Communication from the Commission to the European Parliament, the Council and the European Court of Auditors - Synthesis of the Commission’s management achievements in 2006
Date: 2007-05-30
Institutions: European Commission
Subjects: European Commission, activity report, administration of the Institutions, financial management, management accounting, personnel administration

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.5.2007 
COM(2007) 274 final 

COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE EUROPEAN 
COURT OF AUDITORS 

Synthesis of the Commission’s management achievements in 2006 

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COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE EUROPEAN 
COURT OF AUDITORS 

Synthesis of the Commission’s management achievements in 2006 

1. 

INTRODUCTION 

Each Director-General and Head of Service reports annually to the College of Commissioners 
on the performance of his or her duties in the form of an Annual Activity Report. 

By  adopting  this  Synthesis,  the  Commission  assumes  its  political  responsibility  for 
management by its Directors-General and Heads of Service, on the basis of the assurances and 
reservations  made  by  them  in  these  Reports,  while  acknowledging  that  further  efforts  are 
needed  to  resolve  a  number  of  weaknesses.  It  complements  the  Synthesis  of  policy 
achievements in 2006 adopted by the Commission on 28 February 20071. 

This  Communication  reports  on  how  the  Commission  has  performed  its  management 
responsibilities and on the assurance its internal controls systems provide and summarises the 
conclusions of the Annual Activity Reports. It examines where Directors-General or Heads of 
Service  have  made  reservations,  and  presents  an  initial  analysis  of  how  the  underlying 
weaknesses  can  be  addressed.  Finally,  it  examines  views  from  beyond  the  Annual  Activity 
Reports  and  addresses  a  number  of  important  cross-cutting  issues  raised  by  the  Director-
General  for  Budget,  the  Internal  Auditor,  the  European  Court  of  Auditors,  the  Discharge 
Authority or identified by the Audit Progress Committee. 

2. 

ASSURANCE GATHERED THROUGH THE ANNUAL ACTIVITY REPORTS 

Having examined the Annual Activity Reports, in particular the declarations signed by each 
Director-General  and  Head  of  Service,  the  Commission  notes  that  all  delegated  authorising 
officers indicated reasonable assurance as to the adequate use of resources (albeit qualified in 
some  cases)  and  on  the  fact  that  the  implemented  control  procedures  give  the  necessary 
guarantees concerning the legality and regularity of the underlying transactions. These are the 
two key requirements that justify their statements of assurance. 

At the same time, delegated authorising officers also disclosed residual weaknesses and made 
reservations  in  the  appropriate  cases.  This  section  examines  the  main  control  issues  raised, 
including reservations, by method of budget implementation.  

In some cases a difference exists between the European Court of Auditors' assessment of the 
assurance  to  be  drawn  from  control  systems  and  the  assurance  given  by  the  responsible 
Directors-General. This  reflects partly differences of opinion on the typology and impact of 
error  and  on  the  evaluation  of  systems  deficiencies,  and  partly  the  different  perceptions 
regarding  the  operation  of  financial  correction  mechanisms,  in  particular  the  fact  that  the 

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responsible Commission services apply a multi-annual system under which errors in one year 
may be detected and corrected in subsequent years, whereas the Treaty requires the Court to 
give an annual opinion. 

In  all  instances  where  there  is  a  difference  between  the  European  Court  of  Auditors' 
opinion and that of the Director-General, the latter will have to explain it in his/her next 
year’s Annual Activity Report. 

2.1. 

Direct  centralised  management:  a  complex  framework  that  challenges  the 
Commission’s responsibility 

The  majority  of  internal  policy  actions  are  directly  managed  by  the  Commission  in 
accordance with the basic act or programme concerned. Though some progress has been made 
in the legislation governing programmes for 2007-2013, most programmes are implemented 
under  a  complex  legal  framework,  requiring  the  reimbursement  of  actual  eligible  costs 
claimed  by  beneficiaries  and  with  a  high  number  of  beneficiaries  per  programme.  These 
characteristics represent a challenge for the Commission, which has to balance the need for a 
sufficient level of control with the cost of those controls. 

Several Annual Activity Reports have pointed to errors or inconsistencies from beneficiaries 
of  Community  grants  on  the  calculation  and  charging  of  staff  costs  reimbursable  as  direct 
costs.  In  addition,  some  Directorates-General  report  that  some  grant  beneficiaries  have 
significant  problems  in  providing  adequate  justification  for  these  staff  costs.  This  is  a 
recurring  issue  that  the  Commission  is  tackling  through  greater  recourse  to  lump-sums  and 
flat rates, insofar as possible under the revised financial rules. 

In 2006, the Directors-General for Research, Information Society and Media, Enterprise and 
Energy  and  Transport  issued  reservations  regarding  the  accuracy  of  cost  claims  under  the 
5th Framework  Programme  for  Research  and  Technological  Development  (FP5).  However, 
the Commission notes that the overall financial impact of errors is limited with regard to the 
materiality criteria set and that FP5 related payments are in the phasing out stage.  

As for the 6th Framework Programme for Research and Technological Development (FP6), 
the  Directors-General  for  Research  and  for  Information  Society  both  reported  insufficient 
evidence from ex-post controls in 2006, mainly due to the lack of a framework contract for 
such  controls  during  the  first  part  of  the  programming  period.  The  Commission  has  reacted 
promptly and vigorously to these two reservations by adopting an action plan to: 

–  Increase  staff  dedicated  to  ex-post  controls  and  related  functions.  The  Annual  Policy 
Strategy  for  2008  has  stipulated  that  38  research  posts  shall  be  redeployed  in  2007  to 
strengthen  the  ex-post  control  function  in  the  "research"  Directorates-General,  with  the 
possible addition of another 12 new posts in 2008; 

–  Implement  a  common  ex-post  control  strategy  and  methodology  across  research 
departments,  including  a  new  harmonised  sampling  approach  ensuring,  on  a  multiannual 
basis, a comprehensive coverage of the population through a statistically reliable selection 
methodology. This strategy will prioritise the detection and correction of systematic errors 
among  major  beneficiaries  while  covering  an  appropriate  representative  sample  of  the 
audited population; 

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–  Reinforced  coordination  and  integration  of  ex-post  controls  within  the  "research"  family, 

including joint audits; 

–  Introduce  more  ex-post  controls  and  a  better  balance  between  in-house  and  outsourced 
work. The Commission will perform 300 ex-post controls for FP6 in 2007, compared with 
the 45 carried out in 2006; 

–  Introduce  a  more  systematic  supervision  and  follow-up  of  ex-post  control  results  by 

management. 

The Audit Progress Committee has also invited the "research" Directorates-General to pursue 
simplification  and  to  fully  exploit  possibilities  of  the  use  of  flat  rates  and  lump-sums  in  7th 
Framework Programme for Research and Technological Development (FP7). 

The Commission recalls that errors in cost claims are  mainly due  to  the complexity of 
the legal framework, in particular the requirement for beneficiaries to claim actual staff 
costs. This requirement will continue to create problems for FP6 payments, even though 
reinforced  ex-post  controls  will  progressively  allow  more  remedies  to  take  place,  in 
particular  for  systemic  errors  through  application  of  audit  findings  to  non-audited 
projects and the imposition of liquidated damages where an auditee fails to adequately 
correct such systemic errors. 

Payments  under  FP7  should  benefit  from  the  new  procedures  agreed:  preliminary 
checks of cost methodology for beneficiaries with multiple participations and the use of 
average personnel costs will be introduced, where appropriate, and always in line with 
the  principle  of  sound  financial  management.  Moreover,  "agreed  upon  procedures" 
with  auditors  contracted  by  beneficiaries  of  FP7  grants  will  be  used,  to  ensure 
consistency of audit work and to provide the Commission with a basis to judge eligibility 
of expenditure and compliance with the rules; the certifiers will non longer be asked to 
express an opinion on the eligibility of costs but only to provide factual information on 
the basis of which the Commission will decide on the eligibility of expenditure. 

2.2. 

Shared  and  indirect  centralised  management:  reinforcing  the  role  of  Member 
States 

In  cases  of  shared  management  and  indirect  centralised  management,  different  levels  of 
management and control are involved. The Commission obtains its assurance from a number 
of sources, including certification by national authorities, annual implementation and control 
reports, results of audits by the Member States or by the European Court of Auditors, and of 
course audits by the Commission itself. 

The  Directors-General  for  Regional  Policy,  Employment,  Social  Affairs  and  Equal 
Opportunities and Agriculture and Rural Development have expressed reservations because of 
the  absence  of  reasonable  assurance  linked  to  management  and  control  system  weaknesses, 
mainly  in  programmes  or  measures  in  the  United  Kingdom,  Spain,  Sweden,  Slovakia, 
Slovenia,  Latvia,  Italy  and  Greece  and  programmes  under  the  INTERREG  Community 
initiative. For all three Directorates-Generals, the total amount at risk with these reservations 
is limited: the issue is the lack of assurance on the legality and regularity of certain underlying 
transactions.  The  Directors-General  decided  to  express  reservations  because  of  systemic 
deficiencies in some key elements of the Member States’ management and control systems. 
They note that the problems concerned have existed for some years, and that the responsible 

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authorities  have  not  taken  the  remedial  actions  required  by  the  Commission,  with  a 
consequent reputational risk for the Commission. 

To cover the financial risk for the EU budget, precise action plans for solving the problems 
have been established, with corrective actions required by the responsible national authorities. 
Where  appropriate,  and  in  particular  if  the  Member  States  do  not  themselves  make  the 
corrections necessary to address the risk to  Community payments, financial corrections will 
be  applied.  These  corrections  may,  in  certain  cases,  be  made  on  the  basis  of  extrapolating 
quantifiable  irregularities  from  individual  files  where  these  are  likely  to  occur  in  a  great 
number of similar cases or in the form of flat rate corrections in cases of systemic weaknesses. 
In  certain  cases  the  suspension  of  payments  was  already  contemplated,  launched  or  applied 
within the 2006 budget execution. 

The  Commission  gives  high  priority  to  resolving  the  problem  of  the  insufficient 
implementation  of  the  Integrated  Administration  and  Control  System  (IACS)  in  Greece, 
already the subject of previous reservations since 2002. For the period 1999-2006, financial 
corrections  totalling  € 479 million2  were  imposed  on  this  Member  State,  covering  the 
financial  risk  resulting  from  the  shortcomings  found.  Such  corrections  will  be  imposed  as 
long  as  is  deemed  necessary.  The  Commission  proposed  in  March  2007  to  amend  the 
regulation3 on the financing of the Common Agricultural Policy, to introduce a more effective 
way  for  the  Commission  to  reduce  or  suspend  payments  to  a  Member  State  in  the  event  of 
serious and persistent deficiencies. The national authorities involved in this case have set up a 
detailed action plan that the Commission will monitor closely. 

The  Commission  has  pursued  its  efforts  to  implement  a  single  audit  approach  under 
shared management, as indicated in its Progress report on the Commission Action Plan 
towards  an  Integrated  Control  Framework4  and  in  the  Annual  Activity  Reports.  For 
example,  the  Commission  has  improved  the  definition  of  control  responsibilities  and 
strengthened oversight of paying and certifying agencies. For the Structural Funds, the 
Commission has taken measures to encourage the coordination of audit standards and 
the  dissemination  of  best  practice.  Following  the  example  of  the  first  Dutch  national 
statement  on  EU  spending  in  the  Netherlands,  the  Commission  will  also  continue  to 
support the various national initiatives on national declarations on the use of European 
Union  funds.  The  revised  Financial  Regulation  provides  in  this  respect  that  Member 
States  shall  produce  an  annual  summary  at  the  appropriate  national  level  of  the 
available  audits  and  declarations.  In  agriculture,  this  requirement  was  already 
introduced in the sector specific legislation in 20065. 

Given  the  multi-annual  character  of  the  Structural  Funds,  Commission  supervision 
extends  throughout  the  programming  period,  from  planning  to  the  closure  of  the 
programmes. The control arrangements therefore operate on a multi-annual basis, with 
shortcomings  identified  and  addressed  over  the  entire  programming  period  and 
reasonable  assurance  as  to  the  legality  and  regularity  of  expenditure  assessed  on  this 

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The sum of € 451 mio specified in AAR 2006 has been updated, notably to include the latest corrections 
imposed on Greece by Commission Decision 2007/243/EC of 18 April 2007 (OJ L 106, 24.4.2007, p. 
55). 
Council Regulation (EC) No 1290/2005. 
COM(2007) 86 and SEC(2007) 311. 
Council Regulation (EC) No 1290/2005 and Article 7(5) of Commission Regulation (EC) No 885/2006. 

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basis.  Under  the  Action  Plan  towards  an  Integrated  Internal  Control  Framework,  the 
effectiveness of multi-annual corrective systems will be examined in 2007. 

The  Director-General  for  Justice,  Freedom  and  Security  has  detected  deficiencies  in  some 
management  and  control  systems  in  Italy  while  the  Director-General  for  Education  and 
Culture has identified weaknesses in some national agencies involved in indirect centralised 
management. The Commission is reinforcing its supervision. In the first case, payments were 
suspended  overall  in  2006.  In  the  second  case,  the  Commission  used  the  provisions  of  the 
Lifelong Learning and Youth in Action programmes to establish new rules6 for the designation 
and  revocation  of  national  agencies,  the  ex-ante  and  annual  declaration  of  assurance  by  the 
National  Authorities  and  the  control  and  audits  based  on  a  "single  audit  approach". 
Furthermore  the  national  agencies  will  be  given  better  instructions  and  specific  training. 
Simplification measures such as the wider use of flat rates are expected to reduce the risk of 
error. 

The  Commission  will  improve  the  supervision  of  the  national  agencies,  based  on  an 
increased  responsibility  of  the  national  authorities  managing  EU  funds  under  indirect 
centralised management and on a "single audit approach" for control and audits, so as to 
deal with these shortcomings. 

2.3. 

Joint management with international organisations 

For  management  tasks  delegated  to  international  organisations,  structured  agreements  with 
these  international  organisations,  and  in  particular  the  Financial  and  Administrative 
Framework  Agreement  (FAFA)  signed  between  the  Commission  and  United  Nations  (UN) 
Secretariat  in  April  2003,  to  which  a  number  of  specialised  agencies  have  also  adhered  in 
following years, provide a stable reference framework for joint management. Work is ongoing 
to further clarify specific clauses. 

As  the  level  of  EC  financing  channelled  through  this  mechanism  increases,  the  level  of 
controls carried out by the Commission on funds managed with the United Nations agencies 
is  being  reinforced.  This  is  in  line  with  the  views  expressed  by  the  Commission’s  Internal 
Auditor as regards the implementation of the agreement. 

The revised financial rules have introduced a clearer framework allowing better supervision 
and guarantees in the implementation of tasks entrusted to international organisations in the 
context of joint management. 

A  former  reservation  concerning  the  EU  contribution  to  UNMIK  Pillar  IV  in  Kosovo  was 
remedied through recoveries made during 2006 and through a new contractual agreement with 
the UN, which clarifies the sharing of responsibilities. 

The FAFA has provided a much needed reference framework for cooperation between 
very  diverse  partners  on  both  sides  of  the  EC/UN  partnership.  Being  a  relatively  new 
instrument, the parties to the agreement have set up joint working groups to deal with 
implementation  issues  while  training  initiatives  and  joint  guidelines  on  reporting, 
verification and visibility are currently being discussed by the Commission and the UN. 

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Decision C(2007) 1807 of 26 April 2007. 

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2.4. 

Conclusion 

The Commission notes that 15 Directors-General have made a total of 20 reservations in 
2006  (31  in  2005).  It  considers  that  this  implies  that  important  control  weaknesses 
identified  in  the  past  have  been  adequately  addressed  and  that  the  Commission  has 
continued to make progress in optimising its management in 2006. 

For  all  reservations,  the  delegated  authorising  officers  have  committed  themselves  to 
appropriate action plans to resolve the underlying weaknesses. The College will monitor 
the implementation of the remedial actions. 

It is essential to  obtain appropriate assurance from intermediary bodies  managing EU 
appropriations  on  behalf  of  or  together  with  the  Commission.  It  is  also  important  to 
apply  systematically  legal  provisions  imposing  remedial  measures,  such  as  recoveries, 
suspension of payments and financial corrections, when significant shortcomings in the 
legality and regularity of operations are detected. 

3. 

CROSS-CUTTING ISSUES 

3.1. 

Governance 

•  Governance statement 

The Internal Auditor considered that the governance architecture of the Commission had solid 
foundations. However, he also proposed that it should be more transparent. The Commission 
supports this suggestion and will make available a governance statement aimed at clarifying 
for  stakeholders  and  citizens  the  different  actors,  responsibilities  and  accountability 
mechanisms  within  the  Commission,  in  a  short,  accessible  text  to  be  placed  on  the  Europa 
website. 

•  Outsourcing and agencies 

Executive agencies are dealt with in Annex 3 to the present Synthesis. 

Thirty  regulatory  agencies  have  been  created  since  the  1970s.  In  February  20057,  the 
Commission  submitted  a  draft  Interinstitutional  Agreement  to  establish  a  comprehensive 
governance  framework  for  the  creation,  structure,  operation,  evaluation  and  control  of 
European  regulatory  agencies.  Progress  in  the  negotiations  subsequently  stalled,  but 
discussions on the substance were re-launched in the Council at the end of 2006. 

•  Simplification 

Following  its  Reform  progress  report  of  December  20058,  the  Commission  identified  a 
number  of  areas  for  simplification  and  streamlining,  notably  human  resource  allocation, 
internal  coordination,  internal  control  standards,  financial  management,  and  IT  tools  and 
priorities.  In  May  the  Commission  adopted  a  Communication  entitled  Human  Resources 
Management: simplifying procedures for staff and created a Task Force to consult staff and 

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COM(2005) 668. 

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propose measures to simplify administrative procedures and improve the services provided to 
staff.  As  a  pilot  project,  some  central  services  have  started  performing  internal  impact 
analyses. This might be extended to all new or revised corporate processes to ensure that they 
are simple, efficient and effective and do not entail unnecessary administrative burdens. 

In  the  area  of  financial  management,  the  revised  financial  rules  (revision  of  the  Financial 
Regulation  and  of  its  Implementing  Rules)  introduced  simplifications  such  as:  lighter 
documentation  requirements  for  small  grants  and  contracts;  facilitation  of  co-financing  by 
contributions in kind (for example through the work done free of charge by external partners 
of the beneficiary); possibility to waive the requirement to provide financial guarantees, based 
on a case-by-case risk assessment; a higher threshold above which beneficiary organisations 
must provide a certificate by an external auditor; an extension of the principle of transparency 
by  the  publication  of  all  beneficiaries  of  community  funds,  irrespective  of  the  entity  or 
authority involved in the implementation of the budget. 

However,  the  level  of  legislative  simplification  has  not  been  as  great  as  might  have  been 
hoped. While the next programming period is some way off, services should already prepare 
the ground for further simplification in the future. 

•  Transparency initiative 

Following  to  the  European  Transparency  initiative,  data  on  beneficiaries  of  shared 
management  funds  will  be  published.  The  Commission  believes  transparency  on  financial 
matters is an important element of accountability in the use of EU funds. 

•  Business continuity management 

A working document on business continuity management in the Commission was presented in 
20069, to help maintain essential services in time of disruption. 

•  Ethics 

As a part of a broader action to raise awareness on ethics and integrity issues, the Commission 
held an ethics day for its staff. 

•  Internal audit 

In March 2006, the Internal Auditor presented the first Overview Report on the follow-up of 
audit  recommendations,  which  indicates  that,  despite  some  progress,  half  of  the  critical  and 
very important recommendations have not been implemented before the set target dates. The 
Audit  Progress  Committee,  whose  primary  task  is  to  report  annually  to  the  College  on  the 
follow-up by Commission services of recommendations from the Internal Auditor, alerted the 
Cabinets to the fact that some departments were lagging behind and asked them to monitor the 
follow-up  by  their  departments.  The  Audit  Progress  Committee  will  reinforce  this 
surveillance in 2007. 

Whilst  noting  that  action  plans  have  been  made  by  the  auditees  for  all  accepted  IAS 
recommendations  and  that  a  high  level  of  implementation  of  these  action  plans  has  been 
reached, the Commission will build on the progress made in 2006 to ensure the timely follow-

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SEC(2006) 899. 

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up  of  all  audit  recommendations.  It  will  encourage  greater  dialogue  between  the  audit 
community and auditees. This should promote common understanding, ensure that the auditor 
formulates focused recommendations and encourage services to give priority to implementing 
them within the required timescale. 

In his annual report for 2006, the Internal Auditor underlined the need for more coordinated 
audit planning and encouraged ongoing efforts to increase the professionalism of the Internal 
Audit Capabilities of Commission departments. The Commission’s internal audit architecture 
continues to be strengthened and to contribute to stronger assurance for the institution. 

Conclusion 

The  Commission  considers  that  its  governance  architecture  has  reached  a  satisfactory 
level  of  stability  and  maturity,  and  will  set  out  this  architecture  in  a  governance 
statement.  At  the  same  time,  it  is  committed  to  continuing  its  efforts  towards  greater 
transparency,  effectiveness  and  simplification.  The  executive  agencies,  over  which  the 
Commission exercises tight supervision, are fully integrated in this governance scheme. 
Nevertheless,  the  Commission  considers  it  of  major  political  importance  to  set  up  a 
single  governance  framework  for  regulatory  agencies.  The  Commission  supports  the 
Internal Auditor in his efforts to deliver at the end of the 2007-2009 planning cycle his 
first overall opinion of the Commission’s internal control systems and encourages a high 
level of cooperation between the Internal Audit Capabilities and the Internal Auditor. 

3.2. 

Internal Control Systems and performance management 

•  The internal control framework in the Commission 

In 2006, the Commission continued to improve its internal control framework. The ongoing 
revision  of  the  Internal  Control  Standards  aims  to  ensure  greater  clarity,  simplicity  and 
adaptability to conditions in individual departments so as to enhance effectiveness. 

The  Overview  of  the  state  of  internal  control  in  the  Commission  Directorates  General  and 
Services  noted  that  significant  progress  was  made  in  2006  in  implementing  internal  control 
structures  and  practices,  but  also  that  further  progress  was  necessary  in  areas  such  as 
management information, legislative simplification, control strategies or the quality of Annual 
Activity  Reports.  The  Internal  Auditor  recommended  further  improvements  in  ex-post 
controls, IT, and the implementation of new accounting rules and contract management. 

•  Risk management 

The  Commission  made  important  progress  in  2006  in  further  integrating  risk  management 
into strategic planning: the Annual Management Plans present the results of risk analysis and 
the  Annual  Activity  Reports  indicate  if  those  risks  materialised  during  the  year,  how  they 
were  managed  and  what  residual  risks  remain  and  why.  Efforts  will  be  pursued  towards 
coherent  presentation  of  risks  and  to  ensure  that  risk  management  actions  plans  are  defined 
and executed without delays. Building on the risk management methodology developed in the 
Communication  Towards  an  effective  and  coherent  risk  management  in  the  Commission 
services10 and on a pilot exercise carried out in 2006, the Commission has established a peer-

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review  process  for  identifying,  assessing  and  managing  cross-cutting  risks,  which  can  be 
addressed more effectively by a group of services than by individual services. 

•  Performance management 

The  guidelines  given  to  the  services  for  preparing  their  Annual  Management  Plans  and 
Annual Activity Reports reinforced the focus on results for beneficiaries and stakeholders and 
on the impact of Commission action on EU society at large. 

A  concise  template  to  ensure  a  consistent  presentation  of  control  structures  and  sources  of 
assurance  has  been  developed  for  the  2006  Annual  Activity  Reports  although  it  has  not  yet 
been  taken  up  by  all  Directorates-General  and  Services.  Over  time  the  format  is  however 
expected  to  improve  awareness  of  control  structures  and  sources  of  assurance  and  will  help 
pinpoint weaknesses and define improvements. 

While  an  increased  number  of  services  presented  indicators  on  legality,  regularity  and 
performance  in  their  2006  Annual  Activity  Reports,  continued  efforts  to  develop  such 
indicators will need to be pursued while ensuring a coherent approach by family of services. 

The  quality  of  Annual  Activity  Reports  should  be  further  improved:  in  particular,  control 
strategies  and  results  need  to  be  explained  clearly  and  simply,  and  action  plans  and  their 
expected impact should be detailed. 

•  Action Plan towards an Integrated Internal Control Framework 

The results to date of the implementation of the Action Plan are broadly positive. While there 
have been delays in some actions, the Commission considers that it will still be able to meet 
the objective: to have the foundations in place by the end of 2007 to properly manage the risk 
of error and to provide increased assurance, as envisaged in the Action Plan. The results of 
actions  will  be  progressively  more  visible  and  demonstrable,  initially  in  terms  of  a  more 
transparent  and  clearer  control  approach.  This  should  lead  to  a  reduction  in  the  error  rate 
through improved correction and prevention. 

In  the  light  of  experience,  a  number  of  actions  have  been  refined  to  give  further  impetus 
towards increased assurance, concentrating on direct centralised management and including a 
detailed examination of the cost-benefit-risk balance for controls. The foundations will be in 
place by the end of 2007 for the Integrated Internal Control Framework to begin to have the 
planned impact on assurance. However, the Progress Report on the Commission Action plan 
towards  an  Integrated  Internal  Control  Framework  sets  out  where  important  challenges 
remain. 

Measures  are  being  taken  to  increase  the  intensity  of  ex-post  controls  in  many  areas,  with 
action plans setting out remedial measures and progress in this area now closely monitored. 
However, the Director-General for Communication raised a reservation signalling the absence 
of a structured systematic ex-post control system, the set-up of which in 2007 will be assessed 
by the Commission. 

Intensified  verification  should  be  accompanied  by  a  more  coordinated  approach  in  each 
family of services as already under way for research and the Structural Funds. 

EN 

10 

   EN 

 
Greater  coordination  is  gradually  being  introduced  in  the  area  of  the  Structural  Funds, 
including harmonisation of the sampling methodologies to be used by Member States in the 
2007-2013 programming period. 

The  Ex-Post  Control  Network  confirmed  in  2006  its  usefulness  for  sharing  good  practices 
between  the  individual  control  units.  Key  issues  discussed  included  the  design  of  sampling 
strategies to obtain reasonable assurance, the follow-up of controls and possible approaches to 
the application of sanctions. 

Conclusion 

The  Commission  considers  that  a  comprehensive  view  of  internal  control  activities 
should  be  developed  for  each  activity,  integrating  the  different  elements  and  levels  of 
control. A cost-effective balance between different control measures needs to be ensured 
and the results of control should be properly monitored and concerted action taken to 
address identified weaknesses. 

It  will  closely  monitor  the  implementation  of  comprehensive  control  strategies  and 
methodologies and will ensure coherent ex-post approaches by service families, so that: 
(1)  control  strategies  are  formalised  and  contain  precise  objectives;  (2)  there  is  clear 
monitoring  and  reporting  bringing  together  the  results  of  controls  at  all  levels;  (3)  the 
responsibilities of actors, including synergies across services, are clarified and applied. 

The  Commission  will  ensure  that  all  delegated  authorising  officers  fully  meet  the 
requirement  to  use  the  template,  thereby  establishing  a  clearer  link  between  control 
systems  and  assurance  in  their  2007  Annual  Activity  Reports,  and  to  introduce,  as 
envisaged, indicators for the legality and regularity of transactions to support assurance. 

The Commission will further monitor the system of structured ex-post control set up by 
the Director-General for Communication as well as the action plan defined for ex-post 
controls for the research family. 

3.3. 

Financial management 

•  Accounting 

The  Commission  is  pleased  to  note  the  positive  declaration  of  assurance  with  reservations 
from the Court of Auditors for the 2005 accounts, the first under the new accrual accounting 
system. 

Progress continues to be made in applying the new accounting rules for establishing the 2006 
annual accounts. As regards assuring the quality of accounting data, progress has been made 
in improving the control environment. Concerning the validation of local systems in 2006, the 
Accounting Officer noted that, in general, services had taken appropriate measures to address 
the matters raised in his previous year's report, and underlined the significant progress made 
by the two Directorates-General whose validation had been suspended in 2005. 

The introduction of accrual accounting in the delegations in January 2007 and improvement 
of  internal  control  made  it  possible  to  remove  the  reservations  raised  in  the  previous  years 
regarding administrative expenditure in EU delegations. 

EN 

11 

   EN 

 
For  the  first  time,  the  Accounting  Officer  will  sign  off  the  final  accounts  for  the  year  2006 
certifying that he has reasonable assurance that the accounts present a true and fair view of the 
Institution’s financial situation. 

•  Contract management 

In  audits  carried  out  in  2006,  the  Internal  Auditor  identified  some  areas  in  need  of 
improvement regarding contract management. In the field of building procurement contracts 
in  Brussels,  an  inter-service  working  group  set  up  in  December  2006  has  proposed  a  new 
methodology.  The  revised  Financial  Regulation  will  also  simplify  the  procedural  and 
documentation requirements for low-value contracts. 

Conclusion 

The Commission notes the increased transparency and accountability achieved through 
the  introduction  of  the  accrual  accounting  system.  It  indicates  a  number  of  concrete 
measures that will be taken to simplify the rules applicable to beneficiaries of grants and 
contractors. 

3.4. 

Human resources 

•  Integrated human resources strategy 

The Internal Auditor emphasises that a long-term strategy for human resources management 
is important for the effective allocation of human resources. 

The  Commission  will  improve  its  human  resources  allocation  through  a  more  proactive 
identification  of  both  current  and  future  staffing  competences  and  departmental  needs.  The 
Commission  has  launched  a  programme  for  continuous  professional  development  for  all 
members  of  the  human  resources  community  in  the  Commission,  aimed  at  attracting, 
developing and retaining competent staff. 

The  gathering  and  evaluation  of  human  resources  data  is  another  important  element  of 
strategic  human  resources  management  where  the  Commission  is  developing  the  systems 
needed to respond to external requests concerning the use of its human resources. 

As requested by the Parliament in 2006, the Commission has produced a report (SEC(2007) 
530) containing an analysis of foreseeable needs for human resources until 2013, concluding 
that  all  identified  priority  needs  outside  of  enlargements  will  be  covered  by  redeployments 
inside and between services. 

•  Recruitment of new officials from EU-10 Member States 

The ambitious 2004-2006 recruitment targets for the EU-10 were met for administrative staff 
and largely met for middle managers (77% of the target) in 2006. The recruitment of senior 
managers has progressed satisfactorily. A recruitment shortfall was noted in certain profiles or 
nationalities, mainly due to the low number of candidates to the competitions. The European 
Personnel  Selection  Office  is  currently  working  on  an  improved  information  and 
communication strategy. The Commission put in place a monitoring mechanism to ensure that 
recruitment targets for the EU-12 are met in 2007. 

EN 

12 

   EN 

 
Conclusion 

The Commission is committed to meeting its target for recruitments of officials from the 
EU-12. It has defined its future needs and will continue its efforts to anticipate coming 
challenges for an efficient and modern administration. 

3.5. 

IT issues 

A  reservation  regarding  the  risk  due  to  the  inadequacy  of  the  data  centres  building 
infrastructure was signalled for the second time, affecting the continuity of operations rather 
than the legality and regularity of transactions. In addition, the Internal Auditor also pointed 
to the need for improvements in buildings, data security, disaster recovery and continuity of 
services. Another issue raised was the planning for IT projects, where the decision was taken 
to optimise value for money by defining priorities for corporate projects. 

The Commission is fully committed to implementing the multi-annual strategy to ensure 
secure  housing  conditions  for  the  data  and  telecommunication  centres  of  the 
Commission both in Brussels and in Luxembourg. Mitigating measures were identified 
for implementation in 2007. 

4. 

CONCLUSIONS 

The  Commission  considers  that  the  internal  control  systems  in  place,  with  the  limitations 
described in the 2006 Annual Activity Reports, provide reasonable assurance as to the legality 
and  regularity  of  the  operations  for  which  the  Commission  takes  overall  responsibility 
pursuant to Article 274 of the EC Treaty. However, it acknowledges that  further efforts are 
needed to resolve a number of weaknesses, in particular those highlighted in the reservations 
of the delegated authorising officers. 

The Commission will ensure that its delegated authorising officers will continue their efforts 
to guarantee that the reasonable assurance given in the declarations accompanying the annual 
reports is effectively underpinned by appropriate internal control systems. 

EN 

13 

   EN 

 
Annex 1  

2006 Synthesis’ multiannual objectives 

STATE OF PLAY 

This  Annex  reports  on  the  progress  realised  in  2006  against  the  reference  framework  laid  down  by  the  2004  Synthesis  and  updated  by  the  2005 
Synthesis containing the Commission’s multiannual objectives to address the major crosscutting management issues.  

New actions established by the 2006 Synthesis appear in bold italic. 

Internal control systems and performance management 

Subject 

Objective 

Initiative(s) to meet the objective 

Internal 
control 

effective 
an 
1.  Achieving 
system  and 
internal  control 
ownership  of 
internal  control 
concepts  and  processes  at  all 
levels in each DG and service. 

(cid:190)  The  internal  control  coordinator  in  each  service 
should  carry  out  a 
the 
effectiveness of internal control issues at least in the 
context  of 
to 
information 
twice-yearly 
Commissioners and of the annual activity report. 

review  of 

regular 

the 

Responsible service(s) 
and timetable 

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

Progress made in 2006 

Continuous action. 

On top of the regular review of the effectiveness of 
internal control, most DGs have in 2006 organised 
internal  discussions  and  training  sessions  for  their 
staff,  as  well  as  regular  reporting  on  the  state  of 
internal  controls  (minimum  twice  a  year).  The 
Commissioner is duly informed.  

(cid:190)  Revision of internal control standards to enhance 

effectiveness 

DG  BUDG  by  the  end 
of 2007 

Ongoing. 

EN 

14 

EN 

 
  
 
 
(cid:190)  Develop  indicators  for  legality  and  regularity  of 
transactions  to  support  assurance  in  annual  activity 
reports. 

Annual 
activity 
reports 
and 
Synthesis 

2.  Promoting  Commission’s 
through  annual 
accountability 
reports 
activity 
their 
and 
solidly  based  on 
synthesis 
assurances from managers. 

(cid:190)  Some  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  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)  With  the  assistance  of  central  services,  work  by 
‘families’  will  be  continued,  so  that  each  area 
benefits from a specific, coherent methodology. 

Risk 
manage-
ment 

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

to 

(cid:190)  The  Commission  will 

risk 
management in its regular management process and 
integrate  risk  assessment  in  its  internal  control 
systems. 

further 

embed 

(cid:190)  The Commission will address how to deal with risk 
management within ‘families’ of similar activities in 
services. 

by 
services 
All 
‘families’  with 
the 
support  of  BUDG  and 
SG, 
the 
before 
establishment  of  2007 
(originally: 
2006) 
annual  activity  reports 
in March 2008. 

All  services  in  the  2007 
annual 
reporting 
exercise. 

Ongoing. 

A  first  comprehensive  table  of  indicators  of 
legality  and  regularity  has  been  drawn  up  by  the 
Cohesion  family  within  the  action  objectives  and 
indicators  (see  hereafter).  This  was  envisaged  as 
optional in the standing instructions on 2006 AAR 
and  some  DGs  already  used  them  in  their  AAR 
2006. Those indicators will become compulsory as 
from the AAR 2007. 

Ongoing. 

Guidelines  on  2006  AAR  provide  for  a  more 
structured  way  for  reporting  on  internal  control 
systems  and  risks  but  more  effort  is  needed  to 
ensure  the  universal  use  of  this  approach.  On  the 
impact of reservations on the reasonable assurance, 
DGs  and  services  are  generally  more  precise  in 
their 2006 AARs.  

Initiative  integrated  into  the  Action  Plan  towards 
an Integrated Internal Control Framework. 

All  services,  with  the 
assistance 
DG 
BUDG,  as  specified  in 
SEC(2005) 1327. 

of 

2007 

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

Continuous action. 

Guidelines  on  2007  AMPs  reinforce  the  risk 
management  dimension,  in  particular  reporting  on 
critical  risks.  In  most  DGs,  risk  management  is 
embedded into the 2007 AMP. 

Completed. 

Based  on  a  pilot  exercise  on  cross-cutting  risks 
carried out in 2006, the Commission established a 
peer-review process for managing those risks. 

EN 

15 

EN 

 
  
 
 
Objectives 
and 
indicators 

a 

objectives 
policy 

and 
4.  Making 
indicators 
and 
management  tool  allowing,  on 
the one hand, the Commission to 
monitor  its  performance  and,  on 
the  other,  stakeholders  to  assess 
the 
the 
Commission’s  work  and 
its 
benefit for citizens. 

outcome 

of 

(cid:190)  The  Commission  will  continue 

its  review  of 
objectives and indicators, with a particular attention 
on  spending  programmes  in  2006  and  on  other 
Commission tasks in 2007. 

concerned 
Services 
with  the  support  of  SG 
and  BUDG  should feed 
progressively  into  the 
2007  and  2008  annual 
management plans. 

Completed. 

A pilot action, involving the Cohesion for Growth 
and  Employment  family  (DG  REGIO  and  DG 
EMPL) was carried out in June and July 2006. The 
agreed  methodology  served  as  a  basis  for  the 
guidelines  on  2007  AMPs.  Such  guidelines  now 
clarify  that  AMPs  should  contain  impact-  and 
result-oriented  objectives,  each  measured  by 
indicators.  

In  most  DGs,  the  AMP  drafting  process  was  the 
occasion  of  broad  discussions  on  DG's  missions, 
strategic objectives and indicators.  

Subject 

Objective 

Initiative(s) to meet the objective 

Governance 

Internal 
audit 
recommen
-dations 

5. 
Ensuring 
smooth 
accepted 
implementation 
internal audit recommendations. 

a 
of 

recommendations 

(cid:190)  Follow-up  of  action  plans  stemming  from  internal 
regularly 
audit 
monitored  at  senior  management  level,  and  fully 
integrated 
regular  management  planning, 
especially the annual management plans. 

should  be 

into 

Responsible service(s) 
and timetable 

Progress made in 2006 

All services  

Continuous action. 

Follow-up  is  being  actively  monitored  through 
different  tools  (DGs'  internal  databases,  "Issue 
track"  system  set  up  by  the  Audit  Progress 
Committee  secretariat…).  However  further  action 
high  priority 
is 
recommendations are addressed on a timely basis. 

needed 

ensure 

that 

to 

The Audit Progress Committee alerted the Cabinets 
of departments lagging behind, requesting them to 
monitor the appropriate follow up by their services. 

EN 

16 

EN 

 
  
 
Regula-
tory 
agencies 

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

Inter-
service 
arrange-
ments 

7.  Ensuring 
inter-service 
that 
arrangements  for  small  services 
are  based  on  a  cost-benefit 
analysis and made in accordance 
with  applicable 
rules,  while 
preserving  the  responsibility  of 
each 
authorising 
officer. 

delegated 

related 

8.  Ensuring  strong  follow-up  of 
action  plans 
the 
expressed  reservations,  notably 
for  the  progress  to  be  made  in 
2006. 

to 

Reservatio
ns 

EN 

to  clarify 

(cid:190)  The input of all institutions is necessary to negotiate 
a  comprehensive 
the 
framework, 
respective  responsibilities  of  the  institutions  and  of 
the  regulatory  agencies.  This  framework  would  be 
applicable to the creation of future agencies and, at 
a  later  stage,  to  those  already  in  existence.  The 
Commission  calls  on  the  Council  to  adopt  the 
proposed 
regulatory  agencies, 
suggest amendments, or reflect on new possibilities. 

framework  on 

All  services  concerned 
with  the  assistance  of 
SG and DG BUDG. 

Ongoing. 

The  Commission  supports  the  discussions  on  the 
substance  that  were  relaunched  in  the  Council  at 
the end of 2006. 

(cid:190)  The  Commission  will  develop  practical  solutions 
the  balance  of  responsibilities  and 

respecting 
accountability. 

Interested DGs with the 
support  of  BUDG,  SG, 
and DIGIT. 

Continuous action. 

Arrangements  have  been  established  between 
BEPA  and  SG  (for  management  of  human  and 
strategic 
financial 
planning)  and  between  IAS  and  DG  ADMIN  (on 
the pooling or the respective financial circuits and 
HR services). 

resources, 

logistics 

and 

(cid:190)  Directors-General  will  report  on  progress  to  the 
respective  Commissioner  in  the  context  of  the 
regular  follow-up  meetings  on  audit  and  control. 
The ABM Steering Group will closely monitor and 
regularly 
the 
implementation  of 
that 
delegated  authorising  officers  have  committed  to 
carry out in their annual activity reports. 

to 
the  College  on 
the  remedial  actions 

report 

Regarding  IT  Infrastructure  Consolidation,  DIGIT 
is  already  ensuring  end-user  support  for  the 
ADMIN 
(DG  ADMIN  and  offices). 
Furthermore,  the  IAS  signed  an  agreement  with 
DIGIT in October 2006 to take over its IT-support. 

family 

Concerned DGs. 

Continuous action. 

For  all  reservations,  delegated  authorising  officers 
have  laid  down  appropriate  action  plans  to  solve 
the underlying weaknesses. Follow up of actions to 
remedy  to  reservation  in  previous  AARs  has  been 
specifically included in the guidelines for the 2007 
AMPs. 

17 

EN 

 
  
 
Subject 

Objective 

Initiative(s) to meet the objective 

Financial management 

Integrated 
internal 
control 
frame-
work 

9.  Enhancing  accountability  by 
establishing  a  comprehensive 
control 
integrated 
line  with 
the 
framework 
the 
in 
requirements  set  out 
ECA’s  opinions  on 
‘single 
audit’. 

internal 
in 

(cid:190) 

Implementation  of  the  action  plan  towards  an 
Integrated Internal Framework. 

Responsible service(s) 
and timetable 

Progress made in 2006 

All services 

Ongoing. 

2006  saw  key  progress  in  the  implementation  of 
the  Action  plan  towards  an  integrated  internal 
control framework, adopted by the Commission in 
January  2006  [COM(2006)  9  and  SEC(2006)  49]. 
The Commission presented a report on the progress 
of this action plan (COM (2007) 86). 

concerned 

in  particular 

the 
Improvements 
introduction of a concise format to present control 
strategies  and  sources  of  assurance 
in  AAR 
guidelines (although more effort will be required in 
2007 to ensure consistent use of this), strengthened 
oversight  of  paying  and  verifying  agencies  in 
shared management and a new sampling approach 
for the FP6.  

ex-

Ex-ante 
and 
post 
controls 

10.  Improving  efficiency  and 
strengthening  accountability  by 
ensuring  proportionality  and  a 
sound  balance  between  ex-ante 
and  ex-post  controls  and  by 
further  harmonisation  and  better 
focusing of ex post controls 

(cid:190)  Further attempts have to be made to achieve closer 
harmonisation  of  methodology  and  definition  of 
common  ex-post  control  strategies  and  ensure 
proportionality  between  ex  ante  and  ex  post 
controls, at least at the level of ‘families’ of services 
operating in the same budget area. 

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

Initiative  integrated  into  the  Action  Plan  towards 
an Integrated Internal Control Framework. 

(cid:190)  Common  guidelines  on  sampling  methods  and 
related level of confidence should be finalised. 

Concerned 
services 
with  the  support  of  DG 
BUDG,  progressively 
up to the end of 2007. 

Ongoing. 

Common  methodology  agreed  under  FP6  and 
sharing  of  audit  results  in  the  area  of  structural 
funds  constitute  a  good  basis  for  establishing 
common guidelines in the future. 

EN 

18 

EN 

 
  
 
(cid:190)  DG  COMM  will  put  in  place  a  system  of 
structured ex-post control in all Representations 
and Units in the Headquarter. 

DG  COMM  by  the 
end of 2007 

- 

Accounts 

11. Increasing responsibility and 
accountability at the level of the 
Commission  as  a  whole  by  the 
signing-off  of  the  accounts  by 
the  Accounting  Officer  and  by 
improved  quality  of  financial 
information. 

(cid:190)  Under 

the  amended  Financial  Regulation, 

the 

Accounting Officer will sign off the accounts. 

(cid:190)  The  Commission  will 

its 
accounting  processes  and  systems  to  improve  the 
quality  of  the  financial  information  and  the  respect 
of deadlines. 

further  strengthen 

Accounting  Officer  by 
the  entry  into  force  of 
the  amendments  to  the 
Financial Regulation. 

Completed – to be applied. 

Article  61(2)a  of  the  FR  :  Commission  modified 
proposal  to  revise  the  FR  now  incorporates  the 
signing  off  of  the  accounts  by  the  Accounting 
Officer.  For  the  first  time,  he  will  sign  off  the 
accounts for the year 2006. 

All services, continuous 
the 
action 
the 
assistance 
services 
the 
Accounting Officer 

with 
of 
of 

Continuous action. 

The 2005 accounts (the first edition under the 
modernisation of accounting project) were 
delivered on time with regard to the Financial 
Regulation and were deemed reliable by the Court 
of Auditors.  

Financial 
simplifica-
tion 

Making 

12. 
financial 
management  more  efficient  by 
applying 
simplification 
measures. 

(cid:190)  Services are called upon to apply the simplification 
measures  that  have  been  introduced  by  the  basic 
acts  under  the  next  generation  of  programmes 
(2007-2013) and by the amended financial rules 

All  services  concerned 
as  from  the  entry  into 
force  of 
legal 
provisions. 

these 

A working group was created by the service of the 
Accounting officer for providing guidance to DGs 
in order to improve accounts' quality. 

Initiative integrated into the Action Plan towards 
an Integrated Internal Control Framework. 

(cid:190)  To  ensure  that  the  new  programming  period  can 
start  under  the  new  legislative  framework,  the 
Commission  calls  on  the  legislative  authority  to 
adopt the basic acts and Financial Regulation so that 

Legislative authority for 
the  basic  acts  and  Fin. 
Regulation.  DG  BUDG 
and  concerned  services 

Completed. 

Basic acts for the programming period 2007-2013 
and amendments to financial regulations adopted. 

EN 

19 

EN 

 
  
 
 
 
it can adopt in due time its Implementing Rules. 

by the end of 2006 

Subject 

Objective 

Initiative(s) to meet the objective 

Human resources 

Simplifica
-tion 

13.  Simplifying  procedures  to 
increase  both  efficiency  and 
employee satisfaction. 

(cid:190)  The  Task  Force 

simplification  of 
administrative  procedures  will  propose  specific 
measures  to  simplify  and  improve  human  resource 
management and administrative procedures. 

the 

for 

(cid:190) 

to 

simplify 

In  parallel,  the  Commission  will  present  specific 
measures 
the 
(Career 
Commission’s  staff  appraisal  system 
Development  Review).  These  measures  will 
complement those presented early 2006 which were 
already implemented in the current exercise. 

improve 

and 

Responsible service(s) 
and timetable 

DG  ADMIN  by  June 
2007  (originally  by  the 
end of 2006) 

DG ADMIN by the end 
of 2007 

Progress made in 2006 

Ongoing. 

In May 2006 the Commission adopted a 
Communication entitled "Human Resources 
Management: simplifying procedures for staff" and 
created a Task Force mandated to consult staff and 
propose measures to simplify administrative 
procedures and improve services provided to staff.  

A report on the progress of the work of the Task 
Force was adopted by the Commission in 
December 2006. The final report and Action Plan 
proposed by the Task Force will be presented as an 
annex to a Commission Communication the 
adoption of which is scheduled for June 2007. 

Ongoing. 

During 2006, two working groups have developed 
various options for a revised system which will be 
simulated and tested throughout 2007 with the 
objective to implement the changes at the 
beginning of 2008. 

EN 

20 

EN 

 
  
 
 
Staff skills   14. Aligning resources and needs 
better  to  make  sure  that  staff 
have the skills and qualifications 
necessary 
their 
duties, in particular in areas such 
as  financial  management,  audit, 
science, linguistics and IT. 

to  perform 

(cid:190)  Following  the  conclusions  of  the  evaluation  on  the 
Strategic  Alignment  of  Human  Resources,  various 
measures are being prepared. 

DG ADMIN by the end 
of 2007 

(cid:190)  The  Commission  will  identify  any  shortfalls  and 
communicate  its  specific  needs  so  that  they  are 
promptly  taken  into  consideration  and  included  in 
the  work-programme  of 
inter-institutional 
European  Personnel  Selection  Office.  Provision  of 
specialised  training  and  measures  to  improve  the 
recruitment  procedures  and,  in  particular  in  areas 
where a shortage of skilled staff is identified. 

the 

DG ADMIN and EPSO, 
ongoing tasks. 

(cid:190)  The Commission will take measures to improve its 
Job  Information  System  so  that  it  enables  the 
organisation  to  have  a  global  view  of  its  current 
human  resources  and  to  produce  easily  detailed 
analysis by corporate processes. 

ADMIN 

in 
DG 
collaboration 
with 
DIGIT,  SG  and  DG 
BUDG by end 2007 

Ongoing. 

Achievements  in  2006  included  the  identification, 
dissemination  and  publication  of  existing  best 
practices within HR units. The development of HR 
metrics  was  initiated  and  will  be  continued  and 
expanded  in  the  future.  DG  ADMIN  made  a 
proposal  to  introduce  the  generation  of  corporate 
statistics  and  to  provide  regular  reporting  on 
organisation charts and administrative support and 
coordination functions. 

Ongoing. 

DG  ADMIN  monitors  the  rate  of  recruitment  for 
enlargement  and  turnover  posts.  It  takes  action  to 
meet targets laid down by the Commission for the 
recruitment  of  management  and  non-management 
staff from the new Member States. 

Specialised  training  is  provided  if  specific  needs 
are 
training,  HR 
(e.g.  ABAC 
professionalisation programme). 

expressed 

Ongoing. 

DG  ADMIN  is  continuing  to  further  improve  the 
structure and data provided in the JIS and is taking 
the  JIS  where 
necessary  measures 
appropriate,  in  particular  as  regards  reporting 
capabilities. 

to  adapt 

EN 

21 

EN 

 
  
 
 
 
(cid:190)  The  Commission  will  adjust  its  management  of 
mobility,  where  necessary,  so  as  to  achieve  the 
ultimate  objective  of  ‘the  right  person  in  the  right 
job’, 
in  particular  as  regards  sensitive  posts. 
Proposals will be made during 2006 to mitigate the 
impact  of  mobility,  with  particular  attention  for 
specialised functions and small DGs and sites. 

in 
ADMIN 
DG 
collaboration  with  SG 
and DG  BUDG,  by  the 
end  of  2007  (originally 
by the end of 2006). 

Subject 

Objective 

Initiative(s) to meet the objective 

Continuity of operations 

Business 
continuity 

that 

Ensuring 

15. 
the 
Commission  is  able  to  maintain 
business  continuity  in  case  of 
major disruption to its activities  

(cid:190)  The  Commission  will  adopt  Commission-wide 
policy  guidelines  and  develop  business  continuity 
plans. 

Responsible service(s) 
and timetable 

All  services  with  the 
support of SG, ADMIN 
and  DIGIT  by  the  end 
of March 2007. 

Ongoing. 

The Mobility Report for 2005 was presented to the 
Vice-President  in  July  2006  and  included  the  first 
ever  statistical  analysis  of  mobility  of  Heads  of 
Units.  Further  work  has  been  undertaken  on 
mobility  data  with  the  view  to  developing  a  new 
approach  to  reporting.  Dissemination  of  Best 
Practices  continued.  The  working  group  on 
mobility  finalised  its  work  in  December  2006,  the 
conclusions of which are currently discussed by the 
Group of Resource Directors. 

Progress made in 2006 

Ongoing. 

on 

the  Commission  adopted 
Business 

the 
In  July  2006 
Continuity 
Communication 
Management 
[SEC(2006)898  and  899].  This 
includes  inter  alia  a  definition  of  critical  and 
essential  functions  and  corresponding  information 
currently 
systems.  DGs 
developing 
the  necessary  business  continuity 
arrangements, including crisis financial circuits. 

services 

and 

are 

(cid:190)  The  Commission  will  address  the  issue  of  the  DIGIT, OIB and OIL in  Ongoing. 

EN 

22 

EN 

All  DGs  and  services  now  have  a  Business 
Continuity Plan, which they will be exercising and 
reviewing  during  2007.  testing  of  critical  and 
essential IT systems should be finished by the end 
of 2008. 

 
  
 
 
suitability of the data centre hosting IT systems and 
ensure  that  current  reflections  on  the  best  IT 
governance  arrangements 
to  operational 
conclusions in 2006. 

lead 

2006 and in 2007. 

A  multi-annual  (2006-2011)  strategy  to  improve 
the  housing  conditions  for  the  Data  and  telecom 
Centres  of  the  Commission  has  been  developed 
and  approved.  This  should  lead  to  the  move  of 
most  critical  IT  equipments  into  professional  data 
centre type rooms in a phased approach and to the 
refurbishing  of  air  conditioning  and  electrical 
infrastructure in the JMO Data Centre room. 

The Commission, wanting to ensure the best value 
for money, took the initiative of defining priorities 
for corporate projects through the ABM Steering 
Group. A study on the consolidation of the IT 
infrastructure and related support services 
concluded that major savings through economies of 
scale (consolidating the infrastructure and support 
services) and staff redeployment could be reached 
while improving the quality of service. 

EN 

23 

EN 

 
  
Annex 2 

Reservations 2006, 2005, 2004, 2003 

DG 

Réserves 2006 

Réserves 2005 

Réserves 2004 

Réserves 2003 

Réserves 2002 

AGRI 

1 

1. Insufficient implementation of 
IACS in Greece 

2 

REGIO 

2 

1, Reservation concerning the 
management and control systems 
for ERDF in United Kingdom - 
England (West Midlands; 
London; North West; North East; 
Yorkshire and 
the Humber and East (URBAN II 
programme only)) and Scotland 
(West and East Scotland) 

3 

2. Reservation concerning the 
management and control systems 
for ERDF in the INTERREG 
programmes (except IIIB North 
West Europe and Azores, 
Canaries, Madeira) 

1. Preferential import of 
high quality beef (“Hilton” 
beef) – risk of non-respect 
of product definition; 
2. Insufficient 
implementation of IACS in 
Greece 

3 

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

1. Management and control 
systems for ERDF in UK-
England; 
2. Management and control 
systems for ERDF in 
Spain; 
3. Management and control 
systems for the Cohesion 
Fund in Spain 

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 candidtate 
country 

5 

5 

5 

4 

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 

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 

24 

EN 

 
  
  
  
  
  
  
 
EMPL 

1 

1. Systèmes de gestion et de 
contrôles de programmes 
opérationnels du FSE en 
Espagne, en Ecosse (objectifs 2 et 
3, UK), en Suède (objectif 3 en 
partie), en Slovaquie, en 
Slovénie, en Lettonie et dans les 
régions Calabre et Lazio (IT) 

1 

1. Systèmes de gestion et 
de contrôle des 
programmes opérationnels 
en England (UK) 

FISH 

0 

0 

0 

0 

1 

1 

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

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

JRC 

0 

0 

1 

1. Status and correctness of 
the closing balance 

1 

1. Cash flow - 
competitive activities 

RTD 

2 

1. Accuracy of the cost claims 
and their conformity with the 
provisions of FP5 research 
contracts.  

2. Absence of sufficient evidence 
to determine the residual level of 
persisting errors with regard to 
the accuracy of cost claims in 
FP6 contracts. 

1 

1. Exactitude des 
déclarations de coûts et 
leur conformité avec les 
clauses des contrats de 
recherche du 5ème PCRD 

1 

1. Frequency of errors in 
shared cost contracts 

1 

1. Frequency of errors in 
shared cost contracts 

1 

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

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 

1 

1 

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 

1 

2 

EN 

25 

EN 

 
  
 
INFSO 

3 

 1. Allocation of research 
personnel 

2. Errors relating to the accuracy 
of cost claims and their 
compliance with the provisions of 
the research contracts, FP5 

3. Absence of sufficient evidence 
to determine the residual level of 
persisting errors with regard to 
the accuracy of cost claims in 
Framework Programme 6 
contracts 

ENTR 

2 

1. Errors relating to accuracy and 
eligibility of costs claims and 
their compliance with the 
provisions of the research 
contracts under FP 52. 
Unsatisfactory functioning of the 
financing of European 
Standardisation  

2 

2 

1. Errors relating to the 
accuracy and eligibility of 
cost claims and their 
compliance with the 
provisions of reserach 
contracts under FP5; 
2. Allocation of research 
personnel 

1. Errors relating to 
accuracy and eligibility of 
costs claims and their 
compliance with the 
provisions of research and 
eligibility of costs claims 
and their compliance with 
the provisions of the 
research contracts under 
the 5th Research 
Framework Programme;2. 
Uncertainty regarding cost 
claims of the European 
Standardisation 
Organisations 

2 

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

2 

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

2 

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

2 

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

2 

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

1 

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

EN 

26 

EN 

 
  
 
 
TREN 

1 

1. Erreurs concernant l'exactitude 
et l'éligibilité des déclarations de 
coûts et respect des termes des 
contrats du 5e PCRD 

2 

1. Risque de surpaiement 
concernant le 5éme 
Programme Cadre; 
2. Sûreté nucléaire 

4 

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

EAC 

1 

1. Faiblesse des systèmes de 
contrôle constatées dans certaines 
Agences Nationales 

2 

1. Insuffisante assurance 
quant à la gestion à travers 
les agences nationales 
2. Insuffisante assurance 
quant à la fiabilité et 
l'exhaustivité des montants 
inscrits au bilan de la 
Commission et au compte 
de résultat économique 

0 

0 

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

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 

6 

3 

ENV 

0 

0 

0 

0 

0 

0 

2 

1. Potentially abnormal 
RAL; 
2. 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 Art. 
35 of the Euratom Treaty 

EN 

27 

EN 

 
  
SANCO 

1 

1. Insufficient assurance of 
business continuity of a critical 
activity 

1 

1. Health crisis 
management 

0 

0 

0 

0 

0 

0 

2 

2 

JLS 

1 

1. Faiblesse des systèmes de 
contrôle et de gestion du Fonds 
européen pour les Réfugiés en 
Italie, pour la période de 
programmation 2000-2004 

2 

1. Insufficient number of 
ex-post controls missions 
and lack of a fully-fledged 
methodology in the area of 
direct management in 
2005; 
2. Management and control 
systems for the European 
Refugee Fund for the UK 
for 1002-2004 

ESTAT 

1 

1. Absence de garantie sur la 
régularité des paiements effectués 
en 2006 dans le cadre des 
conventions de subvention 
signées avec trois Instituts 
nationaux de statistiques pour 
lesquels des manquements ont été 
constatés en 2006 

ECFIN 

1 

1. Possibility that additionality 
requirements are not sufficiently 
met 

TRADE 

0 

0 

AIDCO 

0 

0 

EN 

0 

0 

0 

0 

0 

0 

0 

0 

1. Faiblesse des 
systèmes de gestion du 
Fonds européen pour les 
Réfugiés au Royaume-
Uni et au Luxembourg; 
2. Mise en œuvre encore 
incomplète des contrôles 
ex-post sur place 

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. Insufficient number of 
ex-post controls carried 
out in 2003 

3 

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 

0 

0 

0 

0 

2 

1. Project management; 
2. Ex-post control 

2 

1. Macro-financial 
assistance to 3rd 
countries; 
2. Internal financial 
management 

0 

0 

1 

1. Partnership with an 
NGOs association 

0 

0 

0 

0 

0 

0 

0 

0 

28 

EN 

 
  
ELARG 

0 

0 

1 

1. Legal status and liability 
of contractual partner in 
the framework of 
implementation of EU EU 
contribution to UNMIK 
Pillar IV in Kosovo 

ECHO 

0 

0 

0 

0 

1 

1 

1. Gaps in Roumania'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 

1. Non respect of the 
contractual procurement 
procedures by a 
humanitarian 
organisation for projects 
funded by ECHO 

0 

0 

0 

0 

DEV 

0 

0 

0 

0 

0 

0 

0 

0 

1 

1. Financial operations 
and procedures 

RELEX 

0 

0 

TAXUD 

0 

0 

EN 

1. Insuffisances du contrôle 
et de l’information de 
gestion; 
2. Insuffisances de la 
gestion administrative en 
délégations, et 
principalement au niveau 
de la mise en place et du 
respect des circuits 
financiers 

2 

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

2 

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

2 

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

1. Trans-European 
networks for customs and 
tax : availability and 
continuity 

0 

0 

1 

1. Monitoring of the 
application of the 
preferential treatments 

0 

0 

2 

1 

29 

EN 

 
  
MARKT  0 

0 

0 

0 

0 

0 

0 

0 

COMP 

0 

0 

0 

0 

0 

0 

0 

0 

1 

2 

1. Late payment of 
expenses for experts 

1. Macro-financial 
assistance to 3rd 
countries; 
2. Internal financial 
management 

1 

0 

1 

1 

1 

0 

0 

COMM 

1 

1. Ex-post control system 

ADMIN 

0 

0 

DIGIT 

1 

1.Business continuity risks due to 
inadequacy of the data centres 
building infrastructure. 

PMO 

0 

0 

OIB 

OIL 

EPSO 

0 

0 

0 

0 

0 

EN 

1. Supervision (ex-post 
controls on grants) 

2 

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

3 

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

2 

1. Relays and networks; 
2. Representations 

0 

0 

0 

0 

1 

1. Charlemagne 

1. Business continuity risks 
due to inadequacy of the 
data centres building 
infrastructure 

1. Council's antenna for 
sickness insurance 

1. Deficiency in OIB's 
contracts & procurement 
management 

0 

0 

0 

 - 

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

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

0 

0 

2 

1 

0 

0 

0 

1 

1. Council's antenna for 
sickness insurance 

0 

0 

0 

0 

0 

0 

30 

 - 

- 

 - 

 - 

 - 

EN 

 
  
  
  
  
  
  
  
  
  
OPOCE 

0 

0 

0 

0 

0 

0 

0 

0 

BUDG 

0 

0 

2 

1. Accrual accounting for 
the European Development 
Fund; 
2. Accrual accounting of 
the Community Budget - 
three local systems 

2 

1. Accrual accounting 
for the Community and 
the EDF budgets; 
2. Subsystems of 
SINCOM 2: accesses 
control 

3 

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

2 

1. Secondary legislation 
project; 
2. Consolidation project 

2 

1. Accrual accounting;  
2. Syncom subsystems 

SG 

0 

0 

0 

0 

BEPA 

0 

0 

SJ 

SCIC 

DGT 

IAS 

0 

0 

0 

1 

0 

0 

0 

1. Audit of community bodies 
(regulatory agencies) 

1 

0 

0 

0 

1 

1. Weak general internal 
control environment 

0 

0 

0 

1. Audit of community 
bodies (traditional 
agencies) 

0 

0 

0 

0 

0 

0 

0 

0. 

0 

0 

0 

0 

0 

0 

0 

1 

0 

0 

0 

1. Audit of Community 
agencies 

0 

0 

0 

1 

0 

0 

0 

0 

1 

0 

0 

1. Freelance interpreters 

0 

1. Audit of Community 
agencies 

0 

0 

0 

0 

51 

OLAF 

0 

0 

TOTAL 

20 

0 

0 

31 

0 

0 

32 

0 

0 

49 

EN 

31 

EN 

 
  
 
 
 
 
 
Annex 3 

Summary of the Annual Activity Reports of executive agencies 

With  the  support  of  the  legislative  authority,  the  Commission  has  undertaken  as  part  of  its 
financial and administrative reform a major readjustment of its externalisation policy. This 
has  involved  the  introduction  of  clear  rules  for  the  devolution  of  responsibilities  to  private 
bodies  and  for  their  transparency  as  well  as  the  gradual  dismantling  of  all  former  technical 
assistance  offices.  Following  the  recast  of  the  Financial  Regulation  in  2002,  externalisation 
has  been  rationalised  in  particular  with  the  use  of  executive  agencies  to  implement  specific 
programmes under indirect centralised management. 

Four executive agencies have so far been created: the Intelligent Energy Executive Agency 
(IEEA) (which later became the Executive Agency for Competitiveness and Innovation), the 
Public Health Executive Agency (PHEA), the Education, Audiovisual and Culture Executive 
Agency  (EACEA)  and  the  Trans-European  Transport  Network  Executive  Agency.  Three  of 
these executive agencies were or became operational in 2006.  

The Commission carried out a cost-benefit analysis prior to their creation and will draw up 
an evaluation report on the first three years of operation. 

The  Annual  Activity  Reports  show  that  the  breakdown  of  staff  employed  by  the  executive 
agencies in 2006 was as follows:  

Contractual 
agents 

and 

Other  external 
agents 

Total 

Seconded 
officials 
temporary 
agents 

IEEA 

16 

PHEA 

8 

EACEA  64 

Total  

88 

25 

17 

214 

256 

10 

10 

41 

25 

288 

354 

By the end of 2006, between 75%and 100% of the target level of recruitment for the different 
staff  categories  had  been  reached.  Despite  those  initial  difficulties  in  recruiting  staff,  the 
agencies  indicated  in  their  Annual  Activity  Reports  that  they  were  able  to  achieve  the 
objectives of their work programmes to a satisfactory extent. They all provided the required 
reasonable assurance without reservations.  

The Commission has different means for ensuring supervision of the tasks delegated to 
the executive agencies: 

EN 

32 

   EN 

 
 
 
 
•  The  governance  architecture  of  executive  agencies  is  defined  in  the  2002  Council 
Regulation  laying  down  the  statute  of  such  agencies11;  it  is  further  set  out  in  the  act  of 
delegation itself.  

•  Each  agency  is  managed  by  a  Director  and  by  a  Steering  Committee,  composed  of  five 
members  appointed  by  the  Commission,  which  adopts  the  agency's  annual  work 
programme  comprising  detailed  objectives  and  performance  indicators,  as  well  as  the 
agency's administrative budget. 

•  The  Directors  of  executive  agencies,  who  are  Commission  officials  appointed  by  the 
Commission,  exercise  the  function  of  authorising  officer  by  delegation  as  regards  the 
implementation  of  the  operational  appropriations,  under  the  supervision  of  the  parent 
Directorate(s)-General.  

•  The Commission’s arrangements for planning, reporting, internal controls systems, internal 

audit and accounts are fully applicable to the executive agencies. 

•  Regular  contacts  take  place  at  different  levels  between  the  agency  and  the  parent 

Directorate(s)-General.  

•  Executive  agencies  have  to  comply  with  the  Internal  Control  Standards.  In  2006, 
compliance  was  satisfactory  but  lower  than  in  Commission  services.  Therefore,  they  and 
their  parent  services  will  need  to  pay  particular  attention  to  ensuring  that  their  systems 
advance quickly towards a compliance level comparable to that in the Commission.  

The screening for planning and optimising Commission human resources adopted by the 
Commission  on  24  April  2007  has  not  indicated  any  need  for  new  executive  agencies 
beyond the externalisation already proposed in the Research area.  

11 

Council  Regulation  (EC)  No  58/2003  of  19  December  2002  laying  down  the  statute  for  executive 
agencies  to  be  entrusted  with  certain  tasks  in  the  management  of  Community  programmes  (OJ  L  11, 
13.1.2003). 

EN 

33 

   EN 

 
                                                 
Annex 4 

Rapport sur les procédures négociées – exercice 2006 

1. 

BASE LEGALE 

L'article 54 des Modalités d'Exécution (ME) du Règlement Financier (RF) établit l'obligation, 
pour  les  ordonnateurs  délégués,  de  recenser  les  marchés  faisant  l'objet  de  procédures 
négociées  (PN).  En  outre  la  Commission  doit  annexer  au  résumé  des  Rapports  Annuels 
d'Activités (RAA) visé à l'art. 60.7 du RF un rapport sur les procédures négociées. 

L'article  54  ME  ayant  été  amendé  par  la  révision  "autonome"  des  Modalités  d'exécution 
entrée  en  vigueur  le  22  août  2006,  l'analyse  des  procédures  négociées  pour  l'ensemble  de 
l'année 2006 a été conduite conformément aux nouvelles dispositions. Ces dernières prévoient 
notamment  que  les  procédures  négociées  attribuées  sur  certaines  bases  légales  (où  la 
procédure  négociée  est  à  considérer  comme  procédure  "normale")  soient  exclues  du 
recensement.  Par  ailleurs,  les  données  des  années  précédentes  ayant  été  calculées  sur  des 
bases différentes, la comparaison interannuelle, prévue audit article 54 ME, a été rendue non 
significative pour l'année 2006. Par conséquent, seule la variation par  rapport à  la moyenne 
générale de l'Institution a pu être établie pour chaque DG/service. 

2. 

METHODOLOGIE 

Une  distinction  a  été  faite  entre  les  40  DG,  Services,  Offices  et  Agences  exécutives  qui 
n’octroient  pas  d’aide  extérieure,  et  les  3  DG  (AIDCO,  ELARG  et  RELEX)  passant  des 
marchés dans le cadre d'actions extérieures (base légale différente: Chapitre 3 du Titre IV de 
la Deuxième Partie du RF) ou pour compte de la Commission mais en dehors du territoire de 
l'UE. 

En  effet,  ces  3  DG  présentent  des  aspects  particuliers  en  ce  qui  concerne  la  collecte  des 
données  (déconcentration  des  services,  absence  d’accès  direct  de  certaines  délégations  à  la 
base de données ABAC-Contracts), le nombre total de marchés passés, l'application d'autres 
seuils  pour  les  procédures  négociées,  ainsi  que  la  possibilité  de  recours  à  la  procédure 
négociée  dans  le  cadre  du  mécanisme  de  réaction  rapide  (urgence  impérieuse).  Pour  ces 
raisons, les marchés de ces DG nécessitent une approche statistique distincte. 

3. 

RESULTATS GLOBAUX DU RECENSEMENT FINAL 

3.1. 

Les 40 DG, Services ou Offices sans les 3 DG "action extérieures" 

Sur base des données reçues, les statistiques suivantes ont été établies: 153 marchés négociés 
pour  une  valeur  totale  de  179  209  493  euros  ont  été  attribués  sur  un  ensemble  de  1  243 
marchés toutes procédures confondues, pour une valeur totale de 2 452 696 081 euros. 

La proportion moyenne pour l'Institution du nombre de procédures négociées par rapport au 
nombre de marchés passés s'élève dès lors à 12,31%. La moyenne de l'Institution calculée par 
rapport au montant des marchés attribués (au lieu du nombre de marchés) s'élève à 7,31%. 

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Il  a  été  considéré  que  la  proportion  pour  une  DG/Service  doit  être  estimée  comme 
"notablement plus élevée que la moyenne enregistrée au niveau de son Institution", quand elle 
dépasse  de  moitié  la  proportion  moyenne,  c'est-à-dire  lorsqu'elle  est  supérieure  au  seuil  de 
référence s'établissant à 18,46%. 

Ainsi, 9 DG ou Services sur 40 ont dépassé le seuil de référence en 2006. Toutefois, il faut 
signaler que 4 d'entre eux n'ont passé qu'une procédure négociée mais leur faible nombre des 
marchés  au  total  fait  que  leur  moyenne  soit  élevée.  Par  ailleurs,  pour  une  DG  le  seuil  de 
référence est dépassé de justesse. Enfin, pour 2 des DG, les procédures négociées représentent 
un pourcentage substantiellement inférieur à la moyenne de l’Institution en valeur totale des 
marchés passés. 

Finalement, comme déjà indiqué au point 1, la comparaison interannuelle, prévue à l'article 54 
ME, a été rendue impraticable pour l'année 2006.  

3.2. 

Les 3 DG "actions extérieures" 

Sur base des données reçues, les statistiques suivantes ont été établies: 153 marchés négociés 
pour  une  valeur  totale  de  124  906  052  euros  ont  été  attribués  sur  un  ensemble  de  1 322 
marchés toutes procédures confondues, pour une valeur totale de 989 958 991 euros. 

La  proportion  moyenne  pour  les  3  DG  "actions  extérieures"  du  nombre  de  procédures 
négociées par rapport au nombre de marchés passés s'élève dès lors à 11,57% et la moyenne 
calculée par rapport au montant des marchés attribués s'élève à 12,62%. Le seuil de référence 
(moyenne plus 50%) étant donc de 17,36%, seule une des ces DG dépasse ce seuil. 

4. 

ANALYSE DES JUSTIFICATIONS ET MESURES CORRECTIVES 

Trois  catégories  de  justifications  sont  évoquées  par  les  DG  ayant  dépassé  les  seuils 
susmentionnés.  En  premier  lieu,  les  déviations  statistiques  résultant  d'un  faible  nombre  de 
marchés passés (toutes catégories confondues) ou de l'utilisation intensive de contrats cadres 
(ce  qui,  en  intégrant  dans  un  seul  contrat  « cadre »  un  nombre  élevé  de  contrats 
« spécifiques »,  réduit  le  nombre  total  de  marchés  passés)  par  les  DG  concernées.  Ces 
situations  peuvent  avoir  pour  conséquence  d'augmenter  le  pourcentage  de  procédures 
négociées  par  réduction  de  la  base  applicable  (ensemble  de  marchés,  toutes  catégories 
confondues). Dans ces cas, un pourcentage élevé n'équivaut pas nécessairement à un recours 
excessif aux procédures négociées. 

Une  deuxième  série  d'arguments  met  en  évidence  des  situations  objectives  du  secteur 
d'activité  économique  où  le  nombre  d'opérateurs  (candidats  ou  soumissionnaires)  peut  être 
fort limité, voire en situation de monopole. Il arrive de ne pas avoir d’offres suite à un appel 
d’offres avec publication  ou  de devoir recourir à un opérateur pour des raisons de propriété 
intellectuelle et expertise spécifique. Des situations de captivité technique peuvent également 
apparaître.  

lieu, 

troisième 

les  marchés  complémentaires, 

En 
lorsqu'ils  ne  peuvent  pas  être 
techniquement  ou  économiquement  séparés  du  marché  principal  (initial),  ou  les  marchés 
similaires,  conformes  au  projet  de  base  à  condition  que  le  marché  initial  a  été  passé  par 
procédure ouverte/restreinte, sont évoqués. 

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Plusieurs mesures sont proposées par les DG pour infléchir la situation. Le renforcement de 
leur structure interne, l’amélioration de la formation du personnel et l’établissement de 
documents types sont évoqués en premier lieu. Il est également considéré qu'une meilleure 
communication interservices peut avoir un impact sur le nombre des procédures négociées. 
Finalement,  l'amélioration  du  système  d'évaluation  des  besoins  des  DG/services,  une 
meilleure programmation et la création ou le renforcement d'une "politique de gestion de 
produit" dans certains domaines sont mentionnés pour arriver à une réduction du recours aux 
procédures négociées.  

Les  procédures  de  marchés  devront  continuer  à  être  intégrées  dans  la  revue  régulière  sur 
l’efficacité  du  contrôle  interne,  notamment  l’analyse  de  la  dépendance  éventuelle  envers 
certains  contractants.  En  tout  état  de  cause,  les  procédures  et  contrôles  doivent  être 
correctement documentés pour assurer la piste de l'audit. 

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Annex 5 

Summary of waivers of recoveries of established amounts receivable in 2006 
(Art. 87.5 IR) 

In accordance with Article 87(5) of the Implementing Rules the Commission shall report each 
year to the budgetary authority, in an annex to the summary of the Annual Activity Reports, 
on the waivers of recovery involving 100 000 € or more.  

The following table shows the total amount and the number of waivers above 100 000 € per 
Directorate-General/Service for the EC budget and the European Development Fund for the 
financial year 2006.  

EC budget: 

Directorate-General/Service  

Amount of waivers in € 

Number of waivers 

AGRI 

AIDCO 

COMP 

EACEA 

ELARG 

EMPL 

ENV 

FISH 

INFSO 

RTD 

TREN 

2 121 285,63

6 800 808,94

2 450 000,00

100 000,00

1 372 283,00

124 066,40

127 146,80

713 429,00

6 860 395,32

851 067,11

1 518 302,24

23 038 784,44

2 

32 

2 

1 

1 

1 

1 

1 

16 

4 

3 

64 

European Development Fund: 

Directorate-General/Service 

Amount of waivers in €

Number of waivers 

AIDCO 

6 549 996,00

2 

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