Communication from the Commission - 2004 Synthesis
Date: 2005-06-15
Institutions: European Commission
Subjects: EU institution, activity report, management, summarising

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 15.6.2005 
COM(2005) 256 final 

COMMUNICATION FROM THE COMMISSION 

2004 Synthesis 

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TABLE OF CONTENTS 

1. 

1.1. 

1.2. 

1.3. 

2. 

2.1. 

2.2. 

2.3. 

3. 

Introduction .................................................................................................................. 4 

The context of the Synthesis ........................................................................................ 4 

The 2004 synthesis....................................................................................................... 5 

Reference framework established by the 2004 synthesis............................................. 6 

Key issues arising from the annual activity reports ..................................................... 6 

Global overview ........................................................................................................... 6 

Reinforcement of the annual activity report process.................................................... 7 

Synthesis report and assurance statement .................................................................... 8 

Major cross-cutting issues arising from the annual activity reports and 
recommendations received........................................................................................... 9 

3.1. 

Governance issues........................................................................................................ 9 

3.1.1.  Moving from compliance to an effectiveness approach in internal control................. 9 

3.1.2.  Commission-wide risk management .......................................................................... 11 

3.1.3.  Performance measurement ......................................................................................... 11 

3.1.4.  Externalisation and agencies ...................................................................................... 12 

3.2. 

Financial management and reporting ......................................................................... 13 

3.2.1.  Roadmap to an integrated control framework............................................................ 13 

3.2.2.  Ex-ante and ex-post controls...................................................................................... 14 

3.2.3.  Accounting and financial reporting............................................................................ 15 

3.2.4.  Budget implementation methods ............................................................................... 16 

3.3. 

Human resources........................................................................................................ 16 

3.3.1.  Lack of specialised staff............................................................................................. 17 

3.3.2.  Recruitment of officials from the new Member States and training.......................... 17 

3.3.3.  Fine-tuning of reform instruments ............................................................................. 18 

3.3.4.  Mobility...................................................................................................................... 18 

4. 

Conclusions ................................................................................................................ 18 

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Annex 1 .................................................................................................................................... 20 

Annex 2 .................................................................................................................................... 24 

Annex 3 .................................................................................................................................... 29 

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1. 

INTRODUCTION 

1.1. 

The context of the Synthesis 

The synthesis is the last stage in the strategic planning cycle, which starts each year with the 
annual policy strategy, in which the Commission lays down the priorities and the policy and 
budget  framework  for  the  following  year.  This  framework  provides  a  starting  point  for 
preparation of the Commission’s legislative and work programme and of the budget, and is 
turned into the services’ annual management plans. At the end of each year, each Director-
general and Head of service produces an annual activity report, describing the policy results 
and the management and control situation. These reports are accompanied by a declaration of 
assurance on the proper use of resources and on the quality of financial management. 

Whereas  annual  activity  reports  cover  both  policy  and  management  results,  this  synthesis 
focuses  on  management  issues  and  does  not  provide  an  account  of  the  policy  achievements 
during the past year. 

In  this  respect,  it  should  be  noted  that  the  Commission  reports  on  its  policy  results  through 
different means: 

–  every  year  the  Commission  reports  to  the  European  Parliament  on  the  Commission’s 
policy achievements when presenting its annual policy strategy for the following year; 

–  a  specific  report  on  the  execution  of  the  Commission’s  work  programme  is  issued  at  the 

beginning of each year; 

–  a full description of the EU activities in 2004 is published by the Commission in the form 

of a General Report, according to Article 212 of the EC Treaty; 

–  the  sum  of  the  annual  reports  of  Directorate-generals  and  services  constitute  a  detailed 

account of the policy achievements of the Commission. 

In  the  light  of  the  above,  and  given  the  fact  that  the  newly-established  Commission  has 
already  taken  stock  of  the  achievements  of  its  predecessor  when  defining  its  strategic 
objectives  for  its  mandate,  it  was  considered  appropriate  that  the  synthesis  would  focus  on 
management  issues.  A  reflection  will  be  conducted  to  define  the  most  appropriate  way  to 
report annually on the Commission’s policy results. 

The annual synthesis is the tool by which the Commission takes stock of the way management 
issues  are  addressed  by  its  services  and  decide  appropriate  measures  to  respond  to  cross-
cutting issues. It is also an important accountability tool to inform the other institutions about 
the state of its management. 

It  draws  on  the  annual  activity  reports  and  declarations  of  assurance  prepared  by  each 
Director-general and Head of service. 

It  also  draws  on  a  series  of  instruments  that  the  Commission  uses  to  monitor  its  internal 
procedures - to make sure that they are working properly: 

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•  The twice-yearly overview of the state of internal control in the Commission issued under 
the  responsibility  of  the  Directorate-general  for  the  Budget,  which  was  produced  for  the 
second time in April 2005. 

•  The audit work and advice of the Internal Audit Service, which, in particular, issues an 
annual audit report and, in 2004, completed the cycle of audits of management and control 
systems  in  all  services.  Also  in  2004,  the  Internal  Auditor  issued  the  first  six-monthly 
report on the results of the audits performed by the services’ internal audit capabilities. 

•  The  Audit  progress  committee  keeps  the  members  of  the  Commission  informed  about 
matters arising from internal and external audits or from audit-related matters in the annual 
discharge  resolution  by  the  European  Parliament  and  ensures  that  the  corresponding 
recommendations are followed up properly. 

By  adopting  the  annual  synthesis,  the  Commission  takes  stock  of  the  management  of  its 
services and addresses major horizontal issues raised in their annual activity reports. It also 
takes decisions on the main recommendations made by both internal and external auditors 
and the discharge authority and takes into account the key conclusions of the overview on 
the state of internal control.  

Wherever  the  Commissioners  consider  that  remedial  action  at  Commission  level  is  needed, 
the  synthesis  also  establishes  the  appropriate  measures,  taking  into  account  and,  where 
appropriate,  updating  the  action  mapped  out  by  previous  syntheses  or  other  horizontal 
documents. 

1.2. 

The 2004 synthesis 

The  2004  synthesis  presents  the  first  opportunity  for  the  new  Commission  to  consider  the 
situation  resulting  from  the  2004  annual  activity  reports  of  its  directorates-general  and 
services.  

For  2004,  these  reports  acknowledge  that  significant  achievements  have  been  made  and 
identify areas requiring further improvement. They also raise a series of key issues, which are 
addressed in the second part of this synthesis. The Commission notes an overall improvement 
in the quality of the annual reports. 

Recommendations from internal and external auditors and the conclusions of the overview 
on internal control indicate that Commission services have made progress on management 
and  control  measures,  as  well  as  in  terms  of  accountability.  Clearer  definition  of 
responsibilities  at  all  levels,  a  basic  framework  and  conditions  under  which  services  should 
operate in order to improve accountability, and arrangements for political supervision, by the 
Commissioners of the work of the administration are now in place. The same documents also 
identify areas where services should make further efforts and pinpoint lessons to be learned. 
The third part of this synthesis deals with major cross-cutting issues in this context. 

The  2004  synthesis  comes  at  a  time  when  the  Commission’s  ambitious  reform  programme 
launched in 2000 has essentially achieved its aim: the policy priorities set steer its action and 
decentralised financial management and control has increased responsibility at all levels, from 
Commissioners  to  individual  members  of  staff,  ensuring  better  value  for  money  for  EU 
citizens. 

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The Commission considers that the framework now in place will enable it to achieve its aim 
of improving the effectiveness, efficiency and quality of its work. In future the main task will 
be to fine-tune the procedures built on that framework, increasing rigour where necessary and 
simplifying controls where permissible. 

1.3. 

Reference framework established by the 2004 synthesis 

Some of the cross-cutting or sectoral issues on which the Commission takes a position in this 
synthesis  stem  from  the  services’  annual  activity  reports,  in  particular  from  deficiencies 
explicitly disclosed (reservations). These include the need: to reinforce internal control where 
budget implementation tasks are delegated outside the Commission; to pay more attention to 
ex-post  controls  and  supervision;  and  to  continue  to  develop  a  common  methodology  for 
quantifying shortcomings by ‘families’ of services operating in the same context. 

Other  recommendations  in  reports  such  as  the  Internal  Auditor’s  annual  report  or  the 
overview on internal control include possible Commission-wide risk management, promoting 
the  Commission’s  accountability  through  the  annual  activity  reports  and  the  synthesis,  the 
signing-off  of  the  accounts  by  the  Accounting  Officer,  and  the  roadmap  to  an  integrated 
control framework. 

Producing  a  proper  answer  to  these  issues  must  be  considered  a  task  for  the  medium  term. 
This is why this synthesis concludes with a series of objectives (see Annex 1) which address 
cross-cutting  issues  critical  to  management  performance.  Through  an  integrated  control 
framework, more comprehensive risk management, certification of the integrity, consistency 
and reliability of the accounts and other measures, the Commission commits itself to carry out 
the  improvements  in  performance  made  possible  by  the  reform.  The  success  of  the 
Commission’s  ambitions  will  be  met  through  the  effective  functioning  of  internal  control 
processes, confirmed by other EU institutions, such as the Court of Auditors. 

2. 

KEY ISSUES ARISING FROM THE ANNUAL ACTIVITY REPORTS 

2.1. 

Global overview 

Having  examined  the  annual  activity  reports  and,  in  particular,  the  declaration  of  assurance 
signed by each Director-general and Head of services, the Commission notes that: 

•  Concerning  administrative  expenditure,  in  one  service  (the  Paymaster  Office)  the 
“Resource Director” did not sign his statement because he felt that weaknesses  linked to 
the operation by the office of the new information system for calculating pay and pensions, 
which  is  still  in  constant  evolution,  were  too  important.  After  verification  of  the  issues 
underlying  this  refusal,  the  Head  of  service  concluded  that  these  issues,  which  were 
already  known,  were  not  of  such  a  nature  as  to  affect  the  reasonable  assurance 
accompanying  the  annual  activity  report.  The  issue  was  referred  to  the  Commissioner 
responsible, who decided to ask for an independent analysis to check the veracity and the 
materiality of the issues and the internal controls in place to mitigate the associated risks. 

•  With regard to action carried out directly by the Commission’s services, it was possible to 
lift  the  previous  reservations  related  to  ex-post  controls  for  most  services.  A  clearer 
definition of the acceptable level of error could lead to a better balance between the risks 
actually  faced  and  the  controls  to  be  performed,  in  particular  ex-post  controls.  In  the 

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research  area,  one  persisting  problem  is  the  frequency  of  errors  for  grants  based  on  the 
reimbursement of actual costs declared by the beneficiaries. Simplification measures to be 
introduced by the revised Financial Regulation proposed by the Commission, more focused 
and  harmonised  ex-post  controls  plus  improved  management  conditions  under  the  6th 
Framework  Programme  will  help  mitigate  this  problem,  even  if  problems  such  as 
reimbursements  made  on  the  basis  of  actual  costs  related  to  the  current  legal  framework 
subsist  for  the  moment.  In  addition,  further  measures  aimed  at  simplification  have  been 
announced in the 7th Framework Programme and will be implemented in due course. 

•  Where  EU  funds  are  implemented  by  shared  management  with  Member  States,  the 
services  concerned  were  better  able  to  identify  the  shortcomings  affecting  budget 
implementation by national authorities and, in certain cases, to circumscribe their impact in 
monetary  terms  as  well  as  on  the  reasonable  assurance.  Further  work  is  under  way  and 
should  be  continued  in  order  properly  to  disclose  the  materiality  and  the  impact  of 
weaknesses affecting management and control systems rather than individual transactions. 
Measures to be proposed under the roadmap to an integrated control framework or already 
proposed  in  the  context  of  the  financial  perspectives  2007-2013  could  secure  greater 
assurance from Member States. 

•  In  the  area  of  decentralised  management  with  third  countries,  the  considerable  risk 
inherent in this management method calls for closer attention to the control framework in 
order to guarantee that the necessary assurance is obtained on this type of operation. 

•  Representations  in  Member  States  and  delegations  in  third  countries  are  subject  to 
reservations  carried  over  from  previous  years.  Services  are  defining  action  on  the 
management and control systems to be put in place in delegations and representations, to 
facilitate  the  lifting  of  reservations  as  soon  as  possible.  In  particular,  following  an 
evaluation of the organisation of the external service and a special report of the Court of 
Auditors  on  Devolution  of  external  aid  management  in  Delegations  carried  out  in  2004, 
restructuring is planned for 2005, notably of information systems and control missions. 

An overview of the trends in all the reservations over recent years is given in Annex 3 to this 
synthesis. 

Conclusions 

The  situation  in  the  services,  as  depicted  by  their  annual  activity  reports,  is  globally 
satisfactory.  The  main  issues  highlighted  by  the  reservations  are  generally  recurring 
weaknesses, already pointed out in previous years and for which remedial action is being 
taken.  Therefore,  a  number  of  measures  still  need  to  be  developed  or  improved  and 
properly  implemented  to  better  support  the  services’  reasonable  assurance  as  regards 
legality and regularity of the underlying transactions, in particular but not exclusively, 
in the framework of shared and decentralised management. In this respect, the roadmap 
to  an  integrated  internal  control  framework  and  the  associated  commitment  of  all 
financial actors concerned will be instrumental to providing the Court of Auditors with 
a  solid  basis  on  which  its  opinion  could  be  elaborated.  Specific  cross-cutting  issues 
requiring attention at Commission level are addressed later in this synthesis. 

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2.2. 

Reinforcement of the annual activity report process 

The processes for the annual activity reports have been amended and stabilised. In the 2004 
annual  activity  reports,  services  were  asked  to  describe  in  more  detail  their  management 
environment  and  the  main  risks  faced.  In  general,  the  reservations  are  more  precise  and 
coherent and their impact on the services’ reasonable assurance on the use of resources and on 
the legality and regularity of operations is often supported by an explicit reasoning. 

The Court of Auditors recommended that for funds under shared management the results of 
Member States’ controls should be reported in the services’ annual activity reports. This has 
been ensured by the services concerned. 

During  and  after  the  peer  review  of  potential  reservations  for  the  services’  2004  annual 
activity  reports,  three  ‘families’  of  services  started  working  towards  a  more  consistent 
approach to assess the seriousness (materiality) of the weaknesses detected for their budgetary 
area and to determine the potential financial impact of systemic weaknesses. 

The  Court  of  Auditors  acknowledged  the  progress  accomplished  already  based  on  the 
services’  2003  annual  activity  reports  but  nevertheless  stated  that  the  extent  of  the 
reservations expressed by some departments is not compatible with the reasonable assurance 
given. Moreover, as the overview on internal control indicates, some services still need in 
their  annual  activity  reports  to  describe  more  fully  the  environment  in  which  they  operate, 
including the risks they face, in particular risks that remain even after mitigating action has 
been taken. 

Conclusions 

More  focused  and  explicit  annual  activity  reports:  Although  good  progress  has  been 
achieved  in  several  cases,  Commission  departments  should  continue  to  reinforce  the 
explanation of their environment and the risks faced, including risks that remain even 
after mitigating measures have been taken. The impact of their environment and risks 
on  management  and  controls  has  to  be  made  more  explicit  and  in  most  cases  fuller 
explanations  should  be  given  on  the  overall  impact  of  reservations  on  the  reasonable 
assurance. 

More  balanced  reporting  :  A  reflection  on  the  possible  simplifications  to  strike  a  better 
balance between policy results and internal control and financial management issues at 
level of both annual activity reports and synthesis will be held in the second half of 2005. 
In addition, guidance to the services will be reinforced and will integrate all instructions 
referenced in several Commission decisions in one global set. 

Common  methodology  by  ‘families’:  with  the  assistance  of  central  services,  a  common 
methodology  to  determine  the  materiality  threshold  of  weaknesses,  including  systemic 
ones,  will  be  prepared  for  the  2005  annual  activity  reports  in  order  to  assess  more 
coherently  their 
impact  on  the  reasonable  assurance  for  ‘families’  of  shared 
management, research and internal policies. 

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2.3. 

Synthesis report and assurance statement 

In  its  discharge  resolution  for  2003,  the  European  Parliament  invited  the  Commission  to 
convert the annual synthesis of services’ annual activity reports into a consolidated assurance 
statement on the Commission’s financial management and controls as a whole. 

The objective underlying this proposal is to strengthen the expression of accountability upon 
which  the  Court  of  Auditors  may  base  the  formulation  of  its  statement  of  assurance.  The 
annual synthesis report already contains the Commission’s position on the main management 
and  control  issues  and,  in  its  annual  report  for  2003,  the  Court  indicated  that  the  synthesis 
report  already  analysed,  for  the  first  time,  the  assurances  provided  by  the  control  and 
supervisory systems. 

Moreover,  the  synthesis  is  an  act  through  which  the  Commission  exercises  its  political 
responsibility,  by  analysing  the  annual  activity  reports  and  related  declarations  and  by 
adopting  a  position  on  major  horizontal  issues,  including  appropriate  action  on  issues 
requiring  remedy  at  Commission  level.  This  approach  is  based  on  the  reform,  which 
decentralised  the  management  responsibilities  to  Directors-general  and  Heads  of  services, 
under the political supervision of the relevant Commissioner. 

The present system therefore provides the assurances sought from a management perspective. 
Within  this  system,  further  progress  can  be  made  in  most  cases  by  strengthening  the 
accountability  expressed  in  services’  annual  activity  reports,  through  more  precise 
reservations and better definition of the impact of the reservations on the reasonable assurance 
accompanying the annual activity reports. 

Conclusions 

Promoting the Commission’s accountability: The quality of the annual activity reports of 
a  number  of  services  should  further  be  improved,  in  terms  of  a  clearer  wording  of 
reservations  and  definition  of  their  impact,  to  strengthen  the  assurances  given  by  the 
Commission’s  services  and  assessed  by  the  Commission in  the synthesis report. In  this 
context,  the  responsibility  of  Commissioners  for  following  up  implementation  of  the 
action plans and the state of affairs in the services in their portfolio can be recalled. 

3. 

MAJOR  CROSS-CUTTING  ISSUES  ARISING  FROM  THE  ANNUAL  ACTIVITY  REPORTS 
AND RECOMMENDATIONS RECEIVED 

3.1. 

Governance issues 

The  reform  established  a  reinforced  management  and  control  framework  and  new 
instruments, such as the services’ annual activity reports, to allow the Commission to give a 
proper  account  of  the  tasks  for  which  it  is  responsible.  Diversified  implementation  methods 
have  been  put  in  place,  in  particular  through  delegation  to  third  parties  in  the  budgetary 
area. 

The  Commission  now  faces  the  challenges  of  enhancing  the  effectiveness  of  its  supervisory 
and control systems, of reinforcing risk management at departmental level and of developing 
Commission-wide  risk  management,  as  well  as  improving  supervisory  arrangements  for 
agencies. 

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3.1.1.  Moving from compliance to an effectiveness approach in internal control 

After  a  first  phase  where  the  services’  efforts  focused  on  the  design  of  internal  control 
systems and on compliance with the internal control standards (the services considered that 
they complied on average with 93% of the baseline requirements at year-end), the services are 
now  concentrating  on  improving  how  effectively  these  systems  work  and  the  way  their 
components operate. 

As the Commission aims to achieve efficient and effective management and controls, services 
constantly have to fine-tune their control systems in order to ensure that they offer real help to 
managers and that controls focus on the most risky issues. Consolidation of control systems 
by moving towards a full effectiveness approach, embedding internal control and risk analysis 
in  everyday  management  beyond  the  sphere  of  financial  management,  is  a  logical 
development of the reform launched in 2000. 

Areas  warranting  special  attention  include  procurement  procedures,  contracts  and  grant 
awards,  notably  the  selection  process.  There  is  also  a  need  to  tackle  the  risks  of  double 
funding and of overpayment; to reduce the frequency of errors and some simplification of the 
grant  procedures  is  welcome.  There  is  a  call  for  more  proportionality  in  setting  up  cost-
effective  management  and  control  systems  and  the  overview  on  internal  control  mentions 
the  following  fields  where  there  is  room  for  improvement:  supervision  in  the  financial 
domain,  embedding  risk  management  in  everyday  management  and  achieving  better 
proportionality  in  setting  up  cost-effective  management  and  control  systems.  This  implies 
regularly reviewing the relevant financial scoreboard and the adequacy of the supervisory and 
control  systems,  checking  the  potential  for  dependence  on  some  contractors,  and  taking 
account the results of ex-post controls and audit recommendations. In this context, there is a 
need  to  set  an  acceptable  level  of  risk  or  error,  if  possible  in  agreement  with  the  other 
institutions. 

The  Internal  Auditor  recommends  that  particular  attention  be  paid  to  preventing  risks  of 
double  funding,  collusion, conflict of  interests, insider trading, concentration of Community 
funds  on  certain  contractors  or  beneficiaries  and  dependence  on  contractors  in  case  of 
outsourcing. 

Moreover,  although  the  experiences  encountered  by  small  Directorates-general,  offices  and 
delegations vary, certain difficulties in implementing Commission-wide standards are noted in 
the overview on internal control. In some cases the lack of resources is underlined, while in 
other  cases  the  need  to  fine  tune  competencies  and  responsibilities  is  noted.  Another  issue 
related  to  the  offices  is  their  reliance  on  contract  agents  (up  to  40%).  This  situation,  if  not 
carefully  handled,  could,  in  the  transitory  period,  create  difficulties  in  the  building  up  of 
competencies and know-how as well as problems during handovers. The overview on internal 
control underlines the risk for business continuity in the offices if the new selection process of 
contract agents is not carried out on time. Finally, a triennial evaluation of the Commission’s 
recently created administrative offices is planned and will be carried out. It should consider 
simplification measures in particular. 

Concerning inter-institutional offices,  measures  to remedy a possible lack of delimitation of 
responsibilities are being taken in the ongoing review of the financial regulation, in the form 
of direct delegation of the authorising officer’s powers from each institution to the office. 

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Conclusions 

Further enhancing the cost-effectiveness of the supervisory and control systems: Services 
should  continue  to  tighten  up  monitoring  of  the  effectiveness  of  their  internal  control, 
with the assistance of central services. The internal control coordinator in each service 
should  carry  out  a  regular  review  of  the  effectiveness  of  internal  control,  based  on 
available information on results of controls, exceptions made and relevant scoreboards, 
in order to enhance related procedures or modify control systems. This review should be 
conducted, at least, in the context of the twice-yearly information to Commissioners and 
of the annual activity report. 

3.1.2.  Commission-wide risk management 

Regularly, in principle once a year, Commission services perform a risk assessment exercise. 
A  stronger  methodology  is  being  developed,  based  on  a  pilot  exercise  involving  several 
services that started in 2004, linking risk management more clearly to the planning process. 

Alongside the risk management carried out at service level, several activities regularly carried 
out help with raising awareness of risks and with developing appropriate measures to address 
them  from  the  perspective  of  the  Commission  as  a  whole.  This  is  the  case  for  resource 
allocation  to  priority  activities  at  the  beginning  of  the  strategic  planning  cycle  and  for  the 
prior  assessment  of  possible  positive  and  negative  impacts  of  major  initiatives.  On 
management issues, regular reporting lines are now established and functioning well between 
the  Commissioners  and  the  departments  of  which  they  are  in  charge.  A  group  of 
Commissioners scrutinises all investigations launched by the anti-fraud office in order to draw 
the College’s attention to serious issues. Auditors and the overview on internal control point 
out  cross-cutting  and  systemic  shortcomings  on  an  annual  basis.  The  Audit  Progress 
Committee is improving the follow up process on the main audit recommendations having an 
impact at Commission level. 

The  Internal  Auditor  and  the  European  Parliament  consider,  however,  that  the 
Commission’s  risk  management  culture  needs  strengthening  and  see  a  need  for  a 
Commission-wide risk management methodology. 

The  Internal  Auditor  notes  that  risk  management  should  be  embedded  in  each  service’s 
regular management process and suggests a Commission-wide approach to risk management, 
resulting in a consolidated risk overview at the Commission level allowing for a complete top 
down view of key risks. 

Conclusions 

Developing  Commission-wide  risk  management:  The  Commission-wide  methodology 
which  will  be  set  up  by  the  autumn  of  2005  will  introduce  risk  assessment  into  the 
decision-making process on priorities and resource allocation. This will be given firmer 
shape in the management plans and annual activity reports of services. In the medium-
term,  the  methodology  should  also  address  how  to  deal  with  risk  management  within 
‘families’ of similar activities in services. 

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3.1.3.  Performance measurement 

Most services carried out a review of objectives and indicators at both planning and reporting 
stages  with  the  help  of  central  services  so  as  to  improve,  in  particular,  the  quality  of  the 
documents and reports (‘activity statements’) submitted by the Commission to the budgetary 
authority alongside the annual preliminary draft budget. 

The Internal Auditor and the European Parliament consider that the quality of objectives 
and indicators can still be further improved and additional steps can be taken to measure and 
evaluate  performance.  The  Court  of  Auditors  has  also  invited  the  Commission  to  produce 
indicators  covering  the  legality  and  regularity  of  the  operations  and  measuring  the 
performance of internal control systems. 

The overview on internal control and the Internal Auditor also point out the need to take 
fuller account in the policy-making process of the lessons from past experience, for instance 
the results of evaluations. 

Conclusions 

Reviewing  performance  measurement  and  evaluation:  The  Commission  will  analyse  the 
existing objectives and indicators in the context of a peer review by ‘families’, to review 
how  objectives  and  indicators  can  become  more  operational  tools  for  management 
within the Commission. 

3.1.4.  Externalisation and agencies 

In  its  communication  of  February  2004  on  the  financial  framework  for  2007-2013,  the 
Commission underlined the need to focus its activities on the development and monitoring of 
policies  under  the  Treaty  and  identified  as  principles  for  administrative  governance  “less 
direct management, better control of delivery and greater cost-effectiveness”. 

When  implementation  tasks  are  externalised  through  executive  agencies,  to  which  the 
Commission  delegates  powers  to  implement  a  Community  programme  or  project,  internal 
control  requirements  identical  to  those  in  force  in  the  Commission  apply,  which  allows  the 
Commission to exercise full supervision. 

By  contrast,  regulatory  agencies  -  i.e.  non-executive  Community  agencies  are  autonomous 
bodies. While most of these agencies are, at least in part, funded by the Commission’s section 
of  the  budget,  the  Commission  has  only  limited  control  over  their  activities.  However, 
regulatory  agencies’  action  may  under  some  circumstances  impinge  on  the  Commission’s 
responsibility.  In  this  respect,  the  overview  on  internal  control  raises  the  question  of 
mechanisms allowing the Commission to monitor such agencies. Following the White Paper 
on European Governance, the Commission has already launched an initiative to try to define 
the  operating  framework  for  the  creation,  operation  and  supervision  of  European  regulatory 
agencies, to be agreed with the European Parliament and Council. This draft framework aims, 
in  particular,  at  setting  out  the  respective  responsibilities  of  the  regulatory  agencies  and  the 
different institutions. Moreover, the necessary monitoring arrangements should be clarified in 
order  to  allow  the  Commission  fully  to  exert  its  political  and  budgetary  responsibility,  if 
required. 

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Conclusions 

Full  Commission  responsibility  on  executive  agencies:  Regarding  the  operation  of 
executive  agencies,  the  Commission  will  fully  exert  its  supervision  duties  as  foreseen. 
The  next  synthesis  will  report  for  the  first  time  on  operation  of  the  newly  created 
executive agencies. 

Clarifying  the  respective  responsibilities  of  the  Commission  and  regulatory  agencies: 
Interinstitutional  negotiations  should  be  pursued  in  2005  based  on  the  Commission’s 
draft  interinstitutional  agreement  on  a  framework  for  regulatory  agencies.  The 
respective  roles  and  responsibilities  of  the  Commission  services  and  the  regulatory 
agencies will be clarified in parallel. 

3.2. 

Financial management and reporting 

Financial  management  has  been  overhauled  with  a  recast  Financial  Regulation,  which 
entered  into  force  in  2003,  the  introduction  of  activity-based  budgeting  in  2004  and  the 
transition to accrual-based accounting with effect from January 2005. 

The Commission is now proposing to the other institutions a roadmap to an integrated control 
framework,  which  will  provide  the  Commission  and  its  stakeholders  with  greater  assurance 
as  to  the  legal  and  regular  use  of  EU  monies,  including  under  shared  management  with 
Member States. Ex-post controls will also be better focused and harmonised, in particular by 
ensuring increased consistency at the level of ‘families’ of services. 

For the tenth time, the European Court of Auditors presented an annual statement of assurance 
which  was  largely  positive  about  the  reliability  of  the  accounts,  commitments  and  own 
resources, but which indicated that the Court cannot provide assurances for all payments, but 
only for administrative expenditure. 

The  Commission  considers  that  one  of  its  objectives  should  be  to  create  the  conditions 
allowing the Court to deliver a statement of assurance accompanied by only minor criticisms. 
This implies not only renewed efforts by the Commission in a number of areas, but also active 
participation  in  the  initiative  by  Member  States,  since,  under  the  Treaty,  although  the 
Commission bears sole responsibility  for  implementation  of the budget,  approximately 80% 
of the budget is implemented by Member States under shared management. 

In  the  area  of  accounting  and  financial  reporting,  major  steps  forward  were  taken  in  2004, 
when  preparations  were  made  for  the  transition  to  accrual  accounting  so  that  the  general 
accounting related to the EU’s general budget could start to function on a full accrual basis 
from January 2005, as planned. In 2004 the Commission implemented the first budget based 
solely  on  the  activity-based  structure.  The  concomitant  challenge  of  adapting  the  budgetary 
reporting was also met. 

2004  was  the  second  year  of  implementation  of  the  recast  Financial  Regulation  and  the 
services’  annual  activity  reports  show  that  the  new  rules  have  now  filtered  through  into 
management  practices.  Reservations  indicating  certain  teething  problems  observed  during 
2003 could be lifted in the 2004 reports. 

The  conclusions  of  the  synthesis  action  on  ‘co-financing’  advocated  greater  simplification 
through  wider  use  of  flat-rate  payments.  The  Commission  is  amending  the  Implementing 

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Rules  of  the  Financial  Regulation,  aiming  in  particular  at  simplification  for  small  value 
contracts and grants and at proportionate controls based on analysis of the risks. At the same 
time,  the  proposal  for  the  first  triennial  revision  of  the  Financial  Regulation  has  been 
adopted  and  will  now  be  discussed  with  the  other  institutions.  This  revision  will  streamline 
the  different  methods  of  budget  implementation,  establish  a  legal  basis  for  extended  use  of 
lump-sum  grants  and  focus  on  further  simplification  and  proportionality,  striking  a  better 
balance  between  control  requirements  and  the  risks  and  costs  involved.  The  revision  of  the 
Financial Regulation will be accompanied by further revision of its implementing rules. 

3.2.1.  Roadmap to an integrated control framework 

The  Court  of  Auditors’  opinion  on  the  single  audit  and  the  Parliament’s  discharge 
recommendation  for  2003  mark  the  starting  points  for  a  Community  internal  control 
framework. This integrated internal control framework is needed in order to link up a logical 
chain,  where  controls  performed  at  earlier  stages  can  be  used  more  effectively  at  the  later 
levels  for  underpinning  their  assurance  of  the  legality  and  regularity  of  the  underlying 
transactions.  Controls  should  be  proportionate  in  order  to  strike  an  appropriate  balance 
between the costs and benefits (in both monetary and political terms). 

Based on the assurance provided through this integrated internal control framework, and on 
the  achievements  already  brought  about  by  the  reform,  the  Commission  aims  to  obtain  an 
annual  declaration  of  assurance  from  the  Court  of  Auditors,  which  would  contain  more 
focused  and 
legality  and  regularity  of  payments.  A 
Communication  adopted  in  parallel  to  this  synthesis  lays  down  the  main  political  principles 
for  such  an  integrated  internal  control  framework,  the  respective  responsibilities  of  the 
different players, including those at Member State level, and the procedure which should lead 
to adoption of a roadmap before the end of the year. 

limited  observations  on 

the 

The  establishment  of  an  integrated  internal  control  framework  which,  in  particular,  would 
provide a means of sharing audit results at all management levels will reinforce efficiency and 
effectiveness.  The  scope  for  simplification  of  the  management  of  the  EC  funds  needs  to  be 
explored, ensuring that the control requirements are proportionate to the risk. 

Substantial  steps  have  already  been  undertaken  prior  to  the  adoption  of  the  roadmap  to  an 
integrated  internal  control  framework,  including  new  provisions  in  the  new  legislative 
proposals for financial management in Agriculture and Structural aid under the next Financial 
Perspectives.  An  additional 
the 
abovementioned peer review of potential reservations, which has started reflecting on a basis 
for the determination of the ‘acceptable levels of error’. As the overview on internal control 
points out, in order, to set common thresholds by families of services, control methodologies 
need to be calibrated and harmonised within each family. 

the  harmonisation  exercise  during 

improvement  is 

Conclusions 

Moving  towards  an  integrated  control  framework:  The  Commission  will  invite  the  EU 
institutions concerned to develop a common approach to this framework, which includes 
stronger  assurance  at  Commission  level  through  services’  annual  activity  reports  and 
greater assurances from the Member States implementing the Community budget under 
shared  management.  Those  assurances  will  be  underpinned  more  clearly  by  sound 
internal control procedures, assessment and reporting mechanisms, including sharing of 
audit results at all levels. 

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3.2.2.  Ex-ante and ex-post controls 

Ex-ante  and  ex-post  controls  are  important  components  of  the  internal  control  framework 
applied  by  the  Commission.  Services’  annual  activity  reports  show  a  continuous 
improvement in general, but an insufficient level of ex-post controls in certain cases, which 
have  given  rise  to  a  few  reservations.  The  overview  on  internal  control  indicates  that 
services  should  prepare 
their  control  strategy  and 
implementation  thereof  so  that  more  evidence  may  be  obtained  for  the  declaration  on 
reasonable assurance. The need for further harmonisation and calibration of ex-post controls 
according to the various budgetary areas has also been pinpointed by the Internal Auditor, 
who suggests that services’ annual activity reports and their synthesis give a fuller account of 
the results of these controls. 

their  reporting  on 

improve 

to 

An Ex-post control network was set up in the second half of 2004, to define guidelines, allow 
the  sharing  of  good  practices  among  services  and  ensure  a  common  language  and 
understanding as regards ex-post controls. 

Progress  in  this  area  should  be  made  possible  by  the  roadmap  to  an  integrated  control 
framework,  which  will,  in  particular,  help  to  strike  a  better  balance  between  the  cost  of 
controls and their expected benefits, as also suggested by the Internal Auditor. In addition, 
the  latter  recommends  adoption  of  a  clearer  strategy  for  ‘closure  audits’  at  the  end  of  a 
programming  period  for  shared  and  de-centralised  management  and  formulation  of  more 
precise  guidelines  for  ex-post  controls  conducted  by  national  agencies  under  indirect 
centralised management. 

The  experiments  by  some  services  with  recourse  to  independent  audit  certificates  on  cost 
claims by beneficiaries should continue, so that conclusions can be drawn onto the impact of 
such certificates on ex-post control quickly. In parallel, greater recourse to flat-rate payments 
for some grants should change the nature of ex-post control by allowing better targeted, more 
qualitative and dissuasive controls. 

Conclusions 

More  coordinated  and  efficient  ex-ante  and  ex-post  controls:  Harmonisation  of 
methodology and definition of common audit strategies, at least at the level of ‘families’ 
of services operating in the same budget area, have to be continuously enhanced. In the 
context of the roadmap to an integrated internal control framework, services operating 
in  the  same  budget  area  will  explore  the  most  appropriate  way  to  organise  resource 
sharing by ‘families’, either by closer coordination (joint audits, common methodology, 
sharing  of  results)  or  synergies  (where  the  lead  service  performs  audits  on  behalf  of 
smaller services). This will progressively allow harmonisation, better focusing of ex-post 
controls and improved efficiency. 

3.2.3.  Accounting and financial reporting 

The Internal Auditor and discharge authority recommend that the Accounting Officer sign 
off the Commission's accounts and also be upgraded to ‘Chief Financial Officer’ to act as a 
central counterweight to the Commission’s departments. 

Based on the key principles of the administrative reform, which provide for decentralisation 
of management and control tasks and greater accountability at service level, the Commission 

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services remain fully responsible for the legality and regularity of the underlying transactions. 
The declaration of assurance made by Directors-general in their annual activity reports should 
certify that the accounts for which they are responsible are accurate and exhaustive. 

The  Accounting  Officer  should  sign  off  the  accounts,  certifying  that  (s)he  has  made  the 
checks  that  (s)he  considers  necessary  and  is  satisfied  that  they  have  been  prepared  in 
accordance  with  the  accounting  rules,  methods  and  accounting  systems  established  under 
his/her responsibility, that (s)he has made any adjustments which are necessary for a true and 
fair presentation of the accounts in accordance with Article 136 of the Financial Regulation, 
and that they are therefore reliable. The Accounting Officer should be adequately informed by 
the  Directorates-General  in  order  to  be  able  to  exercise  this  responsibility,  and  should  be 
empowered to make the checks on this information which (s)he considers necessary. In line 
with  existing  responsibility  of  Director-Generals  for  the  underlying  transactions  and  the 
reliability of the information made available to the Accountant, the declaration of assurances 
made  in  the  Annual  Activity  Reports  should  certify  that  the  accounts  for  which  they  are 
responsible are accurate and exhaustive. 

Conclusion 

Proposals  for  revision  of  the  Financial  Regulation  to  this  effect  were  adopted  by  the 
Commission on 3 May 2005. 

3.2.4.  Budget implementation methods 

In the area of centrally managed funds, the Internal Auditor has called for stricter rules for 
the  award  of  grants,  an  issue  which  also  gave  rise  to  a  reservation  in  one  service’s  annual 
activity report with reference to a non-governmental organisation. The overview on internal 
control highlighted the need for appropriate supervisory arrangements to detect and promptly 
correct weaknesses identified in relation to procurements and grants (selection process, audit 
trail,  double  funding,  overpayments),  which  is  also  underpinned  by  reservations  in  some 
services’ annual activity reports. 

Concerning  shared  management  and  fund  management  through  national  agencies,  The 
Internal  Auditor  has  pointed  to  the  need  to  obtain  statements  of  assurance  from  Member 
States’  management  authorities  on  top  of  the  validation  of  national  control  systems  to  be 
performed  by  the  Commission’s  services  before  making  payments.  The  Commission  made 
similar proposals in the area of agricultural expenditure, for which a political agreement has 
been reached in the Council. The Internal Auditor also underlined the importance of increased 
information from national agencies to the Commission. 

Where Member States manage and control budget implementation under shared management, 
the action in response to the previous synthesis allowed clarification of the existing chain of 
control  under  agriculture  and  structural  funds  models  plus  identification  of  remaining 
problems  and  possible  solutions.  The  Court  of  Auditors  has  in  turn  insisted  on  the 
Commission’s  responsibility  to  check  that  adequate  control  systems  are  in  place  and  are 
operating  effectively  in  Member  States  and  to  ensure  the  legality  and  regularity  of  the 
underlying transactions. It has also emphasised the need to set an accepted level of confidence 
and a materiality threshold in this respect. 

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Conclusions 

The  roadmap  to  an  integrated  internal  control  framework  will  make  the  flow  of 
information more transparent and should make it possible to obtain firmer assurances 
from  the  Commission’s  internal  processes  as  well  as  from  third  parties  entrusted  with 
budget implementation tasks for the Commission. 

Services are called upon to make use of the simplification measures to be introduced by 
the amended rules implementing the Financial Regulation, in particular concerning the 
use of flat-rate grants as an alternative means of funding to reimbursement of actually 
incurred costs, where appropriate. 

3.3. 

Human resources 

The new reform-driven staff regulations have entered  into force, providing, inter alia, for a 
linear career structure and modernisation of working conditions, as well as new measures on 
discipline and whistle-blowing. 

The  simplification  of  some  instruments,  such  as  the  staff  appraisal  system,  is  designed  to 
ensure efficient and effective human resource management. 

The  new  staff  regulations  entered  into  force  on  1  May  2004,  accompanied  by  several 
packages of implementing provisions adopted by the Commission. A series of other measures 
to  produce  further  increases  in  efficiency  included  guidelines  for  redeployment  and  rules 
concerning the appraisal of senior management. 

In  addition,  emphasis  was  placed  onto  improving  the  working  conditions  of  Commission 
staff. Solutions, taking into consideration both the needs of staff and the available resources, 
were put forward to move on policies designed to reconcile private and professional life: part-
time work, flexitime, teleworking, parental and family leave. 

3.3.1.  Lack of specialised staff 

Some services’ annual activity reports indicated that staff shortages were posing a problem 
to their operations in some cases. In one particular case the shortage was the result of a short-
term  need  to  deal  with  the  IT  challenges  posed  by  the  implementation  of  the  new  Staff 
Regulations.  Some  of  these  reports  also  pointed  out  more  specific  problems  concerning  the 
availability of adequate human resources, in both quantitative and qualitative terms, stemming 
from  the  difficulty  of  attracting  candidates,  notably  from  the  ten  new  Member  States,  with 
specific profiles (financial or audit, scientific, linguistic and IT profiles). 

The overview on internal control identifies a lack of competent specialists in financial and 
specific areas; this creates difficulties in dealing with mobility in particular in small services, 
delegations and representations. 

Conclusions 

The  action  plan  presented  in  July  2004,  with  the  aim  of  fostering  the  recruitment  of 
experts  and  developing  training  of  staff  already  in  place,  will  be  continued.  The 
Commission will contribute to the work programme of the interinstitutional European 
Personnel  Selection  Office  in  order  to  ensure  that  competitions  continue  to  provide 

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adequate numbers of successful candidates to fill vacant posts. Recruitment drives will 
have  to  be  maintained,  especially  in  some  services,  and  action  should  be  taken  where 
shortfalls  are  identified.  The  Commission  will  also  continue  to  monitor  the  situation 
closely and will propose measures to improve recruitment procedures. 

In  addition,  resources  will  be  aligned  with  policies  not  only  in  quantitative  but  also  in 
qualitative terms to make sure that staff assigned to certain policies have the skills and 
qualifications  necessary  to  perform  their  duties.  With  this  objective  in  mind, 
recruitment  procedures  will  be  further  improved  and  specialised  training  will  be 
provided by building on measures already undertaken. 

3.3.2.  Recruitment of officials from the new Member States and training 

Many  services’  annual  activity  reports  underlined  that  attainment  of  the  targets  for  the 
recruitment of officials from the new Member States had been delayed, basically because of 
the late availability of reserve lists. Training continued to play a significant role in the human 
resource  policy  of  the  DGs.  Most  DGs  reported  the  adoption  of  a  Strategic  Training 
Framework and noted increases in the average number of training days per official. 

3.3.3.  Fine-tuning of reform instruments 

In 2004 the vast majority of the legal instruments necessary for the reform of personnel policy 
were in place. In the years to come emphasis will have to be placed on the consolidation of 
this process and on increased ownership as well as on fine-tuning simplifying the provisions 
where such a need can be seen.  

Conclusions 

The simplification of procedures will be a key objective to increase both efficiency and 
customer satisfaction. In particular, specific measures will be presented to simplify and 
improve the staff appraisal system. 

3.3.4.  Mobility 

Most services report that they dealt with mobility issues in the framework of their Mobility 
Plans without any serious problems, even though the overview on internal control points to 
some difficulties linked to compulsory mobility for sensitive posts. 

In  2004  mobility  within  and  between  Directorates-general  and  services  affected  15%  of 
Commission  staff  (officials  and  temporary  agents)  including  those  staff  members  who 
voluntarily  decided  to  change  jobs  (voluntary  mobility)  and  those  who  were  required  to 
change  jobs  (compulsory  mobility)  because  of  either  the  redeployment  exercise  following 
enlargement or because they occupied a sensitive post for more than 5 years. 

The  results  of  an  internal  survey  confirm  that  the  Guidelines  on  Mobility  have  led  to  a 
significant improvement in the way in which mobility is managed in the Commission. Good 
practices  are  being  disseminated  with  the  aim  of  bringing  about  a  system  of  career 
management by which the Commission can ensure that the ‘right person is in the right job at 
the  right  time’  so  that  its  resources  are  used  as  effectively  and  efficiently  as  possible.  This 
work is being supported by the development of tools such as the e-CV which will provide an 
overview  of  the  skills  and  competences  of  all  Commission  staff.  While  the  experience  of 
mobility has overall been positive, some adverse effects of compulsory mobility for sensitive 

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posts, such as loss of expertise and intuitional knowledge, were noted and an evaluation of the 
impact of this policy would be welcomed by the Resource Directors. 

4. 

CONCLUSIONS 

The 2004 synthesis report enabled the new Commission to take stock for the first time of the 
management  of  its  services  and  to  address  major  issues  raised  in  the  services'  2004  annual 
reports, by both internal and external auditors and by the discharge authority. 

This  synthesis  establishes  a  reference  framework  ensuring  consistency  and  explaining  the 
rationale behind the proposed initiatives, contributing among other things to the objective of 
obtaining an assurance statement from the Court of Auditors with only marginal reservations 
in a mid-term perspective. It sets in motion a process whereby each year the syntheses which 
follow will take stock of the state of play on these initiatives. It is not a question of launching 
a new reform. Now the time has come to take the system in place up to cruising speed and 
fully develop its performance potential based on the following strands: 

•  Promoting  the  Commission's  accountability:  a  synthesis  report  solidly  based  on 
assurances from the Directors-general and Heads of services' plus accrual based accounts 
signed by the Accounting Officer. 

•  Enhancing  effective  performance  management:  effectiveness  and  ownership  of 
supervisory and control systems, forward-looking and solid daily management embedding 
the risk management dimension. 

•  Reinforcing  the  Commission’s  responsibility  and  monitoring  capacity  through  an 
integrated internal control framework and a more consistent approach to risks by ‘families’ 
of services. 

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Synthesis: multiannual objectives 

Annex 1 

This  annex  summarises  the  Commission’s  objectives  addressing  the  major  cross-cutting 
issues identified in the 2004 synthesis. To meet these objectives, a series of initiatives will be 
launched,  some  of  which  are  already  identified  in  this  synthesis.  The  table  below  will  be 
adapted annually on the occasion of the synthesis reports to include the progress achieved and 
additional initiatives as appropriate. 

Governance issues 

Objective 

Initiative(s) to meet the objective 

1.  Achieving  effective  functioning  of 
and 
control 
internal 
ownership  of 
control 
concepts  and  processes  at  all  level 
in each DG and service. 

internal 

system 

2.  Promoting 

Commission’s 
accountability  through  a  synthesis 
report  solidly  based  on  assurances 
from  managers 
the  annual 
activity reports.  

in 

3.  Establishing 

effective 

and 
comprehensive  risk  management 
making  it  possible  to  identify  and 
deal  with  all  major  risks  at  service 
and  Commission  level  and  to  lay 
down  appropriate  action  to  keep 
including 
them  under  control, 
disclosing 
to 
bring  major  risks  to  an  acceptable 
level. 

resources  needed 

4.  Clarifying  the  respective  roles  and 
responsibilities  of  Commission 
services and regulatory agencies. 

(cid:190)  To ensure the effectiveness of internal 
control, with the assistance of central 
services, the internal control coordinator in 
each service should carry out a regular 
review of the effectiveness of internal control 
issues, based on available information on 
results of controls, exceptions made and 
relevant scoreboards, in order to enhance 
related procedures or modify control systems. 
This review should be conducted, at least, in 
the context of the twice-yearly information to 
Commissioners and of the annual activity 
report. 

(cid:190)  The Commission will continue fully to exert 

its accountability, by using the synthesis to 
bring transparency to the critical crosscutting 
issues emerging from services’ assurances. 
The latter will give a full account on whether 
the assurance is consistent with the 
reservations identified. 

(cid:190)  The Commission-wide methodology which 

will be set up by the autumn of 2005 will 
introduce risk assessment into the decision-
making process on priorities and resource 
allocation. This will be given firmer shape in 
the management plans and annual activity 
reports of services. 

(cid:190) 

(cid:190) 

In the medium a term perspective, the 
methodology should also address how to deal 
with risk management within ‘families’ of 
similar activities in services. 

Interinstitutional negotiations should be 
pursued in 2005 based on the Commission’s 
draft interinstitutional agreement on a 
framework for regulatory agencies. The 
respective roles and responsibilities of the 
Commission services and the regulatory 
agencies will be clarified in parallel. 

Responsible service(s) and 
timetable 

All  services. 
,  continuous 
action  with  the  support  and 
guidance  of  DG  BUDG  and 
the ICC network. 

All services, according to the 
guidelines on annual activity 
reports. 

DG  BUDG,  SG  and  IAS  for 
methodology  by  the  autumn 
of  2005,  all  services  for 
from 
application, 
2006  annual  management 
plans. 

starting 

By  2007  the  Commission 
should have gained sufficient 
experience 
submit 
concrete  proposals  in  this 
context. 

to 

SG,  BUDG  and  services 
concerned, starting in 2005. 

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Activity-based management 

Objective 

Initiative(s) to meet the objective 

5.  Making  objectives  and indicators  a 
policy 
tool 
and  management 
allowing,  on  the  one  hand,  the 
Commission 
its 
performance  and,  on  the  other, 
stakeholders  to  assess  the  outcome 
of  the  Commission’s  work  and  its 
benefit for citizens. 

to  monitor 

(cid:190)  The Commission will analyse the existing 

objectives and indicators in the context of a 
peer review by ‘families’ and with the 
support from the central services, to review 
how objectives and indicators can become 
more operational tools for management 
within the Commission. 

Responsible service(s) and 
timetable 

SG,  BUDG  and  services 
concerned,  continuous  task, 
starting 
the  2006 
annual  management  plans 
and  the  2005  annual  activity 
reports. 

from 

6.  Reinforcing  annual  activity  reports 
to ensure better accountability. 

(cid:190)  Commission departments should give, where 

needed, a fuller explanation of their 
environment and the risks faced, including 
risks that remain even after mitigating 
measures have been taken. The impact of 
their environment and risks on management 
and controls should be made more explicit 
and in most cases fuller explanations should 
be given on the overall impact of reservations 
on the reasonable assurance. 

(cid:190)  A reflection on the possible simplifications to 
strike a better balance between policy results 
and internal control and financial 
management issues at the level of both 
annual activity reports and synthesis will be 
held in the second half of 2005. 

(cid:190)  Guidance to the services will be reinforced 
and will integrate all instructions referenced 
in several Commission decisions in one 
global set. 

(cid:190)  With the assistance of central services, a 
common methodology to determine the 
materiality threshold of weaknesses, 
including systemic ones, will be prepared for 
the 2005 annual activity reports and in order 
to assess more coherently their impact on the 
reasonable assurance for ‘families’ of shared 
management, research and internal policies. 

All  services 
annual reporting exercise. 

the  2005 

in 

SG,  DG  BUDG  and  all 
services before end 2005. 

Services  concerned,  SG  and 
DG  BUDG  by  November 
2005. 

EN 

21 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial management and reporting 

Objective 

Initiative(s) to meet the objective 

accountability 
a 
internal 

7.  Enhancing 
by 
comprehensive 
establishing 
control 
integrated 
framework 
the 
requirements  set  out  in  the  ECA’s 
opinions on ‘single audit’. 

line  with 

in 

8. 

and 
efficiency 
Improving 
strengthening 
accountability  by 
further  harmonisation  and  better 
focusing of ex post controls. 

(cid:190)  A Roadmap setting out the action which has 

to be taken by the Commission and by the 
Member States’ administrations to bridge the 
gap identified between the current control 
framework and the defined features of the 
integrated internal control framework will be 
adopted by the Commission and submitted to 
the other institutions concerned for approval. 

(cid:190)  Further attempts have to be made to achieve 
closer harmonisation of methodology and 
definition of common ex-post control 
strategies, at least at the level of ‘families’ of 
services operating in the same budget area. 
Specific proposals and possible action in this 
respect will be progressively explored and the 
next synthesis report will clearly identify the 
progress made and remaining weaknesses to 
be addressed.  

9. 

responsibility 

Increasing 
and 
accountability  at  the  level  of  the 
Commission  as  a  whole  by  the 
signing-off  of  the  accounts  by  the 
Accounting Officer. 

(cid:190)  Under the proposed amendments to the 

Financial Regulation submitted to the 
legislator, the Accounting Officer will sign 
off the accounts. 

Responsible service(s) and 
timetable 

DG  BUDG 
other 
services  concerned  by  the 
end of 2005. 

and 

the 
services  with 
All 
assistance  of  DG  BUDG, 
continuous action. 

into 

Accounting  Officer  by  the 
entry 
the 
amendments to the Financial 
Regulation. 

force  of 

10.  Making 
more 
by 
efficient 
simplification measures. 

financial  management 
applying 

(cid:190)  Services are called upon to make use of the 
simplification measures to be introduced by 
the amended rules implementing the 
Financial Regulation, in particular 
concerning small value contracts and grants 
and proportionate controls based on the 
analysis of risks. In the coming years, any 
further simplification introduced by the 
revised financial regulation will have to 
follow this process. 

All  services  concerned  as 
from  the  entry  into  force  of 
the  amendments  to  the  rules 
implementing  the  Financial 
Regulation. 

EN 

22 

   EN 

 
 
 
 
 
 
Human resources 

Objective 

Initiative(s) to meet the objective 

11.  Simplifying  procedures  to  increase 
customer 

efficiency 

and 

both 
satisfaction. 

12.  Aligning resources and needs better 
to  make  sure  that  staff  have  the 
skills  and  qualifications  necessary 
to perform their duties, in particular 
financial 
areas 
in 
management, 
science, 
linguistics and IT. 

as 
audit, 

such 

(cid:190)  Specific measures will be presented to 

simplify and improve the Commission’s staff 
appraisal system (Career Development Re 
view). 

(cid:190)  Following the conclusions of the evaluation 
on the Strategic Alignment of Human 
Resources, an action plan will be devised by 
the end of 2005. 

(cid:190)  Provision of specialised training and 
measures to improve the recruitment 
procedures and, in particular in areas where a 
shortage of skilled staff is identified. 

(cid:190)  An analysis of human resource devoted to 

internal control will be progressively carried 
out as requested by the Court of Auditors 

Responsible service(s) and 
timetable 

DG  ADMIN  by  the  end  of 
2005. 

DG  ADMIN,  by  the  end  of 
2005. 

ADMIN, 

DG 
ongoing tasks. 

EPSO., 

based 

services, 

All 
on 
guidelines to be drawn up by 
DG  ADMIN,  SG  and  DG 
BUDG by the end of 2005. 

EN 

23 

   EN 

 
 
 
 
 
 
 
 
 
 
 
State of play on the action under the 2003 Synthesis 

This annex reports on the action based on the previous syntheses or on other documents such 
as the reform White Paper and summarised by the 2003 synthesis. Action still in progress will 
be  carried  over  in  the  multi-annual  objectives  of  the  2004  synthesis  and  reported  on  in 
subsequent syntheses. 

Annex 2 

INTERNAL CONTROL FRAMEWORK ISSUES 

Source 

Action 

Status 

Internal 
standards: 
control 
ownership by DGs and services. 

enhance 

Communication  of  the  revised  management 
and control framework.  

Internal Controls in Delegations. 

2002 
Synthesis 
(§ 5.4.5.) 

2002 
Synthesis 
(§ 3.3.2.) 

2002 
Synthesis 
(§ 5.4.1.) 

On-going.  The  Central  financial  service  has  been  offering  support 
with  methodologies  and  training  since  autumn  2004.  DGs  should 
continue reinforcing and fine-tuning their control systems in order to 
ensure  that  they  work  effectively.  Training  and  support  provided  to 
DGs on internal control should continue. 

Action included in the objectives set in Annex 1. 

On-going.  In  2004  DGs  and  services  made  efforts  to  communicate 
internally  the  revised  management  and  control  framework  under  the 
coordination of the Resource Directors/Internal Control Coordinators 
Network and with the support of DG BUDG. These efforts should be 
continued with a fuller focus on enhancing effective internal control 
systems. 

Action included in the objectives set in Annex 1. 

Action almost completed. An inter-service group was set up in 2003 
to  facilitate  implementation  of  the  internal  controls.  Baseline 
requirements were adapted to Delegations in 2004, combined with a 
number of trainings course for Heads of Delegation. The assessment 
exercises  conducted  by  the  Heads  of  Delegation  took  place  in  July 
and  December  2004.  The  results  show  that  implementation  of  the 
internal  control  standards  is  well  on  track.  compliance  with  the 
baseline  requirements  was  verified  through  on-the-spot  control 
missions in 2004. 

Action included in the objectives set in Annex 1. 

2002 
Synthesis 
(§ 5.4.3.) 

PRESS A (situation of Relays and Networks 
and Representations). 

Action  almost  completed.  Relays  and  networks:  measures  were 
adopted by Communication COM(2004)196, so that the new scheme 
could  be  fully  operational  with  effect  from  1  January  2005. 
in 
conducted 
Representations:  A 
October/November  2004 
corrective  measures. 
resulting 
Instructions have been given and implementation will be monitored. 

self-assessment  was 

in 

Action included in the objectives set in Annex 1. 

2002 
Synthesis 
(§ 5.4.3.) 

2001 
Synthesis 
(Action 2) 

PRESS B (integrating the Representations in 
the Member States into the rotation schemes 
of 
the  Directorate-General  for  External 
Relations). 

Action  completed.  The  memorandum  of  understanding  signed 
between DG PRESS and DG RELEX and the solutions proposed by 
the  working  group  set  up  by  the  2002  Synthesis  have  been 
implemented and followed up. 

Evaluation of the devolution exercise. 

Action  completed.  The  final  report  on  the  evaluation  of  the 
devolution exercise (SEC (2004) 561) was published in May 2004. A 
study  made  by  an  external  consultant  in  October  2004  identified 
options  for  further  devolution  of  administrative  matters  and  the 
implications for RELEX K in that framework. RELEX K is currently 

EN 

24 

   EN 

 
analysing  the  options  in  order  to  propose  an  action  plan.  These 
administrative aspects of the action will be included in the objectives 
set in Annex 1. 

2001 
Synthesis 
(Action 2) 

Re-examination  of  the  scope  for  synergies 
between  the  services  involved  in  External 
Relations. 

Action completed. The new Commission has examined the scope for 
synergies  between  the  services  involved  in  External  Relations  and 
decided on certain transfers of responsibilities between the services. 

EN 

25 

   EN 

 
ACTIVITY-BASED MANAGEMENT/STRATEGIC PLANNING AND PROGRAMMING 

Source 

Action 

Following steps 

Management risk assessment. 

2002 
Synthesis 
(§ 3.3.2.) 

Follow-up by services. 

2002 
Synthesis 
(§ 5.4.6.) 

HUMAN RESOURCES 

On-going.  Alongside  the  regular  risk  management  at  service  level 
performed  under  internal  control  standard  No  11,  several  activities 
carried out as a daily practice contribute to acquiring awareness of the 
risks  and  to  responding  appropriately.  Following  evaluation  of  the 
pilot  exercises  carried  out  in  2004,  the  Commission  is  developing  a 
common  methodological  framework  for  Commission-wide  risk 
management. An interservice group was set up  early in 2005 to that 
end. 

Action included in the objectives set in Annex 1. 

Action  completed.  This  has  now  become  a  routine  action  generally 
performed  well  by  services  and  monitored  by  central  services,  and 
which will not deserve being specifically flagged in the syntheses in 
the future. 

Source 

Action 

Following steps 

2002 
Synthesis 
(§ 5.3.1.) 

Human resources B. (review of the situation 
of  scarce  skills  by  DG  for  Personnel  and 
Administration). 

of 

Estimate  of  human  resources  devoted  to 
internal control. 

Court 
Auditors, 
2002 
(§ 1.73) 

AR, 

the 
Action  almost  completed.  The  measures  proposed 
Communication  for  DG  ADMIN  have  largely  been  undertaken.  In 
particular,  DG  ADMIN,  in  close  collaboration  with  DG  BUDG  has 
made  available  a  wide  range  of  training  courses  in  the  area  of 
financial management, audit and control resulting in a commensurate 
increase  in  the  number  of  training  days  to  10 550  (53%  increase 
compared to 2003).  

in 

Also,  a  competition  for  candidates  from  new  Member  States  was 
launched  at  the  end  of  2004  in  the  field  of  finance  and  budget. 
Additional competitions are planned by EPSO in 2005. 

Action included in the objectives set in Annex 1. 

Action  to  be  continued.  Estimate  of  human  resources  devoted  to 
internal control, with a view to striking the right balance between the 
costs  of  control  and  the  expected  benefits,  has  been  proven  not 
obvious  as  many  different  aspects  can  be  covered  depending  on  the 
specific  environment  of  DGs  and  related  management  modes.  A 
thorough  analysis  of  the  job  descriptions  in  the  job  information 
system will be needed in this respect. 

Action included in the objectives set in Annex 1. 

EN 

26 

   EN 

 
FINANCIAL MANAGEMENT AND REPORTING 

2002 Action   Description 

Status 

2002 
Synthesis 
(§ 5.3.3.A) 

Shared management – Follow-up of Action 12
in the 2002 Synthesis. 

Audit in Shared management. 

2002 
Synthesis 
(§ 5.3.3.B) 

Co-financing. 

2002 
Synthesis 
(§ 5.3.4.) 

Recovery. 

2002 
Synthesis 
(§ 5.3.2. A) 

2002 
Synthesis 
(§ 5.3.7.) 

White  Paper 
(Actions  11 
and 74) 

Accounting framework. 

Development  of  a  database  of  legal  entities 
and of a database of contracts. 

Action  completed.  The  final  report  of  the  interservice  group  was 
adopted  early  May  2005.  It  identifies  the  current  procedures  in  the 
control  chain  as  recommended  by  European  Court  of  Auditors' 
opinion No 2/2004 and the areas for improvements as well as possible 
action.  The  necessary  action  in  this  context  will  be  covered  in  the 
frame roadmap towards an integrated internal control framework. 

Follow-up included in the objectives set in Annex 1. 

Action  ongoing.  Action  in  being  taken  in  the  audit  field,  aiming  in 
particular  at  developing  the  “contract  of  confidence”  initiative 
between  the  Commission  and  the  Member  States,  at  setting  up  a 
network  of  audit  units  involved  with  shared  management  in  the 
Commission  and  at  increasing  coordination  on  the  Structural  Funds 
and the Cohesion Fund. 

Action  completed.  The  outcome  of  this  action  is  reflected  in  the 
ongoing  amendment  of 
its 
Implementing Rules. Services are called upon to take benefit, where 
appropriate,  from  these  simplification  measures  as  soon  as  the  new 
rules enter into force. 

the  Financial  Regulation  and  of 

Follow-up included in the objectives set in Annex 1. 

Action  completed.  Performance  indicators  (i.e.  ageing  balances, 
quality  of  debtor,  status  of  the  files)  have  been  defined  by  the 
Accountant and are generally presented in the e annual management 
plans  of  the  services  most  concerned  by  this  issue.  As  any  other 
indicators, they will be object of follow-up and quality improvement 
where needed. 

Follow-up included in the objectives set in Annex 1. 

Action  completed.  Major  steps  forward  were  taken  in  2004,  where 
the  preparations  for  the  transition  to  accrual  accounting  were 
completed  to  allow  the  general  accounting  to  start  to  function  on  a 
full accrual basis from 1 January 2005. 

Action  completed.  A  database  of  legal  entities  and  a  database  of 
contracts  have  now  been  developed.  From  1 January  2005,  no 
payment  can  be  made  unless  the  recipient  legal  entity  has  been 
registered  and  validated  in  the  FEL  database.  From  April  2005,  all 
contracts  signed  during  the  year  must  be  registered  in  ABAC 
Contracts. 

EN 

27 

   EN 

 
GOVERNANCE ISSUES 

2002 Action   Description 

Status 

Interoperability. 

2001 
Synthesis 
(Action 7) 

White  Paper 
(Action 9b) 

Electronic signatures. 

2002 
Synthesis 
(§ 3.3.2.  and 
§ 3.3.3.) 

Coordination  of  the  Commission’s  audit 
community  and  Audit  Progress  Committee: 
Audit overview. 

Audit methodology. 

2002 
Synthesis 
(§ 3.3.3.) 

Action  completed.  communications  on  both 
interoperability 
(SEC(2004)  1265)  and  IT  governance  (SEC(2004)1267)  were 
adopted  by  the  Commission  in  2004.  The  implementation  phase  has 
started  and  a  number  of  activities  are  ongoing  (corporate  portal  and 
data-warehouse, IT Enterprise Architecture…) and will be monitored 
and reported upon. 

Action  essentially  completed.  In  the  framework  of  the  system  of 
electronic  administration  and  document-filing,  in  July  2004  the 
Commission  adopted  a  decision  adding  provisions  on  the  use  of 
electronic  and  numeric  documents  to  its  rules  of  procedure.  This 
decisions  lays  down  the  use  of  electronic  signatures  within  the 
Commission  in  cases  where  a  signed  original  document  is  required, 
which will be applied generally as soon as the implementing rules are 
adopted, by the end of 2005. 

Action  almost  completed.  Efforts  have  been  made  onto  wider  and 
more consistent use of the Audit Management Software, although it is 
not  used  by  all  Internal  Audit  Capabilities.  The  Audit  Progress 
Committee  reviewed  its  charter,  specifying  that  it  will  review  the 
IACs critical recommendations, through the bi-annual report prepared 
by  the  IAS  on  the  basis  of  finalised  audit  reports  sent  by  the  IACs. 
The Internal Auditor of the Commission chairs Auditnet, the network 
of IACs. 

Continuous  action.  Implementation  of  audit  recommendations 
accepted  has  improved  and  remains  an  ongoing  and  continuous  task 
for the Commission’s services. This process will be facilitated by the 
introduction of new functions in the Audit Management Software for 
the  follow-up.  Guidelines  on  follow-up  have  been  presented  by  the 
Internal Audit Service to the services’ Internal Audit Capabilities and 
to the Audit Progress Committee. 

EN 

28 

   EN 

 
 
Trends in services’ reservations 

Annex 3 

This annex sums up the reservations expressed by Commission services. In services' 2004 annual activity reports, 32 reservations were expressed (after 
49 in 2002 and again in 2003). The reservations are more precise and coherent, better circumscribed and, in most cases, explicit explanations are given 
of their impact on the services' reasonable assurance on the use of resources and the legality and regularity of operations. 'Families' of services have 
started  working  towards  a  more  consistent  approach  to  assess  the  materiality  of  weaknesses  detected  for  their  budgetary  area  and  to  determine  the 
potential financial impact of systemic weaknesses. 

The main deficiencies lying behind the reservations are generally recurring weaknesses, already pointed out in previous years and for which remedial 
action is in progress. The services provided overall conclusions on the combined impact of reservations on the declaration as a whole and, in the light 
of those reservations, reached a positive conclusion that the assurance provided in the declaration can be maintained. 

The table set out below gives an overview of the reservations issued by the services in 2002, 2003 and 2004 by 'families' of services. 

DG 

2004 reservations 

2003 reservations 

2002 reservations 

AGRI 

3 

1. EAGGF Guidance: MS control systems 
2. IACS in Greece; 
3. "Hilton" beef 

REGIO 

3 

1. Management and control systems for 
ERDF in one Member State; 
2. Management and control systems for the 
Cohesion Fund in one Member State - 
2000/06; 
3. Management and control systems of 
ISPA in one candidate country 

5 

5 

1. EAGGF Guidance programmes; 
2. International Olive Oil Council; 
3. Import of Basmati rice;  
4. IACS in Greece; 
5. "Hilton" beef 

1. Management and control systems for ERDF in 
Greece - 2000/06; 
2. Management and control systems of URBAN & 
INTERREG - 2000/06; 
3. Management and control systems for ERDF in Spain 
- 2000/06; 
4. Management and control systems for the Cohesion 
Fund in Greece, Spain and Portugal - 2000/06; 
5. Management and control systems of ISPA 

5 

4 

1. EAGGF Guidance programmes; 
2. International Olive Oil Council; 
3. Import of Basmati rice; 
4. IACS in Greece; 
5. Export refunds 

1. ERDF post-2000; 
2. Cohesion Fund post-2000; 
3. Community Initiatives 2000-2006; 
4. Cohesion Fund pre-2000 

EN 

29 
EN 

 
 
 
  
 
 
EMPL 

1 

1. European Social Fund - Member states' 
management and control systems of some 
operational programmes 

FISH 

1 

1. FIFG: Insufficient implementation of 
management and control systems for two 
national programmes in one Member State 

JRC 

1 

1. Cash flow - competitive activities 

1 

1 

1 

1. European Social Fund - Member states' management 
and control systems  

1. FIFG expenditure. Analysis of the Management and 
Control systems not yet completed for all Member 
States 

1. Cash flow, assets and liabilities from competitive 
activities 

RTD 

1 

1. Frequency of errors in shared cost 
contracts 

1 

1. Frequency of errors in shared cost contracts 

1 

1 

1 

2 

2 

1. European Social Fund - Member states' 
management and control systems  

1. FIFG expenditure. Analysis of the Management 
and Control systems not yet completed for all 
Member States 

1. Sound financial management: income and cash 
management 

1. COST secretariat; 
2. Frequency of errors in shared cost contracts 

1. Frequency of errors in shared cost contracts; 
2. Research staff working on operational tasks 

INFSO 

2 

1. Frequency of errors in shared cost 
contracts; 
2. Research staff working on operational 
tasks 

ENTR 

2 

1. Frequency of errors in shared-cost 
contracts in the research area; 
2. Uncertainty regarding cost claims of the 
European Standardisation Organisations 

TREN 

4 

1. Frequency of errors in shared cost 
contracts; 
2. Contractual environment of DG TREN 
in Luxembourg; 
3. Nuclear safety; 
4. Inventory in nuclear sites 

EAC 

0 

0 

EN 

2 

1. Frequency of errors in shared cost contracts; 
2. Research staff working on operational tasks 

2 

6 

3 

1. Frequency of errors in shared-cost contracts in the 
research area; 
2. Financial management of conferences organised 
under the Innovation Programme 

1. Frequency of errors in shared cost contracts; 
2. Burden of the past; 
3. Contractual environment of DG TREN in 
Luxembourg; 
4. Expertise for control of nuclear security; 
5. Nuclear safety; 
6. Verifications under Art. 35 of the Euratom Treaty 

1 

1. Frequency of errors in shared-cost contracts in the 
research area 

5 

1. Frequency of errors in shared cost contracts; 
2. Burden of the past; 
3. EURATOM security control Office; 
4. Expertise for control of nuclear security; 
5. Nuclear safety 

1. Burden of the past (observation in 2002 AAR); 
2. On the spot controls (observation in 2002 AAR); 
3. Implementation of Art. 35 of FR Implementing Rules 

0 

0 

30 
EN 

 
 
 
ENV 

0 

0 

2 

1. Potentially abnormal RAL2. Grants - Eligible costs 

5 

1. Shortcomings in the development of financial 
circuits 
;2. Excessive potential abnormal RAL 
;3. Excessive payment delays 
;4. Declaration of eligible costs in relation to grants 
;5. Verifications under Article. 35 of the Euratom 
Treaty 

SANCO 

0 

0 

1. Weakness of the systems for 
management of the European Refugee 
Fund in the United Kingdom and 
Luxembourg; 
2. Implementation of ex-post on-the-spot 
controls still incomplete 

1. Errors in the declaration of eligible costs 
in relation to grants; 
2. Insufficient number of ex-post controls 
carried out in 2004 

0 

0 

0 

0 

0 

0 

JLS 

2 

ESTAT 

2 

TAXUD 

0 

MARKT 

COMP 

ECFIN 

TRADE 

AIDCO 

0 

0 

0 

0 

0 

EN 

3 

1 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

3 

1. Internal control standard 16: Separation of tasks 
2. Internal control standard 17: Supervision 
3. European Refugee Fund  

1. Errors in the declaration of eligible costs in relation 
to grants; 
2. Weakness in project management procedures; 
3. Insufficient number of ex-post controls carried out in 
2003 

2 

1. Project management; 
2. Ex-post control 

1. Monitoring of the application of preferential 
treatment 

0 

0 

1 

0 

2 

0 

0 

1. Late payment of expenses for experts 

0 

1. Macro-financial assistance to third countries; 
2. Internal financial management 

0 

0 

0 

0 

0 

1 

0 

1. Partnership with an NGO association 

31 
EN 

 
 
 
ELARG 

1 

1. Gaps in Romania's and Bulgaria's 
capacity to manage and implement 
increasing amounts of aids 

3 

1. Inherent risk in decentralised systems; 
2. Gaps in systems and transaction audits; 
3. Uncertainties regarding claims of financial 
intermediaries 

3 

1. System audits in candidate countries; 
2. Closure audits; 
3. Uncertainties regarding claims of financial 
intermediaries 

ECHO 

1 

1. Non-compliance with the contractual 
procurement procedures by a humanitarian 
organisation for projects funded by ECHO 

DEV 

0 

0 

0 

0 

0 

0 

0 

0 

1 

1. Financial operations and procedures 

RELEX 

2 

1. Internal control standards in Directorate 
K; 
2. Internal control standards in Delegations 

PRESS 

2 

1. Relays and networks - major centres; 
2. Functioning of Representations in EUR-
15 

2 

3 

1. Internal control standards in Directorate K; 
2. Internal control standards in Delegations 

1. Relays and networks; 
2. Representations; 
3. Copyrights - press cuts 

2 

2 

1. Internal control standards in Directorate K; 
2. Internal control standards in Delegations 

1. Relays and networks; 
2. Representations 

ADMIN 

DIGIT 

PMO 

OIB 

OIL 

EPSO 

0 

0 

1 

0 

0 

0 

OPOCE 

0 

EN 

0 

0 

0 

0 

 - 

1. Council's sickness insurance office; 

2 

1. Council's sickness insurance office; 
2. Paul Finet Foundation 

0 

0 

0 

0 

1 

1. Lack of long-term planning of buildings policy. 

0 

0 

0 

0 

0 

0 

1 

1. Charlemagne 

 - 

- 

 - 

 - 

 - 

2 

1. Secondary legislation project; 
2. Consolidation project 

32 
EN 

 
 
 
 
 
 
 
 
 
1. Accrual accounting for the Community 
and the European Development Fund 
budgets; 
2. Subsystems of SINCOM 2: access 
control 

0 

0 

0 

0 

0 

1. Audit of Community agencies 

0 

BUDG 

2 

SG 

GOPA 

SJ 

SCIC 

DGT 

IAS 

OLAF 

0 

0 

0 

0 

0 

1 

0 

TOTAL 

32 

3 

0 

0 

0 

0 

0 

1 

0 

4
9 

1. Accrual accounting; 
2. Sincom subsystems; 
3. Accounting management of European Development 
Fund 

0 

0. 

0 

0 

0 

1. Audit of Community agencies 

0 

1. Accrual accounting;  
2. Sincom subsystems 

0 

0 

0 

1. Freelance interpreters 

0 

0 

0 

2 

0 

0 

0 

1 

0 

0 

0 

4
9 

EN 

33 
EN