Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2006 together with the Centre's replies
Date: 2007-09-27
Institutions: European Court of Auditors
Subjects: European Court of Auditors, European Monitoring Centre for Drugs and Drug Addiction, administration of the Institutions, financial control, implementation of the budget, powers of the institutions (EU), report

C 309/128

EN

Official Journal of the European Union

19.12.2007

REPORT

on the annual accounts of the European Monitoring Centre for Drugs and
Drug Addiction for the financial year 2006 together with the Centre’s
replies

(2007/C 309/22)

CONTENTS

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

STATEMENT OF ASSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

OBSERVATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph

1-2

3-6

7-9

Tables 1 to 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Centre’s replies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page

129

129

129

131

134

19.12.2007

EN

Official Journal of the European Union

C 309/129

INTRODUCTION

The Court conducted its audit in accordance with the IFAC
5.
and INTOSAI International Auditing Standards and Codes of Eth-
ics, insofar as these are applicable in the European Community
context. The audit was planned and performed to obtain reason-
able assurance that the accounts are reliable and that the under-
lying transactions are legal and regular.

1.
The European Monitoring Centre for Drugs and Drug
Addiction (hereinafter ‘the Centre’) was established by Council
Regulation (EEC) No 302/93 of 8 February 1993 (1). Its main task
is to collect data on drugs and drug addiction in order to prepare
and publish information that is objective, reliable and comparable
at European level. The information is intended to provide a basis
for analysing the demand for drugs and ways of reducing both it
and, in general, phenomena associated with the drug market.

The Court has thus obtained a reasonable basis for the

6.
Statement below.

2.
Table 1 summarises the Centre’s competences and activi-
ties. Key data summarised from the financial statements drawn up
by the Centre for the financial year 2006 is presented inTables 2,
3 and 4 for information purposes.

Reliability of the accounts

The Centre’s accounts for the financial year ended 31 Decem-
ber 2006 are, in all material respects, reliable.

STATEMENT OF ASSURANCE

Legality and regularity of underlying transactions

The transactions underlying the Centre’s annual accounts,
taken as a whole, are legal and regular.

The observations which follow do not call the Court’s State-
ment into question.

3.
This Statement of Assurance is addressed to the European
Parliament and the Council in accordance with Article 185(2) of
Council Regulation (EC, Euratom) No 1605/2002 (2). It was
drawn up following an examination of the Centre’s accounts, as
required by Article 248 of the Treaty establishing the European
Community.

OBSERVATIONS

4.
The Centre’s accounts for the financial year ended
31 December 2006 (3) were drawn up by its Director, pursuant
to Article 11 of Regulation (EEC) No 302/93, and sent to the
Court, which is required to give its opinion on their reliability and
on the legality and regularity of the underlying transactions.

The utilisation rate of commitment appropriations (includ-
7.
ing assigned revenue) was 95 % (94 % in 2005) and the corre-
sponding rate for payment appropriations improved to 87 %
(85 % in 2005). The Centre reduced the level of carry-overs
to 25 % in 2006 (40 % in 2005).

(1) OJ L 36, 12.2.1993This Regulation was amended by Regulations (EC)
No 3294/94 of 22 December 1994 (OJ L 341, 30.12.1994, p. 7)
and (EC) No 1651/2003 of 18 June 2003 (OJ L 245, 29.9.2003, p. 30).

(2) OJ L 248, 16.9.2002, p. 1.
(3) These accounts were drawn up on 15 June 2007 and received by the

Court on 13 July 2007.

8.
In nine cases out of 13 examined contrary to the provi-
sions of the contracts, there were delays in making the payments
to the national focal points of Reitox (European Information Net-
work on Drugs and Drug Addiction) under the grant agreements.

C 309/130

EN

Official Journal of the European Union

19.12.2007

In the report on the annual accounts of the Centre for the
9.
financial year 2005 (1), the Court made an observation in respect
of a member of staff who had been sent on a long-term mission
to Brussels and who after the end of the mission, had been
seconded to the Commission. However, since the end of the

secondment, this staff member continued to be paid by the
Centre without having resumed work in Lisbon. The
situation remained unchanged in 2006. In 2007, this agent
was declared able to work anywhere except specifically in
Lisbon.

This report was adopted by the Court of Auditors in Luxembourg at
27 September 2007.

its meeting of

For the Court of Auditors
Hubert WEBER
President

(1) OJ C 312 of 19.12.2006 (paragraph 12, p. 68).

European Monitoring Centre for Drugs and Drug Addiction (Lisbon)

Table 1

Areas of Community competence
deriving from the Treaty

Competences of the Centre as defined in Council Regulation (EEC)
No 302/93

Governance

Resources available to the Centre in 2006
(2005)

Products and services supplied in 2006
(2005 data)

The Community complements
the Member States’ action in
reducing drugs-related health
damage, including information
and prevention.

(Article 152 of the Treaty)

Objectives

Tasks

1. The Management Board

Final budget

Network

To provide the Union and its
Member States with reliable
information at European level
concerning drugs and drug
addiction and their conse-
quences.

The Monitoring Centre should
give priority to analysing:

1)

2)

3)

4)

5)

the demand and reduc-
tion of the demand for
drugs;

national and Commu-
nity strategies and poli-
cies;

international
coopera-
tion and the geopolitics
of supply;

control of the trade in
narcotics, psychotropic
substances and drug pre-
cursors;

the implications of drug
use for producer, con-
sumer and transit coun-
including money
tries,
laundering.

— To collect and analyse data.

— To make enquiries and
preparatory
out

carry
actions.

— To ensure that European-
level data are more reliable.

— To publish reliable infor-

mation.

Comprises one representative
from each Member State, two
representatives of
the Com-
mission and two qualified sci-
the
appointed
entists
European Parliament.

by

It approves the work pro-
gramme and general annual
report and adopts the budget.

— To improve coordination
and

between
national
Community actions.

2. Director: Appointed by
the Management Board at the
Commission’s proposal.

13,12 million euro (12,8 million euro).

Community contribution: 92 % (96 %).

Staff numbers as at 31 December 2006

Number of posts in establishment plan:
77 (77)

Posts occupied: 68 (58)

+ 23 (25) other staff (auxiliary contracts,
contract staff and temporary replace-
ments)

The Centre runs a computerised network for the collection and
exchange of information called the ‘European Information
Network on Drugs and Drug Addiction’ (Reitox); this network
connects national drug information networks, specialist cen-
tres in the Member States and the information systems of
international organisations working with the Centre.

Publications

— Annual report on the state of the drug problem in
Europe (23 (22) language versions, publication and inter-
active website)

— Annual report on selected issues (EN, publication and

Total staff: 91(83)

interactive website)

— To promote the incorpora-
tion of drug-related data
pro-
international
into
grammes.

3. Scientific Committee:
Delivers opinions. It is made
up of one representative from
each Member State. The Man-
agement Board may
also
appoint a maximum of six
other members on the basis of
their specific qualifications.

4. External control: Court
of Auditors

5. Discharge
authority:
European Parliament on the
Council’s recommendation.

Assigned to the following duties:

operational: 53,5 (50,5)

administrative and IT support: 30 (25)

mixed: 7,5 (7,5)

— Statistical bulletin and interactive website containing
over 250 (200) tables, 150 (100) graphs and PDF files

— General activity report (annual, EN)

— Drugnet Europe newsletter (4 issues, EN (two in five lan-

guages and two EN))

— Technical and scientific studies and articles (21) (28)

— articles and scientific summaries (16)

Other websites

Set-up/updating/content development:

— Country situation summaries

— Country data profiles

— Drug treatment overviews

— European legal database on drugs

— Evaluation instruments bank

— Exchange on drug demand reduction action

Promotional brochures (4 (3) products)

Media products (174 (110) miscellaneous products)

Participation in international
(162 (75))

conferences/meetings

Organisation of technical and scientific meetings (27 (24))

Source:

Information supplied by the Centre.

.

1
9
1
2
2
0
0
7

.

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

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e
a
n
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n
o
n

i

C
3
0
9
/
1
3
1

European Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Budget implementation for the financial year 2006

Table 2

Expenditure

Final budget appropriations for the financial year

Appropriations carried over from
the previous financial year

entered

committed

paid

carried
over

cancelled

available

committed

cancelled

(1 000 euro)

6 500

6 468

6 373

95

32

154

134

1 590

1 482

1 077

405

108

650

611

20

39

Source of revenue

Revenue

Revenue entered in the
final budget for the
financial year

Revenue received

Allocation of expenditure

Community subsidies

12 100

12 100

Own revenue

521

Title I
Staff (NDA)

Title II
Administrations (NDA)

Title III
Operational activities (DA)

521

93

Other revenue

Assigned
revenue (Phare)

500

381

Assigned revenue (Phare)

500

224

28

Total

13 121

13 095

Total CA

13 121

12 660

Total PA

13 121

12 660

11 641

NDA: non-differentiated appropriations (commitment appropriations equal payment appropriations).
DA:
CA:
PA:
Source: Data supplied by the Centre. This table summarises the data provided by the Centre in its annual accounts. Revenue collected and payment are estimated on a cash basis.

differentiated appropriations (commitment appropriations and payment appropriations may differ).
commitment appropriations in a system of differentiated appropriations.
payment appropriations in a system of differentiated appropriations.

— CA

— PA

4 531

4 531

4 486

4 163

45

368

0

45

508

472

972

972

284

171

1 088

916

59

C
3
0
9
/
1
3
2

E
N

O

f
f
i
c
i
a
l

J
o
u
r
n
a
l

o
f

t
h
e

E
u
r
o
p
e
a
n
U
n
o
n

i

.

1
9
1
2
2
0
0
7

.

19.12.2007

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Official Journal of the European Union

C 309/133

European Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Economic outturn account
for the financial years 2006 and 2005

Table 3

(1 000 euro)

2006

2005

Operating revenue

Community subsidies

Other revenues

Operating expenditure

Staff expenditure

Fixed asset-related expenditure

Other administrative expenditure

Operating activities

13 394

93

Total (a)

13 488

6 566

292

2 369

4 629

13 857

– 370

16

– 16

– 385

10 592

312

10 904

5 843

2 269

4 181

12 293

– 1 389

35

– 35

– 1 424

Surplus/(deficit) from operating activities (c = a – b)

Total (b)

Revenue from financial operations (e)

Expenditure on financial operations (f)

Surplus/(deficit) from non-operating activities (g = e – f)

Economic result for the year (h = c + g)

European Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Balance sheet at 31 December 2006
and 2005

Table 4

Non-current assets

Intangible fixed assets

Tangible fixed assets

Current assets

Short-term receivables

Cash and cash equivalents

Current liabilities

Provisions for risks and charges

Accounts payable

Net assets

Accumulated surplus/deficit

Economic result for the year

(1 000 euro)

2006

2005

374

2 809

416

1 881

5 480

149

2 843

2 992

2 872

– 385

2 488

5 480

56

2 933

224

3 005

6 218

115

3 231

3 346

4 296

– 1 424

2 872

6 218

Total assets

Total liabilities

Total net assets

Total liabilities and net assets

Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts: these accounts are drawn

up on an accrual basis.

C 309/134

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Official Journal of the European Union

19.12.2007

THE CENTRE’S REPLIES

The Centre will continue its efforts to maintain the high

7.
rate of execution of its budget and if possible to improve it.

In order to improve the referred payment process the

8.
EMCDDA has taken various measures:

— improvement of the relevant communication/notification

process to the National Focal Points (NFP);

— provision of guidelines and specific training for NFPs on

financial procedures;

— reinforcement of the operating capacity for the financial and

administrative management of the grants;

The secondment of the concerned staff member ended on
9.
30 September 2006. As from 1 October 2006 the staff member
was reinstated in the EMCDDA services. However, the concerned
person took sick leave, providing evidence (by means of regular
medical certificates) of being unable to carry out duties because
of illness.

The EMCDDA requested twice the medical service of the Euro-
pean Commission to carry out a medical examination to verify
the grounds for the referred sick leave and the examinations have
confirmed the existence of reasons justifying the absence for
sickness.

— streamlining of the relevant internal control processes.

The EMCDDA will continue to use all instruments provided by
the relevant regulations to manage the referred case.