Report on the annual accounts of the Executive Agency for the Public Health Programme for the financial year 2007 together with the Agency's replies
Date: 2008-09-18
Institutions: European Court of Auditors
Subjects: European Agency for Safety and Health at Work, European Court of Auditors, administration of the Institutions, financial control, implementation of the budget, powers of the institutions (EU), report

C 311/86

EN

Official Journal of the European Union

5.12.2008

on the annual accounts of the Executive Agency for the Public Health
Programme for the financial year 2007 together with the Agency’s replies

REPORT

(2008/C 311/13)

CONTENTS

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

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

OBSERVATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1-2

3-6

7

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

The Agency’s replies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

87

87

87

88

91

Paragraph

Page

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Official Journal of the European Union

C 311/87

INTRODUCTION

1.
The Executive Agency for the Public Health Programme
(hereinafter referred to as the Agency) was set up by Commission
Decision 2004/858/EC (1). The Agency was established for a
period beginning on 1 January 2005 and ending on 31 Decem-
ber 2010 for the management of Community actions in the field
of public health. The Agency acquired its financial independence
on 15 December 2006 for the implementation of the 2007 bud-
get appropriations.

2.
Table 1 summarises the Agency’s competences and activi-
ties. Key information taken from the financial statements drawn
up by the Agency for the financial year 2007 are presented in
Tables 2, 3 and 4.

STATEMENT OF ASSURANCE

3.
This Statement is addressed to the European Parliament
and the Council in accordance with Article 14 of Council Regu-
lation (EC) No 58/2003 of 19 December 2002 (2); it was drawn
up following an examination of the Agency’s accounts, as
required by Article 248 of the Treaty establishing the European
Community.

4.
The Agency’s accounts for the financial year ended
31 December 2007 (3) were drawn up by its Director, pursuant
to Article 14 of Council Regulation (EC) No 58/2003, and sent to
the Court, which is required to give a Statement of Assurance on
their reliability and on the legality and regularity of the underly-
ing transactions.

5.
The Court conducted its audit in accordance with the IFAC
and ISSAI (4) International Auditing Standards and Codes of Eth-
ics, in so far 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.

The Court has thus obtained a reasonable basis for the

6.
Statement set out below:

Reliability of the accounts

The Agency’s accounts for the financial year ended 31 Decem-
ber 2007 are, in all material respects, reliable.

Legality and regularity of the underlying transactions

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

The observation which follows does not call the Court’s State-
ment into question.

OBSERVATION

7.
The Agency’s final budget for 2007 amounted to 4,1 mil-
lion euro. Almost all of the budget was committed: carry-overs
amounted to 1,5 million euro. A significant proportion of the
carry-overs for administrative expenditure was either not justified
by legal obligations or concerned goods and services which, to a
large extent, will be delivered in 2008. This situation was at odds
with the principle of annuality.

This report was adopted by the Court of Auditors in Luxembourg at
18 September 2008.

its meeting of

For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
President

(1) OJ L 369, 15.12.2004, p. 73.
(2) OJ L 11, 16.1.2003, p. 5.
(3) These accounts were drawn up on 5 June 2008 and received by the

Court on 27 June 2008.

(4) International Federation of Accountants (IFAC) and International Stan-

dards of Supreme Audit Institutions (ISSAI).

Areas of Community competence
deriving from the Treaty

Competences of the Agency as defined in Commission decision (2004/858/EC)
of 15 December 2004

Governance

Resources made available
to the Agency in 2007

Products and services supplied in 2007

Table 1

Public Health Executive Agency (PHEA) — Luxembourg

A high level of human health
protection shall be ensured in the
definition and implementation of
all Community policies
and
activities.

Community action, which shall
complement national policies,
shall be directed towards improv-
ing public health, preventing
human illness and diseases, and
obviating sources of danger to
human health. Such action shall
cover the fight against the major
health scourges, by promoting
research into their causes, their
transmission and their preven-
tion, as well as health informa-
tion and education.

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

(Article 152 of the Treaty)

Objectives

Tasks

1. Steering Committee

the Agency

Under
the Community pro-
gramme in the field of public
health established by Decision
No 1786/2002/EC (framework
Decision),
is
entrusted with implementing
the tasks concerning Commu-
nity aid under the programme,
except for programme evalua-
tion, monitoring of legislation,
or any other action which could
come under the exclusive com-
petence of the Commission.

of

basis

(a) managing all the phases in the
lifetime of specific projects,
in
the context of implementing the
programme on public health, on
the
Decision
No 1786/2002/EC and of the
work plan provided for in that
Decision and adopted by the
Commission, and the necessary
checks to that end, taking the rel-
evant decisions where the Com-
mission has empowered it
to
do so;

(b)

(c)

adopting the instruments of bud-
get execution for revenue and
expenditure and carrying out,
where
the Commission has
empowered it to do so, all the
operations necessary for
the
management of the Community
programme and,
in particular,
those linked to the award of con-
tracts and grants;

providing logistical,
scientific
and technical support, in particu-
lar by organising technical meet-
ings
expert
(management of
working groups), preparatory
studies, seminars or conferences.

two years.

Comprises
five members
appointed by the European
Commission. The members of
the Steering Committee are
appointed for
It
the Agency’s annual
adopts
work
after
programme
approval by the European Com-
mission. In addition, it adopts
the administrative budget of the
Agency and its annual activity
report.

2. Director

Appointed by the European
Commission for four years.

3. External audit

The European Court of Audi-
tors.

4. Discharge Authority

The European Parliament fol-
lowing a recommendation from
the Council.

Source:

Information supplied by the Agency.

The Agency’s administrative
for 2007 amounted
budget
to 4,1 million euro.

On 31 December 2007, the
Agency counted 28 statutory
staff members, of which 8 tem-
porary agents and 20 contract
agents.

At 31.12.2007, 121 PHP Call
2005 (32), 2006 (87) and 2007 (2)
grant agreements were concluded
representing a total EC funding of
71 667 322,3 euro.

Negotiations on 66 projects of the
Public Health Programme (PHP) call
2007 were ongoing.

The organisation of 23 technical
meetings of expert groups where
more than 1 300 experts were
invited.

the

100 % of the Public Health pro-
gramme budget has been commit-
PHP payment
ted. Also
appropriations were 100 % used (at
the exception of the earmarked rev-
enue received in December 2007).
The
PHP payments
of
amounted to 18 million euro.

total

78 payment transactions (18 mil-
lion euro) and 89 commitments
(PHP Call 2006 (87 projects) and
Call 2007 (2 projects) were made.

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Public Health Executive Agency (PHEA) — Luxembourg — implementation of the budget for the financial year 2007

Table 2

Revenue collected

Allocation of expenditure

Revenue

Revenue entered in the
final budget for the
financial year

Source of revenue

Own revenue

Community subsidies

4 100

5 097

Other subsidies

Other revenue

Total

4 100

5 097

Title I
Staff

Title II
Administration

Title III
Operating activities

Expenditure

Final budget appropriations

entered

committed

paid

1 978

1 898

1 808

885

874

1 238

4 100

1 188

3 959

Total

319

324

2 451

1 508

(1 000 euros)

Appropriations carried over from
previous financial year(s)

cancelled

entered

paid

cancelled

80

11

50

141

168

308

521

997

36

132

221

301

558

87

220

439

carried
over

90

554

864

NB: Any discrepancies in totals are due to the effects of rounding.
Source:

Information supplied by the Agency — This table summarises the data supplied by the Agency in its financial statements.

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C 311/90

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Official Journal of the European Union

5.12.2008

Public Health Executive Agency (PHEA) — Luxembourg — Economic outturn account
for the financial year 2007

Table 3

Operating revenue

Community subsidies

Operating expenditure

Staff expenditure

Fixed asset-related expenditure

Other administrative expenditure

Total (a)

Economic result for the year (c = a – b)

Total (b)

(1 000 euro)

2007

4 607

4 607

1 739

45

1 472

3 256

1 351

NB: As the Agency became fully autonomous on 15 December 2006, 2007 is the first year of disclosure of the financial statements.
Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn

up on a accrual basis.

Public Health Executive Agency (PHEA) — Luxembourg — Balance sheet at 31 December 2007

Table 4

Non-current assets

Intangible assets

Tangible assets

Current assets

Cash and cash equivalents

Current liabilities

Provisions for risks and charges

Accounts payable

Reserve

Accumulated surplus/deficit

Economic result for the year

(1 000 euro)

2007

40

84

3 235

3 359

29

1 979

2 008

1 351

0

1 351

1 351

Total assets

Total liabilities

Net assets

Net capital

NB: As the Agency became fully autonomous on 15 December 2006, 2007 is the first year of disclosure of the financial statements.
Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn

up on a accrual basis.

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C 311/91

THE AGENCY’S REPLIES

The Agency takes note of the Court’s comments. However, it has to be underlined that for some cases
7.
the Agency felt obliged to foresee carry-overs in order to fulfill legal or contractual provisions (e.g. the rent to
be paid in advance). In the future, the Agency will fully respect the principle of annuality.