Report on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2009, together with the Centre’s replies
Date: 2010-09-16
Institutions: European Court of Auditors
Subjects: European Court of Auditors, European organisation, administration of the Institutions, competence of the institution, financial control, implementation of the budget, report








C_2010338EN.01013001.xml










14.12.2010   


EN


Official Journal of the European Union


C 338/130





REPORT
on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2009, together with the Centre’s replies
2010/C 338/23

CONTENTS








 



Paragraph




Page





INTRODUCTION …


1-2


131




STATEMENT OF ASSURANCE …


3-12


131




COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …


13-15


132




OTHER MATTERS…


16


132




Table …


133





The Centre’s replies …


136





INTRODUCTION







1.


The European Centre for the Development of Vocational Training (hereinafter ‘the Centre’), located in Thessaloniki, was established by Council Regulation (EEC) No 337/75 (1). Its core mandate is to serve the development of vocational training at Union level. In order to achieve this objective, it has the task of compiling and disseminating documentation on vocational training systems (2).










2.


The Centre’s 2009 budget amounted to 18,5 million euro, compared with 18,3 million euro the previous year. The number of staff employed by the Centre at the end of the year was 129, compared with 128 the previous year.



























































































































12.


The comments which follow do not call the Court’s opinions into question.





COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT







13.


The Centre carried forward 0,4 million euro of its 2009 appropriations for Title II — Administrative expenditure (31 %), out of which 0,3 million euro corresponded to commitments without payments, mostly for activities related to the 2010 financial year. The cancelled payment appropriations for Title III — Operating expenditure, which are managed through differentiated appropriations, amounted to 1,6 million euro, representing 24 % of total appropriations for operating activities. The Centre should continue to improve the programming and monitoring of activities with a view to maximising the use of the available appropriations and to better respect the principle of annuality.










14.


The Centre received annual contributions (12) booked in its budget as assigned revenue from Norway and Iceland for their participation in the Centre’s activities. The contributions for the years 2007 to 2009, amounting to 1,2 million euro, were not used and were carried forward. The Centre should take measures to ensure that these contributions are used on an annual basis at the same rate as the Commission subsidy.










15.


In 2009, 43 budget transfers amounting to 0,7 million euro were made without the Management Board being informed in due time. Moreover, transfers from one title to another, representing more than 10 % of the appropriation for the year shown on the line from which the transfers were made (13), were not submitted to the Governing Board for approval. Thus, the budgetary principles of specification and transparency should be more strictly observed.





OTHER MATTERS







16.


With regard to staff selection procedures, neither the weightings of the selection criteria nor the thresholds candidates had to meet in order to be invited to written tests and interviews were established (14). Additionally, the questions for written tests and interviews were defined after a short list of candidates had been drawn up. These practices put at risk the transparency of the recruitment procedures.





This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.


For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President





Table


European Centre for the Development of Vocational Training (Thessaloniki)











Area of Union competence deriving from the Treaty


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


Governance


Resources made available to the Centre in 2009
(Data for 2008)


Products and services supplied in 2009 (major results)
(Data for 2008)




The Union shall implement a vocational training policy which shall support and supplement the action of the Member States, while fully respecting the responsibility of the Member States for the content and organisation of vocational training.

(Article 166(1) of the Treaty on the Functioning of the European Union)




The Centre’s mandate

In its capacity as the European Union reference centre for vocational training and education, the Centre provides political decision-makers, researchers and professionals with information aimed at developing a clearer understanding of current trends that will thus enable them to reach more soundly based decisions with a view to future action.
The Centre assists the European Commission in promoting and developing vocational training and education at Union level.



Tasks







—


to compile selected documentation and produce data analysis,










—


to contribute to research development and coordination,










—


to utilise and disseminate relevant information,










—


to encourage and support a concerted approach to matters relating to the development of vocational training,










—


to provide a forum for a broad and diverse public.







1 —   Governing Board


Composition

For each Member State:






—


one member representing the Government,










—


one member representing the employers’ organisations,










—


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





2 —   Bureau


Composition

The chairman and the three vice-chairmen of the Governing Board (one from each of the groups), one coordinator per group and one representative 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 audit

Internal Audit Service of the European Commission.

5 —   External audit

Court of Auditors.

6 —   Discharge authority

Parliament, acting on a recommendation from the Council.



Budget

18,53 million euro
(18,35 million euro)
Union contribution (15): 97 % (97 %)

Staff at 31 December 2009

Number of posts in establishment
plan: 101 (99)
Posts occupied: 96 (97)
Other staff:






 


contract staff, 26 (25)











 


seconded national experts 7 (6).




Total staff: 129 (128)

Allocated to

operational: 88
administrative: 41
(in 2008: operational: 87 administrative: 41)


Highlights in the implementation of the work programme 09 supporting 4 priorities (informing EU VET policies, interpreting trends and challenges for skills, competences and learning, assessing VET benefits, raising the profile of VET): The 2008 policy report was published and discussed at high level conference in March. Results reflect progress of Copenhagen process and inform discussion of future strategy. Preparation of 2010 Report with EC and future Belgian presidency. Questionnaires were sent, for the first time incl. Social Partners directly. VET in Europe, updated system descriptions for 23 countries. VET measures for recovery in response to the crisis in Member States collected, analysed and disseminated at Swedish presidency conferences. Close cooperation with both presidencies in preparation and content of VET related events. Informing skill agenda, cooperation with EC on New skills for new jobs (results on Skill supply forecast, anticipation of occupational skill needs, skill mismatch). Dissemination at high level policy events (EU Parliament, Economic and Social Committee, Presidencies, etc.) This is supported by the work on learning outcomes, validation of non-formal learning, the work on occupational and educational standards. Cont. support of VET topics of education and training 2010 agenda. In particular, implementation of EQF — supporting the development of national qualification frameworks, work on development and implementation of ECVET/EQARF, guidance, and teachers and trainers in VET. Europass: continuously growing acceptance by citizens. Since its launch over 7 million documents completed online, ca. 250 000 CVs completed online every month. Publication of 4th Research Report: Modernising VET; cont. work on older workers, active ageing and financing of VET. Dissemination of work on innovative financing schemes, cost-sharing and (tax) incentives for learners and companies. Research on socio-economic benefits of VET to underpin investment decisions in VET. Successful coordination of Study Visits programme with over 245 visits in academic year 08/09. Implementation of user oriented communication strategy, shift to electronic publishing to meet changing requirements, minimise delays and economise. Launch of the new WebPortal in December 2009. Design of performance measurement system (PMS) completed. Indicators reflect outputs, outcomes and impact. ABB report shows resources by activities
Organisation level impact 2009: Cedefop referred to in 32 EU policy documents (2008: 21). More information and indicator measurements available in Annual (Activity) Report 2009.





Source: Information supplied by the Centre.






THE CENTRE’S REPLIES






13.


The Centre takes note of the comment of the Court and will pursue its efforts to reduce the volume of carried forward and cancelled appropriations. In particular the Centre has introduced, in June 2009, a system for monitoring more closely the use of Title III payment appropriations and staff have been made aware of the issue.










14.


The Centre has decided on a plan (May 2010) which will allow it to comply as of 2013 fully with the Court’s observation. Lines have already been created in the 2010 budget to allow a general distribution of these contributions.










15.


Due to the numerous budget lines with relatively small amounts, the approval of the Governing Board was requested only if the transfer exceeded 10 % of the amount of a chapter in view to alleviate the administrative burden. In June 2010, the Centre has fully informed the Governing Board on 2009 and 2010 transfers and will continue to regularly inform on all transfers.










16.


The Centre will revise its vacancy notices to give candidates a clear indication of the conditions under which they will be pre-selected. Following the Court’s comments, the Centre now establishes, since June 2010, questions for written tests and interviews before pre-selections.







(1)  OJ L 39, 13.2.1975, p. 1.

(2)  The Table summarises the Centre’s competences and activities. It is presented for information purposes.

(3)  These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4)  The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5)  The budget implementation reports comprise the budget outturn account and its annex.

(6)  OJ L 248, 16.9.2002, p. 1.

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8)  Article 38 of Regulation (EC, Euratom) No 2343/2002.

(9)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VII of Regulation (EC, Euratom) No 2343/2002 of as last amended by Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 23) and are integrated as such in the Financial Regulation of the Centre.

(10)  International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11)  The Final Annual Accounts were drawn up on 11 June 2010 and received by the Court on 25 June 2010 The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://www.cedefop.europa.eu/about/budget_discharge.asp

(12)  Value: approximately 0,4 million euro per year.

(13)  Two (total value: 25 000 euro and 31 360 euro) out of seven transfers from one title to another.

(14)  Four staff selection procedures were audited and the problems found were systematic.

(15)  Note: Union contribution includes Union subvention as well as BRS. (In 2008 table, supplementary budget (BRS) had not been included, for this reason percentage shown had only amounted to 93 %.)