2006/877/EC: Decision No 3/2006 of the ACP-EC Committee of Ambassadors of 27 September 2006 on the Financial Regulation of the Technical Centre for Agricultural and Rural Cooperation (CTA)
Date: 2006-09-27
Institutions: ACP Committee of Ambassadors
Subjects: ACP countries, agricultural policy, dissemination of information, financial regulation, rural development

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II

(Acts whose publication is not obligatory)

DECISION No 3/2006 OF THE ACP-EC COMMITTEE OF AMBASSADORS

of 27 September 2006

on the Financial Regulation of the Technical Centre for Agricultural and Rural Cooperation (CTA)

(2006/877/EC)

THE ACP-EC COMMITTEE OF AMBASSADORS,

Having regard to the Partnership Agreement between the Mem-
bers 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 (1) (here-
inafter
the Agreement), and in particular
Article 3(4)(b) and (d) of Annex III thereto,

referred to as

Having regard to the Internal Agreement of 18 September 2000
between Representatives of the Governments of the Member
States, meeting with the Council, on the Financing and Admin-
istration of Community aid under the Financial Protocol to the
Partnership Agreement between the African, Caribbean and
Pacific States and the European Community and its Member
States signed in Cotonou (Benin) on 23 June 2000 and the allo-
cation of financial assistance for the Overseas Countries and Ter-
ritories to which Part Four of the EC Treaty applies (2),

(2)

Article 3(4)(d) of Annex III to the Agreement requires the
Committee of Ambassadors to lay down, after the signa-
ture of the Agreement, the procedures for the adoption
of the Centre’s budget,

HAS DECIDED AS FOLLOWS:

CHAPTER I

GENERAL PRINCIPLES

SECTION 1

Principles of unity, budget accuracy,
equilibrium and unit of account

Article 1

Having regard to the Financial Regulation of 27 March 2003
applicable to the 9th European Development Fund (3),

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.

Having regard to the proposal from the Commission drawn up
in agreement with the Technical Centre for Agricultural and Rural
Cooperation,

The revenue and expenditure shown in the budget shall be

2.
in balance.

Whereas:

(1)

Article 3(4)(b) of Annex III to the Agreement requires the
Committee of Ambassadors to lay down, after the signa-
ture of the Agreement, the Financial Regulation of the
Technical Centre for Agricultural and Rural Cooperation
(hereinafter referred to as the Centre).

Article 2

The budget shall be established and implemented in euro and the
accounts shall be presented in euro. However, for its manage-
ment needs, the Centre is authorised to carry out operations in
the national currencies of EU Member States and ACP States.

Article 3

(1) OJ L 317, 15.12.2000, p. 3. Agreement as last amended by the Agree-
ment signed in Luxembourg on 25 June 2005 (OJ L 287, 28.10.2005,
p. 4).

(2) OJ L 317, 15.12.2000, p. 355.
(3) OJ L 83, 1.4.2003, p. 1.

1.
Revenue shall include the contribution by the European
Development Fund (hereinafter referred to as EDF), the amount
levied in taxes on the salaries, wages and other emoluments paid
by the Centre, and other miscellaneous receipts.

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Revenue may also include contributions from other donors

2.
to the budget of the Centre.

SECTION 2

Principles of sound financial management

The Centre is also authorised to manage resources on behalf
3.
of third parties and intended to co-finance activities defined in
Annex III of the Agreement. The financial rules applicable to the
management of these resources are set out in Article 34 of this
Decision.

Article 4

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

Article 5

The
1.
to 31 December.

financial

year

shall

run

from 1

January

Appropriations entered in the budget shall be authorised

2.
for a period of one financial year.

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. Appropriations
which have been carried over to the following financial year shall
be distinguished in the accounts of the current year.

Appropriations decommitted at the end of a financial year shall
be transferred to the five-year period allocation planned for the
Centre in the Agreement.

3.
At the end of each Financial Protocol to the Agreement,
appropriations committed but not paid shall be carried over auto-
matically to the next Financial Protocol to the Agreement. Appro-
priations committed but not paid at the end of the Agreement
shall be carried over only during the transitional period between
the Agreement and the next Agreement or, where appropriate,
during the settlement period of 12 months.

4.
If, at the beginning of a financial year, the budget has not
yet been adopted, the Director may, in order to ensure the con-
tinuity of the Centre’s operations, incur monthly expenses on
condition that they do not exceed one-twelfth of the appropria-
tions entered under the relevant article in the budget for the pre-
vious financial year.

However, for the operating expenses payable quarterly in advance
and approved in the previous financial year’s budget, the com-
mitment operations may be implemented per article provided
they do not exceed a quarter of the overall appropriations autho-
rised for the previous financial year.

Article 6

1.
Budget appropriations shall be used in accordance with
sound financial management, that is to say based on the prin-
ciples 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 pos-
sible, 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 obtained.

The principle of effectiveness is concerned with attaining the spe-
cific objective set and achieving the intended results.

3.
Objectives should be clearly defined and their implementa-
tion monitored with the help of measurable indicators. Where
appropriate, projects to be funded from EDF resources should be
supported by ex-ante assessments. The result of those asses-
sments shall be included in the documents submitted to the Com-
mission in support of the annual EDF contribution requested by
the Centre.

CHAPTER II

ESTABLISHMENT OF THE BUDGET

Article 7

In the framework of the overall strategy paper and within
1.
the limits of the overall budget allocated to the Centre by the
Financial Protocol, the Director shall prepare a draft annual work
programme and budget. Those drafts shall be approved by the
Executive Board no later than 1 July of the year prior to that of
their implementation and shall be submitted to the Committee
of Ambassadors for adoption.

2.
The Centre shall transmit a copy of the draft annual work
programme and budget to the Commission, which shall initiate
the Community procedures necessary for their approval.

3.
The budget shall be available for commitment as from the
date on which the Community authority adopts the decision on
the financing of the requested EDF contribution. The Centre shall
be informed of that decision.

Article 8

1.
The payment arrangements governing the EDF’s contribu-
tion shall be set out in a grant agreement signed between the
Commission and the Centre.

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The contribution of previous financial years corresponding
2.
to cancelled appropriations shall be repaid to the EDF by the
Centre on the basis of audited financial statements.

Also by way of derogation from that rule, the following amounts
may be reused against the same category (line) of the initial
expense:

The budget shall be subdivided into titles (budget headings),
3.
chapters, articles and items according to the nature or purpose
of the revenue or expenditure.

(a)

refunds of amounts paid in error;

(b)

insurance payments received;

Article 9

Where necessary, the Director may submit a draft supplemen-
tary or amending budget which shall be established in the same
form and subject to the same procedures as the budget whose
estimates it amends.

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

tions disposed of when replaced;

(d)

the receipts obtained from the sale of publications and films;

CHAPTER III

IMPLEMENTATION OF THE BUDGET

(e)

the exchange rate differences recorded during budgetary
implementation may be offset. The final result, whether posi-
tive or negative, shall appear in the financial statement.

Article 10

1.
The Director shall ensure that the budget is implemented
on the Director’s own responsibility and within the limits of the
appropriations allocated. The Director shall report on his man-
agement to the Executive Board.

2.
The Director must apply the budget appropriations in
accordance with the principles of sound financial management
as referred to in Article 6.

Article 12

Transfers from one title to another shall be submitted for the
approval of the Executive Board. 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 Executive
Board accordingly.

Article 11

Article 13

No revenue or expenditure may be effected unless charged

1.
to the appropriate article of the budget.

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

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

CHAPTER IV

FINANCIAL CONTROL

Revenue and expenditure shall be entered in full in the

2.
accounts without any adjustment against each other.

Article 14

By way of derogation from that rule, the following shall be
deducted from the amounts authorised:

(a)

fines imposed on a party to a contract;

1.
A financial controller appointed by the Executive Board
shall be responsible for the prior approval of the commitment
and authorisation of all
items of expenditure, revenue and
advances.

(b) adjustment of amounts paid in error, which may be achieved
by means of deduction when a subsequent validation is
effected under the chapter, article and financial year in
respect of which the excess payment was made;

(c)

the value of vehicles, equipment and installations taken in
part exchange upon purchase of new items of the same kind;
the net purchase price shall be entered in the accounts at
historical cost for the valuation of the inventory;

(d)

the discounts deducted from invoices and accounts.

The financial controller shall have proven experience in
2.
financial regulations of international organisations and auditing.

The financial controller shall be subject to the conditions
3.
of employment of the staff of the Centre. As such, he shall report,
for administrative purposes, to the Director of the Centre. How-
ever, any measure relating to disciplinary action, suspension, ter-
mination of service or legal proceedings shall be adopted by the
Executive Board on the basis of a reasoned proposal by the
Director.

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The checks performed by the financial controller shall result
4.
in the granting or refusal of endorsement. The purpose of
endorsement shall be to ensure that:

Collection and payment operations shall be carried out by

2.
the accounting officer.

(a)

the expenditure or revenue is consistent with the budget and
the regulations;

(b)

the principles of sound financial management referred to in
Article 6 have been applied.

The checks shall be performed in accordance with rules of inter-
nal procedure submitted by the Director to the Executive Board
and approved by the latter.

5.
Refusals to endorse shall be the subject of a written state-
ment of reasons addressed to the Director. Unless the reason is
lack of sufficient appropriations, the Director may, by means of
a reasoned decision and under his own responsibility, disregard
the financial controller’s refusal to endorse. The Director shall
inform the Executive Board in writing of any such decisions at
its next meeting.

6.
The financial controller shall have access to all supporting
documentation and any other documents relating to expendi-
ture or revenue to be checked. The financial controller may carry
out checks on the spot.

7.
The financial controller shall enjoy full independence in the
performance of his duties. The financial controller shall receive
no instructions and shall be subject to no restrictions in the per-
formance of his duties.

8.
The Director may request the financial controller’s opinion
on matters relating to the analysis, organisation and improve-
ment of the Centre’s internal procedures. The Director may also
ask the financial controller to review documents to ascertain
whether operations financed by the budget were carried out
properly.

9.
At the end of each financial year, and by 30 April of the
following year at the latest, the financial controller shall draw up
an annual report giving an opinion on the financial administra-
tion and implementation of the budget. The financial controller
shall forward this report to the Director, who shall submit it with
his own comments to the Executive Board at its next meeting.

CHAPTER V

ADMINISTRATION OF THE BUDGET

Article 15

The authorising officer may not exercise the functions of

3.
accounting officer.

Article 16

All measures which may give rise to expenditure payable
1.
by the Centre must be preceded by a commitment proposal
accompanied by supporting documents, which shall be transmit-
ted in advance to the financial controller for prior approval.

Recurrent expenditure may be covered by a provisional

2.
commitment.

An account shall be kept of commitments and payment
3.
orders. Accounting records of commitments and authorisations
shall be kept.

Article 17

The purpose of validation of expenditure by the authoris-

1.
ing officer shall be to:

(a) verify the existence of the rights of the creditor;

(b) determine and check the existence and the amount of the

debt claim;

(c)

check the conditions on which payment is due.

Any payment of expenditure incurred shall be based on
2.
supporting documents confirming the claimant’s right to pay-
ment for services effectively provided, goods 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.
Authorisation shall be the act whereby the authorising
officer, by the issue of a payment order, instructs the accounting
officer to pay an item of expenditure which he has cleared.

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

The budget of the Centre shall be administered in accor-
1.
dance with the principle that authorising officers and account-
ing officers fulfil separate functions. The appropriations shall be
administered by the authorising officer, who alone shall have the
power to enter into commitments regarding expenditure, estab-
lish sums due to be collected and issue revenue and payment
orders.

Copies of the supporting documents, certified as true cop-
3.
ies by the authorising officer, may, in some cases, be accepted in
place of the originals.

The payment order shall be transmitted to the accounting

4.
officer for payment.

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If applicable, the payment order transmitted to the account-
5.
ing officer shall be accompanied by a certificate to the effect that
the relevant assets have been recorded in the inventory.

Article 19

Payment shall be the final act whereby the Centre is dis-

1.
charged of its obligations towards its creditors.

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

The measures governing imprest accounts shall contain

3.
specific provisions concerning in particular:

(a)

the appointment of administrators of imprest accounts;

Payment shall be made by the accounting officer within the

2.
limits of the funds available.

(b)

the responsibility of the administrators of imprest accounts;

3.
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 account-
ing officer shall suspend payment. The accounting officer shall
immediately inform the authorising officer and the financial con-
troller of the suspension and the reasons for it.

When payments are suspended, the Director may require in writ-
ing, and on his own responsibility, that payment be effected. In
such cases, the Director shall inform the Executive Board in writ-
ing at its next meeting.

(c)

the maximum amount of
advanced;

the imprest which may be

(d)

the nature and maximum amount of each item of expendi-
ture to be incurred;

(e)

the arrangements and the time limits for producing support-
ing documents.

4.
The authorising officer and the accounting officer shall take
the necessary steps to clear authorised advances for the exact
amounts involved within the required time limits.

Article 20

Article 22

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 shall be 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: that of the accounting officer and that of the autho-
rising 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.

4. Where revenues and expenditure are managed on com-
puter, the signatures may be added by computerised or electronic
means.

5.
In the absence of the actual exchange rates used, the con-
version 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 Cen-
tre’s bank or post office.

Article 21

1.
For the payment of certain categories of expenditure,
defined in the internal regulations under implementation proce-
dures, imprest accounts may be set up in accordance with the
conditions laid down by the Centre.

The Director shall be the authorising officer for the appro-

1.
priations 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

The Director shall appoint an accounting officer who is

1.
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;

(c) keeping the accounts in accordance with Article 25;

(d)

implementing the accounting rules and methods as well as
the accounting plan, drawing on rules framed by the
accounting officer of the Commission;

(e) defining and validating the accounting systems as well as,
where applicable, the systems defined by the authorising
officer and intended to provide and justify the accounting
information;

(f)

treasury management by common agreement with the
Director.

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The accounting officer shall obtain from the authorising
2.
officer, who guarantees its reliability, all the information neces-
sary for drawing up accounts which present a true and fair view
of the Centre’s financial assets and the implementation of the
budget.

The Centre shall establish no later than 30 April of the year

3.
N+1 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.

In accordance with paragraph 1 of

3.
this Article and
Article 21, the accounting officer shall be the only person autho-
rised to handle cash and securities. The accounting officer shall
be responsible for their safe-keeping.

The revenue and expenditure account shall include:

(a) a ‘Revenue’ table comprising:

4.
The accounting officer may, for the accomplishment of the
tasks entrusted to him and with the Director’s consent, delegate
certain functions to staff members of the Centre placed under
accounting officer’s direct responsibility. The relevant authority
or power of attorney shall define the tasks entrusted to the prox-
ies, as well as their rights and obligations.

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. Rev-
enue orders shall be approved by the financial controller.

The accounting officer shall assume responsibility for rev-

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

A receipt shall be issued in respect of all cash payments

3.
made to the accounting officer or imprest administrator.

CHAPTER VI

ACCOUNTS, RENDERING AND CHECKING
OF FINANCIAL STATEMENTS, AUDIT,
COURT OF AUDITORS, OLAF

— revenue estimates for the calendar year,

— changes with respect to the revenue estimates,

— entitlements arising during the calendar year,

— amounts pending recovery at the end of the calendar

year,

— additional revenue;

(b) an ‘Expenditure’ table comprising:

— a summary table of committed appropriations, appro-
priations carried over from year N and cancelled
appropriations,

— a summary table of appropriations carried over from

year N-1 and cancelled appropriations,

— a table giving an overall view of commitments and

authorisations for year N,

— a table giving an overall view of commitments and
authorisations for appropriations carried forward from
year N-1;

(c) notes on the financial statements comprising:

Article 25

— the accounting principles applied,

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 make 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 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.

— detailed notes and calculations explaining the line items

in the statements,

— any explication required to ensure transparency of the

accounts.

4.
Each quarter a statement shall be drawn up and sent to the
Committee of Ambassadors showing the situation as regards
implementation of the current budget and use of the appropria-
tions carried over; this statement shall be certified by the finan-
cial controller and forwarded to the Executive Board.

Article 26

1.
The Executive Board shall appoint a firm of auditors of
international standing for a maximum of three years on the basis
of a recommendation from the Centre’s Director and following
a call for tenders.

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The auditors’ mandate shall be to audit the books and the
2.
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.

The Court of Auditors may check that revenue has been received
and expenditure incurred in a lawful and proper manner and that
the provisions of the Agreement and of the Financial Regulation
of the Ninth EDF have been complied with.

3.
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 financial management has
been sound.

The auditors shall certify that the financial statements have
4.
been drawn up properly and in accordance with International
Accounting Standards, and that they give a true and fair over-
view of the financial position of the Centre.

5.
The auditors shall prepare a report by 30 June at the latest
following the end of each financial year. The report shall be trans-
mitted to the Director, who shall forward it together with his
comments, if any, to the Executive Board, which shall submit it
to the Committee of Ambassadors with its recommendations.

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

The auditors shall advise the Centre on dealing with risks
6.
by issuing independent opinions on the quality of management
and control systems and by issuing recommendations for
improving the conditions of implementation of operations and
promoting sound financial management.

The auditors shall be responsible for:

(a) assessing the appropriateness and effectiveness of internal
management systems and performance of the Centre in car-
rying out programmes and taking the steps required in the
light of the associated risks;

and

(b) assessing the appropriateness and the quality of internal con-

trol systems for budget implementation operations.

7.
The auditors shall audit all of the Centre’s activities and
units. They shall have full and unlimited access to all the infor-
mation necessary for the performance of their duties.

Article 27

The Commission (on behalf of the Community), the Court of
Auditors and the European Anti-Fraud Office (OLAF) may con-
trol the financing received by the Centre from the EDF in accor-
dance with the Financial Regulation of the Ninth EDF.

CHAPTER VII

RESPONSIBILITIES OF THE AUTHORISING OFFICERS,
ACCOUNTING OFFICERS AND IMPREST ADMINISTRATORS

Article 28

Authorising officers who, when establishing entitlements to be
recovered, issuing recovery orders, entering into a commitment
of expenditure or signing a payment order, do so without com-
plying 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 recov-
ery 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

The accounting officer shall render himself liable to disci-
1.
plinary action and, where appropriate, to payment of compensa-
tion as regards payments made by him in breach of Article 19.

The accounting officer 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 was
the result of serious negligence on his part.

Under the same conditions, the accounting officer shall be
responsible for the correct execution of orders received by him
in respect of the use and the administration of bank and post
office cheque accounts, and in particular:

(a) where the recoveries or payments made by him do not agree
with the amount on the corresponding recovery or payment
orders;

(b) where he effects payment to a party other than the entitled

payee.

2.
Imprest administrators shall render themselves liable to dis-
ciplinary action and, where appropriate, to payment of compen-
sation in the following cases:

(a) where they cannot show due warrant with proper docu-

ments for payments made by them;

(b) where they effect payments to a party other than the entitled

payee.

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They shall be liable to disciplinary action and to payment of com-
pensation in respect of any loss or deterioration of the monies,
assets and documents in their charge where such loss or deterio-
ration was caused intentionally or was the result of serious neg-
ligence on their part.

Article 30

The accounting officers and imprest administrators shall

1.
insure themselves against the risks arising under Article 29.

The Centre shall cover the insurance costs relating thereto. It shall
specify staff members serving as accounting officers 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 offic-
ers and imprest administrators. The level of these allowances shall
be laid down in a regulation drawn up by the Centre and
approved by the Executive Board. 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 estab-
lish a guarantee fund for the purpose of covering any cash or
bank shortage for which the person concerned might render him-
self 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 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.

The discharge to the accounting officer and imprest admin-
3.
istrator shall be given by the Director, based on the external audi-
tors’ report, within two years of the transmission of the financial
statements to the Committee of Ambassadors.

Article 31

Liability for payment of compensation and disciplinary action of
authorising officers, accounting officers and imprest administra-
tors shall be determined in accordance with the provisions of the
rules applicable to the staff of the Centre.

CHAPTER VIII

GENERAL AND FINAL PROVISIONS

Article 33

The award of contracts shall comply with the general regula-
tions concerning services, works and supplies as laid down by
Decision No 2/2002 of the ACP-EC Council of Ministers of
7 October 2002 regarding the implementation of Articles 28, 29
and 30 of Annex IV to the Cotonou Agreement (1).

The arrangements for implementing the above general regula-
tions shall be laid down in an internal regulation approved by
the Executive Board after obtaining the opinion of
the
Commission.

Article 34

1.
Pursuant to its mandate, the Centre may also manage
appropriations on behalf of third parties. The list of these
resources shall be given in an annex to the budget of the Centre.

This Financial Regulation shall be applicable to the man-

2.
agement of these resources.

Separate accounts shall be kept for the management of

3.
these resources on behalf of third parties.

4.
The financial statements of each fund managed by the Cen-
tre 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 cer-
tified in accordance with the provisions of the agreement signed
between the Centre and the third party.

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

The financial statements shall be attached as an annex to

5.
the financial statements of the Centre.

Article 32

Article 35

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, on account of family
or personal relationships, because of his national or political
affinities, economic interests or for any other reason where his
interests are linked to those of the beneficiary.

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

Any sale of movable property and equipment of a unit pur-

2.
chase value in excess of EUR 350 shall be suitably advertised.

(1) OJ L 320, 23.11.2002, p. 1.

12.12.2006

EN

Official Journal of the European Union

L 350/9

A record signed by both the Director and the person
3.
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 physical and accounting inventories shall be reconciled
at the end of each financial year. The reconciliation shall be
approved by the external auditors.

Article 37

The Financial Regulation of the Centre approved by Decision
No 2/91 of
the ACP-EEC Committee of Ambassadors of
19 April 1991 is hereby repealed.

Article 38

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

Article 36

Done at Brussels, on 27 September 2006.

The ACP States, the Member States and the Community shall be
bound, each to the extent to which they are concerned, to take
the measures necessary to implement this Decision.

For the Committee of Ambassadors
The Chairman
R. MAKONGO