Report on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2007 together with the Centre's replies
Date: 2008-09-18
Institutions: European Court of Auditors
Subjects: Cedefop, European Court of Auditors, administration of the Institutions, financial control, implementation of the budget, powers of the institutions (EU), report

C 311/130

EN

Official Journal of the European Union

5.12.2008

REPORT

on the annual accounts of the European Centre for the Development of
Vocational Training for the financial year 2007 together with the Centre’s
replies

(2008/C 311/19)

CONTENTS

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

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

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

Paragraph

1-2

3-6

7

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

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

Page

131

131

131

132

135

5.12.2008

EN

Official Journal of the European Union

C 311/131

INTRODUCTION

1.
The European Centre for the Development of Vocational
Training (hereinafter the Centre) was established by Council
Regulation (EEC) No 337/75 (1). Its core mandate is to serve the
development of vocational training at Community level. In order
to achieve this objective, it has the task of compiling and dissemi-
nating documentation on vocational training systems.

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

STATEMENT OF ASSURANCE

3.
This statement 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 fol-
lowing an examination of the Centre’s accounts, as required by
Article 248 of the Treaty establishing the European Community.

The Centre’s accounts for the financial year ended
4.
31 December 2007 (3) were drawn up by its Director, pursuant
to Article 12(a) of Regulation (EEC) No 337/75, and sent to the
Court, which is required to provide a statement as to their reli-
the underlying
ability and the legality and regularity of
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 fol-

6.
lowing Statement set out below:

Reliability of the accounts

The Centre’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 Centre’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 Centre’s 2007 budget amounted to 17,4 million euro,
as compared with 17,6 million euro the previous year. The Cen-
tre’s 2007 work programme lists the planned activities for each
specific objective with a detailed description of outputs to be
delivered. Objectives and performance indicators are often not
measurable which makes it difficult to assess achievements. If it
wishes its budget to be genuinely activity-based, the Centre should
define precise objectives and improve its programming. The pro-
gramming should establish a clear and consistent link between
the set objectives and the implementation of the budgetary
resources needed to achieve them.

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 39, 13.2.1975, p. 1.
(2) OJ L 248, 16.9.2002, p. 1.
(3) These accounts were drawn up on 17 June 2008 and received by the

Court on 3 July 2008.

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

dards of Supreme Audit Institutions (ISSAI).

European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki

Table 1

Area of Community competence deriving
from the Treaty

Competence of the Centre as specified in Articles 2 and 3 of Council
Regulation (EEC) No 337/75

Governance

Resources made available to the Centre in
2007
(Data for 2006)

Products and services supplied in 2007
(Data for 2006)

The Centre’s mandate

Tasks

1. Governing Board (GB)

Budget:

— Conferences and seminars: 11 (24);

The Community implements a voca-
tional training policy to support and
supplement the action of the Member
States as regards the content and
organisation of vocational training.

Action aims to:

— facilitate adaptation to indus-
trial
in particular
through vocational training and
retraining;

changes,

— improve initial and continuing
vocational training in order to
facilitate vocational integration
and
reintegration into the
labour market;

— facilitate access to vocational
training and encourage mobility
of instructors and trainees and
particularly young people;

— stimulate cooperation on train-
ing between educational or
training
and
firms;

establishments

— develop exchanges of informa-
tion and experience on issues
common to the training systems
of the member States.

(From Article 150 of the Treaty)

Source:

Information supplied by the Centre.

In its capacity as a European
Union reference centre
for
vocational training and educa-
tion, Cedefop provides political
decision-makers,
researchers
and professionals with infor-
mation aimed at developing a
clearer understanding of cur-
rent trends that will thus enable
them to reach more soundly
based decisions with a view to
future action.

Cedefop assists the European
Commission in promoting and
developing vocational training
and education at Community
level.

— To

compile

selected
documentation and pro-
duce data analysis;

— To contribute to research
development and coordi-
nation;

— To utilise and dissemi-
informa-

nate relevant
tion;

— To encourage and sup-
concerted
port
a
approach
to matters
relating to the develop-
ment of vocational train-
ing;

— To provide a forum for a
broad and diverse public.

Consisting of:

17,4 million euro (17,6 million euro)

— Workshops: 82 (24);

For each Member State:

Community contribution: 96 % (95 % )

— Visits/presentations: 24 (21);

— one member representing the Gov-

Staff numbers at 31 December 2007:

— Studies: 14 (35) + 23 grant procedures

ernment;

for ReferNet;

— one member

representing

the

employers’ organisations;

Number of posts in establishment plan:
97 (95)

— one member

representing

the
employees’ organisations and three
members representing the European
Commission.

2. Bureau

Made up of:

The chairman and the three vice-chairmen
of the GB (one from each of the groups),
one coordinator per group and one repre-
sentative of the Commission.

3. Director

Appointed by the Commission from a list
of candidates submitted by the Governing
Board; is responsible for the management
of the Centre and implements the decisions
of the Governing Board and the Bureau.

4.

Internal control

Commission’s Internal Audit Service.

5. External audit

Court of Auditors.

6. Discharge authority

Parliament acting on recommendation from
the Council.

Posts occupied: 89 (81)

Other staff: contract staff,

seconded national experts.

Total staff: 128 (123)

assigned to the following duties:

operational: 89 (84)

administrative: 39 (34)

— Projects: 40 (36) (of which 8 (2) admin-
istrative) plus 13 (15) virtual communi-
ties (of which 3 (1) administrative);

— Participation in: Helsinki follow-up and
preparation for the ministerial meeting
in Bordeaux 2008, Education and
Training 2010 programme, Leonardo
da Vinci programme and transition to
Lifelong Learning programme, social
partners’ joint action framework, Advi-
sory Committee for Vocational Train-
ing, Directors-General for Vocational
Training, Education and Training 2010
Coordination Group;

mixed: 0 (5)

— Publications: 34 (43);

— 3 (3) issues of Cedefop info;

— 3 (3) issues of the European journal on

vocational training;

— Circulation of

documents: 8 477
(8 733) on request, 1 565 (1 774) sub-
scriptions to the European journal,
8 490 (8 498) subscriptions to Cedefop
info;

— Electronic publications: 3 364 (3 324)
subscriptions
ETV newsletter,
to
4 000 000 (3 583 478) number of ETV
page views, 5 841 (7 553) registered
members in the virtual communities,
769 (844) participants in the study vis-
its programme.

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European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki — Implementation of the budget for the financial year 2007

Table 2

Source of revenue

Revenue

Revenue entered in
the final budget for
the financial year

Revenue collected

Allocation of expenditure

Appropriations for the Financial Year

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

committed

paid

carried over

cancelled

Expenditure

(1 000 euro)

Community subsidy

Other revenue

16 730

125

16 317

96

Title I
Staff (NDA)

Title II
Administration (NDA)

Title III
Operating activities (DA)

9 631

9 000

8 694

306

631

338

338

240

2 049

1 754

808

1 096

145

559

559

519

Assigned revenue (1)

544

494

Assigned revenue

544

82

19

525

Total

17 399

16 907

Total PA 17 399

14 390

2 026

Total CA 17 374

15 641

1 927

— CA

5 150

4 805

— PA

5 175

4 869

0

99

0

207

0

775

983

0

0

916

1 813

1 813

0

0

0

0

446

227

1 343

986

(1)
For Phare funds of 50 000 euro the recovery order of 2007 was only collected in February 2008.
NDA: non-differentiated appropriations (commitment appropriations equal payment appropriations)
DA: differentiated appropriations (commitment appropriations may differ from payment appropriations)
CA: commitment appropriations in the context of differentiated appropriations
PA: payment appropriations in the context of differentiated appropriations
Source: Data supplied by the Centre. This table summarises data provided by the Centre in its Annual Accounts. Revenue collected and payments are estimated on a cash basis.

0

0

0

0

551

551

551

98

40

0

0

138

276

276

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3

C 311/134

EN

Official Journal of the European Union

5.12.2008

European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki — Economic outturn
account for the financial years 2007 and 2006

Table 3

(1 000 euro)

2007

2006

Operating revenue

Community subsidies

Other subsidies

Other revenues

Operating expenditure

Staff expenditure

Fixed asset related expenditure

Other administrative expenditure

Operational expenditure

15 707

396

373

Total (a)

16 476

9 041

460

1 429

5 290

16 220

256

0

3

– 3

253

14 146

457

279

14 882

8 166

480

1 181

4 340

14 167

715

0

4

– 4

711

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

Total (b)

Financial operations revenue (e)

Financial operations expenditure (f)

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

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

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.

European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki — Balance sheet at
31 December 2007 and 2006

Table 4

Non-current assets

Intangible fixed assets

Tangible fixed assets

Long-term receivables

Current assets

Short-term pre-financing

Stock

Short-term receivables

Cash and cash equivalents

Current liabilities

Provisions for risks and charges

Accounts payable

Reserves

Accumulated surplus/deficit

Economic result for the year

2007

110

4 621

5

384

155

462

3 763

9 500

412

3 037

3 449

6 050

5 798

253

6 050

(1 000 euro)

2006

92

4 887

5

552

0

438

3 919

9 893

317

3 777

4 094

5 799

5 088

711

5 799

Total assets

Total liabilities

Net assets

Net capital

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.

5.12.2008

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Official Journal of the European Union

C 311/135

THE CENTRE’S REPLY

The Centre takes account of the observation of the Court. The Centre is working on a more precise for-
7.
mulation of objectives and performance indicators. For 2008 the Centre introduced an Activity Based Bud-
geting which establishes a clear link between activities, their objectives and the budgetary resources attributed.