit office to examine the CTA’s financial statements and accounts. 

5. 

The Management Board lay down its rules of procedure. 

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Article 5 

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

1. 
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. 

The  Director  shall  be  the  Centre’s  legal  representative  and  shall  implement  the 

2. 
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. 

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

4. 
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. 

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 6 

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

Article 7 

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 

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. 

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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 

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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 III4, 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 Fund5, 

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, 

4 
5 

OJ L 317, 15.12.2000, p. 3 
OJ L 83/1, 01.04.2003, p. 1 

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

I. GENERAL PRINCIPLES 

PRINCIPLES 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. 

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

Article 4 

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. 

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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. 

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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, 

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(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. 

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

Article 13 

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 

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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 

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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. 

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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; 

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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. 

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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. 

External auditors 

Article 26 

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.  

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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. 

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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: 

where the recoveries or payments made by him do not agree with the amount on the 

a) 
corresponding recovery or payment orders; 

b) 

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

Imprest administrators shall render themselves liable to disciplinary action and, where 

2. 
appropriate, to payment of compensation in the following cases: 

where  they  cannot  show  due  warrant  with  proper  documents  for  payments  made  by 

a) 
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.  

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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. 

Conflict of interests 

Article 32 

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) 

Management on behalf of third parties 

Article 34 

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. 

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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. 

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 

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

Article 36 a 

Article 37 

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

Done at Brussels, 

For the Committee of Ambassadors 
The Chairman 

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