Report on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2010, together with the Centre’s reply
Date: 2011-09-13
Institutions: European Court of Auditors
Subjects: Cedefop, administration of the Institutions, auditing, budgetary control, financial control, powers of the institutions (EU)








C_2011366EN.01012701.xml










15.12.2011   


EN


Official Journal of the European Union


C 366/127





REPORT
on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2010, together with the Centre’s reply
2011/C 366/23

INTRODUCTION







1.


The European Centre for the Development of Vocational Training (hereinafter ‘the Centre’), which is 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 2010 budget amounted to 18,3 million euros, compared with 18,6 million euros the previous year. The number of staff employed by the Centre at the end of the year was 125, compared with 129 the previous year.





STATEMENT OF ASSURANCE







3.


Pursuant to the provisions of Article 287(1), second subparagraph, of the Treaty on the Functioning of the European Union, the Court has audited the annual accounts (3) of the Centre, which comprise the ‘financial statements’ (4) and the ‘reports on the implementation of the budget’ (5) for the financial year ended 31 December 2010, and the legality and regularity of the transactions underlying those accounts.










4.


This Statement of Assurance is addressed to the European Parliament and to the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6).





The Director’s responsibility







5.


As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Centre, under his own responsibility and within the limits of the authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular.





The Court’s responsibility







6.


The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Centre and the legality and regularity of the transactions underlying them.










7.


The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require the Court to comply with ethical requirements and to plan and perform the audit so as to obtain reasonable assurance as to whether the accounts are free of material misstatement and whether the underlying transactions are legal and regular.










8.


The Court’s audit involves performing procedures to obtain audit evidence of the amounts and disclosures in the accounts and of the legality and regularity of the transactions underlying them. The procedures selected, including its assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error, depend on its audit judgement. In making those risk assessments, internal controls relevant to the entity’s preparation and presentation of accounts are considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the accounts.










9.


The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below.






Opinion on the reliability of the accounts








10.


In the Court’s opinion, the Centre’s Annual Accounts (11) fairly present, in all material respects, its financial position as of 31 December 2010 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation.






Opinion on the legality and the regularity of the transactions underlying the accounts








11.


In the Court’s opinion, the transactions underlying the annual accounts of the Centre for the financial year ended 31 December 2010 are, in all material respects, legal and regular.










12.


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





COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT







13.


The Centre receives annual contributions from two non-EU Member States who benefit from the Centre’s work. These funds are managed as assigned revenue, requiring them to be committed for specific projects. The 2010 target for using these funds has not been met.





This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 13 September 2011.


For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President





(1)  OJ L 39, 13.2.1975, p. 1.

(2)  The Annex 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 a description of the main 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 (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 as last amended by Regulation (EC, Euratom) No 652/2008 (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 21 June 2011 and received by the Court on 24 June 2011. The Final Annual Accounts can be found on the following website: http://eca.europa.eu or http://www.cedefop.europa.eu/about/budget_discharge.asp


ANNEX

European Centre for the Development of Vocational Training (Thessaloniki)


Competences and activities








Area of Union competence deriving from the Treaty


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



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.





Competence of the Centre


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




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 (‘EC’) 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.









Governance




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.




Three members representing the EC.

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 EC.

3 —   Director

Appointed by the EC 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 —   External audit

Court of Auditors.

5 —   Discharge authority

Parliament, acting on a recommendation from the Council.





Resources made available to the Centre in 2010 (2009)





Final Budget

18,3 (18,6) million euros
Union contribution: 98 % (97 %)


Staff as at 31 December 2010

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






 


contract staff: 24 (26)










 


seconded national experts: 5 (7).





Total staff: 125 (129)






 


operational: 90 (88)










 


administrative: 35 (41)









Products and services in 2010 (2009)




Highlights in the implementation of the work programme 2010:

Policy analysis and reporting

‘A bridge to the future’, the fourth policy report, reviewed progress achieved in the Copenhagen process 2002-10 and was discussed at a ministerial conference in December. The report also supported the preparation of the Bruges communiqué which defines priorities and deliverables for European cooperation in Vocational Educational Training (VET) until 2020. National ReferNet policy reports reviewed progress at national level and fed into Cedefop's policy report.
Research on cost-sharing mechanisms for financing VET was discussed in several workshops, laying the ground for a comparative analysis of the most effective and efficient mechanisms.

Supporting the development of European tools and principles for VET and lifelong learning







—


Continued coordination of the EQF (European Qualifications Framework) advisory group together with the EC, supporting and monitoring the implementation process; analysing and reporting on developments at national level and publishing the report ‘The development of national qualifications frameworks in Europe’. Contributions to numerous policy events and several workshops organised (workshop documents available on Cedefop website).










—


Support to ECVET (European Credit system in VET) development, provision of background paper to Spanish Presidency Conference. Publication of the first ECVET monitoring report ‘The development of ECVET in Europe’ and the study ‘Linking credit systems and qualifications frameworks’.










—


Support to EQAVET. Publication of two research papers on quality assurance in several sectors.










—


Contribution to further developments of Europass. The hosted website continues to attract increasing numbers of visitors and users. By December 2010, 10,9 million European CVs had been created online (since the Europass launch in 2005), far surpassing the original target of 3 million. In 2010: 3,7 million CVs created online and over 10 million visits to the website.










—


230 (246) Study Visits coordinated in academic year 2009/10 for 2 358(2 432) specialists. Impact studies underline high satisfaction rate (97 %) and quality. For 2010/11, 244 visits for 2 732 participants will have taken place by end-June 2011.





Skills and competence analysis







—


Cedefop's skill needs analysis provided input to the new Europe 2020 flagship initiative on new skills for new jobs, and contributed to a report of the EC's expert group on new skills for new jobs.










—


The updated skills forecast up to 2020 was released and presented at several high-level events, including EC and Spanish presidency conferences.










—


The approach, method and questionnaire for a European employer survey on emerging skill needs were agreed on.










—


‘Skills for green jobs’ was published in cooperation with ILO and evidence of the greening of jobs was discussed at several conferences, including a Belgian presidency conference.










—


Several studies considered skill mismatch: ‘The skill matching challenge’, ‘Working and ageing’ and ‘The right skills for silver workers’.





Qualifications for lifelong learning







—


Publication of the studies ‘Changing qualifications – A review of qualifications policies and practices’, ‘Learning outcomes in VET curricula’ and background papers for the ESCO initiative (European terminology on skills, competences, occupations and qualifications) were discussed at several workshops and EU Conferences and provided input and evidence for the discussion of policy options.










—


Support to the ELPGN (European lifelong guidance policy network). ‘Lifelong guidance for better learning and working in Europe’ and ‘Guiding at-risk youth through learning to work’ were produced for a Spanish Presidency Conference on VET. The study ‘Socially responsible restructuring’, the workshop ‘Supporting longer working lives – Guidance and counselling for ageing workers’ and peer learning events to support entrepreneurship through education and guidance provided evidence and input to further developments.










—


Publication of ‘Professional development opportunities for in-company trainers’. Preparatory work with the EC on the establishment of a joint new thematic working group on VET trainers.










—


Contributions to the working group on adult learning and the EC's adult learning Action Plan. Finalisation of a review ‘Learning while working – success stories of workplace learning in Europe’.










—


A strategy paper on the implementation of the validation guidelines has been prepared. Updating (with the EC) and hosting the European inventory on validation (website). Content input provided for the forthcoming Council Recommendation on validation of non-formal and informal learning.





Researching VET







—


Preliminary evidence of the economic and social benefits of VET was presented at European VET research conferences.










—


‘Employer provided training in Europe’ was assessed and results published. Cedefop in parallel continued to contribution to development of European statistics and indicators.





Communication and dissemination

Positive impact of new website and targeted publication formats such as the briefing notes. Increased press response through regular press releases. Electronic publication formats decrease delivery delays and are well accepted. Key target groups – for example members of the European Parliament – are supported by direct inputs to initiatives and co-organisation of workshops.

Key indicators show a high impact of Cedefop activities: work of the agency is cited in 88 EU policy documents, and 21 mandates demanding future contributions. Cedefop contributed directly to 31 EU policy documents. Sharp increase of website traffic: visits (+ 53 % to 2009), unique visitors (+ 70 %). Participation in 94 conferences; 107 meetings/events organised by Cedefop in 2010; high satisfaction by participants (3,7 on a 4 point scale). 39 ‘new’ publications and additional 54 translations published; 579 media articles covering Cedefop's work recorded.
More information and performance measurement system indicators available in Annual Report 2010 (EN,DE,FR) and the Annual Activity Report 2010 (www.cedefop.europa.eu).





Source: Information supplied by the Centre.







THE CENTRE’S REPLY






13.


The Centre takes note of the Court’s comment and confirms its commitment to implement the agreed on plan until 2013.