Annual report on EU agencies for the financial year 2021.
Date: 2023-01-16
Institutions: European Court of Auditors
Subjects: EU office or agency, accounting system, activity report, audit, financial management

2021

Annual report on EU agencies

for the financial year 2021 

EN

EN

EUROPEAN COURT OF AUDITORS 
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1615 Luxembourg 
LUXEMBOURG

Tel. +352 4398-1
Enquiries: eca.europa.eu/en/Pages/ContactForm.asp
Website: eca.europa.eu
Twitter: @EUAuditors

More information on the European Union is available on the internet (http://europa.eu).

Luxembourg: Publications Office of the European Union, 2022

PDF 

ISBN 978-92-847-8566-7 

doi:10.2865/46794 

QJ-07-22-666-EN-N

Contents 

List of EU agencies and other Union bodies covered by 
this report 

Chapter 1 The EU agencies and the ECA’s audit 

Introduction 

The EU agencies 
Different types of agencies help the EU design and implement EU 
policies 

Decentralised agencies address specific policy needs 

Commission executive agencies implement EU programmes 

Other bodies have specific mandates 

Agencies are financed from various sources and under different 
MFF headings 

Budgetary and discharge arrangements are similar for all 
agencies except for EUIPO, CPVO and SRB 

The EU Agencies Network facilitates inter-agency cooperation 
and communication with stakeholders 

Our audit 
We issue a statement of assurance for each agency 

Our audit approach is based on an assessment of key risks 

Other risks 

We use the work of other auditors 

We report suspected fraud to the relevant EU bodies OLAF and 
EPPO 

Digitalisation of audit procedures at the ECA continues 

Chapter 2 Overview of audit results 

Introduction 

Results from the annual agency audits for the 2021 
financial year are positive overall 

2 

7 

10 

11 

13 

13 

13 

13 

14 

19 

25 

26 

28 

28 

28 

30 

30 

30 

30 

34 

35 

36 

 
 
‘Clean’ opinions on the reliability of all agencies’ accounts 
‘Emphasis of matter’ paragraphs are important for understanding the accounts of 
the EMA, Frontex, SRB and the EIGE 

‘Clean’ opinions on the legality and regularity of the revenue 
underlying all agencies’ accounts 

‘Emphasis of matter’ paragraph helps to better understand the revenue of the SRB 

‘Other matter’ paragraph address an issue of specific importance for the SRB’s 
revenue 

‘Clean’ opinions on the legality and regularity of the payments 
underlying the agencies’ accounts, except for eu-LISA 

‘Emphasis of matter’ paragraph helps to better understand Frontex’s payments 

‘Other matter’ paragraphs on issues of specific importance for HaDEA’s payments 

Our observations address areas for improvement in 33 agencies 
Public procurement weaknesses are increasing and remain the largest source of 
irregular payments 

Management and control systems are affected by weaknesses 

Recruitment weaknesses are frequently related to the evaluation process 

Weaknesses in budgetary management typically result in high carry-overs or late 
payments 

Agencies are following up on previous years’ audit observations 

Weaknesses and good practice in the agencies’ handling 
of potential ‘revolving door’ situations. 
The current legal framework lacks clear requirements on 
compliance and monitoring 

Agencies mostly comply with their legal obligations 

Only a few agencies go beyond the minimum legal requirements 
when handling potential ‘revolving door’ situations 

Other agency-related products issued by the ECA 

The EU agencies network’s reply 

Chapter 3 Statements of assurance and other agency-
specific audit results 
3.1. Information in support of the statements of assurance 

3 

36 

36 

38 

38 

38 

39 

40 

40 

40 

42 

45 

47 

47 

49 

50 

52 

54 

57 

60 

66 

67 

68 

 
 
Agencies funded under MFF heading 1 – Single Market, 
Innovation and Digital 
3.2. European Union Agency for the Cooperation of Energy 
Regulators (ACER) 

3.3. Agency for Support for Body of European Regulators for 
Electronic Communications (BEREC Office) 

3.4. European Union Aviation Safety Agency (EASA) 

3.5. European Banking Authority (EBA) 

3.6. European Chemicals Agency (ECHA) 

3.7. European Insurance and Occupational Pensions Authority 
(EIOPA) 

3.8. European Institute of Innovation and Technology (EIT) 

3.9. European Maritime Safety Agency (EMSA) 

3.10. European Union Agency for Cybersecurity (ENISA) 

3.11. European Union Agency for Railways (ERA) 

3.12. European Securities and Markets Authority (ESMA) 

3.13. European Union Agency for the Space Programme (EUSPA) 

Agencies funded under MFF heading 2 – Cohesion, 
Resilience and Value 
3.14. European Centre for the Development of Vocational 
Training (Cedefop) 

3.15. European Centre for Disease Prevention and Control (ECDC) 

3.16. European Food Safety Authority (EFSA) 

3.17. European Institute for Gender Equality (EIGE) 

3.18. European Labour Authority (ELA) 
3.19. European Medicines Agency (EMA) 

3.20. European Public Prosecutor’s Office (EPPO) 

3.21. European Training Foundation (ETF) 

3.22. European Agency for Safety and Health at Work (EU-OSHA) 

3.23. European Foundation for the Improvement of Living and 
Working Conditions (Eurofound) 

3.24. European Union Agency for Criminal Justice Cooperation 
(Eurojust) 

3.25. European Union Agency for Fundamental Rights (FRA) 

4 

71 

72 

79 

85 

90 

97 

102 

109 

115 

121 

128 

133 

140 

146 

147 

154 

158 

163 

170 

175 

183 

188 

193 

198 

204 

209 

 
 
Agencies funded under MFF heading 3 – Natural 
Resources and Environment 
3.26. European Environment Agency (EEA) 

3.27. European Fisheries Control Agency (EFCA) 

Agencies funded under MFF heading 4 – Migration and 
Border Management 
3.28. European Asylum Support Office (EASO) 

3.29. European Union Agency for the Operational Management 
of Large-Scale IT Systems in the Area of Freedom, Security and 
Justice (eu-LISA) 

Follow-up of previous years’ observations 

3.30. European Border and Coast Guard Agency (Frontex) 

Agencies funded under MFF heading 5 – Security and 
Defence 
3.31. European Union Agency for Law Enforcement Training 
(CEPOL) 

3.32. European Monitoring Centre for Drugs and Drug Addiction 
(EMCDDA) 

3.33. European Union Agency for Law Enforcement Cooperation 
(Europol) 

Agencies funded under MFF heading 7 – European Public 
Administration 
3.34. Euratom Supply Agency (ESA) 

Self-financed Agencies 
3.35. Translation Centre for the Bodies of the European Union 
(CdT) 

3.36. Community Plant Variety Office (CPVO) 

3.37. European Union Intellectual Property Office (EUIPO) 

3.38. Single Resolution Board (SRB) 

European Commission Executive Agencies 
3.39. Consumers, Health, Agriculture and Food Executive Agency 
(Chafea) 

5 

214 

215 

221 

225 

226 

234 

239 

244 

256 

257 

263 

268 

273 

274 

279 

280 

284 

290 

299 

307 

308 

 
 
3.40. European Climate Infrastructure and Environment Executive 
Agency (CINEA) 

3.41. European Education and Culture Executive Agency (EACEA) 

3.42. European Innovation Council and SMEs Executive Agency 
(EISMEA) 

3.43. European Research Council Executive Agency (ERCEA) 

3.44. European Health and Digital Executive Agency (HaDEA) 

3.45. European Research Executive Agency (REA) 

6 

313 

317 

322 

328 

334 

339 

 
 
7 

List of EU agencies and other Union 
bodies covered by this report  

Acronym 

Full name 

Acronym 

Full name 

ACER 

BEREC Office 

CdT 

Cedefop 

CEPOL 

Chafea 

CINEA 

CPVO 

EACEA 

European Union Agency 
for the Cooperation of 
Energy Regulators 

Agency for Support for 
Body of European 
Regulators for Electronic 
Communications 

Translation Centre for the 
Bodies of the European 
Union 

European Centre for the 
Development of 
Vocational Training 

European Union Agency 
for Law Enforcement 
Training 

The Consumers, Health, 
Agriculture and Food 
Executive Agency 

European Climate 
Infrastructure & 
Environment Executive 
Agency 

Community Plant Variety 
Office 

EMA 

European Medicines 
Agency 

EMCDDA 

European Monitoring 
Centre for Drugs and Drug 
Addiction 

EMSA 

ENISA 

EPPO 

ERA 

European Maritime Safety 
Agency 

European Union Agency 
for Cybersecurity 

European Public 
Prosecutor’s Office 

European Union Agency 
for Railways 

ERCEA 

European Research 
Council Executive Agency 

ESA 

Euratom Supply Agency 

European Education and 
Culture Executive Agency 

ESMA 

European Securities and 
Markets Authority 

 
 
 
 
 
 
 
 
 
 
 
8 

Acronym 

Full name 

Acronym 

Full name 

EASA 

EASO 

European Union Aviation 
Safety Agency 

ETF 

European Training 
Foundation 

European Asylum Support 
Office 

EUIPO 

European Union 
Intellectual Property Office 

EBA 

European Banking 
Authority 

eu-LISA 

European Union Agency 
for the Operational 
Management of Large-
Scale IT Systems in the 
Area of Freedom, Security 
and Justice 

ECDC 

ECHA 

EEA 

EFCA 

EFSA 

EIGE 

European Centre for 
Disease Prevention and 
Control 

EU-OSHA 

European Agency for 
Safety and Health at Work 

European Chemicals 
Agency 

Eurofound 

European Environment 
Agency 

Eurojust 

European Fisheries Control 
Agency 

Europol 

European Food Safety 
Authority 

European Institute for 
Gender Equality 

EUSPA 

FRA 

European Foundation for 
the Improvement of Living 
and Working Conditions 

European Union Agency 
for Criminal Justice 
Cooperation 

European Union Agency 
for Law Enforcement 
Cooperation 

European Union Agency 
for the Space Programme 

European Union Agency 
for Fundamental Rights 

 
 
 
 
 
 
 
 
 
 
 
 
9 

Acronym 

Full name 

Acronym 

Full name 

EIOPA 

EISMEA 

EIT 

ELA 

European Insurance and 
Occupational Pensions 
Authority 

European Innovation 
Council and SMEs 
Executive Agency 

European Institute of 
Innovation and 
Technology 

European Labour 
Authority 

Frontex 

European Border and 
Coast Guard Agency 

HaDEA 

REA 

European Health and 
Digital Executive Agency 

European Research 
Executive Agency 

SRB 

Single Resolution Board 

 
 
 
 
 
 
 
 
10 

Chapter 1  

The EU agencies and the ECA’s audit 

 
 
 
11 

Introduction 

1.1. The European Court of Auditors (ECA) is the external auditor of the EU’s finances 1. In 
this capacity, we act as the independent guardian of the financial interests of EU citizens, 
helping to improve the EU’s financial management. More information on our work can be 
found in our activity reports, our reviews and our opinions on new or updated EU laws or other 
decisions with financial management implications2. 

1.2. Within this mandate, we carry out an annual examination of the accounts, and the 
underlying revenue and payments, for EU institutions, agencies and other EU bodies. Our 
mandate does not cover the three agencies working in the field of defence (the European 
Defence Agency, the European Institute for Security Studies and the European Union Satellite 
Centre), which are financed through Member States’ contributions and are audited by other 
independent external auditors3. 

1.3. This report presents the results of our annual audit of the EU agencies and other EU 
bodies (collectively referred to as ‘the agencies’) for the 2021 financial year, as well as 
additional agency-related audit results from other tasks such as special audits or opinions. In 
this report, for simplification, we refer to the agencies using their acronyms instead of their full 
names. A list of all agencies and their acronyms is provided at the beginning of this report. The 
report is structured as follows. 

o 

o 

o 

Chapter 1 describes the agencies and the nature of our audits. 

Chapter 2 presents the overall results of our annual audit and makes reference to other 
agency-related audit results and opinions. 

Chapter 3 contains the statement of assurance for each of the 44 agencies, together with 
our opinions and observations on the reliability of the agencies’ accounts and on the 
legality and regularity of the underlying revenue and payments, together with matters 
and observations not calling these opinions into question. 

1  Articles 285 to 287 of the Treaty on the functioning of the European Union. 

2  Available on our website: www.eca.europa.eu. 

3  Review 01/2014: “Gaps, overlaps and challenges: a landscape review of EU accountability 

and public audit arrangements”, paragraph 84. 

 
 
                                                             
12 

1.4. Overall, our audit of the agencies for the financial year ended 31 December 2021 
produced positive results, in line with those reported in previous years. Through the 
statements of assurance issued for each agency, we provided: 

o 

o 

o 

unqualified (clean) audit opinions on the reliability of all agencies’ accounts; 

unqualified (clean) audit opinions on the legality and regularity of the revenue underlying 
all agencies’ accounts; 

unqualified (clean) audit opinions on the legality and regularity of the payments 
underlying all agencies’ accounts, except for eu-LISA for which we issued a qualified 
opinion. 

1.5. Nevertheless, for most agencies, we draw attention to areas for improvement in our 
emphasis of matter and other matter paragraphs, and in our observations not calling the audit 
opinions into question.  

 
 
 
13 

The EU agencies 

Different types of agencies help the EU design and implement 
EU policies 

1.6. The EU agencies are distinct legal entities set up by an act of secondary legislation to 
carry out specific technical, scientific or managerial tasks that help the EU institutions to design 
and implement policies. They are located in different Member States, and have significant 
influence in areas of vital importance to European citizens’ daily lives, such as health, safety, 
security, freedom and justice. 

1.7. There are three types of EU agencies: decentralised agencies, the Commission 
executive agencies and other bodies. The differences between them are described below (see 
paragraphs 1.8-1.10). 

Decentralised agencies address specific policy needs 

1.8. The 33 decentralised agencies4 play an important role in preparing and implementing 
EU policies, especially for technical, scientific, operational or regulatory tasks. Their role is to 
address specific policy needs and to reinforce European cooperation by pooling technical and 
specialist expertise from the EU and national governments. They are set up to operate for an 
indefinite period by a Regulation of the Council or of the European Parliament and the Council. 

Commission executive agencies implement EU programmes 

1.9. The seven Commission executive agencies5 carry out executive and operational tasks 
relating to EU programmes, such as supporting stakeholders in delivering the European Green 
Deal (CINEA) and managing certain Horizon Europe projects (REA). They are set up to operate 
for a fixed period of time (currently, until 31 December 2028). 

4  ACER, BEREC Office, Cedefop, CdT, CEPOL, CPVO, EASA, EASO, EBA, ECDC, ECHA, EEA, EFCA, 
EFSA, EIGE, EIOPA, ELA, EMA, EMCDDA, EMSA, ENISA, ERA, ESMA, ETF, EUIPO, eu-LISA,  
EU-OSHA, EUSPA, Eurofound, Eurojust, Europol, FRA, Frontex. 

5  CINEA, EACEA, EISMEA, ERCEA, HaDEA, REA and Chafea (which ceased to exist on 

1 April 2021). 

 
 
                                                             
14 

Other bodies have specific mandates 

1.10. The four other bodies are the EIT, EPPO, ESA and the SRB. The EIT is an independent 
decentralised EU body which pools scientific, business and education resources to boost the 
EU's innovation capacity by providing grant funding. The EPPO is an independent EU body 
which investigates and prosecutes crimes against the EU budget. The ESA was tasked with 
guaranteeing the regular and equitable supply of nuclear fuels to EU users in line with the 
Euratom Treaty. The SRB is the key authority of the Single Resolution Mechanism in the 
European Banking Union. Its mission is to ensure the orderly resolution of banks which are 
failing or likely to fail, with as little impact as possible on the real economy and public finances 
of EU Member States. In addition to this report, each year we also produce a report on the 
SRB’s contingent liabilities6. 

Recent changes 

1.11. The number of agencies has increased over the years. This report covers 44 
agencies, as shown in Figure 1.1, three more than our report for 2020. The three new agencies 
are: 

o 

o 

o 

the European Labour Authority (ELA), which started operations on 17 October 2019 and 
has been financially autonomous since 26 May 2021; 

the European Public Prosecutor’s Office (EPPO), which started operations on 1 June 2021 
and has been financially autonomous since 24 June 2021 

the European Health and Digital Executive Agency (HaDEA), established on 
16 February 20217.  

1.12. This report also covers the Consumers, Health, Agriculture and Food Executive 
Agency (Chafea). On 31 March 2021, Chafea was wound down, and its tasks were taken over 
by the newly created HaDEA, as well as the European Innovation Council and SMEs Executive 
Agency (EISMEA) and the European Research Executive Agency (REA). 

6  See our report for the 2020 financial year. 

7  Commission Implementing Decision (EU) 2021/173 establishing the European Climate, 
Infrastructure and Environment Executive Agency, the European Health and Digital 
Executive Agency, the European Research Executive Agency, the European Innovation 
Council and SMEs Executive Agency, the European Research Council Executive Agency, and 
the European Education and Culture Executive Agency. 

 
 
                                                             
15 

1.13. In addition, three agencies had their mandates modified in 2021, including a change 
of name in two cases: 

o 

o 

o 

the European Institute of Innovation and Technology (the EIT), previously operating 
under the same name 

the European Union Agency for the Space Programme (EUSPA), previously operating as 
the European Global Navigation Satellite System Agency (GSA); 

the European Asylum Support Office (EASO), superseded in 2022 by the European Union 
Asylum Agency (the EUAA). 

1.14. Furthermore, five executive agencies had their mandate renewed in 2021, including 
a change of name in four cases. 

o 

o 

o 

o 

o 

the European Climate Infrastructure and Environment Executive Agency (CINEA), 
previously operating as the Innovation and Networks Executive Agency (INEA); 

the European Education and Culture Executive Agency (EACEA), previously operating as 
the Education, Audiovisual and Culture Executive Agency (EACEA); 

the European Innovation Council and SMEs Executive Agency (EISMEA), previously 
operating as the Executive Agency for Small and Medium-sized Enterprises (EASME); 

the European Research Council Executive Agency (ERCEA), previously operating under the 
same name; 

European Research Executive Agency (REA), previously operating as Research Executive 
Agency (REA). 

 
 
Figure 1.1 – Timeline and overview of the evolution of agencies 

16 

1958

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

1 agency

ESA

Cedefop, Eurofound

Other bodies
Decentralised agencies
Executive agencies

EEA, ETF

EMA, EMCDDA
CdT, CPVO, EUIPO, EU-OSHA

EASA, EFSA, EMSA, Eurojust
EISMEA
ECDC, ENISA, ERA, EUSPA, Frontex
Cepol, EFCA, Chafea
ECHA, EIGE, CINEA, EACEA
FRA, REA
EIT, ERCEA
ACER, BEREC Office, Europol
EASO, EBA, EIOPA, ESMA

eu-LISA

SRB

EPPO

ELA

HaDEA

Note: The year mentioned in the figure refers to the year that the founding act of the agency (or its 
predecessor) came into force. 

Source: ECA. 

 
 
 
17 

1.15. Now that Chafea no longer exists, all Commission executive agencies are located in 
Brussels. Decentralised agencies and other bodies are located across the EU in different 
Member States, as shown in Figure 1.2. Their locations are decided by the Council or jointly by 
the Council and the European Parliament.  

Figure 1.2 – Agencies’ location across the Member States 

Denmark 
EEA 

Sweden 
ECDC 

Lithuania 
EIGE 

Latvia 
BEREC Office 

Finland 
ECHA 

Estonia 
eu-LISA 

Germany 
EASA, EIOPA 

Netherlands 
EMA, Eurojust, 
Europol 
Ireland 
Eurofound 

Belgium 
EACEA, EISMEA, 
ERCEA, CINEA, 
 REA, SRB, 
HaDEA 
Luxembourg 
CdT, Chafea, 
EPPO, ESA 
France 
CPVO, EBA, 
 ERA, ESMA 

Portugal 
EMCDDA, 
 EMSA 

Poland 
Frontex 

Czechia 
EUSPA 

Austria 
FRA 

Slovakia 
ELA 
Hungary 
CEPOL, EIT 

Romania 
- 

Bulgaria 
- 

Cyprus 
- 

Spain 
EFCA, EUIPO, 
EU-OSHA 

Italy 
EFSA, ETF 

Slovenia 
ACER 

Malta 
EASO 

Croatia 
- 

Greece 
Cedefop, 
ENISA 

Note: To go straight to our individual statement of assurance on an agency, click on its name in the 
diagram. 

Source: ECA. 

1.16. As shown in Figure 1.3, EU agencies work in many different areas, and do so in 
partnership with, and taking into account the guidance of Directorates-General of the 
Commission. 

 
 
 
Figure 1.3 – EU agencies cover a wide range of topics 

18 

Partner DG

Agency

DGT

DG MARE

DG ENER

DG ENV

DG CLIMA

DG SANTE

DG CONNECT

DG ECHO

DG HOME

DG RTD

DG GROW

DG EAC

DG DEFIS

DG AGRI

DG MOVE

DG JUST

DG EMPL

DG FISMA

CdT
EFCA
ACER
ESA-EURATOM
EEA
CPVO
ECDC
EFSA
EMA
EISMEA
ECHA
BEREC Office
ENISA
CINEA
EACEA
CEPOL
EASO
EMCDDA
eu-LISA
Europol
Frontex
HaDEA
REA
ERCEA
Chafea
EUIPO
EIT
EUSPA
EASA
EMSA
ERA
EIGE
EPPO
Eurojust
FRA
Cedefop
ELA
ETF
EU-OSHA
Eurofound
EBA
EIOPA
ESMA
SRB

Source: ECA, based on information from the Commission. 

11 10

9

9

7

6

5

5

5

4

4

4

3

 
 
 
19 

Agencies are financed from various sources and under different 
MFF headings 

1.17. In 2021, the total budget of all agencies (excluding the SRB) was €4.1 billion (2020: 
€3.7 billion). This is equivalent to 2.5 % of the EU’s general budget for 2021 (2020: 2.3 %), as 
shown in Figure 1.4. 

1.18. The 2021 budget of the SRB was €9.7 billion (2020: €8.1 billion). This consists of 
contributions from banks to set up the Single Resolution Fund (€9.6 billion) and to finance the 
SRB’s administrative expenditure €119 million). 

1.19. The budgets of the decentralised agencies and the other bodies cover their staff, 
administrative and operational expenditure. The executive agencies implement programmes 
financed from the Commission’s budget. Their own budgets, amounting, in 2021, to 
€326 million (2020: €273 million), only cover their own staff and administrative expenditure. 
The amount (payment appropriations) spent by the executive agencies in 2021 on 
implementing programmes on behalf of the Commission amounted to €13.1 billion (2020: 
€14.9 billion). 

 
 
Figure 1.4 – Agencies’ financing sources for 2021 

20 

billion euros

168.0
General EU budget

Operational 
budget of 
executive 
agencies

13.1

4.1

2.8
EU (Commission) 
subsidies/contributions

0.9
Fees, charges and 
contributions from 
national supervisory 
authorities

9.7

Total SRB 
budget

0.04
Assigned 
revenue

0.4
Other 
revenue

Total agencies budget:
13.8

8 % 
of the EU Budget

14 % 
of the Administrative 
expenditure of EU 
Institutions and bodies

Source: Draft general budget of the European Union for the 2021 financial year; Final annual accounts of 
the European Union 2021 and Annual Activity Reports of the executive agencies for 2021, compiled by 
the ECA. 

1.20. Most agencies, including all executive agencies, are financed almost entirely by the 
EU general budget. The others are fully or partially financed by fees and charges from 
industries and by direct contributions from countries participating in their activities. Figure 1.5 
shows a breakdown of the agencies’ budgets by source of revenue. 

 
 
 
Figure 1.5 – Agencies’ 2021 budgets by source of revenue 

Agencies ranked by 
total size of income 
(million euros)

Contributions from 
EU general budget
≈ 2 769

Revenue assigned 
by the Commission 
for delegated tasks 
≈ 42

Fees, charges and 
contributions from 
national supervisory 
authorities 
≈ 957

Contributions from 
credit institutions to 
Single Resolution 
Fund and SRB 
≈ 9 693

499.6

Frontex

397.9

EIT

263.9

eu-LISA

174.4
166.0
142.1
117.1
105.3
88.5
58.8
55.4
53.7
45.3
45.2
44.1
43.8
27.0
26.3
24.7
22.4
22.2
21.6
21.6
21.0
18.2
18.0
15.6
11.1
9.8
8.7
7.3
0.2

376.6
148.7
108.3
58.0
48.2
30.2
23.0
20.3

Europol
ECDC
EASO
EFSA
EMSA
REA
EEA
ERCEA
EACEA
CINEA
EISMEA
EUSPA*
Eurojust
HaDEA
EPPO
FRA
ELA
ENISA
EFCA
Eurofound
ETF
EMCDDA
Cedefop
EU-OSHA
Chafea
CEPOL
EIGE
BEREC Office
ESA

EMA
EASA
ECHA
ESMA
EBA
ERA
ACER
EIOPA

21 

Financed 
by EU budget 

Partially 
self-financed

9 693.3

SRB

Fully 
self-financed

312.4
48.4
18.9

EUIPO
CdT
CPVO

* The accounts of EUSPA for 2021 present a final budget of €44.1 million, while actual revenue 
amounted to €1.8 billion. This difference is explained by operational activities that are financed through 
assigned revenue; these are included in the approved budget as a token entry. 

Note: Other miscellaneous revenue or budgetary reserves are not included. 

Source: Agencies’ final annual accounts 2021, compiled by the ECA. 

 
 
 
22 

1.21. Figure 1.6 presents the agencies’ 2021 budgets. They are broken down by type of 
expenditure (Title I – staff costs, Title II – administrative expenditure, and Title III – operational 
expenditure, together with any other titles used), not by activity. Most agencies do not 
implement big operational spending programmes; instead, they deal with technical, scientific 
or regulatory tasks. As a result, most agencies’ budgets consist mainly of staff and 
administrative expenditure. Overall, agencies’ staff and administrative budgets represent 
around 14 % of total payment appropriations available for Multiannual Financial Framework 
(MFF) heading 7 – European public administration. This compares with 47 % for the 
Commission, 18 % for the Parliament, 9 % for the EEAS and 5 % for the Council. 

 
 
Figure 1.6 – Agencies’ 2021 expenditure for each budget title 

0 %

20 %

40 %

60 %

80 %

100 %

Total budget (million euros)

23 

45.3
55.4
45.2

88.5

27.0

53.7

21.0
30.9

11.1

32.8

21.8

111.1

58.7
49.1
44.1

18.5
19.0

24.9

43.8

7.3

53.0

23.6

178.3

203.8

64.9

9.8
23.5

8.7
16.1
19.3
21.6

26.3
22.4

0.2

120.2

105.8

152.7

168.1

CINEA
ERCEA
EISMEA
REA
HaDEA
EACEA
ETF
ERA
Chafea
EIOPA
ECHA
Eurofound
ESMA
EBA
EUSPA*
Cedefop
EMCDDA
Europol
FRA
Eurojust
BEREC Office
CdT
ACER
EASA
EEA
CEPOL
ENISA
EFSA
EIGE
EU-OSHA
CPVO
EFCA
EMA
EPPO
ELA
EMSA
EASO
EUIPO
ECDC
Frontex
eu-LISA
ESA
EIT
SRB**

379.2

534.1

535.2

267.7

397.9

Title I
(staff cost)

Title II
(administrative 
expenditure)

Title III 
and others
(operational 
expenditure)

9 693.3

* The accounts of EUSPA for 2021 present a final budget of €44.1 million, while actual revenue 
amounted to €1.8 billion. This difference is explained by operational activities that are financed through 
assigned revenue that are included in the approved budget as a token entry. 

** The figure for SRB comprises two parts: Part I with €119 million for the administration of the Board 
and Part II with €9 574 million for the Fund. It does not include the Reserve. 

Source: Agencies’ final annual accounts 2021, compiled by the ECA. 

 
 
 
24 

1.22. Figure 1.7 shows how many staff members the agencies employed at the end of 
2021. In total, the agencies employed 14 431 members of staff (2020: 12 881). This figure 
corresponds to the actual number of posts occupied by permanent officials, temporary and 
contract staff members and seconded national experts on 31 December 2021. Taking the 
establishment plans approved in the EU General Budget as a basis, about 17 % of all EU staff 
work for agencies. This compares with 50 % working for the Commission, 14 % for the 
Parliament, 6 % for the Council’s and 4 % for the EEAS. 

Figure 1.7 – Number of staff per agency at the end of 2021 

Decentralised agencies
Executive agencies
Other bodies

1 166

1 554

979

878
866

729

Agencies’ staff 
as percentage of 
all EU staff in 
2021:
17 %

575

516
500

474

454

423

399

370

324
311
310
308

273

254
242
230
222

205
188
187

Frontex
EUIPO
Europol
EMA
REA
EASA
ECHA
EFSA
ERCEA
CINEA
EACEA
EASO
SRB
EISMEA
HaDEA
ECDC
eu-LISA
ESMA
EMSA
Eurojust
EUSPA
EEA
EBA
CdT
ERA
EIOPA
ETF
EPPO
EMCDDA
Cedefop
ACER
ENISA
FRA
Eurofound
CEPOL
ELA
EFCA
Chafea
EU-OSHA
EIT
CPVO
BEREC Office
EIGE
ESA

130
122
110
108
106
106
101
96
95
84
80
76
64
64
49
45
42

16

Source: Compiled by the ECA. 

 
 
 
25 

1.23. The €2.8 billion in contributions from the EU general budget is financed under 
different MFF headings, as illustrated in Figure 1.8. 

Figure 1.8 – Agencies financed under each EU general budget’s MFF 
heading 

(million euros)

2 769.6

1 025.7

576.2

66.4

905.7

195.4

0.2

MFF 1
Single market, 
innovation and 
digital

MFF 2
Cohesion, 
resilience and 
values

MFF 3
Natural 
resources and 
environment

MFF 4
Migration 
and border 
management

MFF 5
Security 
and defence

MFF 7
European public 
administration

EEA
EFCA

EASO
eu-LISA
Frontex

CEPOL
EMCDDA
Europol

ESA

Cedefop
ECDC
EFSA
EIGE
EMA
ETF
EU-OSHA
Eurofound
Eurojust
FRA
EPPO
ELA
EACEA

ACER
BEREC Office
EASA 
EBA
ECHA*
EIOPA 
EIT
EMSA
ENISA
ERA
ESMA
EUSPA
Chafea
HaDEA
EISMEA
ERCEA
CINEA
REA

* ECHA is mainly financed from MFF 1, but also, to a lesser degree, from MFF 3. 

Source: Agencies’ final annual accounts 2021, compiled by the ECA. 

Budgetary and discharge arrangements are similar for all 
agencies except for EUIPO, CPVO and SRB 

1.24. For most decentralised agencies and other bodies and for all the Commission 
executive agencies, the European Parliament and the Council are responsible for the annual 
budgetary and discharge procedures. The timeline of the discharge procedure is shown in 
Figure 1.9. 

 
 
 
26 

Figure 1.9 – Discharge procedure for most agencies 

By 1 June n+1 

By 15 November n+1 

By mid-February n+2  

ECA adopts agencies 
preliminary 
observations

ECA transmits its Annual EU 
agencies report to the EP and 
the Council including the 
statement of assurance

the Council adopts its 
recommendations on the 
discharge and transmits 
them to EP

By 1 March n+1 

agencies transmit 
their provisional 
accounts to the ECA

By 1 July n+1

agencies adopt 
their final accounts

Between December n+1 
and end of January n+2

hearings of the directors of EU 
agencies before the EP’s 
Committee on Budgetary 
Control and Budget 
Committee of the Council

By end March n+2

adoption of the EP 
reports in the Plenary 
session - EP decides 
whether to grant or 
postpone discharge

Source: ECA. 

1.25. However, two fully self-financed decentralised agencies (CPVO and EUIPO) are 
subject to budgetary and discharge procedures administered respectively by their 
Administrative Council or Budget Committee, but not by the European Parliament or the 
Council8. Similarly, the SRB’s annual budgetary and discharge procedure is the sole 
responsibility of its Board. 

The EU Agencies Network facilitates inter-agency cooperation 
and communication with stakeholders 

1.26. An EU Agencies Network (EUAN) was set up by the agencies as an inter-agency 
cooperation platform to enhance the agencies’ visibility, to identify and promote possible 
efficiency gains, as well as actions with clear EU added-value. It recognises the agencies’ need 
to communicate in a more coordinated way with their stakeholders and the general public on 
issues of shared concern, and provides a central point for gathering and disseminating 
information among all agencies. In 2015 EUAN endorsed its first multiannual strategy including 
priorities which are implemented in yearly work programmes specifying its activities and its 
objectives. In 2020, EUAN endorsed its second multiannual strategy (2021-2027) 9 

8  Review 01/2014: “Gaps, overlaps and challenges: a landscape review of EU accountability 

and public audit arrangements”, paragraph 84. 

9  2021-2027 Strategy for the EU Agencies Network, Brussels, 9 November 2020. 

 
 
 
                                                             
27 

incorporating the political and strategic direction of the Commission around two strategic 
pillars:  

o 

o 

EUAN as a role model for administrative excellence; 

EUAN as a well-established institutional partner. 

1.27. EUAN is chaired by a different agency every year on a rotational basis, with plenary 
meetings coordinated by the Shared Support Office taking place twice per year. There are ten 
thematic sub-networks (see Figure 1.10) within EUAN. They can also interact with other EU 
institutions, whom themselves can be members of the sub-networks. The ECA actively 
participates in some of these plenary and sub-network meetings by sharing good practices and 
providing information on audit processes and results. 

Figure 1.10 – EUAN’s Shared Support Office and Sub-networks 

Greening 
Network

Performance
Development Network

Heads of Communication
and Information Network

Network of Agencies’
Procurement Officers

EU Agencies Network
on Scientific Advice

EUAN’s 
Shared Support 
Office

Information and
Communications Technologies
Advisory committee

Inter-Agency Appeal
Proceedings Network

Inter-Agency
Accountants’ Network

European Fee-Receiving
Agencies

Inter-Agency Legal
Network

Source: EUAN. 

1.28. At the centre of EUAN’s work and the core of both multi-annual strategies is the 
aspect of sharing services, knowledge, and expertise. Some examples of cooperation include 
the sharing of services in the areas of disaster recovery, accounting, joint procurements, 
COVID-19-related matters and data protection. 

 
 
 
 
 
28 

Our audit 

We issue a statement of assurance for each agency 

1.29. As required by Article 287 of the Treaty on the Functioning of the European Union, 
we have audited: 

o 

the accounts of all 44 agencies, which comprise the financial statements (i.e. the balance 
sheet, the statement of financial performance, the cash flow statement, the statement of 
changes in net assets and a summary of significant accounting policies and other 
explanatory notes) and the reports on the implementation of the budget (which 
aggregate all budgetary operations and explanatory notes) for the financial year ended 
31 December 2021, and 

o 

the legality and regularity of the transactions underlying those accounts. 

1.30. On the basis of the results of our audit, we provide the European Parliament and the 
Council, or the other discharge authorities (see paragraph 1.24), with one statement of 
assurance as to the reliability of each agency’s accounts and the legality and regularity of the 
underlying transactions. We complement the statements of assurance with significant audit 
observations, where appropriate. 

1.31. The ECA also carries out audits, publishes special reports and issues opinions on 
specific topics. Some of these concern the EU agencies. See Figure 2.12 for a list of ECA special 
reports referring to agencies and issued between 1 January 2021 and 30 June 2022. 

Our audit approach is based on an assessment of key risks 

1.32. Our audit is designed to address the identified key risks based on our audit results 
from previous years. For the 2021 financial year, the audit was carried out in response to our 
risk assessment, which is summarised in Figure 1.11 below. 

 
 
Figure 1.11 – Assessment of key risks 

29 

HIGH risk

MEDIUM risk

LOW risk

Reliability of 
agencies’ 
accounts 

The agencies’ accounts are established by applying the accounting 
rules adopted by the Commission’s accounting officer. These are 
based on internationally accepted accounting standards for the 
public sector. In the past, we identified few material errors in the 
agencies’ accounts.

Legality and 
regularity of 
revenue 

The overall risk to the legality and regularity of revenue is low.
Some agencies are partly or fully self-financing. In these cases, 
specific regulations govern the charging and collection of service 
fees and other revenue contributions. The level of risk affecting the 
regularity of the revenue of these agencies is medium. 

Legality and 
regularity of 
payments 
(expenditure)
Risk is medium 
overall, but varies

Title I - Staff expenditure
Salaries are mainly administered by the Commission’s PMO 
service, which the ECA audits regularly.

Title II - Administrative expenditure
Agencies are not always successful in achieving the satisfactory 
levels of transparency and value for money in tenders with 
complex procurement rules and procedures.

Title III - Operational expenditure
The level of risk affecting operational expenditure varies by 
agency, running the entire range of risk levels from low to high. 
It depends on the specific type of operational expenditure that 
each agency incurs. In general the risks are similar to those 
affecting Title II, but with much higher amounts.

Risk to sound 
financial 
management 

Budget 
management 

Source: ECA. 

Most of the problems we identified concerned public procurement 
procedures which did not ensure that the best possible value for 
money was achieved.

Previous audits showed high carry-overs of committed 
appropriations. These, however, were usually justified by the 
multiannual nature of operations or were caused by factors 
beyond agencies’ control. 

 
 
 
30 

Other risks 

1.33. The COVID-19 pandemic has affected our work: in many cases, travel restrictions 
and remote working arrangements prevented us from carrying out on-the-spot checks, 
obtaining original documents and interviewing agency staff in person. We therefore carried 
out most of our work through desk reviews and remote interviews. While not carrying out on-
the-spot checks may increase the detection risk, the evidence that we obtained from the 
agencies enabled us to complete our work and draw meaningful conclusions. 

We use the work of other auditors 

1.34. Where appropriate, we use the work of other auditors to support our work on the 
agencies. We do so in particular in our work on the reliability of the EU’s accounts. The 
financial statements of 34 decentralised agencies and other bodies – all except the CPVO, 
EUIPO and ESA – are audited by external audit firms. In accordance with auditing standards, 
we use the results of these audits after considering the independence and objectivity of the 
auditors, their professional competence, and after checking the scope and quality of their 
work. However, all audit opinions in this report are ours, and we take full responsibility for 
them. 

We report suspected fraud to the relevant EU bodies OLAF and 
EPPO 

1.35. We cooperate with the European Anti-Fraud Office (OLAF) in matters related to 
suspected fraud and other illegal activity affecting the EU’s financial interests, and with the 
EPPO in matters related to suspected crimes against the EU’s financial interests. We notify 
OLAF or the EPPO about any suspicion that arises in the course of our audit work, even though 
our audits are not designed specifically to identify fraud. 

Digitalisation of audit procedures at the ECA continues 

1.36. Digitalisation has the potential to improve the effectiveness and efficiency of audits. 
This can be achieved by replacing audit checks based on statistical sampling with audit checks 
based on entire populations. This allows the auditors to focus their attention on potentially 
problematic cases that automated checks performed on the whole population identify as 
exceptions. In addition, they can test the plausibility of reported information through data 
analytics, including by examining patterns and trends and identifying unusual transactions. 
Figure 1.12 shows the principal benefits of digital audit in the EU context. In the short term, 
the main gain is increased assurance, but there is also potential for time savings in the longer 
perspective, once economies of scale are achieved. Initially however, digitalisation of audit 
procedures usually requires a significant time investment. 

 
 
31 

Figure 1.12 – Key benefits of digital audit procedures 

Benefits for the auditor

Human errors avoided by standardising and automating relatively simple audit 
procedures

Auditors focus on more complicated, analytical audit procdures

Higher processing speed and potential time savings given 
economies of scale

Benefits for the auditee

More assurance for management and stakeholders through whole 
population testing
Less disruptive audit process that continues throughout the year and in 
real time

Benefits for citizens

More transparency and accountability on the use of EU funds

Source: ECA. 

1.37. While digital audit techniques can bring significant savings when implemented on a 
large scale, they still require complementary analysis by auditors. Audit involves a significant 
amount of professional judgement. This can be aided by technology, but it always depends on 
the knowledge and experience of an auditor. In addition, many audit procedures cannot be 
automated, at least not fully, due to their nature and the way the auditees’ information 
systems are set up. 

1.38. As mentioned in previous years’ reports10, the ECA identified the annual audit of the 
EU agencies as an opportunity to test the potential of automated audit procedures. The audit 
of the agencies consists of around 200 audit procedures covering areas such as payments, 
salaries, procurement, budget, recruitments and the annual accounts. Of these, as Table 1.1 
shows, we have automated, at least partly, around a tenth. We extended the use of 
procedures related to salaries and data extraction to all agencies. Our testing of the legality 
and regularity of commitments and payments and of the reliability of the annual accounts still 
covered the EU executive agencies only, as they shared a sufficiently similar IT environment. 

10  Annual Report on EU agencies for the financial year 2019: paragraphs 2.34-2.41. 

 
 
 
                                                             
32 

Table 1.1 – Overview of the digital audit procedures we use 

Digital audit procedures 

Developments in 2021 

Agencies covered 

Six digital audit procedures 
for testing the legality and 
regularity of commitments 
and payments on a whole 
population basis. 

Ten analytical procedures 
relating to salaries. 

Five digital audit procedures 
for the reliability of the 
annual accounts. 

Automated extraction 
processes for the retrieval of 
information from the 
auditees’ financial 
information systems. 

Source: ECA. 

Same scope as previous year 

Executive agencies only 

Scope expanded to 
decentralised agencies and 
other bodies 

Refined audit test to reduce 
the number of exceptions 
mainly connected to the 
reconciliation of the trial 
balance and the 
corresponding mapping. 

All EU agencies 

Executive agencies only 

The scope expanded to 
decentralised agencies and 
other bodies 

All EU agencies  

1.39. The implemented automated procedures have successfully delivered the following 
results. 

o 

o 

o 

o 

Digitalised audit procedures on the legality and regularity of commitments, payments 
and salaries and the reliability of the accounts have allowed full population testing to be 
performed within a very short time. These automated procedures have contributed to 
improving the level of assurance, as well as the quality and the efficiency of our audit. 

Automated analytical procedures provided the auditors with an interactive tool to 
identify patterns and trends and to investigate unusual transactions. The system 
automatically creates graphical reports which allow the auditors to see such patterns and 
to consider whether further examination of the underlying details is required. 

Automated procedures have allowed us to detect errors in the presentation of the 
provisional annual accounts and to mark them for correction before the submission of 
the final annual accounts. 

Automated retrieval of large volumes of support documentation have been automatically 
organised for the auditors’ use, saving a significant amount of time and effort. 

 
 
33 

1.40. We intend to explore the possibilities to expand our use of digital audit techniques 
to other areas and to all agencies. However, in this we face serious obstacles because, as 
Figure 1.13 shows, gaps in the use of standardised IT tools remain, in particular as regards the 
decentralised agencies. Besides, even though some agencies have the same IT systems, we 
have identified discrepancies in how they use some of the functionalities of these tools. This 
lack of consistency is another factor hampering opportunities for expanding the use of digital 
audit procedures. 

Figure 1.13 – Gaps in the use of standardised IT tools remain, in 
particular in the decentralised agencies 

Decentralized agencies and 
other bodies (37 in total)

Executive agencies 
(6 in total)

E-Procurement

ePreparation

eRequest

E submission

E-evaluation

19 %

16 %

95 %

5 %

Finance, accounting & reporting tools

ABAC Assets

ABAC Datawarehouse
(Business Intelligence)

ABAC Workflow

70 %

84 %

86 %

100 %

67 %

83 %

33 %

83 %

100 %

100 %

Source: ECA, based on information provided by the agencies. 

1.41. For 2022, we are launching a pilot project to digitalise aspects of the audit on EU 
agencies’ public procurement. The project is based on the eProcurement program, which was 
launched by the Commission in May 2017. eProcurement is currently under development, but 
will eventually be rolled out to all Commission departments and other EU institutions and 
bodies (including EU agencies). It will cover the whole procurement process end-to-end, and is 
intended to be a fully integrated, automated and paperless solution. We are also following 
closely the developments related to the development and rollout of SUMMA, a new system for 
accounting, finance and budgeting due to replace ABAC, the current corporate financial 
platform, by 2025. In 2022, three EU agencies – CINEA, ERA and Eurojust – had implemented 
SUMMA on a pilot basis.

 
 
 
34 

Chapter 2  

Overview of audit results 

 
 
 
35 

Introduction 

2.1. This Chapter presents an overview of the results from the ECA’s annual audits of the 
agencies for the 2021 financial year, including work on a horizontal topic related to the risk of 
conflicts of interest, as well as other agency-related audit work carried out by the ECA during 
the same year. Based on our audit work, we suggest several actions to be taken by the 
agencies. 

 
 
 
 
36 

Results from the annual agency audits 
for the 2021 financial year are positive 
overall 

2.2. Overall, our audit of the annual accounts of the agencies for the financial year ending 
on 31 December 2021 had positive results (see Figure 2.1). However, we have raised 
observations on irregularities and weaknesses affecting the payments underlying the accounts, 
in particular in relation to procurements. 

Figure 2.1 – 2019-2021 annual audit opinions on agencies’ accounts, 
revenue and payments 

2019

2020

2021

AGENCIES

Payments
Revenue
Accounts

OPINIONS

Unqualified (”clean”)
Qualified
Adverse

Source: ECA. 

‘Clean’ opinions on the reliability of all agencies’ accounts 

2.3. For the 2021 financial year, the ECA issues unqualified (“clean”) audit opinions on the 
accounts of all 44 agencies (see Figure 2.1). 

‘Emphasis of matter’ paragraphs are important for understanding the 
accounts of the EMA, Frontex, SRB and the EIGE 

2.4. ‘Emphasis of matter’ paragraphs draw readers’ attention to a matter, presented or 
disclosed in the accounts, which is of such importance that it is fundamental to their 
understanding of the accounts or the underlying revenue or payments. In the 2021 financial 
year, we have used ‘emphasis of matter’ paragraphs in our reports on four agencies: EMA, 
Frontex, SRB and the EIGE. 

 
 
 
37 

2.5. The EMA’s accounts include significant disclosures on the lease on the EMA’s former 
premises in London. This lease runs until 2039 and does not contain a break clause, but the 
premises can be sublet or assigned subject to the landlord’s consent. In July 2019, the EMA 
reached an agreement with its landlord, and has sublet its former premises to a subtenant 
with effect from July 2019, under conditions that are consistent with the terms of the head 
lease. The term of the sublease lasts until the EMA’s lease expires in June 2039. Since the EMA 
remains a party to the head lease, it could be held liable for the entire amount remaining 
payable under the contractual obligations of the head lease if the subtenant fails to meet its 
obligations. As of 31 December 2021, the total estimated outstanding rent, associated service 
charges and landlord insurance to be paid by the EMA up to the end of the lease term was 
€383 million. 

2.6. Frontex is funded by the EU budget and contributions from non-EU Schengen area 
countries (SACs). The accounts of Frontex include a disclosure that the non-EU Schengen area 
countries contributions were not correctly calculated. As a result, the non-EU Schengen area 
countries paid €2.6 million less than they should have done, an amount which was 
compensated from the EU budget. However, given that there was a surplus in 2021, this had 
no impact on the operating revenue of the statement of financial performance for 2021. 

2.7. The SRB is exposed to litigation associated with its collection of contributions to the 
Single Resolution Fund, as well as to litigation associated with the tasks it performs in its 
capacity as the resolution authority. The SRB’s accounts include a disclosure describing 
administrative appeals and judicial proceedings related to ex-ante contributions between 
some banks and national resolution authorities and the SRB, as well as other legal actions 
brought against the SRB before the General Court and the Court of Justice of the European 
Union. Their possible impact on the SRB’s financial statements for the financial year ended 
31 December 2021 (in particular on contingent liabilities, provisions and liabilities) is subject to 
a specific annual audit, as stipulated under Article 92(4) of the SRM Regulation. 

2.8. EIGE disclosed a contingent liability in its accounts which will be incurred if the 
Lithuanian Supreme Court rules against EIGE in an ongoing case concerning temporary agency 
workers. The potential financial impact is estimated at €22 000. 

2.9. We drew attention to the disclosures of three agencies (EASO, EUSPA and the SRB) 
regarding the impact of the Russian war of aggression against Ukraine on their activities. Faced 
with an increased demand for assistance from Member States receiving refugees from 
Ukraine, EASO requested additional human and financial resources. EUSPA’s activities were 
affected by the interruption in the use of Russian Soyuz launchers for Galileo satellites. The 
SRB assesses that the war increased risks to financial stability, in particular credit risks in 
relation to banks’ exposures toward counterparties in Russia, Belarus, and Ukraine and with 
loans to domestic firms most exposed to the effects of the war. 

 
 
38 

‘Clean’ opinions on the legality and regularity of the revenue 
underlying all agencies’ accounts 

2.10. For the 2021 financial year, the ECA issues unqualified (“clean”) audit opinions on 
the legality and regularity of the revenue underlying all agencies’ accounts (see Figure 2.1). 

‘Emphasis of matter’ paragraph helps to better understand the revenue 
of the SRB 

2.11. We also used an ‘emphasis of matter’ paragraph in our report on the SRB, in 
connection with the issues described in paragraph 2.7 above, namely the fact that a part of the 
SRB’s revenue in relation to the ex-ante contributions to the SRF is under legal dispute. This is 
relevant for our opinion on the SRB’s revenue because, depending on the outcome of the 
litigation, the SRB might have to recalculate the amounts of contributions from certain banks. 

‘Other matter’ paragraph address an issue of specific importance for the 
SRB’s revenue 

2.12. ‘Other matter’ paragraphs present significant issues, other than those presented or 
disclosed in the accounts, which are nevertheless relevant for the understanding of the 
accounts or the underlying revenue or payments. 

2.13. The SRM Regulation does not establish a comprehensive and consistent control 
framework to ensure the reliability of the information provided by the banks to the SRB for the 
calculation of the ex-ante contributions to the SRF. However, the SRB performs consistency 
and analytical checks of the information, as well as some ex post checks at the level of the 
banks. Furthermore, the SRB cannot release details on the risk-adjusted contribution 
calculations for each bank as they are interlinked, and include confidential information about 
other banks. This may affect the transparency of these calculations. 

2.14. We noted that for the calculation of the 2021 and 2022 contributions, the SRB has 
improved the transparency towards banks by organising a consultation phase. ln this 
consultation, the SRB communicated data that allowed banks to simulate the calculation of the 
2021 and 2022 ex-ante contributions. 

 
 
39 

‘Clean’ opinions on the legality and regularity of the payments 
underlying the agencies’ accounts, except for eu-LISA 

2.15. For the 2021 financial year, we issued unqualified (“clean”) audit opinions on the 
legality and regularity of the payments underlying the annual accounts for 43 out of the 44 
agencies (see Figure 2.1). 

2.16. For eu-LISA, we issued a qualified opinion. Of the 28 payments we audited, six were 
non-compliant (see Box 2.2). Three of these payments related to a specific contract which 
implemented a framework contract without specifying the details of the services required 
(quantities and delivery dates), and thus did not create a clear legal commitment. We also 
identified other payments, outside our initial sample, linked to that contract and affected by 
the same non-compliance. The three other non-compliant payments from our initial sample 
related to three different specific contracts, which fundamentally deviated from the 
corresponding framework contracts. The total amount of expenditure affected is 
€18.11 million. This represents 6.2 % of the total payment appropriations available in 2021. 

Box 2.1 

Issues with budgetary planning and procurement of eu-LISA 

For the 2019 financial year, we reported about the risks associated with the practice of 
giving resources to eu-LISA before the adoption of the legislation defining the 
requirements for the IT systems to be developed. We found that these risks materialised: 
the resulting time pressure on eu-LISA to commit and spend the funds before they lapse, 
had contributed to non-compliances in procurement procedures and contract 
implementation. These non-compliances included absence of information, in a specific 
contract, on the quantities and delivery dates of the services acquired, and changes of 
contract scope, duration or value going beyond the flexibility allowed by the Financial 
Regulation. As a result, we issued a qualified opinion on the legality and regularity of  
eu-LISA’s 2021 payments. Already last year, we qualified our opinion on the legality and 
regularity of eu-LISA’s 2020 payments over similar non-compliances in contract 
implementation. 

Action to be taken 1 

eu-LISA should improve its procurement procedures and contract management, in 
particular as regards defining the services and goods acquired in the specific contracts and 
limiting changes to the scope, duration and value of contracts to the flexibility allowed by 
the Financial Regulation. 

 
 
 
40 

eu-LISA should also reach out to the Commission to propose changes to its multiannual 
budget planning, so that it only receives funds for developing systems once the legislation 
(including delegated or implementing regulations) defining the relevant requirements is 
adopted, and the project scope can be specified with sufficient detail. 

‘Emphasis of matter’ paragraph helps to better understand Frontex’s 
payments  

2.17. Frontex’s accounts include a disclosure regarding €18.1 million of payments made in 
2021 for the implementation of a budgetary commitment from 2020 carried to 2021 without 
Frontex having entered into a legal commitment before the end of 2020, as required by the EU 
Financial Regulation. We reported on this issue in our 2020 specific annual report11. Total 
payments in 2021 were €18 375 458. Frontex rectified this non-compliance by means of 
subsequent legal commitments throughout 2021. 

‘Other matter’ paragraphs on issues of specific importance for HaDEA’s 
payments 

2.18. We draw attention to the fact that the Commission Implementing Decision 
(EU) 2021/17312 entrusted the Director-General of DG SANTE with the authority to act as 
HaDEA’s interim Director until HaDEA gained the operational capacity to implement its own 
budget. On 19 February 2021, the Director-General of DG SANTE delegated that authority to 
another DG SANTE official, appointing him as interim Director of HaDEA. Article 26 of HaDEA’s 
Financial Regulation allows budgetary powers to be delegated. However, it cannot be 
interpreted as allowing the whole authority of the interim Director to be delegated, because 
this would contravene Commission Implementing Decision. 

Our observations address areas for improvement in 33 agencies 

2.19. In total, we made 77 observations concerning 33 agencies to address areas where 
further improvements are needed. These numbers include the two observations which served 
as the basis for the qualified opinion for eu-Lisa, as well as the observation covered by the 

11  Annual report on EU agencies for the financial year 2020: paragraph 3.30.15. 

12  Commission Implementing Decision (EU) 2021/173 establishing the European Climate, 
Infrastructure and Environment Executive Agency, the European Health and Digital 
Executive Agency, the European Research Executive Agency, the European Innovation 
Council and SMEs Executive Agency, the European Research Council Executive Agency, and 
the European Education and Culture Executive Agency 

 
 
                                                             
41 

‘other matter’ paragraph for HaDEA. For comparison, for the 2020 financial year we made 60 
observations. Most of the observations concern shortcomings in management and control 
systems, public procurement procedures and in budgetary management. Weaknesses in public 
procurement procedures remain the main source of irregular payments. 

2.20. Figure 2.2 and Figure 2.3 show the number of different types of observations raised 
across 33 agencies throughout the report. 

Figure 2.2 – Number of observations concerning each agency 

Procurement procedures

Of which leading to irregular 
payments 

Recruitment

Management and control systems 
(other than procurements, recruitments)

Budget management

Qualified / adverse opinion

Source: ECA. 

 
 
 
Figure 2.3 – Number of observations by type of frequent weaknesses 

42 

Procurement

of which weakness leading to irregular payments

Lack of competition/wrong type of procedure

Evaluation of tenders

Contract implementation

Other

Recruitment

Committee's nominations

Vacancy notice

Evaluation process 

Other

Budgetary Management

Fee/revenue related

Late payments

High Carry overs

Other

Management and control systems 
(other than procurements, recruitments)

Register of exceptions

Delegations

Ex-post / ex-ante controls

Management of commitments

Conflict of Interest (Horizontal task 2021)

Other

Source: ECA. 

Public procurement weaknesses are increasing and remain the largest 
source of irregular payments 

2.21. The objective of public procurement rules is to ensure fair competition between 
tenderers and to procure goods and services at the best price, respecting the principles of 
transparency, proportionality, equal treatment and non-discrimination. We audited 
procurement in all the 44 agencies. For 22 agencies (ACER, BEREC Office, CdT, CEPOL, CPVO, 
EASO, EBA, EEA, EIGE, EIOPA, EISMEA, ELA, EMA, EMSA, ENISA, ESMA, EUIPO, eu-LISA, 
EU-OSHA, Eurofound, Eurojust and Frontex), we reported contracts affected by various sorts of 
public procurement shortcomings (see Figure 2.3), including payments made in the 2021 
financial year, stemming from irregular procurement procedures reported in previous years. 
Box 2.2 presents examples of typical irregularities in the implementation of procurement 
contracts. 

 
 
 
43 

Box 2.2 

Example of irregular implementation of contracts 

CEPOL had a framework contract, valid until March 2022, for travel agency services. The 
scope of the contract did not include certain countries outside the EU. Travel services for 
these countries were covered by other contracts until the end of 2020. In summer 2021, 
despite the unpredictable travel situation, it became probable that CEPOL would need to 
organise in-person activities in non-EU countries. After assessing the situation and the 
various available options, CEPOL opted to use the existing framework contract to cover 
the events in these countries, even though such events did not fall within the scope of the 
contract. This contravened the Financial Regulation. CEPOL noted this decision in its 
registry of exceptions. The associated payments, amounting to €76 590 in 2021, are 
irregular. 

2.22. We note an increase in the number of procurement observations we raised over the 
last three financial years (from 20 in 2019 and 18 in 2020 to 34 in 2021), as well as in the 
number of agencies concerned (from 11 in 2019 and 14 in 2020 to 22 in 2021). As shown in 
Figure 2.4, since the 2019 financial year, we have raised new procurement-related 
observations every year for two agencies (CEPOL and the EMA). 

 
 
44 

Figure 2.4 – Our observations on public procurement weaknesses and 
irregularities have become more frequent over the last three years 

2019

2020

2021

Total number of 
procurement-related 
observations

Observation of the year 
affecting payments

Observation of the year 
not affecting payments

Observations from 
previous years affecting
payments

CEPOL

EMA

Eurofound

BEREC Office

EBA

ACER

EASO

CdT

Cedefop

EEA

EIGE

EIOPA

ENISA

ESMA

EUIPO

eu-LISA

Eurojust

Europol

CPVO

EASA

EFSA

EISMEA

ELA

EMSA

ERA

ERCEA

EU-OSHA

Frontex

TOTAL number of 
agencies for which 
we raised a 
procurement-related 
observation in a 
given year

Source: ECA. 

 
 
 
45 

Action to be taken 2 

Public procurement errors remain the most frequent type of errors detected in our audits 
of the agencies. The agencies concerned should further improve their public procurement 
procedures, ensuring full compliance with the applicable rules, to ensure they achieve the 
best possible value for money. 

In particular, when implementing framework contracts, agencies should only use specific 
contracts to procure goods or services covered by the associated framework contract. 
Agencies should also ensure that they comply with the conditions for modifying existing 
contracts set out in the Financial Regulation. 

Management and control systems are affected by weaknesses 

2.23. Agencies have their own legal personality, and are governed by European law (see 
paragraphs 1.6 and 1.7). Management and control systems are crucial to ensure the proper 
functioning of EU agencies, and are a requirement of the Financial Regulation in support of the 
principle of sound financial management. 

2.24. For 16 agencies (ACER, Cedefop, CEPOL, EASA, EBA, EIOPA, EISMEA, EIT, ELA, ENISA, 
EPPO, ESMA, Europol, EUSPA, Frontex and HaDEA) we report weaknesses in management and 
control systems other than those concerning procurements (see paragraphs 2.20-2.21) or 
recruitments (see paragraph 2.26). For these 16 agencies, our observations include potential 
cases of conflict of interest, missing ex-ante/ex-post controls, inadequate management of 
budgetary and legal commitments, and failures to report issues in the register of exceptions. 
Figure 2.3 shows the most common types of internal control weaknesses we identified. 
Box 2.3 provides examples of such weaknesses in relation to the risk of conflict of interest. 

Box 2.3 

Governance issues and conflicts of interest can impede the 
effectiveness of EU agencies 

The role of the three European supervisory authorities – EBA, EIOPA and ESMA – is to 
ensure an EU perspective and level playing field for the supervision of financial services. 
Their founding Regulations include various provisions to ensure that Members of their 
Boards of Supervisors (BoS) “act independently and objectively in the sole interest of the 

 
 
46 

Union as a whole” and do not “seek nor take instructions from any government […] or 
from any other public or private body”13. 

Under the European supervisory authorities’ rules of procedure, BoS members who have 
a conflict of interest may not take part in the BoS’s discussions or vote on the matter in 
question. However, the members may remain present in the meeting if nobody objects 
(EBA and EIOPA) or unless the majority of members vote to exclude them (ESMA). This 
creates a risk to the Boards’ independence, at least in appearance. 

In the past years, we reported in several special reports on governance issues affecting 
the European supervisory authorities, and the detrimental impact of these issues on their 
objectives. 

In our special report on stress tests for banks14, we found that national authorities have 
significant involvement in the EBA’s governance structure, since the EBA’s Board of 
Supervisors comprises national representatives whose appointment is not subject to any 
approval by EU bodies. This can give rise to tensions, as members of the board may act to 
promote of purely national rather than wider European interests. 

In our special report on insurance supervision15, we observed that the efficiency and 
effectiveness of EIOPA’s work often relied on the quality of the input of national 
authorities, and depended on their willingness to co-operate. EIOPA’s current governance 
structure gives national authorities the power to influence the extent to which their own 
work will be reviewed, and the conclusions of such reviews. The BoS approves all key 
documents, such as EIOPA’s oversight strategy. This may compromise EIOPA’s 
independence and prevent it from achieving its objectives. 

In our special report on anti-money laundering16, we found that EBA staff carried out 
thorough investigations of potential breaches of EU law, but we found written evidence of 
attempts to lobby panel members during the period when the panel was deliberating on a 
potential recommendation. In the end, the BoS rejected the draft recommendation. 

In our special report on investment funds17, we found that ESMA faces challenges in using 
its tools effectively. These challenges include problems caused by ESMA’s own 
governance structure, its dependency on the goodwill of national authorities and the 
willingness of its own BoS. We found that both preferred “non-invasive” convergence 

13  Articles 42 of Regulations (EU) No 1093/2010, 1094/2010 and 1095/2010. 

14  ECA special report 10/2019: “EU-wide stress tests for banks: unparalleled amount of 
information on banks provided but greater coordination and focus on risks needed”. 

15  ECA special report 29/2018: “EIOPA made an important contribution to supervision and 

stability in the insurance sector, but significant challenges remain”. 

16  ECA special report 13/2021: “EU efforts to fight money laundering in the banking sector are 

fragmented and implementation is insufficient”. 

17  ECA special report 04/2022: “Investment funds: EU actions have not yet created a true 

single market benefiting investors”. 

 
 
                                                             
47 

tools, whose effectiveness has not yet been demonstrated and which often did not result 
in effective and consistent supervision. This limited ESMA’s effectiveness. 

In all cases, we recommended that the Commission should consider proposing changes to 
the European supervisory authorities’ governance structure which would allow them to 
use their powers more effectively. In 2019, though, the legislator did not accept the 
Commission’s proposed18 revised governance structure. 

2.25. Paragraphs 2.30-2.42 provide more details on how agencies handle potential 
conflicts of interest when their senior staff or board members take up paid outside activity 
during their EU service, or when they leave the agency and take up a new job elsewhere. 

Recruitment weaknesses are frequently related to the evaluation 
process 

2.26. For nine agencies (BEREC Office, Cedefop, EBA, EIGE, EMA, EPPO, EUSPA, Frontex 
and the SRB) we report weaknesses related to various aspects of recruitment procedures, 
including evaluation processes and vacancy notices. Figure 2.3 shows the most common types 
of weaknesses concerning recruitment procedures. 

Weaknesses in budgetary management typically result in high carry-
overs or late payments 

2.27. For 10 agencies (ACER, Cedefop, EACEA, EPPO, ERCEA, EUIPO, eu-LISA, FRA, Frontex, 
HaDEA), we report weaknesses related to various aspects of budgetary management, for 
example excessive carry-overs of appropriations and high rates of late payments. Figure 2.3 
shows the most common types of weaknesses concerning budgetary management. 

2.28. Under the EU Financial Regulation, budget appropriations granted for a given 
financial year can be carried over to the next financial year under certain conditions 19. 
Figure 2.5 shows the level of carry-overs, per budget title, for each agency. While the EU 
Financial Regulation does not set ceilings for such carry-overs and the multi-annual nature of 
operations can explain a number of them, excessive levels of carry-overs can indicate delays in 
the implementation of work programmes or procurement plans. Alternatively, they could 
indicate a structural issue, weak budgetary planning, or possibly a contravention of the 

18  Commission proposals on amendments to Regulations (EU) No 1093/2010, 1094/2010 and 

1095/2010, COM(2017) 536 final. 

19  Articles 12 and 13 of the EU Financial Regulation. 

 
 
                                                             
budgetary principle of annuality. We report such weaknesses concerning four agencies (ACER, 
EACEA, eu-LISA and FRA). 

Figure 2.5 – Level of carry-overs affecting each budget title 

48 

100 %

80 %

60 %

40 %

20 %

0 %

Carry-overs (%)

Title I
Title II
Title III 
and others

EACEA

Frontex

Source: Agencies' 2021 final annual accounts, compiled by ECA. 

Action to be taken 3 

To resolve excessive levels of carry-overs, the agencies concerned should further improve 
their budget planning and its implementation cycles. 

 
 
 
49 

Agencies are following up on previous years’ audit observations 

2.29. We provide information on the status of follow-up actions taken by the agencies in 
response to observations from previous years. Figure 2.6 shows that for the 139 observations 
that had not been addressed at the end of 2020, corrective action had been completed in 67 
cases, and was ongoing in 39 cases in 2021. For 22 agencies (ACER, BEREC Office, CEPOL, CPVO, 
EASA, EASO, EFSA, EISMEA, EIT, EMA, EMCDDA, ERA, ESMA, ETF, EUIPO, eu-LISA, Eurofound, 
Eurojust, Europol, FRA, Frontex, and the SRB) we report a total of 48 observations from 
previous years that have not yet been implemented, 9 of which are outstanding. 

Figure 2.6 – Agencies’ efforts to follow up on previous years’ 
observations 

Total: 139

Source: ECA. 

Outstanding

Ongoing

Completed

N/A

2.30. Box 2.4 explains the different statuses of follow-up used in this report and gives 
examples of typical situations to which they apply. 

Box 2.4 

Explanations of status of follow-up used in this report 

Completed: The agency introduced improvements to address the observation, supported 
by evidence and checked by the ECA. 

Ongoing: There is some evidence of corrective action having been taken, but the process 
is not yet fully implemented or complete. 

Outstanding: No reaction to the observation or disagreement by the agency. 

N/A: The observation is no longer applicable, or the contract which provoked the 
observation in question has expired. Applicable also when, due to a change of 
circumstances, the cost of addressing the issue outweighs the benefits. 

 
 
 
50 

Weaknesses and good practice in the 
agencies’ handling of potential 
‘revolving door’ situations. 

2.31. We complemented our recurrent audit work on the reliability of the agencies’ 
accounts and the legality and regularity of their revenue and payments with an analysis of how 
agencies handled potential ‘revolving door’ situations. Box 2.5 explains what ‘revolving door’ 
situations are, and how they relate to the risk of conflict of interest and policy capture. 

Box 2.5 

What is the ‘revolving door’ and why is it important? 

The Organization for Economic Co-operation and Development (OECD) defines the 
concept of a ‘revolving door’ as follows. “Conflicts of interest can arise and present the 
risk of policy capture in the movement between positions in the public and private sectors. 
When functions cover fields that are closed or were directly controlled by the former public 
official, this so-called revolving door phenomenon can be perceived as granting an unfair 
advantage in terms of information, relations or any other type of advantage gained in the 
previous public functions. In some cases, public officials may be tempted to make or be 
perceived to have made decisions not in the public interest, but in the interest of a former 
or future employer.” 20 

In the EU context, the European Ombudsman explains that21 “[w]hen a public official 
moves to the private sector, they are often described as having gone through ‘the 
revolving door’. This can present a risk to the integrity of EU institutions because valuable 
inside knowledge can move into the private sector, or because former officials may lobby 
their former colleagues or existing officials may be influenced by possible future 
employment.” 

Taking a paid outside activity while working for an EU institution or body, such as an 
agency, may present similar risks to taking a new job after leaving EU public service. 

2.32. We decided to examine this topic because of its importance not just for the proper 
functioning of EU agencies, but also for their reputation and, more broadly, for the reputation 
of the EU as a whole. Agencies are particularly prone to the risk of ‘revolving door’ situations 
because of their reliance on temporary staff, which entails high rates of staff turnover, and 

20  OECD Public Integrity Handbook; Chapter 13.3.2. 

21  The European Ombudsman's work on revolving doors. 

 
 
                                                             
51 

their governance model, which includes boards22 whose members tend to serve for relatively 
short terms. For some agencies, this risk is further heightened by significant regulatory powers 
(e.g. EBA, EIOPA and ESMA) or links to industry (e.g. EASA, ECHA or EFSA). 

We examined cases between 2019 and 2021 in which current or former senior agency staff 
(executive directors, directors and officials at grades AD14-16) took up a job after leaving an 
agency or performed a paid outside activity while working for an agency. We also looked into 
similar cases affecting members and former members of the agencies’ boards, cases which 
some agencies had only assessed on the basis of their own internal rules. Our scope included 
40 agencies. Only Chafea, which was closed in 2021, and the three agencies that only became 
operational or autonomous in 2021 (ELA, EPPO and HaDEA) were not considered. Box 2.6 
explains the relevant legal standards.  

2.33. Figure 2.7 illustrates the scope of our work. 

Box 2.6 

The EU legal framework applicable to managing ‘revolving door’ risks 

The rules applicable to handling potential ‘revolving door’ situations and the associated 
risk of conflict of interest are set out, primarily, in the EU’s Staff Regulations23. These 
rules apply to the former and current staff of EU institutions and bodies, including EU 
agencies. The rules include the following. 

o 

o 

o 

o 

Staff members have to inform their agency if they plan to take up a job within two 
years after leaving the EU civil service. 

Before granting or refusing authorisation for former staff members to carry out an 
outside activity or a new job, an agency must consult its Joint Committee. 

If an agency considers that there is a risk of a conflict of interest, it may forbid the 
staff member from accepting the job, or give approval only subject to conditions. 

An agency must also prohibit its former senior officials from lobbying or advocacy 
vis-à-vis the institution's staff during the 12 months after leaving the service. 

22  The name of the board varies between agencies: for example, some agencies have a board 
of supervisors, others have an administrative board or a management board, and some a 
governing board. Executive agencies, on the other hand, are led by steering committees. 

23  Articles 12, 12b, 16 and 17 of the EU’s Staff Regulations of Officials and the Conditions of 
Employment of Other Servants of the European Economic Community and the European 
Atomic Energy Community. 

 
 
                                                             
52 

o 

An agency must publish a yearly list of the cases assessed in the context of the risk of 
lobbying and advocacy. 

However, these rules do not apply to members of the agencies’ boards, because they are 
not considered part of the agencies’ staff. Nevertheless, nine agencies have internal rules 
dealing with this area. 

Figure 2.7 – Our work on ‘revolving door’ covered agencies’ senior staff 
and board members 

STAFF

Covered in 
this chapter

Senior staff
(executive directors, directors and staff 
with grades AD14, AD15 and AD16)

NON-STAFF

Board members

Non-senior staff

Members of scientific committees, 
expert groups etc.

APPLICABLE 
RULES

Source: ECA. 

General ‘revolving door’ rules in the 
Staff regulations (including specific 
provisions for senior staff)

Nine agencies (the EIT, EIOPA, EFSA, EMA, 
ESMA, EUIPO, EUROPOL, FRA and the SRB) 
have their own internal rules for 
board members

The current legal framework lacks clear requirements on 
compliance and monitoring 

2.34. As mentioned in Box 2.6, the Staff Regulations (including their rules related to 
‘revolving door’ situations and conflicts of interest more broadly), by definition do not apply to 
the members of agencies’ boards, who do not belong to the agencies’ staff. They also do not 
concern members of the agencies’ scientific committees, expert groups and other similar 
bodies. This leaves a legal vacuum, because there is no common legal basis defining a 
minimum level of requirements for these categories of people working for EU agencies, in 
relation to the risk of conflict of interest and ‘revolving door’ situations. The task of setting 
applicable rules is left to each individual agency. 

 
 
 
 
53 

Action to be taken 4 

The EU Agencies Network should reach out to the Commission and legislators to propose 
changes to the regulatory framework defining a minimum set of rules applicable to 
members of the EU agencies’ boards in relation to conflict of interest and ‘revolving door’. 
Where appropriate, similar rules should also apply to members of scientific committees, 
expert groups and similar bodies outside the scope of the staff regulations. 

2.35. The EU legal framework for managing the risk of ‘revolving door’ situations sets out 
very limited obligations for EU institutions and bodies (including EU agencies) to monitor 
compliance of current and former staff with the ‘revolving door’ requirements. It does not 
define the manner in which such monitoring could take place or the tools that could be used 
for that purpose. In consequence, most agencies do not engage in any such monitoring activity 
(see paragraph 2.41), and undeclared ‘revolving door’ cases and breaches of restrictions 
imposed on departing staff in relation to their new jobs are likely to remain undetected. 

2.36. The rules relating to monitoring and handling ‘revolving door’ situations and the 
associated risk of a conflict of interest are insufficiently explicit about the obligation for the EU 
institutions and bodies concerned to publish a yearly list of cases assessed in the context of the 
risk of lobbying and advocacy. The European Ombudsman already reported on this issue in 
2017 (see Box 2.7). The relevant rules in the Staff Regulations have not changed since then. 

Box 2.7 

The European Ombudsman called for more transparency on the 
assessment of cases in relation to the risk of lobbying and advocacy 

In a 2017 report24, the European Ombudsman stated that “information should be 
published for all cases assessed, regardless of whether the institution took the view that 
the notified occupational activity could, or would, entail lobbying and advocacy. This is 
necessary to ensure an effective and meaningful application of Article 16(3) and 16(4).” 
The European Ombudsman stated that the information to be published should include: 

— 

the name of the senior staff member concerned; 

— 

the date of departure of the senior staff member; 

24  Report of the European Ombudsman on the publication of information on former senior 

staff so as to enforce the one-year lobbying and advocacy ban. 

 
 
                                                             
54 

— 

— 

— 

— 

the type of post held by the senior staff member and a description of the duties 
carried out during the last three years in the EU civil service; 

the name of the future employer and a description of the type of duties to be 
carried out in the new job; alternatively, a description of the intended self-employed 
activities; 

if the future employer or the self-owned company is registered on the EU 
Transparency Register, a link to the relevant register entry; 

the institution’s detailed assessment of the case, including its conclusion on whether 
to authorise it – with or without mitigating measures – and a statement about 
whether the intended activity may entail lobbying and advocacy and thus warrants 
the imposition of a lobbying and advocacy ban. 

Agencies mostly comply with their legal obligations  

2.37. When a current or former staff member notifies an agency about their plans to take 
up a new job, the agency has 30 working days to issue a decision. No such time limit is set for 
outside activities. Before taking a decision, the agency has to consult the Joint Committee. The 
standard process for assessing a case is illustrated in Figure 2.8. 

 
 
Figure 2.8 – Standard process for agencies when assessing potential 
‘revolving door’ cases. 

55 

Application for 
authorisation on 
Post-employment 
/Outside Activity
(at least 30 working days 
before the envisaged 
starting date) 

Supplementary 
Documentation

• Declaration of absence of CoI

& Confidentiality)

• Clarification on the nature 
and the activities to be 
undertaken

Application sent to 
HR or Management 
(for Executive 
Agencies to DG HR)

Existence
of Ethics Committee 
(send for Opinion)

Management /HR 
Decision on the 
Assessment of the 
Application

Non Existence
of Ethics Committee 
(send for Opinion to Joint 
Committee - Art.16, Staff 
Regulations)

Assessment of the 
Application by the 
Appointing 
Authority

For Decentralised Agencies
• Board decisions

For Executive Agencies
• DG HR

Criteria
• Art.16 Staff Regulations and 
existing Specific Provisions

Notification of the 
Decision to the 
concerned parties

Concerned Parties

• Concerned former or present 

staff

• Management Board or 
Administrative Board

• HR Unit

Source: ECA. 

Opinion of 
Ethics Committee

Opinion of 
Joint Committee

Decision on the 
Application
(Within 30 days from 
the application)

Follow-up of the 
Decision

Publication of 
assessed cases
Art 16(4) Staff 
Regulations

Type of Decision

• No conflict of interest positive 
assessment / approval of the 
request

• Conflict of interest can be 

mitigated by restrictions and 
therefore positive assessment 
/ approval

• Negative assessment / refusal 

of the request

• No decision within the 
deadline of 30 days

 
 
 
56 

2.38. During the last three years (2019-2021), only 20 of the 40 agencies we examined 
had considered any potential revolving-door cases related to their senior staff members. Only 
five had assessed any cases related to members of their boards, taking up a new job or an 
outside activity. As shown in Figure 2.9, the total number of cases assessed was 71, of which 
43 cases concerned senior staff and 28 concerned board members. These numbers are based 
on the information we received from the agencies, which, in turn, had relied generally on self-
declarations from the staff and board members concerned. We have not carried out an 
investigation to identify any undeclared cases. 

Figure 2.9 – Most agencies assessed very few cases, or none at all 

20

15

10

5

Senior staff

Board members

Cases concerning post-EU service employment

Cases concerning outside activity

Source: ECA, on the basis of information received from the agencies. 

2.39. We examined a sample of 17 of these cases and concluded that the agencies 
generally complied with the applicable legal requirements. Exceptions are described in 
paragraphs 3.2.10, 3.4.9, 3.7.11, 3.10.12, 3.13.11 and 3.33.9. The infringements we identified 
concerned the obligation to publish the list of cases assessed, to consult the Joint Committee, 
or to issue a formal decision within 30 working days. 

 
 
 
57 

Figure 2.10 – We found procedural infringements in six agencies 

List of cases assessed 
not published

Joint Committee 
not consulted

Decision issued late
or not at all

Reasons for the 
restrictions imposed 
not explained in the 
decision

ACER

EASA

EIOPA

ENISA

Europol

EUSPA

Source: ECA. 

Action to be taken 5 

Agencies should strengthen their internal procedures and controls concerning potential 
‘revolving door’ situations, in order to ensure full compliance with the applicable rules. In 
particular, they should: 

— 

issue formal decisions within the applicable time limit; 

— 

consult the Joint Committee on all cases before issuing a decision; 

—  publish a list of all cases assessed in relation to the risk of lobbying and advocacy. 

Only a few agencies go beyond the minimum legal 
requirements when handling potential ‘revolving door’ 
situations  

2.40. Nine agencies had introduced their own internal rules to deal with the lack of 
provisions in EU legislation governing the activities of members of agencies’ boards described 
in Box 2.6. See Box 2.8. 

 
 
 
 
58 

Box 2.8 

Nine agencies (EBA, EIOPA, the EIT, EMA, ESMA, EUIPO, Europol, FRA 
and the SRB) have specific provisions covering the risk of ‘revolving 
door’ situations in relation to members of their boards 

EMA’s internal rules require board members (and their alternates) to notify the EMA 
immediately of their intention to engage in occupational activities with pharmaceutical 
companies. From the moment it receives such a notification, the EMA must restrict the 
person concerned from further involvement in the board’s activities. Similar rules also 
apply to members of the EMA’s scientific committees and expert groups. 

The EIT has a Code of Good Conduct, which addresses conflicts of interest for the 
members of the governing board. It prevents members of the board from taking any 
position, paid or unpaid, in any businesses, research centres or universities participating 
in the EIT’s Knowledge and Innovation Communities or receiving EIT grants, for two years 
after leaving their post. 

2.41. The remaining 31 agencies only take into account potential ‘revolving door’ cases 
concerning their current and former staff. As a result, only a small fraction of potential 
‘revolving door’ cases of agencies’ board members are subject to any assessment (see 
Figure 2.11). This can result in perceived or actual conflicts of interest, potentially leading to: 

o 

o 

decisions not being made in the public interest, but in the interest of the future employer 
of the board member concerned; 

unfair advantages for certain private-sector entities in terms of insider information or 
relations/lobbying. 

Figure 2.11 – Few potential ‘revolving door’ cases related to members of 
agencies’ boards are assessed 

Average number 
of posts

Number of 
departures

Number of cases 
assessed

Board members

Senior staff

1 435

659

Source: ECA, on the basis of information received from the agencies. 

121

45

25

38

 
 
 
59 

Action to be taken 6 

Agencies should introduce internal rules for members of their boards on conflicts of 
interest in general and ‘revolving door’ situations in particular. 

2.42. In general, we found that agencies rely almost exclusively on self-declarations by the
members of staff concerned for identifying potential ‘revolving door’ situations and the 
associated risk of conflicts of interest. Most agencies do not take any steps to detect whether 
current staff members may be carrying out undeclared outside activities, or whether their 
former staff members have taken up new jobs without informing the agency. Nor do they 
monitor whether former staff members comply with any restrictions imposed on them in 
relation to their new jobs. However, we have identified four examples of good practices where 
agencies have introduced procedures for monitoring this (see Box 2.9). 

Box 2.9 

Only four agencies (the BEREC Office, the SRB, EBA and ESMA) have 
procedures in place for monitoring compliance with the rules related 
to ‘revolving door’ 

The BEREC Office has procedures in place to perform sample checks on former staff 
members’ compliance with their obligations under Article 16 of the Staff Regulations. 
These checks focus on senior staff members and on staff members who either were 
forbidden to engage in a certain occupational activity or were allowed to accept a new job 
subject to certain limitations. 

The SRB has procedures to run compliance checks on former staff members who left the 
SRB within the last two years, including the use of publicly available databases. 

Action to be taken 7 

Agencies should engage in active monitoring of the professional activity of their senior 
staff members (including those that have left the agency within the last two years) in 
order to be able to detect undeclared ‘revolving door’ situations and ensure compliance 
with previously imposed restrictions. 

60 

Other agency-related products issued 
by the ECA 

2.43. Apart from audit reports specifically covering the agencies, in the course of 2021 
and the first half of 2022, the ECA also issued a number of special reports on EU policy 
implementation which referred to a number of agencies. Table 2.1 presents the content of five 
selected reports, while a full list is included in Figure 2.12. 

Table 2.1 – Main points covered in our selected recent special reports 
related to EU agencies 

Special report 
and agency 
concerned 

Main points covered 

Special report 
06/2022 

In this audit, we assessed whether intellectual property rights in EU 
trademarks, EU designs and geographical indications were well 
protected within the Single Market. 

“EU intellectual 
property rights: 
Protection not fully 
waterproof” 

EUIPO 

We found that the protection was generally robust, despite some 
legislative shortcomings. The absence of a clear method for 
determining EU fees results in a level of fees which produces 
accumulated surpluses. We also found shortcomings in the 
legislation regarding EUIPO’s governance and accountability 
framework. 

We recommended that the Commission should complete and update 
the regulatory frameworks, assess the governance arrangements and 
method for determining fees in the context of its evaluation of 
EUIPO’s impact, effectiveness and efficiency and its working 
practices. We also recommended that EUIPO should improve its 
financing, control and evaluation systems by providing a sound 
method for calculating lump sums, properly justifying the running 
costs of EU public databases for EU trademarks and designs, and 
improving evaluation systems for European cooperation. 

Special report 
05/2022 

The number of cyberattacks on EU institutions, bodies and agencies 
(EUIBAs) is increasing sharply. As EUIBAs are strongly interconnected, 
weaknesses in one can expose others to security threats. We 
examined whether the EUIBAs have adequate arrangements to 
protect themselves against cyber threats.  

 
 
61 

Special report 
and agency 
concerned 

Main points covered 

“Cybersecurity of 
EU institutions, 
bodies and 
agencies: Level of 
preparedness 
overall not 
commensurate with 
the threats” 

We found that, overall, EUIBAs’ level of preparedness is not 
commensurate with the threats, and that they have very different 
levels of cybersecurity maturity. We recommend that the 
Commission improve EUIBAs’ preparedness by proposing the 
introduction of binding cybersecurity rules and an increase in 
resources for the Computer Emergency Response Team (CERT-EU). 
The Commission should also promote further synergies among 
EUIBAs, and CERT-EU and the European Union Agency for 
Cybersecurity should focus their support on less mature EUIBAs. 

ENISA 

Special report 
04/2022 

“Investment funds: 
EU actions have not 
yet created a true 
single market 
benefiting 
investors” 

ESMA 

Investment funds play a key role in the European capital markets 
union, helping investors to allocate their capital efficiently. We 
assessed the suitability of the regulatory framework, the EU’s efforts 
to create similar and effective supervision in all Member States, as 
well as its investor protection and financial stability work. 

We found that EU actions had enabled a single market for 
investment funds, but had not yet achieved the desired outcomes, as 
true cross-border activities and benefits for investors remained 
limited. ESMA had strived to promote supervisory convergence, 
resulting in slightly improved quality of supervision and fewer 
divergences. However, ESMA was unable to measure this progress, 
and had limited knowledge of whether an equivalent level of 
supervision was performed across Member States. Nevertheless, 
ESMA’s work revealed weaknesses in national supervision and some 
divergent practices. To achieve consistent supervision, it relied on 
the goodwill of national supervisors and the willingness of its own 
Board of Supervisors. 

Special report 
19/2021 

“Europol support to 
fight migrant 
smuggling: a valued 
partner, but 
insufficient use of 
data sources and 

Migrant smuggling has posed a major humanitarian and security 
challenge for the EU in recent years. Our audit assessed whether 
Europol had effectively supported EU Member States in dismantling 
criminal networks involved in organised migrant smuggling.  

We found that Europol’s partners appreciated its support, but 
weaknesses in measuring its results prevented us from fully 
evaluating its impact. We also found that Europol’s use of available 
European data sources was sometimes limited. We recommended 
that Europol should use all available data sources, enhance data 

 
 
62 

Special report 
and agency 
concerned 

result 
measurement” 

Europol 

Special report 
08/2021 

“Frontex’s support 
to external border 
management: not 
sufficiently 
effective to date” 

Frontex 

Main points covered 

exchange with its partners, improve performance monitoring and 
reporting of its activities on migrant smuggling, and make its process 
for prioritising cases of migrant smuggling originating in the Member 
States more transparent. 

In this audit, we assessed whether Frontex carried out four out of its 
six primary activities effectively to contribute to implementing 
European integrated border management, and thus supporting 
Member States to prevent, detect and respond to illegal immigration 
and cross-border crime. We also examined how prepared Frontex 
was to fulfil its new and expanded 2019 mandate. 

We concluded that Frontex’s support for Member States and 
Schengen associated countries in fighting illegal immigration and 
cross-border crime was insufficiently effective. We found that 
Frontex had not fully implemented its 2016 mandate, and we 
highlighted several risks related to its 2019 mandate. 

 
 
 
63 

Figure 2.12 – Other ECA special reports referring to agencies issued in 
2021 and the first half of 2022 

MFF 1

MFF 2

MFF 3

MFF 4

MFF 5

Self-financed

Chamber I
Sustainable use of 
natural resources

EEA

EEA

Special report 12/2021:

Special report 21/2021:

The Polluter Pays Principle: 
Inconsistent application across 
EU environmental policies and 
actions

EU funding for biodiversity and 
climate change in EU forests: 
positive but limited results

EEA

EEA

Special report 16/2021:

Special report 09/2022:

Climate spending in the 2014-
2020 EU budget: Not as high as 
reported

Common Agricultural Policy and 
climate: Half of EU climate 
spending but farm emissions 
are not decreasing

EEA

Special report 20/2021:

Sustainable water use in 
agriculture: CAP funds more 
likely to promote greater rather 
than more efficient water use

Chamber II
Investment for 
cohesion, growth 
and inclusion

CINEA

BEREC Office, ENISA

Special report 05/2021:

Special report 03/2022:

5G roll-out in the EU: delays in 
deployment of networks with 
security issues remaining 
unresolved

Infrastructure for charging 
electric vehicles: more charging 
stations but uneven 
deployment makes travel across 
the EU complicated

EUROFOUND

Special report 25/2021:

ESF support to combat long-
term unemployment: Measures 
need to be better targeted, 
tailored and monitored

 
 
 
MFF 1

MFF 2

MFF 3

MFF 4

MFF 5

Self-financed

64 

Chamber III
External action, 
security and 
justice

Chamber IV
Regulation of 
markets and 
competitive 
economy

FRONTEX

ECDC

EUSPA

Special report 17/2021:

Special report 13/2022:

EU readmission cooperation with 
third countries: relevant actions 
yielded limited results

ENISA

Special report 05/2022:

Cybersecurity of EU institutions, 
bodies and agencies: Level of 
preparedness overall not 
commensurate with the threats

Free movement in the EU during 
the COVID-19 pandemic:
Limited scrutiny of internal 
border controls, and 
uncoordinated actions by 
Member States

SRB

ESMA, EIOPA, EBA

Special report 01/2021:

Special report 04/2022:

Resolution planning in the Single 
Resolution Mechanism

EUSPA

Special report 07/2021:

EU space programmes Galileo 
and Copernicus: services 
launched, but the uptake needs a 
further boost

FRONTEX

Special report 08/2021:

Frontex’s support to external 
border management: not 
sufficiently effective to date

Investment funds EU actions have 
not yet created a true single 
market benefiting investors

EUIPO

Special report 06/2022:

EU intellectual property rights: 
Protection not fully waterproof

EISMEA

Special report 07/2022:

SME internationalisation 
instruments A large number of 
support actions but not fully 
coherent or coordinated

EBA

REA

Special report 15/2022:

Measures to widen participation 
in Horizon 2020 were well 
designed but sustainable change 
will mostly depend on efforts by 
national authorities

Special report 13/2021:

EU efforts to fight money 
laundering in the banking sector 
are fragmented and 
implementation is insufficient

EUROPOL

Special report 19/2021:

Europol support to fight migrant 
smuggling: a valued partner, but 
insufficient use of data sources 
and result measurement

 
 
 
MFF 1

MFF 2

MFF 3

MFF 4

MFF 5

Self-financed

65 

Chamber V
Financing and
administering 
the Union 

Source: ECA. 

EIGE

Special report 10/2021:

Gender mainstreaming in the EU 
budget: time to turn words into 
action

ESMA, EIOPA, EBA

Special report 22/2021:

Sustainable finance: More 
consistent EU action needed to 
redirect finance towards 
sustainable investment

REA

Special report 11/2022:

Protecting the EU budget: Better 
use of blacklisting needed

 
 
 
 
 
66 

The EU agencies network’s reply 

1.25. EUIPO would like to highlight the decision of the legislators which was confirmed during 
the last legislative reform. According to Article 176(2) of the Regulation (EU) 2017/1001 of the 
European Parliament and of the Council of 14 June 2017 on the European Union trade mark 
(EUTMR), ‘the Budget Committee shall give a discharge to the Executive Director in respect of 
the implementation of the budget’. Such discharge is strongly based on the reports issued by 
the ECA. 

The CPVO would like to point out that the Administrative Council of the CPVO is the budgetary 
authority of the Agency. The applicable provision is cited in Article 109 of Council Regulation 
(EC) No 2100/94 of 27 July 1994 on Community plant variety rights. 

The SRB would like to point out that it is also a fully-self financed agency. The budget and the 
establishment plan of the SRB are approved by its Plenary Session on a proposal by its Chair in 
accordance with Article 61 of Regulation (EU) No 806/2014. 

2.19, 2.21, 2.24, 2.26.The EUAN acknowledges the Court’s observations, particularly in the 
areas of public procurement management, recruitment procedures, and budgetary 
management. The EUAN members are committed to continuously improve their policies and 
procedures. The Network wishes to highlight that the observations of the individual cases 
differ from Agency to Agency and therefore the Network would like to make reference to the 
Agencies’ individual response to the statement of assurance and related observations in 
chapter 3. 

2.34, 2.35. EUAN fully supports the importance given to the issues of conflict of interest and 
revolving doors. The legal basis is, however, currently weak when it comes to members of 
Management Boards. The members are appointed by Council and unless there are clear legal 
provisions on how to prevent and manage the issues of conflict of interest and revolving doors, 
it is difficult for Agencies and their Management Boards to implement effective measures, for 
example when it comes to professional activities after leaving the Management Board. This 
notwithstanding, EUAN members will continue to do their best within the existing legal 
framework. 

 
 
 
67 

Chapter 3 

Statements of assurance 

and other agency-specific audit results 

68 

3.1. Information in support of the 
statements of assurance 

Basis for opinions 

3.1.1. We conducted our audit in accordance with the IFAC International Standards on 
Auditing (ISAs) and Codes of Ethics and the INTOSAI International Standards of Supreme Audit 
Institutions (ISSAIs). Our responsibilities under those standards are further described in the 
‘Auditor’s responsibilities’ section of this report. We have met independence requirements 
and fulfilled our ethical obligations under the International Ethics Standards Board for 
Accountants Code of Ethics for Professional Accountants. We believe that the audit evidence 
we have obtained is sufficient and appropriate to provide a basis for our opinion. 

Responsibilities of management and those charged with 
governance 

3.1.2. In accordance with Articles 310 to 325 TFEU and the agencies’ Financial 
Regulations, the management of each agency is responsible for preparing and presenting the 
agencies’ accounts on the basis of internationally accepted accounting standards for the public 
sector, and for the legality and regularity of the underlying transactions. This includes the 
design, implementation and maintenance of internal controls relevant to the preparation and 
presentation of financial statements that are free from material misstatement, whether due to 
fraud or error. The management is also responsible for ensuring that the activities, financial 
transactions and information reflected in the financial statements satisfy the official 
requirements which govern those statements. The management of each agency bears ultimate 
responsibility for the legality and regularity of the transactions underlying each agency’s 
accounts. 

3.1.3. In preparing the accounts, management is responsible for assessing the agency’s 
ability to continue as a going concern. It must disclose, as applicable, any matters affecting the 
agency’s status as a going concern, and use the going-concern basis of accounting, unless the 
management intends either to liquidate the entity or to cease operations, or has no realistic 
alternative but to do so. 

3.1.4. Those charged with governance are responsible for overseeing the agencies’ 
financial reporting process. 

 
 
69 

The auditor's responsibilities for the audit of the accounts and 
underlying transactions 

3.1.5. We have two objectives. One is to obtain reasonable assurance about whether the 
accounts of the agencies are free from material misstatement, and whether the transactions 
underlying them are legal and regular. The second is to provide the European Parliament and 
the Council or the other respective discharge authorities with statements of assurance, on the 
basis of our audit work, as to the reliability of the agencies’ accounts and the legality and 
regularity of the transactions underlying them. Reasonable assurance is a high level of 
assurance, but is not a guarantee that an audit will always detect all instances of material 
misstatement or non-compliance which may exist. These can arise from fraud or error and are 
considered material if, individually or taken together, they could reasonably be expected to 
influence the economic decisions of users taken on the basis of these accounts. 

3.1.6. For revenue, we verify subsidies received from the European Commission or 
cooperating countries and assess the agencies’ procedures for collecting fees and other 
income, if any. 

3.1.7. For expenditure, we examine payment transactions once the expenditure has been 
incurred, recorded and accepted. This examination covers all categories of payments (including 
those made for the purchase of assets) other than advances at the point they are made. We 
examine advance payments when the recipient of funds provides justification for their proper 
use, and when an agency accepts the justification by clearing the advance payment, in the 
same year or later. 

3.1.8. In accordance with the ISAs and ISSAIs, we exercise our professional judgement 
and maintain professional scepticism throughout the audit. We also take the following steps. 

o  We identify and assess the risks of material misstatement of the accounts and of material 
non-compliance of the underlying transactions with the requirements of the legal 
framework of the European Union, whether these are due to fraud or error. We design 
and perform audit procedures responsive to those risks and obtain audit evidence that is 
sufficient and appropriate to provide a basis for our opinions. The risk of failing to detect 
a material misstatement or non-compliance resulting from fraud is higher than the risk of 
failing to detect one resulting from error, as fraud may involve collusion, forgery, 
intentional omissions, misrepresentations, or the overriding of internal controls. 

o  We obtain an understanding of internal controls relevant to the audit in order to design 
audit procedures that are appropriate in the circumstances, but not for the purpose of 
expressing an opinion on the effectiveness of those internal controls. 

o  We evaluate the appropriateness of the accounting policies used and the reasonableness 

of accounting estimates and related disclosures made by management. 

 
 
70 

o  We draw conclusions on the appropriateness of management’s use of the going-concern 

basis of accounting and, based on the audit evidence obtained, on whether a material 
uncertainty exists related to events or conditions that may cast significant doubt on an 
agency’s ability to continue as a going concern. If we conclude that a material uncertainty 
exists, we are required to draw attention to the related disclosures in the accounts in our 
auditor’s report or, if these disclosures are inadequate, to modify our opinion. Our 
conclusions are based on the audit evidence obtained up to the date of our auditors’ 
report. However, future events may force an entity to cease to continue as a going 
concern. 

o  We evaluate the overall presentation, structure and content of the accounts, including 
the disclosures, and assess whether the accounts fairly represent the underlying 
transactions and events. 

o  We obtain sufficient appropriate audit evidence on the financial information of the 

agencies to express an opinion on the accounts and transactions underlying them. We 
are responsible for directing, supervising and performing the audit. We remain solely 
responsible for our audit opinion. 

o  We consider the audit work of independent external auditors performed on the agencies’ 

accounts, as stipulated in Article 70(6) of the EU Financial Regulation, where applicable. 

We communicate with the management on matters such as the planned scope and timing of 
the audit and significant audit findings, including any significant weaknesses in internal 
controls that we identify during our audit. From our communications with the agencies, we 
determine those matters that were most significant in the audit of the accounts of the current 
period. We designate those matters as key audit matters. We describe these matters in our 
auditor’s report, unless we are prohibited by legislation from doing so, or when, in extremely 
rare circumstances, we determine that a matter should not be communicated in our report 
because the adverse consequences of doing so would reasonably be expected to outweigh the 
public-interest benefits of such a communication. 

 
 
71 

Agencies funded under MFF heading 1 
– Single Market, Innovation and Digital 

 
 
72 

European Union Agency for the Cooperation of Energy Regulators (ACER) 

3.2. European Union Agency for the 
Cooperation of Energy Regulators 
(ACER) 

Introduction 

3.2.1. The European Union Agency for the Cooperation of Energy Regulators (“ACER”), 
which is located in Ljubljana, was created by Regulation (EC) No 713/2009 of the European 
Parliament and of the Council 25, later revised by Regulation (EU) 2019/942 of the European 
Parliament and of the Council 26. ACER’s main task is to assist national regulatory authorities in 
exercising, at EU level, the regulatory tasks that they perform in the Member States and, 
where necessary, to coordinate their action. The Regulation on Wholesale Energy Market 
Integrity and Transparency (the REMIT Regulation27) gave ACER additional responsibilities in 
connection with the monitoring of the European wholesale energy market. Figure 3.2.1 
presents key figures for ACER28. 

Figure 3.2.1 – Key figures for ACER 

Budget (million euros)*

Staff (as at 31 December)**

2021
2021

2020
2020

27
27

20
20

106
106

105
105

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of ACER for the 2020 and 2021 financial years; staff figures provided by ACER. 

25  Regulation (EC) No 713/2009 establishing an Agency for the Cooperation of Energy 

Regulators. 

26  Regulation (EU) 2019/942 establishing a European Union Agency for the Cooperation of 

Energy Regulators. 

27  Regulation (EU) No 1227/2011 on wholesale energy market integrity and transparency. 

28  More information on ACER’s role and activities is available on its website: 

www.acer.europa.eu. 

 
 
 
                                                             
73 

European Union Agency for the Cooperation of Energy Regulators (ACER) 

Information in support of the statement of assurance 

3.2.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by ACER’s management. 

3.2.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of ACER’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.2.4. We have audited: 

(a) 

the accounts of the European Union Agency for the Cooperation of Energy 
Regulators (“ACER”), which comprise the financial statements29 and the reports 
on the implementation of ACER’s budget30 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

29  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

30  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Union Agency for the Cooperation of Energy Regulators (ACER) 

74 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.2.5. In our opinion, ACER’s accounts for the year ended 31 December 2021 present 
fairly, in all material respects, ACER’s financial position at 31 December 2021, the results 
of its operations, its cash flows, and the changes in net assets for the year then ended, in 
accordance with its Financial Regulation and with accounting rules adopted by the 
Commission’s accounting officer. These are based on internationally accepted accounting 
standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.2.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.2.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.2.8. The observations which follow do not call the ECA’s opinion into question. 

 
 
75 

European Union Agency for the Cooperation of Energy Regulators (ACER) 

Observations on the legality and regularity of transactions 

3.2.9. In our audit report for the 201931 financial year, we concluded that several specific 
contracts under a framework contract for IT services were partly irregular. As a result, 
subsequent payments based on this framework contract may also be affected. In 2021, the 
associated payments amounted to €21 534. 

Observations on management and control systems 

3.2.10. Between 2019 and 2021, ACER assessed three cases of a potential conflict of 
interest in relation to a senior member of staff taking up paid outside activity or a new job 
elsewhere. In the one case we reviewed, we found that, in contravention of Article 16 of the 
Staff Regulations, ACER did not consult the Joint Committee and issued its decision after the 
deadline. The decision included restrictions designed to mitigate the risk of conflict of interest. 
Because it was issued late, however, it could not be enforced, meaning that the person 
concerned was effectively authorised to take up the new job without any restrictions. ACER 
subsequently asked the person concerned to honour the restrictions set out in the initial 
decision, but this request lacked any legal basis. 

Observations on budgetary management 

3.2.11. We found that ACER had carried over €6.6 million (29.9 %) of 2021 commitment 
appropriations to 2022. Of that amount, €4.0 million, or 54 % of operational expenditure, was 
related to core operational activities under the REMIT Regulation. High rates of carry-overs 
contradict the budgetary principle of annuality and suggest structural issues in the 
implementation of the budget. 

Follow-up of previous years’ observations 

3.2.12. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

31  Paragraph 7 of ECA's annual report on the 2019 ACER annual accounts. 

 
 
                                                             
European Union Agency for the Cooperation of Energy Regulators (ACER) 

Annex – Follow-up of previous year’s observations 

76 

Year 

2016 

2019 

2019 

2019 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

ACER may consider introducing differentiated budget appropriations to 
better reflect the multiannual nature of operations. 

ACER signed a framework contract in cascade, in two lots, for a 
maximum amount of €25 million in the field of IT systems and 
consultancy. However, 61.3 % of the payments made in 2019 under lot 1 
of the contract were not covered by the contract price list. ACER 
concluded direct contracts for the items concerned, without a 
competitive procedure. The associated specific contracts are therefore 
irregular. 

ACER incorrectly calculated the evaluation scores in a recruitment 
procedure, which led to a candidate being selected unduly. This 
contravenes the principle of equal treatment, and shows a failure to 
apply effective internal controls. 

We found evidence suggesting that ACER had been using interim workers 
to make up for a lack of directly employed staff members. All but one of 
the interim workers working at ACER were performing long-term tasks. 
ACER should assign permanent and ongoing tasks to directly employed 
members of staff, not interim workers. 

Completed 

Ongoing 

(until the framework contract expires in 2025) 

N/A 

Outstanding 

 
 
European Union Agency for the Cooperation of Energy Regulators (ACER) 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

77 

ACER had high rate of carry-overs, which were only partially justified. 
This is indicative of a structural issue. To resolve it, ACER should further 
improve its budget planning and its implementation cycles. 

ACER did not comply with internal control principle 12 of its own internal 
control framework, under which ACER must record deviations from the 
rules and procedures in its register of exceptions. This undermines the 
transparency and the effectiveness of ACER’s internal control systems. 

Internal control weaknesses in recruitment procedures affected the 
candidate evaluation process, but did not call into question the audited 
procedures’ legality or regularity. 

Other matter paragraph: ACER did not adopt internal rules to address 
the continuity of delegations in cases where delegating or delegated 
authorising officers leave their posts. 

Ongoing 

Completed 

N/A 

Completed 

Year 

2019 

2019 

2020 

2020 

 
 
 
European Union Agency for the Cooperation of Energy Regulators (ACER) 

78 

ACER’s reply 

3.2.9. The Agency acknowledges the payment made under the framework contract in 
question. Its value represents 0.1% of all payments made in 2021. The Agency has minimised 
the use of the out of price list to the extent possible (bringing it below 10% of the value of each 
specific contract), taking into account the continuity of its operational activities. 

3.2.10. The Agency acknowledges all the facts, as presented by the ECA. It should be noted 
that faced with this situation for the first time, the Agency tried to ensure that the proper 
terms and conditions would be imposed. However, the Agency did not manage to do so on 
time and had to withdraw the decision. The Agency considered the exchange of letters with 
the former staff member as representing a good solution to formalise the contractual 
obligations after the withdrawal of the decision, thus protecting from operational, legal and 
reputational risks. Having gained the experience of this process, the Agency is committed to 
apply the process in a timely and correct manner. 

3.2.11. The Agency acknowledges the increased level of carry-overs. The year 2021 was the 
first year in which the Agency collected fees. With no prior experience in this domain, the 
Agency was cautious in contracting its resources and delayed the start of several operational 
projects planned to be covered by fees until the settlement of the first fees instalment. This 
resulted in a high level of carry-overs from the commitments open balances at year-end. 

 
 
 
Agency for Support for Body of European Regulators for Electronic Communications (BEREC 
Office) 

79 

3.3. Agency for Support for Body of 
European Regulators for Electronic 
Communications (BEREC Office) 

Introduction 

3.3.1. The Agency for Support for Body of European Regulators for Electronic 
Communications (“the BEREC Office”), which is located in Riga, was established by Regulation 
(EU) No 2018/1971 of the European Parliament and of the Council of 11 December 201832, 
replacing the previous Regulation (EC) No 1211/2009 of the European Parliament and of the 
Council33. The BEREC Office’s main task is to provide professional and administrative support 
services to the Body of European Regulators for Electronic Communications (BEREC). Under 
the guidance of the Board of Regulators, it collects and analyses information on electronic 
communications and disseminates best practices such as common approaches, methodologies 
and guidelines on the implementation of the EU regulatory framework among national 
regulatory authorities. Figure 3.3.1 presents key figures for the BEREC Office 34. 

Figure 3.3.1 – Key figures for the BEREC Office 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

10

8

45

43

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the BEREC Office for the 2020 and 2021 financial years; staff figures provided 
by the BEREC Office. 

32   Regulation (EU) 2018/1971 establishing the Body of European Regulators for Electronic 

Communications (BEREC) and the Agency for Support for BEREC (BEREC Office). 

33  Regulation (EC) No 1211/2009 establishing the Body of European Regulators for Electronic 

Communications (BEREC) and the Office. 

34  More information on the BEREC Office’s role and activities is available on its website: 

www.berec.europa.eu. 

 
 
 
                                                             
80 

Agency for Support for Body of European Regulators for Electronic Communications (BEREC 
Office) 

Information in support of the statement of assurance 

3.3.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the BEREC Office’s management. 

3.3.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the BEREC Office’s management and of those charged with 
governance, and the auditor’s responsibilities for the audit of the accounts and underlying 
transactions. The signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.3.4. We have audited: 

(a) 

the accounts of the Agency for Support for Body of European Regulators for 
Electronic Communications (“the BEREC Office”), which comprise the financial 
statements35 and the reports on the implementation of the BEREC Office’s 
budget36 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

35  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

36  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
Agency for Support for Body of European Regulators for Electronic Communications (BEREC 
Office) 

81 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.3.5. In our opinion, the BEREC Office’s accounts for the year ended 31 December 
2021 present fairly, in all material respects, the BEREC Office’s financial position at 
31 December 2021, the results of its operations, its cash flows, and the changes in net 
assets for the year then ended, in accordance with its Financial Regulation and with 
accounting rules adopted by the Commission’s accounting officer. These are based on 
internationally accepted accounting standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.3.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.3.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.3.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on the legality and regularity of transactions 

3.3.9. In our audit report for the 201937 financial year, we concluded that a procurement 
procedure for legal services was irregular. As a result, all subsequent payments made based on 
this framework contract are irregular. In 2021, the associated payments amounted to €4 444. 

37  Paragraph 17 of ECA’s annual report on the 2019 BEREC Office annual accounts. 

 
 
                                                             
82 

Agency for Support for Body of European Regulators for Electronic Communications (BEREC 
Office) 

Observations on management and control systems 

3.3.10. In a recruitment procedure we checked, the selection committee had not 
established how points would be awarded for each selection criterion before examining the 
applications. This meant that there was little transparency in how candidates’ scores were 
determined. 

The chair of the selection committee had declared a professional conflict of interest in 
connection with two candidates working under his supervision. Yet the final evaluation report 
did not describe how this conflict of interest had been addressed. 

These identified weaknesses undermined the principles of transparency and equal treatment 
in the recruitment procedure. They may expose the BEREC Office to reputational and legal 
risks. 

3.3.11. In one audited procurement procedure for IT services, the BEREC Office 
requested an offer from a contractor without specifying in advance which services were 
required. Such an approach hinders the effectiveness, efficiency and economy of operations. 

In addition, the BEREC Office did not perform checks to make sure that the prices applicable to 
specific contracts corresponded to the prices and discounts set out in the underlying 
framework contract. The lack of ex ante checks on prices is a weakness in the BEREC Office’s 
internal control system. 

Follow-up of previous years’ observation 

3.3.12. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
Agency for Support for Body of European Regulators for Electronic Communications (BEREC Office) 

Annex – Follow-up of previous year’s observations 

83 

Year 

2018 

2019 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The BEREC Office signed a framework contract with one company for the 
provision of secretarial support services. The staff (interim workers) were 
employed through contracts with authorised temporary-work agencies. 
However, the use of contracts of this kind for the provision of labour is 
not in compliance with EU social and employment rules, and exposes the 
BEREC Office to legal and reputational risks. 

The BEREC Office finished a procurement procedure and signed a 
contract before evaluating all of the offers it had received. It misplaced 
one offer, and did not evaluate it. The evaluation report for this 
procedure did not explain how the BEREC Office had concluded whether 
the offers were compliant with the eligibility criteria. The procurement 
procedure was carried out by only one person. That person had declared 
a potential conflict of interest, but they performed the whole procedure 
singlehandedly anyway. For these reasons, we consider the contract to 
be irregular. 

Completed 

Ongoing 

 
 
 
84 

Agency for Support for Body of European Regulators for Electronic Communications (BEREC 
Office) 

The BEREC Office’s reply 

3.3.9. The BEREC Office has undertaken improvements in its procurement to avoid repetition 
of mistakes from the past. 

3.3.10. The BEREC Office takes note of the observation and will prepare new internal 
templates for selection procedures to improve the process. 

The BEREC Office notes that while the mitigation measures imposed by the Director to avoid 
conflict of interest were applied, they were not properly documented. 

The BEREC Office adopted internal rules on documenting compliance with the decision of the 
AACC to avoid the identified risks in future. 

3.3.11. The BEREC Office acknowledges the observation and will improve the documentation 
of all steps of the process that lead to the approval of the Statement of work. 

The BEREC Office will change its internal procedure and include a proper documentation of 
checks of all prices in the approval procedure of future specific contracts. 

 
 
 
 
European Union Aviation Safety Agency (EASA) 

85 

3.4. European Union Aviation Safety 
Agency (EASA) 

Introduction 

3.4.1. The European Union Aviation Safety Agency (“EASA”), which is located in Cologne, 
is governed by Regulation (EU) 2018/113938 of the European Parliament and of the Council of 
4 July 2018, repealing Regulation (EC) No 216/200839. EASA has specific regulatory and 
executive tasks in the field of aviation safety. Figure 3.4.1 presents key figures for EASA40. 

Figure 3.4.1 – Key figures for EASA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

258

257

729

744

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EASA for the 2020 and 2021 financial years; staff figures provided by EASA. 

Information in support of the statement of assurance 

3.4.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EASA’s management. 

38  Regulation (EU) 2018/1139 on common rules in the field of civil aviation and establishing a 

European Union Aviation Safety Agency. 

39  Regulation (EC) No 216/2008 on common rules in the field of civil aviation and establishing 

a European Aviation Safety Agency. 

40  More information on EASA’s role and activities is available on its website: 

www.easa.europa.eu. 

 
 
 
                                                             
European Union Aviation Safety Agency (EASA) 

86 

3.4.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EASA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.4.4. We have audited: 

(a) 

the accounts of the European Union Aviation Safety Agency (“EASA”), which 
comprise the financial statements41 and the reports on the implementation of 
EASA’s budget42 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.4.5. In our opinion, EASA’s accounts for the year ended 31 December 2021 present 
fairly, in all material respects, EASA’s financial position at 31 December 2021, the results 
of its operations, its cash flows, and the changes in net assets for the year then ended, in 
accordance with its Financial Regulation and with accounting rules adopted by the 
Commission’s accounting officer. These are based on internationally accepted accounting 
standards for the public sector. 

41  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

42  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Union Aviation Safety Agency (EASA) 

87 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.4.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.4.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.4.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.4.9. Between 2019 and 2021, EASA assessed two cases of a potential conflict of interest 
in relation to a senior member of staff taking up a new job elsewhere. In contravention of 
Article 16 of the Staff Regulations, which requires a list of the cases assessed, in the context of 
the risk of advocacy and lobbying, to be published, EASA did not do so in the one case we 
reviewed. In the same case, in contravention of another provision of Article 16 of the Staff 
Regulations, EASA did not consult the Joint Committee. 

Follow-up of previous years’ observations 

3.4.10. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Union Aviation Safety Agency (EASA) 

88 

Annex – Follow-up of previous year’s observations 

Year 

2016 

2018 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

EASA has accumulated a €52 million surplus from industry-financed 
activities over the years, for which there is no provision in EASA’s 
Founding Regulation. 

Ongoing 

(Not under EASA’s control) 

EASA committed the funds for an agreement with the European 
Commission on archiving services after the renewal of the agreement. In 
order to ensure that funds are available, the budgetary commitment 
should be recorded before a legal obligation is entered into. 

Completed 

 
 
 
89 

European Union Aviation Safety Agency (EASA) 

EASA’s reply 

3.4.9. For the particular case highlighted here, EASA has thoroughly assessed it, as well as any 
further requests for occupational/consultancy activity reported by the former member staff, 
for the risk of an actual or potential (incl. perceived) conflict with the interest of EASA. Where 
needed, appropriate mitigating measures have been put in place and relevant restrictions 
imposed. 

 
 
 
 
European Banking Authority (EBA) 

90 

3.5. European Banking Authority (EBA) 

Introduction 

3.5.1. The European Banking Authority (“the EBA”), which is located in Paris, was 
established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council43. 
The EBA contributes to establishing high-quality common regulatory and supervisory practices 
in the banking sector, monitors the application of EU banking law by national authorities, and 
takes decisions in emergency situations. Figure 3.5.1 presents key figures for the EBA44. 

Figure 3.5.1 – Key figures for the EBA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

54

54

222

217

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the EBA for the 2020 and 2021 financial years; staff figures provided by the 
EBA. 

Information in support of the statement of assurance 

3.5.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the EBA’s management. 

3.5.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the EBA’s management and of those charged with governance, 

43  Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European 

Banking Authority). 

44  More information on the EBA’s role and activities is available on its website: 

www.eba.europa.eu. 

 
 
 
                                                             
European Banking Authority (EBA) 

91 

and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.5.4. We have audited: 

(a) 

the accounts of the European Banking Authority (“the EBA”), which comprise 
the financial statements45 and the reports on the implementation of the EBA’s 
budget46 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.5.5. In our opinion, the EBA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, the EBA’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

45  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

46  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
 
 
                                                             
European Banking Authority (EBA) 

92 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.5.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.5.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.5.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.5.9. The EBA sought to obtain access to banks’ debt and capital market data and 
concluded that the services it required could only be provided by two specific economic 
operators. The EBA therefore entered into two separate negotiated procedures, for contracts 
worth €100 000 and €43 800, without the prior publication of a contract notice in accordance 
with Point 11.1 (b) (ii) and (iii) of Annex I of the Financial Regulation. In both cases, the EBA 
failed to follow all the necessary procedural steps required by Point 16 of Annex I of the 
Financial Regulation, such as sending an invitation to tender and drawing up tender 
specifications. 

3.5.10. We found internal control weaknesses affecting recruitment procedures. In one 
procedure, we found no evidence that the EBA had established the minimum number of points 
that the candidates had to gain in order to be shortlisted before it examining their 
applications. This undermined the principles of transparency and equal treatment. 

In another procedure, the selection board had been established by a series of e-mails rather 
than by a single nomination decision, so there was no complete audit trail for all the 
nominations. Following the audit, the EBA provided documentation to show that it had 
changed its processes. 

 
 
European Banking Authority (EBA) 

93 

3.5.11. Under the Rules of Procedure of the Board of Supervisors, members of the Board 
who have a conflict of interest may not take part in the Board’s discussions or vote on the 
matter in question. However, the member may remain present in the meeting if nobody 
objects. This creates a risk to the Board’s independence, at least in appearance. 

Follow-up of previous years’ observations 

3.5.12. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Banking Authority (EBA) 

94 

Annex – Follow-up of previous year’s observations 

Year 

2019 

2019 

2020 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The EBA has never adjusted estimation-based pension contributions to 
actual figures, or made plans to do so. The National Competent 
Authorities (NCA)s’ contributions were never adjusted to match the 
actual figures. 

The EBA’s budget is financed by NCAs and the EU. EBA’s founding 
Regulation establishes a ratio of contributions of 60 % for the NCAs and 
of 40 % for the EU. However, the actual ratio used is slightly different 
because of the contributions of the EFTA NCAs. When there is a budget 
surplus in year N-2, the EBA redistributes according to the ratio 60-40 in 
year N, and not on the basis of the actual ratio of the year N-2. 

In 2020, the EBA concluded a short-term banking agreement with a bank 
using a wrong procurement procedure due to an underestimation of the 
contract value. The negative interest paid was €38 430 for the period 
from January to August 2020. 

For a procurement, the justification to use the negotiated procedure 
without prior publication of a contract notice was inadequate and lacked 
an adequate audit trail. The contract value was €31 000. 

Completed 

Completed 

N/A 

N/A 

 
 
European Banking Authority (EBA) 

95 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

In a procurement procedure, a staff member replacing another one in 
the opening committee was not formally appointed by the Authorising 
Officer. In addition to this, the non-appointed member signed the 
declaration of absence of conflict of interest only after the opening of 
the tenders. 

EBA did not apply the interest rate specified in the EU Financial 
Regulation to payments of 2020 contributions received late from a 
number of Member States’ and EFTA countries’ NCAs. The amount of 
accrued interest for 2020 is €25 103. As a result of our audit and after 
consulting the European Commission, EBA decided to apply the late 
payment interest as of 2021. 

EBA has not formally updated its business continuity plan since 2017. 
Before the EBA moved from London to Paris in June 2019, a draft plan 
had been drawn up and used as a basis for addressing the COVID-19 
pandemic. Yet it was not formally approved nor updated by the EBA’s 
senior management. 

N/A 

Completed 

Completed 

Year 

2020 

2020 

2020 

 
 
 
96 

European Banking Authority (EBA) 

EBA’s reply 

3.5.9. EBA acknowledges its error in not following all the procedural steps required by Point 16 
of the Financial Regulation, where services can only be provided by a single economic 
operator. Since receiving this preliminary observation from ECA, the EBA has complemented 
its internal processes and followed all necessary procedural steps for these kinds of 
procedures. 

3.5.10. EBA is committed to ensuring the principles of transparency and equal treatment in all 
selection procedures by inter alia: systematically establishing the necessary scoring and 
threshold to pass for candidates to be shortlisted before examining their applications; inviting 
external members to its panels, especially for managerial positions. 

After the audit, the EBA has further strengthened its internal processes and now systematically 
formalises nomination decisions in a single document (while emails could have been use in the 
past to accelerate the process) which should also make it easier to audit. 

3.5.11. The Board of Supervisors adopted in its meeting of 21 June 2022 an amendment of its 
Rules of Procedure, as well as of the Management Board and the mandates of the Standing 
Committees on Resolution (ResCo) and on anti-money laundering and countering terrorist 
financing (AMLSC), whereby a member that has declared a conflict of interests is required in all 
cases to be absent from both the discussion itself and the vote. 

 
 
 
 
European Chemicals Agency (ECHA) 

97 

3.6. European Chemicals Agency 
(ECHA) 

Introduction 

3.6.1. The European Chemicals Agency (“ECHA”), which is located in Helsinki, was set up 
by Regulation (EC) No 1907/2006 of the European Parliament and of the Council47. ECHA’s 
main tasks are to ensure a high level of protection of human health and the environment as 
well as the free movement of substances on the internal market while enhancing 
competitiveness and innovation. ECHA also promotes the development of alternative methods 
for the assessment of hazards relating to substances. Figure 3.6.1 presents key figures for 
ECHA48. 

Figure 3.6.1 – Key figures for ECHA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

129

128

575

572

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of ECHA for the 2020 and 2021 financial years; staff figures provided by ECHA. 

Information in support of the statement of assurance 

3.6.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by ECHA’s management. 

3.6.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of ECHA’s management and of those charged with governance, 

47  Regulation (EC) No 1907/2006 concerning the Registration, Evaluation, Authorisation and 

Restriction of Chemicals (REACH) and establishing a European Chemicals Agency. 

48  More information on ECHA’s role and activities is available on its website: 

www.echa.europa.eu. 

 
 
 
                                                             
European Chemicals Agency (ECHA) 

98 

and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.6.4. We have audited: 

(a) 

the accounts of the European Chemicals Agency (“ECHA”), which comprise the 
financial statements49 and the reports on the implementation of ECHA’s 
budget50 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.6.5. In our opinion, ECHA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, ECHA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

49  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

50  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Chemicals Agency (ECHA) 

99 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.6.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.6.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

Follow-up of previous years’ observations 

3.6.8. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Chemicals Agency (ECHA) 

100 

Annex – Follow-up of previous year’s observations 

Year 

2017 

2018 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Member States’ national enforcement authorities are responsible for 
verifying volumes declared by companies, and ECHA has no enforcement 
powers. ECHA’s ability to fulfil its mandate depends on the national 
authorities. This undermines the effective implementation of the REACH 
Regulation and also affects the accuracy of fee calculation. 

ECHA expects fees and charges to drop significantly from 2019 onwards. 
There is a risk that relatively stable levels of expenditure and much less 
predictable levels of revenue may have a negative effect on ECHA’s 
operations and budget implementation. ECHA, together with the 
European Commission and the budgetary authorities, should launch a 
discussion about a viable new financing model. 

Completed 

Completed 

 
 
 
European Chemicals Agency (ECHA) 

ECHA’s reply 

The Agency has taken note of the Court’s report. 

101 

 
 
 
 
102 

European Insurance and Occupational Pensions Authority (EIOPA) 

3.7. European Insurance and 
Occupational Pensions Authority 
(EIOPA) 

Introduction 

3.7.1. The European Insurance and Occupational Pensions Authority (“EIOPA”), which is 
located in Frankfurt, was established by Regulation (EU) No 1094/2010 of the European 
Parliament and of the Council 51. EIOPA’s task is to contribute to the establishment of high-
quality common regulatory and supervisory standards and practices and to the consistent 
application of legally binding EU acts, as well as to stimulate and facilitate the delegation of 
tasks and responsibilities among competent authorities, to monitor and assess market 
developments in the area of its competence and to foster the protection of policyholders, 
pension scheme members and beneficiaries. Figure 3.7.1 presents key figures for EIOPA52. 

Figure 3.7.1 – Key figures for EIOPA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

38

33

187

166

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EIOPA for the 2020 and 2021 financial years; staff figures provided by EIOPA. 

Information in support of the statement of assurance 

3.7.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

51  Regulation (EU) No 1094/2010 establishing a European Supervisory Authority (European 

Insurance and Occupational Pensions Authority). 

52  More information on EIOPA’s role and activities is available on its website: 

www.eiopa.europa.eu. 

 
 
 
                                                             
103 

European Insurance and Occupational Pensions Authority (EIOPA) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EIOPA’s management. 

3.7.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EIOPA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.7.4. We have audited: 

(a) 

the accounts of the European Insurance and Occupational Pensions Authority 
(“EIOPA”), which comprise the financial statements 53 and the reports on the 
implementation of EIOPA’s budget54 for the financial year ended 31 December 
2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.7.5. In our opinion, EIOPA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EIOPA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 

53  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

54  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
104 

European Insurance and Occupational Pensions Authority (EIOPA) 

the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.7.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.7.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.7.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on the legality and regularity of transactions 

3.7.9. EIOPA’s rental contract for its premises stipulates that EIOPA’s landlord must give 
consent in advance before changes can be made to the property and before additional 
equipment can be installed. It also stipulates that the associated works can only be carried out 
by contractors nominated by the landlord. As a result of these contractual constraints, EIOPA 
awarded refurbishment works directly to the contractors designated by the landlord, without 
an appropriate procurement procedure. This contravenes Articles 164, 167 and 170 of the 
Financial Regulation. The amounts concerned by this contract clause (€288 125 paid in 2021, of 
which €89 240 related to 2020 commitments) were therefore irregular. 

Observations on management and control systems 

3.7.10. We found weaknesses in EIOPA’s management and control systems relating to 
conflicts of interest. 

(a)  Under the Rules of Procedure of the Board of Supervisors, members of the Board 

who have a conflict of interest may not take part in the Board’s discussions or vote 

 
 
105 

European Insurance and Occupational Pensions Authority (EIOPA) 

on the matter in question. But the member may remain present in the meeting if 
nobody objects. This creates a risk to the Board’s independence, at least in 
appearance. 

(b) 

In July 2020, EIOPA’s Management Board adopted a policy on independence and 
decision-making for avoiding conflicts of interest for members of the Board of 
Supervisors, observers, panel members and other people who play a role at EIOPA 
but are not directly employed by it. However, responsibility for adopting practical 
arrangements for managing conflicts of interest lies with the Board of Supervisors, 
and not with the Management Board. 

(c)  The Management Board appoints two assessors to draw up the chairperson’s and 
the executive director’s annual performance reports. The assessors maintain this 
role even in cases where conflicts of interest might exist; for example, when an 
assessor is an employee of a national competent authority to which EIOPA is 
considering applying a measure under Articles 16-19 of the EIOPA Regulation (such 
as a breach of Union law procedure). This may adversely affect the independence of 
the appraiser and re-appraiser, contrary to the requirement of Article 42(1) of the 
EIOPA Regulation. 

3.7.11. Between 2019 and 2021, EIOPA assessed one case of a potential conflict of 
interest in relation to a senior member of staff taking up a new job elsewhere. In 
contravention of Article 16 of the Staff Regulations, EIOPA did not consult the Joint Committee 
as per Article 2 of Annex II to the Staff Regulations. Instead, EIOPA consulted an internally 
created body, the Advisory Committee on Conflicts of Interest composed by EIOPA’s Ethics 
Officer (staff member appointed by the Appointing Authority), a member of EIOPA’s Board of 
Supervisors and a member of EIOPA’s Management Board, in order to ensure the 
independence in the assessment of conflict of interests situations involving senior members of 
staff. However, this body cannot replace the Joint Committee as provided in the Staff 
Regulations. 

Follow-up of previous years’ observations 

3.7.12. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Insurance and Occupational Pensions Authority (EIOPA) 

Annex – Follow-up of previous year’s observations 

106 

Year 

2018 

2019 

2019 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Interim workers should work under the same conditions as workers 
employed directly. EIOPA should analyse the working conditions of its 
interim workers and ensure they are in line with European and national 
labour law. 

The 2019 budget documents do not describe fully how the contributions 
from EU and EFTA Members’ national competent authorities (NCAs) 
were calculated. EIOPA has never adjusted, or made plans to adjust, 
NCAs’ estimation-based pension contributions to actual figures. 

EIOPA’s budget is financed by NCAs and by the EU itself. The Founding 
Regulation of EIOPA establishes a ratio of contributions of 60 % for the 
NCAs and of 40 % for the EU. However, the actual ratio used is slightly 
different because of the contributions of the EFTA NCAs. When there is a 
budget surplus in year N-2, EIOPA redistributes according to the ratio 60-
40 in year N and not based on the actual ratio of the year N-2. 

In May 2020, EIOPA signed a contract for the provision of in-person 
training courses. In August 2020, EIOPA signed an amendment to the 
contract, to include the provision of virtual training courses at higher 
prices (scope extension). The related payments of €3 850 made in 2020 
and (€11 700 in 2021) are therefore irregular. Following our audit in 

Completed 

Completed 

Completed 

Completed 

 
 
European Insurance and Occupational Pensions Authority (EIOPA) 

107 

Year 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

2021, EIOPA terminated the amendment No 1, and launched a new 
procedure. 

EIOPA did not apply the late interest specified in the EU Financial 
Regulation to payments of 2020 contributions received late from a 
number of Member States’ and EFTA countries’ NCAs. After consulting 
the European Commission, EIOPA decided to apply the late payment 
interest and informed the NCAs about this. 

EIOPA does not have either an ex ante or an ex post control system in 
place to verify whether the amount of costs reimbursed in advance to 
and requested by the national authorities for seconded national experts 
is as agreed. As a result the reimbursement for the staff cost of seconded 
national experts may be calculated on the basis of inaccurate costs, or 
that subsequent staff cost changes may not be captured and addressed. 

2020 

2020 

Completed 

Completed 

 
 
 
108 

European Insurance and Occupational Pensions Authority (EIOPA) 

EIOPA’s reply 

3.7.9. For security and operational reasons EIOPA’s current lease contract obliges the Agency 
to use companies procured by the landlord to undertake construction works. Disregarding this 
clause would have implied a violation of EIOPA’s contractual obligations. Following the Court’s 
observation, EIOPA, in case of similar circumstances in the future, will seek to reconcile the 
agency’s obligations under the Financial Regulation with the legal obligations and constraints 
imposed by the lease contract. In addition, when launching the procurement procedure for a 
new lease contract (the current contract expires in 2028), the agency will aim to avoid a similar 
challenge of conflicting obligations under the Financial Regulation with legal obligations 
imposed by the rental agreement. 

3.7.10. a) EIOPA highlights that the Rules of Procedure of the Board of Supervisors (BoS) 
implement Article 42(3) of Regulation 1094/2010 already now and strictly meet its 
requirements. Still, EIOPA collaborates closely with ESMA and EBA to address the Court’s 
concern about the presence of a conflicted member in a meeting at which the concerned item 
is being discussed or voted upon. 

b) While EIOPA is of the opinion that the provision of Article 42(4) of the EIOPA Regulation on 
practical arrangements has in essence already been implemented through the current Rules of 
Procedure of the BoS, EIOPA acknowledges that legal certainty of all of its internal rules and 
practical arrangements needs to be ensured at any time. Consequently, EIOPA will, in line with 
the Court’s observation, put forward the Management Board (MB) policy in question for 
adoption by the BoS. 

c) EIOPA highlights that the practical implementation of the relevant MB decision (EIOPA-MB-
12/018) on the appraisal of the Chairperson and the Executive Director is in line with the 
Court’s view. To formalise its current practice, EIOPA accepts to include an explicit provision in 
that respect. 

3.7.11. As per EIOPA’s Ethics Rules (EIOPA-MB-20-006-Rev1, Article 3(7)), in order to ensure 
the independence of the assessors involved, the Advisory Committee on Conflicts of Interests 
(ACCI) -composed by EIOPA’s Ethics Officer (staff member appointed by the Appointing 
Authority), a member of EIOPA’s Board of Supervisors and a member of EIOPA’s Management 
Board- has been established and entrusted with the assessment of ethics issues involving the 
Chairperson (acting also as Joint Committee as per Article 16 of the Staff Regulations). As such, 
the ACCI has been consulted and the case was assessed. The ACCI concluded that there is no 
conflict of interests and invited EIOPA’s BoS to take a decision in that regard. Subsequently, 
EIOPA’s BoS approved the activity by its decision of 11 November 2021, which the ACCI 
afterwards communicated to the person concerned. In view of the ECA’s observation, EIOPA 
intends to consult both the ACCI and the Joint Committee in such matters in the future. 

 
 
 
European Institute of Innovation and Technology (EIT) 

109 

3.8. European Institute of Innovation 
and Technology (EIT) 

Introduction 

3.8.1. The European Institute of Innovation and Technology (“the EIT”), which is located 
in Budapest, was established by Regulation (EC) No 294/2008 of the European Parliament and 
of the Council55 , repealed and replaced by Regulation (EU) 2021/819 of the European 
Parliament and of the Council 56. The EIT contributes to sustainable economic growth and 
competitiveness in the EU by supporting innovation at EU and Member State level. To do this, 
it awards grants to “Knowledge and Innovation Communities” (KICs), which link the higher 
education, research and business sectors to boost innovation and entrepreneurship. In 2021, 
KIC grants amounted to €350 million (2020: €568 million), representing 98 % of the EIT’s total 
expenditure (2020: 99 %). Figure 3.8.1 presents key figures for the EIT57. 

Figure 3.8.1 – Key figures for the EIT 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

407

560

64

66

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the EIT for the 2020 and 2021 financial years; staff figures provided by the 
EIT. 

The budget decreased because of the significantly lower amount of grants awarded and 
implemented for the KICs in 2021 due to the transition between the previous and the new 
multi-annual financial framework periods. 

55  Regulation (EC) No 294/2008 establishing the European Institute of Innovation and 

Technology. 

56  Regulation (EU) 2021/819 on the European Institute of Innovation and Technology. 

57  More information on the EIT’s role and activities is available on its website: 

https://eit.europa.eu/. 

 
 
 
                                                             
110 

European Institute of Innovation and Technology (EIT) 

Information in support of the statement of assurance 

3.8.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the EIT’s management. 

3.8.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the EIT’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA's statement of assurance provided to the European 
Parliament and the Council – Independent auditor's report 

Opinion 

3.8.4. We have audited: 

(a) 

the accounts of the European Institute of Innovation and Technology (“the 
EIT”), which comprise the financial statements58 and the reports on the 
implementation of the EIT’s budget59 for the financial year ended 31 December 
2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

58  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

59  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Institute of Innovation and Technology (EIT) 

111 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.8.5. In our opinion, the EIT’s accounts present fairly, in all material respects, the 
EIT’s financial position as of 31 December 2021 and the results of its operations, its cash 
flows, and the changes in net assets for the year then ended, in accordance with its 
Financial Regulation and with accounting rules adopted by the Commission’s accounting 
officer. These are based on internationally accepted accounting standards for the public 
sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.8.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.8.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.8.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.8.9. For two audited payments, the EIT had authorised the related budgetary 
commitments only after the contracts were signed. This goes against Article 73(2) of the 
Framework Financial Regulation. 

 
 
European Institute of Innovation and Technology (EIT) 

Follow-up of previous years’ observations 

3.8.10. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

112 

 
 
113 

European Institute of Innovation and Technology (EIT) 

Annex – Follow-up of previous year’s observations 

Year 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

2017 

The KICs did not fully use the grant amounts awarded by the EIT. 

N/A 

2017 

The EIT publishes vacancy notices on its own website and on the DG HR 
website, but usually not on the website of the European Personnel 
Selection Office (EPSO). 

Completed 

2016/2019 

The increase in the EIT's budget and the growing number of KICs to 
oversee have not been accompanied by a respective increase in the 
number of posts. 

Outstanding 

Not under the EIT’s control 

 
 
 
European Institute of Innovation and Technology (EIT) 

The EIT’s reply 

114 

3.8.9. The EIT has taken note of the Court’s observation.  

As from the 2023 grant cycle, the EIT will use the standard Horizon Europe IT tools of the 
European Commission to manage grants (eGrants), where appropriate internal controls 
preventing similar errors are embedded in the system.  

The relevant EIT Standard Operating Procedure for financial circuits will be updated to reflect 
the changes. 

 
 
 
 
European Maritime Safety Agency (EMSA) 

115 

3.9. European Maritime Safety Agency 
(EMSA) 

Introduction 

3.9.1. The European Maritime Safety Agency (“EMSA”), which is located in Lisbon, was 
set up by Regulation (EC) No 1406/2002 of the European Parliament and of the Council60. 
EMSA works to ensure a high level of maritime safety and to prevent pollution by ships. It also 
provides the European Commission and the Member States with technical assistance, and 
monitors and evaluates the implementation of EU legislation. Figure 3.9.1 presents key figures 
for EMSA 61. 

Figure 3.9.1 – Key figures for EMSA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

125

119

273

267

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EMSA for the 2020 and 2021 financial years; staff figures provided by EMSA. 

Information in support of the statement of assurance 

3.9.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EMSA’s management. 

3.9.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EMSA’s management and of those charged with governance, 

60  Regulation (EC) No 1406/2002 establishing a European Maritime Safety Agency. 

61  More information on EMSA’s role and activities is available on its website: 

www.emsa.europa.eu. 

 
 
 
                                                             
European Maritime Safety Agency (EMSA) 

and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

116 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.9.4. We have audited: 

(a) 

the accounts of the European Maritime Safety Agency (“EMSA”), which 
comprise the financial statements62 and the reports on the implementation of 
EMSA’s budget63 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.9.5. In our opinion, EMSA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EMSA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

62  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

63  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Maritime Safety Agency (EMSA) 

117 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.9.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.9.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.9.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.9.9. In 2021, EMSA amended 14 specific contracts for the provision of services on the 
basis of Article 172(3)(d) of the Financial Regulation. The total initial value of these contracts 
was €8.9 million and the total amended value was €15.7 million. Thus, the value of the 
amendments was €6.8 million, an increase of 76 % of the contracts’ initial value. 

Article 172(3)(d) of the Financial Regulation allows the modification of contracts that do not 
alter the minimum requirements of the initial procurement procedure and are limited to 10 % 
of the contracts initial value, unless such modification of value results from the strict 
application procurement documents or contractual provisions. EMSA used this specific case as 
legal basis for the 14 amendments in question. 

The contracts (including the related procurement documentation) in question do not explicitly 
stipulate that the value may be increased. Therefore, an increase of the contract value could 
not result from “the strict application of procurement documents or contractual provisions”. 
The 14 amendments in question increased the initial value of the contracts by more than 10 % 
and therefore, were not in line with Article 172 (3)(d) of the Financial Regulation. 

However, the amounts paid in 2021 (€5.4 million) resulted from the application of the unit 
prices set in the respective framework contracts and were within the original framework 
contract ceiling. Given that each framework contract was concluded with a single economic 

 
 
European Maritime Safety Agency (EMSA) 

operator, the amendments in question did not change the economic balance in favour of the 
contractor and did not lead to a distortion of competition. Thus, the resulting payments were 
not affected. 

118 

Follow-up of previous years’ observations 

3.9.10. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Maritime Safety Agency (EMSA) 

119 

Annex – Follow-up of previous year’s observations 

Year 

2020 

2020 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The EU Financial Regulation states that payments must be made within a 
prescribed timeframe of 30 days. In 2020, EMSA failed to do so in 11 % of 
cases. We observed similar or higher levels of delays in 2019, 2018, 2017 
and 2016. Some effort has been made to reduce the delays, but this 
recurrent weakness exposes EMSA to financial and reputational risk. 

In 2020, EMSA paid installation and daily subsistence allowances to all 
staff members who were recruited as temporary agents immediately 
after their secondment to EMSA. EMSA did not take sufficient steps to 
verify entitlements to these allowances This represents an internal 
control weakness. 

Five staff members with management positions at EMSA possess 
delegations which give them the exact same powers as those of the 
Executive Director for all budget items. EMSA’s Executive Director also 
signed a decision appointing acting Executive Directors and acting 
appointing authorities by delegation during the Executive Director’s 
annual leave, delegating those two roles completely during that period. 

Completed 

Completed 

Completed 

 
 
 
120 

European Maritime Safety Agency (EMSA) 

EMSA’s reply 

3.9.9. EMSA takes note of the ECA’s observation and has taken measures to amend future 
tender specifications and contract templates accordingly 

 
 
 
 
European Union Agency for Cybersecurity (ENISA) 

3.10. European Union Agency for 
Cybersecurity (ENISA) 

121 

Introduction 

3.10.1. The European Union Agency for Cybersecurity (“ENISA”), which is located in 
Athens, was established by Regulation (EU) 2019/881 of the European Parliament and of the 
Council64. ENISA's main mission is to achieve a high common level of cybersecurity across the 
Union, including actively supporting Member States, Union institutions, bodies, offices and 
agencies in improving cybersecurity and by serving as a reference point for advice and 
expertise for all relevant Union stakeholders. ENISA was first established as European Network 
and Information Security Agency by Regulation (EC) No 460/2004 of the European Parliament 
and of the Council65 .Figure 3.10.1 presents key figures for ENISA66. 

Figure 3.10.1 – Key figures for ENISA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

29

26

106

87

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of ENISA for the 2020 and 2021 financial years; staff figures provided by ENISA. 

The increase in staff numbers in 2021 is due to ENISA´s success in filling in several long- term 
vacancies. 

64  Regulation (EU) 2019/881 on ENISA (the European Union Agency for Cybersecurity) and on 

information and communications technology cybersecurity certification. 

65  Regulation (EC) No 460/2004 establishing the European Network and Information Security 

Agency. 

66  More information on ENISA’s role and activities is available on its website: 

www.enisa.europa.eu. 

 
 
 
                                                             
European Union Agency for Cybersecurity (ENISA) 

122 

Information in support of the statement of assurance 

3.10.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by ENISA’s management. 

3.10.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of ENISA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.10.4. We have audited: 

(a) 

the accounts of the European Union Agency for Cybersecurity (“ENISA”),which 
comprise the financial statements67 and the reports on the implementation of 
ENISA’s budget68 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.10.5. In our opinion, ENISA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, ENISA’s financial position at 31 December 2021, the 

67  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

68  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Union Agency for Cybersecurity (ENISA) 

results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its financial regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

123 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.10.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.10.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.10.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.10.9. ENISA systematically awards low value contracts without the relevant award 
decision approved and signed by the Authorising Officer, which is not in line with points 30.3- 
30.4 of Annex I of the Financial Regulation. 

3.10.10. In order to decide whether to outsource a given service or to provide it in-
house, ENISA has developed and uses a cost-benefit analysis methodology. However, this 
methodology has design deficiencies which can affect the objectivity of the decision-making 
process and exposes ENISA to financial risks. 

3.10.11. In procurement procedures, Article 167 of the Financial Regulation requires a 
clear distinction between selection and award criteria. The selection criteria are to be linked 
strictly to the evaluation of tenderers, and the award criteria to the evaluation of tenders. We 
found that, in two procurement procedures, ENISA used, as an award criterion, the technical 
capacity of the company, which clearly relates to the evaluation of the tenderer, not the 

 
 
124 

European Union Agency for Cybersecurity (ENISA) 

tender. Such overlap between selection and award criteria undermines the legal certainty and 
exposes ENISA to reputational and legal risks. 

3.10.12. Between 2019 and 2021, ENISA assessed three cases of a potential conflict of 
interest in relation to a senior member of staff taking up a new job elsewhere. In the one case 
we reviewed, we found that, in contravention of Article 16 of the Staff Regulations, ENISA did 
not consult the Joint Committee. 

Follow-up of previous years’ observations 

3.10.13. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Union Agency for Cybersecurity (ENISA) 

Annex – Follow-up of previous year’s observations 

125 

Year 

2018 

2019 

2019 

2020 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

ENISA did not have a sensitive post policy, which would identify sensitive 
functions, keep them up to date and define appropriate measures to 
mitigate the risk of vested interests. This was not in line with ENISA’s 
internal control standards. ENISA should adopt and implement such a 
sensitive post policy. 

In 2019, ENISA significantly increased the use of interim staff (29 % of the 
total actual workforce) compared with the previous year. It indicates that 
ENISA increased its dependency on interim workers across many different 
areas of its operations. 

The contract between ENISA and the temporary-work agency does not 
stipulate the basic terms of employment in order to justify the category 
under which the interim worker is hired. Nor do interim staff members 
enjoy the same social benefits as ENISA's employees. 

A staff member was authorising budgetary commitment as well as 
payments without a valid delegation of powers, from 1st of January to 
12 February. Despite the amount of payments do not exceed the 
materiality threshold set for this audit, as it represents 1.6 % of the total 

Completed 

Completed 

Completed 

Completed 

 
 
European Union Agency for Cybersecurity (ENISA) 

126 

Year 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

payment appropriations available in 2020, the matter is material by 
nature. 

2020 

ENISA has no internal rules to address the continuity of delegations in 
cases where delegating or delegated authorising officers leave their posts. 

Completed 

2020 

The ECA found several weaknesses in ENISA’s delegation procedures. In 
one case, a delegation was expired for several months despite the fact 
that the staff continued to authorise transactions. In other cases, staff 
were required to acknowledge the delegations granted to them with their 
signature. In most cases, this was done more than ten months later. 
Finally, a discrepancy was spotted between a delegation and its 
parameters in the IT system. 

Completed 

 
 
127 

European Union Agency for Cybersecurity (ENISA) 

ENISA’s reply 

3.10.9. ENISA agrees and welcomes this audit observation and has already taken the necessary 
steps to address this concern. 

3.10.10. ENISA agrees and welcomes this audit observation and has already taken the 
necessary steps to address this concern. 

3.10.11. ENISA agrees and welcomes this audit observation and has already taken the 
necessary steps to address this concern. 

3.10.12. While the Joint Committee has only a consultative role and consequently this 
identified weakness did not impact the decision making, ENISA nevertheless agrees and 
welcomes this audit observation. ENISA will therefore formally constitute a Joint Committee to 
comply with the applicable legal framework. 

 
 
 
 
European Union Agency for Railways (ERA) 

3.11. European Union Agency for 
Railways (ERA) 

128 

Introduction 

3.11.1. The European Union Agency for Railways (“ERA”), which is located in Lille and 
Valenciennes, was created by Regulation (EC) No 881/200469 of the European Parliament and 
of the Council, which was repealed and replaced in 2016 by Regulation (EU) 2016/796 of the 
European Parliament and of the Council70. ERA's task is to enhance the levels of 
interoperability and safety of European railway systems. ERA is also the EU authority 
responsible for issuing authorisations, certificates and approvals in this field. Figure 3.11.1 
presents key figures for ERA71. 

Figure 3.11.1 – Key figures for ERA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

40

37

188

177

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of ERA for the 2020 and 2021 financial years; staff figures provided by ERA. 

Information in support of the statement of assurance 

3.11.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by ERA’s management. 

69  Regulation (EC) No 881/2004 establishing a European Railway Agency. 

70  Regulation (EU) 2016/796 on the European Union Agency for Railways. 

71  More information on ERA’s role and activities is available on its website: 

www.era.europa.eu. 

 
 
 
                                                             
European Union Agency for Railways (ERA) 

129 

3.11.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of ERA’s management and of those charged with governance, and 
the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.11.4. We have audited: 

(a) 

the accounts of the European Union Agency for Railways (ERA), which 
comprise the financial statements72 and the reports on the implementation of 
ERA’s budget73 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.11.5. In our opinion, ERA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, ERA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

72  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

73  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Union Agency for Railways (ERA) 

130 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.11.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.11.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

Follow-up of previous years’ observations 

3.11.8. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Union Agency for Railways (ERA) 

131 

Annex – Follow-up of previous year’s observations 

Year 

2013 

2018 

2019 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

ERA is located in Lille and Valenciennes. It is likely that costs could be 
reduced if all operations were centralised in one location. 

In 2019, ERA will start collecting fees and charges for certification tasks. 
The new Regulation required that the specific needs of small and 
medium-sized enterprises (SME) must be taken into account. ERA should 
introduce effective controls to check the SME status of applicants. 

ERA did not check the amounts invoiced by the European Commission 
under a service-level agreement for the provision of different IT services. 
This indicates weaknesses in ERA's internal controls. 

N/A 

Ongoing 

Completed 

 
 
 
European Union Agency for Railways (ERA) 

ERA’s reply 

The Agency has taken note of the ECA’s report. 

132 

 
 
 
 
European Securities and Markets Authority (ESMA) 

133 

3.12. European Securities and Markets 
Authority (ESMA) 

Introduction 

3.12.1. The European Securities and Markets Authority (“ESMA”), which is located in 
Paris, was established by Regulation (EU) No 1095/2010 of the European Parliament and of the 
Council74. ESMA’s mission is to enhance investor protection and promote stability and order in 
financial markets. ESMA achieves its mission and objectives through four activities: by 
assessing risks to investors, markets and financial stability; by completing a single rulebook for 
EU financial markets; by promoting supervisory convergence; and by directly supervising 
specific financial entities. Figure 3.12.1 presents key figures for ESMA75. 

Figure 3.12.1 – Key figures for ESMA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

69

60

308

250

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of ESMA for the 2020 and 2021 financial years; staff figures provided by ESMA. 

Information in support of the statement of assurance 

3.12.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by ESMA’s management. 

3.12.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of ESMA’s management and of those charged with governance, 

74  Regulation (EU) No 1095/2010 establishing a European Supervisory Authority (European 

Securities and Markets Authority). 

75  More information on ESMA’s role and activities is available on its website: 

www.esma.europa.eu. 

 
 
 
                                                             
European Securities and Markets Authority (ESMA) 

and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

134 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.12.4. We have audited: 

(a) 

the accounts of the European Securities and Markets Authority (“ESMA”), 
which comprise the financial statements76 and the reports on the 
implementation of ESMA’s budget77 for the financial year ended 31 December 
2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.12.5. In our opinion, ESMA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, ESMA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

76  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

77  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Securities and Markets Authority (ESMA) 

135 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.12.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.12.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.12.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.12.9. In a procurement of services with an estimated value of €45 000, we found that 
ESMA had launched a negotiated procedure without advertising it, in breach of point 3.1 of 
Annex I of the Financial Regulation, for reasons related to the nature of the service. ESMA’s 
internal control standards require all cases of deviations from established processes and 
procedures to be justified and approved in centrally logged exceptions reports before action is 
taken. In this case, however, ESMA did not do so until after our audit. 

3.12.10. We found weaknesses in ESMA’s management and control systems relating to 
conflicts of interest. 

(a)  Under the Rules of Procedure of the Board of Supervisors, members of the Board 
who have a conflict of interest may not take part in the discussions or vote on the 
matter in question. But the member may remain present in the meeting unless the 
majority of members vote to exclude them. This creates a risk to the Board’s 
independence, at least in appearance. 

(b)  ESMA’s rules on the appraisal of the chairperson and the executive director do not 
explicitly state that a member of the Board of Supervisors whose NCA is or is likely 
to be subject to procedures under Articles 16 - 19 of Regulation (EU) No 1095/2010 

 
 
136 

European Securities and Markets Authority (ESMA) 

(such as a breach of EU law) cannot be an appraiser or appeal appraiser of the 
chairperson or the executive director. This may adversely affect the independence 
of the appraiser and the appraisee. We found that in previous years a risk of conflict 
of interest had arisen during such an appraisal exercise, and ESMA had been slow to 
take mitigating action. We also found that ESMA did not actively monitor potential 
conflict of interest situations; for example, by assessing whether past decisions 
relating to an NCA may create a potential conflict. 

Follow-up of previous years’ observations 

3.12.11. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Securities and Markets Authority (ESMA) 

Annex – Follow-up of previous year’s observations 

137 

Year 

2018 

2019 

2020 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The surpluses and deficits from the fees charged to credit rating agencies 
and trade repositories can lead to an annual cross-financing of activities. 
ESMA should find a means of avoiding such cross-financing. 

Outstanding 

(not under ESMA’s control) 

ESMA has never adjusted, or had made plans to adjust, national 
competent authorities’ estimation-based pension contributions for the 
year N to actual figures. 

Completed 

Information from trade repositories for fee calculation were only subject 
to limited reviews by independent auditors. A consultation paper, which 
proposes a simplification of the method used to determine their 
turnover was published. The revision of the delegated acts on fees for 
credit rating agencies and trade repositories depends on the 
Commission. ESMA have reiterated that the revision is necessary. 

The Credit Rating Agencies Regulation (CRA) provides scope for 
circumventing the fee-charging mechanism. CRAs could also avoid fees 
by transferring revenue into non-EU jurisdictions. The Regulation is 
subject to the European Commission’s right to initiate the legislative 
changes. ESMA published a consultation paper and submitted a technical 
advice to the European Commission on amending the Regulation. 

Outstanding 

(not under ESMA’s control) 

Outstanding 

(not under ESMA’s control) 

 
 
European Securities and Markets Authority (ESMA) 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

138 

Weak internal controls in monitoring the time charged to ESMA in a 
“time and means contract” under a framework contract for IT 
consultancy services (check of number of days off-site). 

ESMA signed a “data services master agreement”. The maximum amount 
of the contract was not clearly stated, because the template of the 
provider was used. Furthermore, the authorising officer who signed was 
only authorised to sign legal commitments for half of the amount in 
question. Subsequently to the audit, ESMA took corrective action to 
address it (i.e. the Executive Director countersigned the contract). 

ESMA did not apply the late interest for a number of credit rating 
agencies. The authorising officer did not establish the amounts 
receivable and did not take a formal decision to waive the amounts. 

Completed 

Completed 

Completed 

Year 

2020 

2020 

2020 

 
 
 
European Securities and Markets Authority (ESMA) 

ESMA’s reply 

139 

3.12.9. The omission of ex-ante publicity was justified by the specific scope of the 
procurement. This exception was duly documented ex-post (end 2021) and approved following 
ECA’s audit. Furthermore, ESMA took already the necessary measures to prevent a similar 
situation in the future. 

3.12.10. ESMA is fully committed to the highest ethical standards on conflicts of interest’ 
prevention, as framed in ESMA’s founding Regulation. 

a) ESMA’s current rules on conflict of interest are fully consistent with Article 42(3) of the 
ESMA Regulation, which requires that conflicted members “abstain from participating in the 
discussion and voting” on measures for which Board members are potentially conflicted. 

The practice for potentially conflicted Board Members (and accompanying staff), the ESMA 
Chair and Executive Director to leave the (virtual) Board room is already observed at ESMA. 

ESMA’s Board of Supervisors has amended its policy on 7 July, to explicitly require that 
conflicted members leave the room in accordance with the existing practice. 

b) ESMA takes note of the ECA’s observation. ESMA is of the view that the risk of conflict of 
interest in that particular situation was fully mitigated, given that the assessor did not 
contribute to the final assessment. 

For all activities carried out by Board Members within ESMA, including as assessors, they 
remain subject to their declaration of duties in application of the conflict of interest policy for 
non-staff, which includes the obligation to report ad hoc conflict of interest as they arise, on 
top of the annual declaration of interests and in addition to possible conflicts of interest arising 
from the points under discussion or decision at a given Board meeting/call/written procedure. 

ESMA has no objection to introduce an explicit cross-reference to conflict of interest policy in 
its appraisal process. In addition, ESMA already put in place an additional safeguard by 
collecting ad hoc confirmations of absence of conflict of interest by the Management Board 
Members who were elected by their peers to prepare the draft appraisal reports on ESMA’s 
senior managers for 2021. 

 
 
 
 
European Union Agency for the Space Programme (EUSPA) 

3.13. European Union Agency for the 
Space Programme (EUSPA) 

140 

Introduction 

3.13.1. The European Union Agency for the Space Programme (“EUSPA”), which is 
located in Prague, was established by Regulation (EU) 2021/69678. EUSPA manages the EU’s 
space programme, contributing to the EU’s prosperity and security. EUSPA superseded the 
European Global Navigation Satellite System Agency (“GSA”) which in 2010 had previously 
taken over all tasks previously assigned to the GALILEO Joint Undertaking . Figure 3.13.1 
presents key figures for EUSPA79. 

Figure 3.13.1 – Key figures for EUSPA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

2 666

1 584

242

212

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EUSPA for the 2020 and 2021 financial years; staff figures provided by 
EUSPA. 

The increase of the budget in 2021 was driven by EUSPA’s enlarged mandate based on the new 
EU Space Programme. 

Information in support of the statement of assurance 

3.13.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

78  Regulation (EU) 2021/696 establishing the Union Space Programme and the European 

Union Agency for the Space Programme. 

79  More information on EUSPA’s role and activities is available on its website: 

www.euspa.europa.eu. 

 
 
 
                                                             
141 

European Union Agency for the Space Programme (EUSPA) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EUSPA’s management. 

3.13.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EUSPA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.13.4. We have audited: 

(a) 

the accounts of the European Union Agency for the Space Programme 
(“EUSPA”), which comprise the financial statements80 and the reports on the 
implementation of EUSPA’s budget81 for the financial year ended 31 December 
2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.13.5. In our opinion, EUSPA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EUSPA’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 

80  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

81  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Union Agency for the Space Programme (EUSPA) 

the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

142 

Emphasis of matter 

3.13.6. We draw attention to note 6.1 of the accounts, which describes the impact 
of the Russian war of aggression against Ukraine in EUSPA’s statement of financial 
performance and balance sheet. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.13.7. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.13.8. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.13.9. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.13.10. We found a number of procedural deficiencies in two audited recruitment 
procedures which undermine the principles of transparency and equal treatment. 

(a) 

In both cases, the vacancy notices did not establish the number of points candidates 
needed to achieve in order to be shortlisted or put on a reserve list, or the number 
of candidates to be shortlisted or put on a reserve list. These numbers had only 
been formally stated in the selection board’s final reports, published after the 
examination of the candidates’ applications. 

 
 
143 

European Union Agency for the Space Programme (EUSPA) 

(b)  The instructions issued by the selection board on awarding points for the various 

selection criteria were not detailed enough to ensure that selection board members 
applied a consistent approach. 

(c) 

In one of the two recruitment procedures, no scoring scheme had been set in 
advance for one of the tests. 

3.13.11. Between 2019 and 2021, EUSPA assessed one case of a potential conflict of 
interest in relation to a senior member of staff taking up a new job elsewhere. EUSPA 
approved the new job with restrictions. However, despite the general obligation to give 
reasons for its decisions, EUSPA did not provide justification for those restrictions. 

Follow-up of previous years’ observations 

3.13.12. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
144 

European Union Agency for the Space Programme (EUSPA) 

Annex – Follow-up of previous year’s observations 

Year 

2017 

2019 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

E-procurement: The GSA is not yet using any of the e-procurement IT 
tools developed by the European Commission. 

There is no comprehensive ex-ante or ex-post strategy in place to 
confirm the accuracy of the stated incurred costs by the ESA in relation 
to the implementation of the EGNOS and GALILEO programmes. This 
poses a risk that the GSA’s payments to the ESA may be calculated on the 
basis of inaccurate costs, with an impact on the GSA's accounts. 

Completed 

Completed 

 
 
 
European Union Agency for the Space Programme (EUSPA) 

EUSPA’s reply 

145 

3.13.10. The Agency plans to introduce a number of modifications to its recruitment 
procedures to address the observations identified. 

3.13.11. EUSPA takes note of the ECA’s observation and will take it duly into account in its 
procedures. EUSPA would like to clarify that, in this particular case, it did not state the reasons 
for the restrictions in the decision, because it considered them self-evident, given that: 

— 

— 

The restrictions were limited to preparation of offers for procurement, grant or prize calls 
in which the person concerned was involved when working for the Agency. 

The decision concerns a former senior staff member of the Agency, who is assumed to be 
fully aware of the applicable rules. 

 
 
 
 
146  

Agencies funded under MFF heading 2 
– Cohesion, Resilience and Value 

 
 
 
 
147 

European Centre for the Development of Vocational Training (Cedefop) 

3.14. European Centre for the 
Development of Vocational Training 
(Cedefop) 

Introduction 

3.14.1. The European Centre for the Development of Vocational Training (“Cedefop”), 
which is located in Thessaloniki, was established by Council Regulation (EEC) No 337/7582, 
which was repealed by Regulation (EU) 2019/128 of the European Parliament and of the 
Council of 16 January 201983. Cedefop fosters the development of vocational training at EU 
level by compiling and disseminating documentation on vocational training systems. 
Figure 3.14.1 presents key figures for Cedefop84. 

Figure 3.14.1 – Key figures for Cedefop 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

25

25

108

108

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of Cedefop for the 2020 and 2021 financial years; staff figures provided by 
Cedefop. 

Information in support of the statement of assurance 

3.14.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

82  Regulation (EEC) No 337/75 establishing a European Centre for the Development of 

Vocational Training. 

83  Regulation (EU) 2019/128 establishing a European Centre for the Development of 
Vocational Training (Cedefop) and repealing Council Regulation (EEC) No 337/75. 

84  More information on Cedefop’s role and activities is available on its website: 

www.cedefop.europa.eu. 

 
 
 
                                                             
148 

European Centre for the Development of Vocational Training (Cedefop) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by Cedefop’s management. 

3.14.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of Cedefop’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.14.4. We have audited: 

(a) 

the accounts of the European Centre for the Development of Vocational 
Training (“Cedefop”), which comprise the financial statements85 and the 
reports on the implementation of Cedefop’s budget86 for the financial year 
ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.14.5. In our opinion, Cedefop’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, Cedefop’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 

85  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

86  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
149 

European Centre for the Development of Vocational Training (Cedefop) 

the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.14.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.14.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.14.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.14.9. We found weaknesses in Cedefop’s recruitment procedures. 

(a) 

(b) 

In one case, Cedefop used external consultants to screen applications on pre-
selection criteria set out in the vacancy notice. The consultants delivered their 
assessment, but for some of the pre-selection criteria, the selection board decided 
not to use it. Instead, it re-performed that part of the screening process itself. We 
noted large discrepancies between the assessment performed by Cedefop and the 
one performed by the consultants. These discrepancies, which could benefit or 
disadvantage candidates, were caused by a lack of clear and detailed guidelines for 
scoring the pre-selection criteria. 

In two recruitment procedures, remote written tests took place over several days, 
increasing the risk of the test content being disclosed without authorisation. In one 
of these two cases, the procedure took place over four days, with a weekend in 
between. Cedefop did not undertake all necessary measures to establish an 
effective internal control mechanism to mitigate the associated risks. Following our 
audit, Cedefop adapted its procedures for future recruitment procedures. 

 
 
European Centre for the Development of Vocational Training (Cedefop) 

3.14.10. We also found weaknesses in payment management, in particular with regard 
to ex-ante controls. 

150 

(a)  A framework contract for IT services and products allowed the contractor to charge 
an uplift fee on the actual prices. Cedefop paid an invoice of €11 614 without 
checking first whether the invoiced amounts were correct, even though the 
Financial Regulation requires ex-ante controls of this sort to be carried out. 
Following our audit, Cedefop adapted its internal procedures in order to prevent 
similar occurrences in the future. 

(b)  On another occasion, Cedefop paid €180 590 in respect of an order form under a 
framework contract associated with the development of a new website. It made 
this payment without having received the specific declarations required from the 
contractor under the framework contract. The omission affected all 28 order forms 
associated with this framework contract, with a total value of €883 539, and could 
expose Cedefop to legal risks in relation to intellectual property rights. Following 
our audit, Cedefop asked the contractors to supply the missing declarations 
subsequently, and registered the incident in its non-compliance registry. It also 
adapted its internal procedures in order to prevent similar occurrences in the 
future. 

(c) 

In April 2020, a grant beneficiary submitted a request for final payment. Cedefop 
delayed the processing of the payment beyond the 60-day limit stipulated in the 
grant agreement and made the final payment only in January 2021. According to 
Cedefop, the delay was mostly due to the absence of the project manager and 
subsequent delays in communication with the beneficiary. Cedefop did not have a 
contingency plan to prevent staff absences from delaying grant approval 
procedures. Following our audit, Cedefop adapted its internal procedures in order 
to address it. 

Observations on budgetary management 

3.14.11. On 23 June 2021, Cedefop started using a new accounting system, the ABAC, 
which is also used by the European Commission. We found two weaknesses in Cedefop’s move 
to the new system. 

(a) 

In ABAC, the final dates of implementation for budgetary commitments carried over 
from 2021 to 2022 were not recorded correctly. As a result, outstanding budgetary 
commitments that should have been cancelled because the time limit of their 
associated legal commitments elapsed by the end of 2021 could potentially have 
been irregularly carried over to 2022. Following our audit, in 2022, Cedefop 
reviewed and updated the final dates of implementation for all of the budgetary 

 
 
151 

European Centre for the Development of Vocational Training (Cedefop) 

commitments in question and cancelled 11 budgetary commitments with a total 
value of €45 923. 

(b) 

In 2021, ABAC wrongly calculated €2 834 in late interest in respect of five payments. 
The error was caused by the deadline in ABAC for these payments being wrongly set 
to 30 days, while the actual legal deadline was 60 or 90 days. Cedefop spotted the 
error and cancelled the recovery orders for the wrongly calculated late interest. 

Follow-up of previous years’ observations 

3.14.12. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Centre for the Development of Vocational Training (Cedefop) 

Annex – Follow-up of previous year’s observations 

Year 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

152 

2019, 2020 

The method for calculating contributions set out in the Statement on 
Cedefop-EFTA cooperation was not applied correctly. Norway's and 
Iceland’s contributions to the 2019 Cedefop budget were €38 924 lower 
than they should have been (2020: €20 272 higher), and the EU’s 
contribution was €38 924 higher than it should have been (2020: €20 272 
lower). 

2020 

Cedefop signed a contract based on a negotiated procedure with one 
tenderer for €19 800 which was above the Financial Regulation’s 
threshold of €15 000. The initial assessment of the contract value was for 
€10 000 and was not supported by any cost estimates based on current 
market values, or on any documented market research. The 
procurement procedure is therefore irregular. 

Completed 

Completed 

 
 
 
European Centre for the Development of Vocational Training (Cedefop) 

153 

Cedefop’s reply 

3.14.9.  

(a) Cedefop takes note of the observation and will improve its guidelines. When Cedefop 
realised that the deliverables could not be immediately taken as the final assessment 
outcome, it faced the choice of sticking to the advice or partially redoing the exercise. Cedefop 
opted for the effective and efficient finalisation of the selection procedure considering the 
alternatives and the respective future costs of an ill-advised hiring decision. 

(b) Cedefop accepts the finding. 

3.14.10.  

(a) Cedefop accepts the finding. 

(b) Cedefop accepts the finding. 

(c) Cedefop accepts the finding. 

3.14.11.  

(a) Cedefop accepts the finding and took immediate action to address the Court’s 
recommendation. 

(b) Cedefop accepts the finding and took immediate action to address the Court’s 
recommendation. 

 
 
 
 
European Centre for Disease Prevention and Control (ECDC) 

3.15. European Centre for Disease 
Prevention and Control (ECDC) 

154 

Introduction 

3.15.1. The European Centre for Disease Prevention and Control (“the ECDC”), which is 
located in Stockholm, was established by Regulation (EC) No 851/2004 of the European 
Parliament and of the Council 87. ECDC collects and disseminates data on the prevention and 
control of human diseases and provides scientific opinions on this subject. ECDC also 
coordinates the European network of bodies operating in this field. Figure 3.15.1 presents key 
figures for the ECDC88. 

Figure 3.15.1 – Key figures for the ECDC 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

195

82

311

271

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the ECDC for the 2020 and 2021 financial years; staff figures provided by the 
ECDC. 

The increase to the budget is explained by new activities assigned to the ECDC with the launch 
of the European Health Emergency Preparedness and Response Authority. 

Information in support of the statement of assurance 

3.15.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

87  Regulation (EC) No 851/2004 establishing a European Centre for disease prevention and 

control. 

88  More information on the ECDC’s role and activities is available on its website: 

www.ecdc.europa.eu. 

 
 
 
                                                             
155 

European Centre for Disease Prevention and Control (ECDC) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the ECDC’s management. 

3.15.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the ECDC’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.15.4. We have audited: 

(a) 

the accounts of the European Centre for Disease Prevention and Control (“the 
ECDC”), which comprise the financial statements89 and the reports on the 
implementation of the ECDC’s budget90 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.15.5. In our opinion, the ECDC’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, the ECDC’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 

89  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

90  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
156 

European Centre for Disease Prevention and Control (ECDC) 

the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.15.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.15.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

 
 
 
 
European Centre for Disease Prevention and Control (ECDC) 

The ECDC’s reply 

The Centre has taken note of the Court’s report 

157 

 
 
 
 
European Food Safety Authority (EFSA) 

158 

3.16. European Food Safety Authority 
(EFSA) 

Introduction 

3.16.1. The European Food Safety Authority (“EFSA”), which is located in Parma, was 
established by Regulation (EC) No 178/2002 of the European Parliament and of the Council91. 
EFSA supplies the scientific information needed for drafting EU legislation on food and food 
safety, collects and analyses data to identify and monitor risks, and provides independent 
information on these risks. Figure 3.16.1 presents key figures for EFSA92. 

Figure 3.16.1 – Key figures for EFSA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

133

107

516

481

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EFSA for the 2020 and 2021 financial years; staff figures provided by EFSA. 

Information in support of the statement of assurance 

3.16.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EFSA’s management. 

3.16.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EFSA’s management and of those charged with governance, and 

91  Regulation (EC) No 178/2002 laying down the general principles and requirements of food 
law, establishing the European Food Safety Authority and laying down procedures in 
matters of food safety. 

92  More information on EFSA’s role and activities is available on its website: 

www.efsa.europa.eu. 

 
 
 
                                                             
European Food Safety Authority (EFSA) 

the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

159 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.16.4. We have audited: 

(a) 

the accounts of the European Food Safety Authority (“EFSA”), which comprise 
the financial statements93 and the reports on the implementation of EFSA’s 
budget94 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.16.5. In our opinion, EFSA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EFSA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

93  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

94  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Food Safety Authority (EFSA) 

160 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.16.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.16.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

Follow-up of previous years’ observations 

3.16.8. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Food Safety Authority (EFSA) 

161 

Annex – Follow-up of previous year’s observations 

Year 

2017 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

There is a need to strengthen the accounting officer’s independence by 
making him directly responsible to EFSA’s Director (administrative) and 
Management Board (functional). 

Responsibility to Director: 

Outstanding 

Responsibility to Management Board: 

In 2020, seven of EFSA’s management posts were occupied by acting 
managers. Six of these posts had been vacant for more than one year. 
One post had remained unoccupied for nine years. This precarity at the 
level of managerial positions may impair EFSA’s leadership and its 
strategic continuity. 

Completed 

Completed 

 
 
 
162 

European Food Safety Authority (EFSA) 

EFSA’s reply 

3.16.5. The Authority acknowledges receipt of the clean audit report of the Court of Auditors 
and EFSA welcomes the unqualified audit opinions on the reliability of the accounts and the 
legality and regularity of the transactions underlying the accounts. 

 
 
 
 
European Institute for Gender Equality (EIGE) 

163 

3.17. European Institute for Gender 
Equality (EIGE) 

Introduction 

3.17.1. The European Institute for Gender Equality (“EIGE”), which is located in Vilnius, 
was established by Regulation (EC) No 1922/2006 of the European Parliament and of the 
Council95. EIGE collects, analyses and disseminates information on gender equality, and 
develops, evaluates and disseminates methodological tools to support the incorporation of 
gender equality into all EU policies. Figure 3.17.1 presents key figures for EIGE96. 

Figure 3.17.1 – Key figures for EIGE 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

11

10

42

43

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EIGE for the 2020 and 2021 financial years; staff figures provided by EIGE. 

Information in support of the statement of assurance 

3.17.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EIGE’s management. 

3.17.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EIGE’s management and of those charged with governance, and 

95  Regulation (EC) No 1922/2006 on establishing a European Institute for Gender Equality. 

96  More information on EIGE’s role and activities is available on its website: 

www.eige.europa.eu. 

 
 
 
                                                             
European Institute for Gender Equality (EIGE) 

the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

164 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.17.4. We have audited: 

(a) 

the accounts of the European Institute for Gender Equality (EIGE), which 
comprise the financial statements97 and the reports on the implementation of 
EIGE’s budget98 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.17.5. In our opinion, EIGE’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EIGE’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

97  The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

98  The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Institute for Gender Equality (EIGE) 

165 

Emphasis of matter 

3.17.6. We draw attention to Note 4.1 of the accounts, where EIGE has disclosed a 
contingent liability of €22 224 which will be incurred if the Lithuanian Supreme Court 
reaches an adverse decision in an ongoing case concerning temporary agency workers 
working at EIGE. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.17.7. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.17.8. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.17.9. The observations which follow do not call the ECA’s opinion into question. 

Observations on the legality and regularity of transactions 

3.17.10. In May 2020, EIGE launched a call for expressions of interest with the purpose 
of establishing a list of external experts to assist EIGE in specific areas of work. While 
translation services were not in the scope of the call, it was used to procure such services. As a 
result, EIGE was not able to choose the most suitable candidates. The call for expressions of 
interest was not in line with Articles 160 and 237 of the Financial Regulation. We also found 
that five payments made in 2021 for services provided by experts selected under the call for 
expressions of interest were related to translation. Since translation services were outside the 
scope of the call, these payments, with a total value of €12 200, are irregular. 

 
 
European Institute for Gender Equality (EIGE) 

Observations on management and control systems 

3.17.11. In one recruitment procedure we found a number of weaknesses which 
undermine the principles of transparency and equal treatment: 

166 

(a)  The selection committee members had signed their declarations of confidentiality 
and non-conflict of interest only after the candidates had been shortlisted. 

(b)  EIGE had not drawn up detailed instructions on how to award points under the 
various selection criteria. This led to significant differences in how different 
selection committee members had awarded points to candidates. 

(c)  EIGE had not established the minimum number of points or the maximum number 
of candidates to be shortlisted for interviews or for the written tests phase, before 
examining the applications. 

(d)  There was no direct link between some of the criteria on which the candidates were 

assessed and the ones set out in the vacancy notice. 

(e)  EIGE had not awarded scores to shortlisted candidates based on their final 

interviews, the step which preceded the decision about which of them to recruit. 

3.17.12. EIGE has set up specific procedures for selecting seconded national experts. 
We found that in one selection procedure, EIGE had not followed part of its own procedures. 
These omissions undermine the transparency and objectivity of the selection procedure for 
seconded national experts, and suggest weaknesses in EIGE’s internal controls. 

3.17.13. In a procurement procedure, all four members of the evaluation committee 
appointed to evaluate the tenders against the award criteria belonged to the same unit of 
EIGE. This goes against Article 150(3) of the Financial Regulation. 

Follow-up of previous years’ observations 

3.17.14. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Institute for Gender Equality (EIGE) 

167 

Annex – Follow-up of previous year’s observations 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Year 

2018 

A framework contract with a temporary work agency did not require 
compliance with certain legal requirements (i.e. to grant its workers the 
same working conditions as EIGE’s staff). There is no evidence that the 
EIGE itself carried out such comparison. The EIGE should analyse the 
working conditions of its interim workers and ensure they are in line with 
European and national labour law. 

2019, 2020 

In 2019 and 2020, the ECA concluded that EIGE’s procedures for selecting 
and contracting the external experts lacked a solid audit trail (as set out 
in Article 36(3) of the Financial Regulation). As a result, all subsequent 
payments associated with these contracts were irregular. 

2019, 2020 

In its budgets for 2019 and 2020, EIGE did not include €550 000 and 
€378 950 respectively as revenue assigned under the Instrument for Pre-
Accession Assistance for the implementation of the action “Increased 
capacity of EU candidate countries and potential candidates to measure 
and monitor the impact of gender-equality policies (2018-2021)”. 

Completed 

N/A 

N/A 

 
 
European Institute for Gender Equality (EIGE) 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

168 

EIGE has not carried out ex-post controls of operations and budgetary 
implementation since September 2016. A dedicated ex-post controls 
programme based on specific risks would contribute to improving EIGE’s 
internal control environment. 

Completed 

Year 

2019 

 
 
169 

European Institute for Gender Equality (EIGE) 

EIGE’s reply 

3.17.6. The Supreme Court of Lithuania issued its ruling on 23.02.2022. The Court ruled in 
favour of interim workers confirming the principle of equal treatment of interim workers with 
statutory staff. EIGE was a third party in the case and no direct claims were made against it.  

3.17.10. EIGE takes note of the Court’s observations and will not engage external experts for 
translation services. Such services will be procured via open procurement procedures. The 
experts’ database will continue to be used for quality assurance services and review of gender 
sensitive language. 

3.17.11. EIGE takes note of the Court’s observations and will address the internal control 
weaknesses identified: 

(a)  The workflow in the Director’s Decision No 136 of 11 July 2017 on Selection 

Procedures for Recruitment will be updated to clarify confidentiality and conflict of 
interest assessment procedures. 

(b)  Detailed instructions will be drawn for Selection Panels on how to award points 

under the selection criteria. 

(c)  EIGE’s general approach in selection procedures will be formalised. 

(d)  EIGE will adapt its recruitment procedures accordingly. 

(e)  EIGE accepts this observation as best practice. However, after taking into account 

the recommendation of the selection committee and the findings of the Assessment 
Centre, the Appointing Authority can then appoint any candidate on the Reserve 
List. 

3.17.12. EIGE takes note of the Court’s observation and will address the internal control 
weaknesses identified. EIGE will revise the procedure for recruitment of Seconded National 
Experts in view of simplifying it. 

3.17.13. EIGE takes note of the Court’s observation and will clarify the procedures of the 
evaluation committees in the procurement guidelines and templates. 

 
 
 
European Labour Authority (ELA) 

170 

3.18. European Labour Authority (ELA) 

Introduction 

3.18.1. The European Labour Authority (“ELA”), which is located in Bratislava, was 
created by Regulation (EU) 2019/114999 of the European Parliament and of the Council and 
achieved financial autonomy on 26 May 2021100. ELA ensures that EU rules on labour mobility 
and social security coordination are enforced in a fair, simple, and effective way, making it 
easier for citizens and businesses to reap the benefits of the internal market. ELA started 
operations on 17.10.2019 and has been financially independent since 26.5.2021. Figure 3.18.1 
presents key figures for ELA101. 

Figure 3.18.1 – Key figures for ELA 

Budget (million euros)*

Staff (as at 31 December)**

31

84

2021

2020

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of ELA for the 2020 and 2021 financial years; staff figures provided by ELA. 

Information in support of the statement of assurance 

3.18.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by ELA’s management. 

99  Regulation (EU) 2019/1149 establishing a European Labour Authority. 

100 Decision No 5/2021, of 7 May 2021, of the Management Board on ELA’s Financial 

Autonomy Requirements (ELA/MB/2021/023). 

101 More information on ELA’s role and activities is available on its website: 

www.ela.europa.eu. 

 
 
 
                                                             
European Labour Authority (ELA) 

171 

3.18.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of ELA’s management and of those charged with governance, and 
the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.18.4. We have audited: 

(a) 

the accounts of the European Labour Authority (“ELA”), which comprise the 
financial statements102 and the reports on the implementation of ELA’s 
budget103 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.18.5. In our opinion, ELA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, ELA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

102 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

103 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Labour Authority (ELA) 

172 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.18.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.18.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.18.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.18.9. ELA recorded assets with a total value of €73 118 in ABAC Assets and in the 
inventory record. These assets mostly consisted of office furniture. ELA assigned an inventory 
identification and a future location to each item. However, due to the COVID-19 pandemic, at 
the time of the audit the assets were not labelled, and were not yet placed in their assigned 
locations. The absence of complete and updated inventories specifying the location of ELA’s 
tangible assets goes against Article 87 of the Financial Regulation, and adversely affects ELA’s 
ability to ensure the safeguarding of its assets. 

3.18.10. On 11 December 2020, ELA signed a specific contract for the European 
network of employment services (EURES) training activities covering the first quarter of 2021. 
The contract amount was €299 437. A new framework contract to provide EURES training 
activities was signed on 9 November 2021. The value of this framework contract was 
€12 million; the maximum duration was 48 months. No payments associated with this 
framework contract were made in 2021. ELA did not establish ex-ante and ex-post controls 
relating to the operational and financial aspects of the training activities based on direct 
evidence from the implemented training activities. Instead, it relied on reports issued by 
trainers. This lack of formalised procedures based on direct evidence may present risks to the 
implementation of management directives, and to the achievement of ELA’s objectives. 

 
 
European Labour Authority (ELA) 

173 

3.18.11. ELA has not yet adopted a Business Continuity Plan. The lack of an established 
and comprehensive Business Continuity Plan constitutes a major internal weakness in ELA’s 
procedures. 

3.18.12. ELA’s management board approved the European Commission’s Internal Audit 
Service mission charter and ELA's internal control framework. However, ELA had not yet 
adopted an appropriate risk management and control strategy. Nor had it adopted the charter 
of the authorising officer or the charter of the authorising officers by sub-delegation, or the 
charter of the accountant. These gaps hinder the implementation of ELA’s internal control 
framework. 

 
 
174 

European Labour Authority (ELA) 

ELA’s reply 

3.18.9. Due to COVID pandemic restrictive measures, following the delivery, the tangible 
assets (chairs and desks) have been recently placed in the designated areas according to the 
location plan and number of staff. The labelling process of these assets is ongoing, the physical 
completion of the inventories is planned in the coming month.  

3.18.10. ELA acknowledges the need to set up the appropriate structure internally, to 
introduce formalised procedures based on direct evidence to ensure that management 
directives are carried out and that financial actors take the necessary actions to address risks 
of not achieving the entity's objectives.  

3.18.11. Due to the COVID pandemic situation a teleworking Business Continuity solution was 
in place on daily basis. ELA recognizes the importance of a comprehensive document 
describing the Business Continuity Plan (BCP), which is planned to be completed in 2023.  

3.18.12. Following the European Court of Auditors' audit, ELA finalized the risk assessment 
process. ELA has several policies, and procedures in place to implement the Internal Control 
Framework {ICF), and continuously works to strengthen its ICF further and plans the adoption 
of the relevant charters. ELA recognizes the importance of completing the ICF to sustain 
operational and financial performance. 

 
 
 
 
European Medicines Agency (EMA) 

175 

3.19. European Medicines Agency 
(EMA) 

Introduction 

3.19.1. The European Medicines Agency (“the EMA”), which is located in Amsterdam, 
was established by Regulation (EC) No 726/2004 of the European Parliament and of the 
Council104. The EMA operates through a pan-EU network and coordinates the scientific 
resources made available by the national authorities in order to ensure the evaluation and 
supervision of medicinal products for human or veterinary use. The EMA is a successor of the 
European Agency for the Evaluation of Medicinal Products, established by Council Regulation 
(EEC) No 2309/93105. Figure 3.19.1 presents key figures for the EMA106. 

Figure 3.19.1 – Key figures for the EMA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

483

456

878

834

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the EMA for the 2020 and 2021 financial years; staff figures provided by the 
EMA. 

104 Regulation (EC) No 726/2004 laying down Community procedures for the authorisation and 

supervision of medicinal products for human and veterinary use and establishing a 
European Medicines Agency. 

105 Council Regulation (EEC) No 2309/93 laying down Community procedures for the 

authorization and supervision of medicinal products for human and veterinary use and 
establishing a European Agency for the Evaluation of Medicinal Products. 

106 More information on the EMA’s role and activities is available on its website: 

www.ema.europa.eu. 

 
 
 
                                                             
European Medicines Agency (EMA) 

176 

Information in support of the statement of assurance 

3.19.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EMA’s management. 

3.19.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the EMA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.19.4. We have audited: 

(a) 

the accounts of the European Medicines Agency (“the EMA”), which comprise 
the financial statements107 and the reports on the implementation of the 
EMA’s budget108 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.19.5. In our opinion, the EMA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, the EMA’s financial position at 31 December 2021, 

107 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

108 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Medicines Agency (EMA) 

the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

177 

Emphasis of matter 

3.19.6. We draw attention to note 3.1.3, note 4.8.1 and note 4.8.2 to the EMA’s 
accounts, which provide significant disclosures in connection with property-related 
obligations. The lease on the EMA’s former premises in London runs until 2039 and does 
not contain a break clause, but the premises can be sublet or assigned subject to the 
landlord’s consent. In July 2019, the EMA reached an agreement with its landlord, and has 
sublet its former premises to a subtenant with effect from July 2019, under conditions 
that are consistent with the terms of the head lease. The term of the sublease lasts until 
the EMA’s lease expires in June 2039. Since the EMA remains a party to the head lease, it 
could be held liable for the entire amount remaining payable under the contractual 
obligations of the head lease if the subtenant fails to meet its obligations. On 
31 December 2021, the total estimated outstanding rent, associated service charges and 
landlord insurance to be paid by the EMA up to the end of the lease term was 
€383 million. We note that the EMA and its management board have emphasised the 
need to resolve this matter at the political level with the European Commission and the 
European Parliament. Our opinion is not qualified in respect of this matter. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.19.7. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.19.8. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.19.9. The observations which follow do not call the ECA’s opinion into question. 

 
 
European Medicines Agency (EMA) 

178 

Observations on management and control systems 

3.19.10. We found a number of procedural deficiencies in two audited recruitment 
procedures, which undermine the principles of transparency and equal treatment. 

(a)  The vacancy notices did not clearly link the selection criteria with the phases of the 
procedure (such as pre-selection, written and oral tests). They also did not establish 
the number of points candidates needed to achieve in order to be placed on a 
reserve list, or the number of candidates that would be placed on a reserve list. 

(b)  Some members of the selection committee had declared conflicts of interest in 

connection with some candidates. Yet, the final evaluation report did not describe 
how these conflicts of interest had been addressed. 

(c) 

In one of the two procedures, the selection committee had opted not to evaluate all 
the published selection criteria and instead evaluated the candidates on one 
additional criterion that had not been included in the vacancy notices. For some 
criteria, there was no clear guidance on how to award points. 

3.19.11. In a procurement procedure for a framework contract with a maximum period 
of four years, the EMA set the financial and economic capacity requirement at €11 million of 
annual turnover: the maximum level allowed by Point 19 of Annex I of the Financial Regulation 
considering that the estimated value of the contract was €22 million. However, the actual 
value of the contract was only half as much as the initial estimate. The EMA’s overestimation 
of the contract value meant that the threshold it used was almost twice as high as the 
Financial Regulation would have allowed if the EMA’s estimate had been closer to reality. A 
lower threshold could have allowed more companies to submit tenders. 

Follow-up of previous years’ observations 

3.19.12. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Medicines Agency (EMA) 

179 

Annex – Follow-up of previous year’s observations 

Year 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

2016/2017/2018 

The EMA has been tasked by Parliament and Council with the 
implementation of the Regulations on Pharmacovigilance (1027/2012) 
and Clinical Trials (536/2014), requiring the development and 
implementation of two major pan-EU IT systems. In the absence of the 
necessary own internal resources, the EMA used consultants to an 
extent that it became critically dependent on external expertise. There 
was no adequate control over project development and implementation 
and project delays and costs escalated. The EMA should speed up the 
implementation of the mitigating action not only for the completion of 
the ongoing IT projects but also to get ready for significant new projects. 

2016 

The Founding Regulation requires an external evaluation of the EMA and 
its operations by the European Commission only every ten years. 

2019 

When running a public procurement procedure, contracting authorities 
must divide contracts into lots if appropriate, paying attention to the 
need to facilitate broad competition. Technical specifications must allow 
bidders equal access to procurement procedures, and may not have the 
effect of creating unjustified obstacles to open competition. 

Completed 

for Pharmacovigilance 

Ongoing 

for Clinical Trials 

N/A 

Completed 

 
European Medicines Agency (EMA) 

180 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The EMA launched a procurement procedure combining two unrelated 
services in the same lot. This may have limited the number of potentially 
interested tenderers from submitting an offer for either set of services, 
thus impairing fair competition. In addition, the EMA extended the 
duration of contract from four to six years based on insufficient grounds 
for such an extension. 

The EMA signed a framework contract with three companies for the 
supply of temporary workers. The price element of the tender 
specifications had to include an all-inclusive hourly rate conversion 
factor applied to the gross hourly remuneration of the temporary 
workers in specific staff categories. However, the EMA did not provide us 
with any breakdown of the estimated gross staff cost for the interim 
workers in each requested staff category. As a result, the EMA was not in 
a position to evaluate whether the service provider’s mark-up or gross 
profit was reasonable in relation to similar contracts. 

The EMA granted an additional travel allowance to its staff for their 
move from London to Amsterdam premises. The amount was calculated 
based on the cost of a business-class ticket instead of the economy-class 
fare. We conclude that the EMA gave little consideration to the principle 
of economy in calculating the amount of the additional travel allowance. 

N/A 

Ongoing 

Ongoing 

Year 

2019 

2019 

2019 

 
 
European Medicines Agency (EMA) 

181 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The selection panels in recruitment procedures are only appointed by an 
e-mail sent by the Head of the Executive Director) without a formal 
authorisation by the Executive Director. 

In a catering and restaurant services framework contract, the 2020 
prices were amended even though the contract did not permit this. 
Furthermore, for an audited payment of €125 954 made in March 2020, 
the EMA was not able to reconcile whether the amount invoiced by the 
contractor was correct. 

Completed 

Completed 

Year 

2020 

2020 

 
 
 
182 

European Medicines Agency (EMA) 

EMA’s reply 

The European Medicines Agency (“the Agency” or “EMA”) welcomes the Court’s positive 
opinion on the reliability of the 2021 accounts and on the legality and regularity of the 
transactions underlying the accounts. 

3.19.6. The issue of London premises arose due to United Kingdom (UK) unilateral decision to 
leave the European Union. The topic was initially included in the EU negotiation position but 
was subsequently dropped. As a result, following the EU institutional approach, the Agency has 
sought for an alternative solution and has sublet the premises in line with the limits set by the 
EU budgetary authority. The Agency and its Management Board are concerned that the 
Agency, instead of focusing its full effort on its mission of protecting and promoting public 
health, now must also manage commercial property in a third country, diverting its human and 
financial resources from its public health responsibilities for the EU citizens. This focus of the 
Agency on this matter and consequently that of the EU institutions will have to be maintained 
for another 17 years, till 2039. Despite negotiated guarantee measures, the subletting solution 
is not without risks, magnified by the COVID 19 crisis. It is therefore necessary to manage this 
topic at the right political level and find a long-term resolution for the Agency. 

3.19.10. a) The Agency notes the observation. The currently developed Hiring Manager 
Guidelines will stipulate thresholds (number of candidates to be placed on the reserve list) to 
be applied across all selections. Once the Hiring Manager Guidelines are adopted, candidates 
will be informed accordingly. Also, for further clarity, EMA Rating Scales will be clearly 
referenced in the final report of each selection. 

b) The conflicts of interests were managed in line with the Agency’s policy. The Agency notes 
the observation and will include such information in the final evaluation report. 

c) Considering that the vacancy notice constitutes the legal framework for each selection, the 
Agency notes the observation and will strive to adapt its internal procedure. 

3.19.11. The minimum turnover was set up in compliance with the Financial Regulation on the 
basis of the value of the contract as estimated at that time. EMA acknowledges that the final 
value of the contract was significantly lower. For this tender, most companies were grouped 
into consortia to increase capacity to deliver the complex Clinical Trial Information System 
(CTIS), resulting in a significantly higher turnover (on average 50 times higher) than the 
indicated minimum €11 million turnover. Therefore EMA considers that this had no negative 
effect on competition. The Agency notes the observation and will continue carefully assessing 
minimum turnover requirements taking into account business imperatives. 

 
 
European Public Prosecutor’s Office (EPPO) 

183 

3.20. European Public Prosecutor’s 
Office (EPPO) 

Introduction 

3.20.1. The European Public Prosecutor’s Office (“EPPO”), which is located in 
Luxembourg, was set up by Regulation (EU) 2017/1939109 to investigate and prosecute 
offences affecting the EU’s financial interests. Currently, 22 EU Member States are part of 
EPPO. Each of these Member States appoints a European Prosecutor to EPPO that constitute 
EPPO’s College, its governing body. The College is chaired by the European Chief Prosecutor. 
Each participating Member State also has at least two European Delegated Prosecutors who 
conduct investigations in their home country. EPPO started operations on 1 June 2021, and has 
been financially autonomous since 24 June 2021. Figure 3.20.1 presents key figures for 
EPPO110. 

Figure 3.20.1 – Key figures for EPPO 

Budget (million euros)*

Staff (as at 31 December)**

27

122

2021

2020

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EPPO for the 2020 and 2021 financial years; staff figures provided by EPPO. 

Information in support of the statement of assurance 

3.20.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

109 Regulation (EU) 2017/1939 implementing enhanced cooperation on the establishment of 

the European Public Prosecutor’s Office. 

110 More information on EPPO’s role and activities is available on its website: 

www.eppo.europa.eu. 

 
 
                                                             
184 

European Public Prosecutor’s Office (EPPO) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EPPO’s management. 

3.20.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EPPO’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.20.4. We have audited: 

(a) 

the accounts of the European Public Prosecutor’s Office (“EPPO”), which 
comprise the financial statements111 and the reports on the implementation of 
EPPO’s budget112 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.20.5. In our opinion, EPPO’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EPPO’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

111 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

112 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Public Prosecutor’s Office (EPPO) 

185 

Emphasis of matter 

3.20.6. We draw attention to Note 2.1, 2.2 and 3.1 of EPPO’s final accounts, which 
disclose that the majority of the assets included in the accounts were transferred to EPPO 
from the Commission free of charge. We also draw attention to Note 4.2, which discloses 
that EPPO received office space free of charge from the Host Member State. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.20.7. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.20.8. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.20.9. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.20.10. In 2021, 21 % of EPPO’s payments were made late. In addition, EPPO relied on 
interim staff for processing payments, which goes against EPPO’s financial rules113. These 
shortcomings also reflect a lack of resources allocated to finance and procurement functions, 
and constitute a weakness in EPPO’s human resources management. 

3.20.11. EPPO has not yet signed a lease agreement with the Host Member State for its 
premises as mentioned in article 3.2 of the Headquarters Agreement. The lack of a written 

113 Article 41(1) of Decision of the College of EPPO 002/2021. 

 
 
                                                             
186 

European Public Prosecutor’s Office (EPPO) 

lease agreement deprives EPPO and its staff of the certainty and stability needed to perform 
their duties. 

3.20.12. EPPO has not yet established comprehensive internal procedures regarding its 
organisational structure and the ex-ante controls associated with the operational and financial 
aspects of its operations. The lack of formalised procedures hinders the implementation of 
management directives, and may pose a risk to the achievement of EPPO’s objectives. 

3.20.13. EPPO has not yet adopted a comprehensive Business Continuity Plan. The lack 
of an established and comprehensive Business Continuity Plan constitutes a major internal 
weakness in EPPO’s procedures. 

3.20.14. In one recruitment procedure, we found no evidence that EPPO had 
established a minimum number of points that the candidates had to gain in order to be 
shortlisted before it examined their applications. This undermined the principles of 
transparency and equal treatment. 

 
 
187 

European Public Prosecutor’s Office (EPPO) 

EPPO’s reply 

3.20.10. 34% of the late payments were 1 day late and 75% of the late payments were less 
than 5 days late. The EPPO however acknowledge that its capacity to process timely invoices 
should be improved. Initiating as early as possible its prosecution and investigative roles 
required to dynamically adapt the EPPO control framework as activities grew and staff was 
made available. These constraints led to accept a limited and transparently disclosed use of 
interim staff as part of the risk based management in place. In the broader context of the 
health crisis, the EPPO continued to recruit staff during 2021 to strengthen its operational and 
administrative capacities. 

3.20.11. It is beyond the EPPO to enforce a specific timeline for the Host Member State to 
define the lease agreement terms. The EPPO did due diligence in collaborating and reminding 
the Host Member State of its obligation on the matter. The Lease Agreement has been signed 
by the EPPO in March 2022 and has been sent to the Host Member State for signature. 

3.20.12. The EPPO has since acquiring financial autonomy from the European Commission (24 
June 2021) continued to apply the same standards of verification of when operating under the 
European Commission. The EPPO takes note of the finding and confirms it is finalising its own 
procedures on the matter. 

3.20.13. The EPPO‘s Business Continuity Plan (BCP) has been initiated in 2021 and should be 
approved during 2022. 

3.20.14. The EPPO takes note of the finding of the ECA and confirms its commitment to 
transparency and equal treatment of all candidates. 

 
 
 
 
European Training Foundation (ETF) 

188 

3.21. European Training Foundation 
(ETF) 

Introduction 

3.21.1. The European Training Foundation (“the ETF”), which is located in Turin, was 
established by Council Regulation (EEC) No 1360/90114 (recast Regulation (EC) No 1339/2008 of 
the European Parliament and of the Council115). The ETF’s task is to support the reform of 
vocational training in the European Union’s partner countries. To do this, it assists the 
European Commission in the implementation of various vocational training programmes. 
Figure 3.21.1 presents key figures for the ETF 116. 

Figure 3.21.1 – Key figures for the ETF 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

21

21

130

124

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the ETF for the 2020 and 2021 financial years; staff figures provided by the 
ETF. 

Information in support of the statement of assurance 

3.21.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the ETF’s management. 

114 Council Regulation (EEC) No 1360/90 establishing a European Training Foundation. 

115 Regulation (EC) No 1339/2008 establishing a European Training Foundation (recast). 

116 More information on the ETF’s role and activities is available on its website: 

www.etf.europa.eu. 

 
 
 
                                                             
European Training Foundation (ETF) 

189 

3.21.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the ETF’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.21.4. We have audited: 

(a) 

the accounts of the European Training Foundation (“the ETF”), which comprise 
the financial statements117 and the reports on the implementation of ETF’s 
budget118 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.21.5. In our opinion, the ETF’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, the ETF’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

117 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

118 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Training Foundation (ETF) 

190 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.21.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.21.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

Follow-up of previous years’ observations 

3.21.8. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Training Foundation (ETF) 

191 

Annex – Follow-up of previous year’s observations 

Year 

2018 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

In a public procurement procedure for temporary agency services, ETF 
applied award criteria that consisted of mostly non-competitive price 
elements. The ETF should use award criteria that focus on competitive 
price elements. 

Outstanding 

(until the contract expires in 2023) 

The ETF did not comply with internal control principle 12 of its own 
internal control framework, under which it must record deviations from 
the rules and procedures in its register of exceptions. In our audit, we 
identified some deviations from established procedures that should have 
been recorded in the register of exceptions. 

Completed 

 
 
 
European Training Foundation (ETF) 

The ETF’s reply 

The Foundation has taken note of the Court’s report. 

192 

 
 
 
 
European Agency for Safety and Health at Work (EU-OSHA) 

193 

3.22. European Agency for Safety and 
Health at Work (EU-OSHA) 

Introduction 

3.22.1. The European Agency for Safety and Health at Work (“EU-OSHA”), which is 
located in Bilbao, was created by Council Regulation (EC) No 2062/94119, which was repealed 
and replaced by Regulation (EU) 2019/126 of the European Parliament and of the Council on 
16 January 2019 120. EU-OSHA's tasks include collecting and disseminating information on 
national and EU priorities in the field of health and safety at work, and supporting national and 
EU organisations involved in making and implementing policies in that field. Figure 3.22.1 
presents key figures for EU-OSHA121. 

Figure 3.22.1 – Key figures for EU-OSHA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

22

20

64

63

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EU-OSHA for the 2020 and 2021 financial years; staff figures provided by  
EU-OSHA. 

Information in support of the statement of assurance 

3.22.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

119 Council Regulation (EC) No 2062/94 establishing a European Agency for Safety and Health 

at Work. 

120 Regulation (EU) 2019/126 establishing the European Agency for Safety and Health at Work 

(EU-OSHA). 

121 More information on EU-OSHA’s role and activities is available on its website: 

www.osha.europa.eu. 

 
 
 
                                                             
194 

European Agency for Safety and Health at Work (EU-OSHA) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EU-OSHA’s management. 

3.22.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EU-OSHA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.22.4. We have audited: 

(a) 

the accounts of the European Agency for Safety and Health at Work  
(EU-OSHA), which comprise the financial statements122 and the reports on the 
implementation of EU-OSHA’s budget123 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.22.5. In our opinion, EU-OSHA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EU-OSHA’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 

122 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

123 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
195 

European Agency for Safety and Health at Work (EU-OSHA) 

the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.22.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.22.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.22.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.22.9. In one open procurement procedure divided into lots, we noted that in one lot, 
the members of the evaluation committee had signed the declaration of absence of conflicts of 
interest only after the contract was awarded. This represents a weakness in the procurement 
procedure and goes against the requirements of Articles 61 and 150 of the Financial 
Regulation. 

Follow-up of previous years’ observations 

3.22.10. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
196 

European Agency for Safety and Health at Work (EU-OSHA) 

Annex – Follow-up of previous year’s observations 

Year 

2018 

2019 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The level of committed appropriations carried forward to 2019 was high 
for Title II and for Title III. EU-OSHA should analyse the reasons for 
excessive carry-forwards and improve budget planning accordingly. 

The amounts of carry-forwards suggests an overestimation of budgetary 
needs, and contradicts the budgetary principle of annuality. 

Completed 

Completed 

 
 
 
European Agency for Safety and Health at Work (EU-OSHA) 

EU-OSHA’s reply 

The Agency has taken note of the Court’s report. 

197 

 
 
 
 
198 

European Foundation for the Improvement of Living and Working Conditions (Eurofound) 

3.23. European Foundation for the 
Improvement of Living and Working 
Conditions (Eurofound) 

Introduction 

3.23.1. The European Foundation for the Improvement of Living and Working Conditions 
(“Eurofound”), which is located in Dublin, was established by Council Regulation (EEC) 
No 1365/75124, repealed and replaced by Regulation (EU) 2019/127 of the European 
Parliament and of the Council 125. Eurofound’s task is to contribute to the planning and 
establishment of better living and working conditions in the EU by increasing and 
disseminating knowledge which is relevant to this subject. Figure 3.23.1 presents key figures 
for Eurofound 126. 

Figure 3.23.1 – Key figures for Eurofound 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

27

27

96

95

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of Eurofound for the 2020 and 2021 financial years; staff figures provided by 
Eurofound. 

124 Regulation (EEC) No 1365/75 on the creation of a European Foundation for the 

improvement of living and working conditions. 

125 Regulation (EU) 2019/127 establishing the European Foundation for the improvement of 

living and working conditions (Eurofound). 

126 More information on Eurofound’s role and activities is available on its website: 

www.eurofound.europa.eu. 

 
 
 
                                                             
199 

European Foundation for the Improvement of Living and Working Conditions (Eurofound) 

Information in support of the statement of assurance 

3.23.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by Eurofound’s management. 

3.23.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of Eurofound’s management and of those charged with 
governance, and the auditor’s responsibilities for the audit of the accounts and underlying 
transactions. The signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.23.4. We have audited: 

(a) 

the accounts of the European Foundation for the Improvement of Living and 
Working Conditions (“Eurofound”), which comprise the financial statements127 
and the reports on the implementation of Eurofound’s budget128 for the 
financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

127 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

128 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Foundation for the Improvement of Living and Working Conditions (Eurofound) 

200 

Reliability of the accounts 

 Opinion on the reliability of the accounts 

3.23.5. In our opinion, Eurofound’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, Eurofound’s financial position at 31 December 
2021, the results of its operations, its cash flows, and the changes in net assets for the 
year then ended, in accordance with its Financial Regulation and with accounting rules 
adopted by the Commission’s accounting officer. These are based on internationally 
accepted accounting standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.23.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.23.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.23.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on the legality and regularity of transactions 

3.23.9. In our audit report for the 2019129 financial year, we concluded that the 
procurement procedure for the supply of electricity was irregular. As a result, all subsequent 

129 Paragraph 17 of ECA’s annual report on the annual accounts of Eurofound for the financial 

year 2019.  

 
 
                                                             
European Foundation for the Improvement of Living and Working Conditions (Eurofound) 

payments made in connection with this contract are irregular. In 2021, the associated 
payments amounted to €30 689. The underlying contract has expired in June 2021. 

201 

Follow-up of previous years’ observations 

3.23.10. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
202 

European Foundation for the Improvement of Living and Working Conditions (Eurofound) 

Annex – Follow-up of previous year’s observations 

Year 

2019 

2019 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The procurement for the supply of electricity was irregular. As a result, 
all subsequent payments associated with this contract are irregular. 

A procurement procedure for the refurbishment of sanitary facilities was 
irregular. 

Eurofound has a policy in place defining its sensitive functions and 
related mitigating controls, but the inventory of sensitive posts has not 
been updated since 2012, and no longer reflects Eurofound’s current 
internal organisation. Following our audit, Eurofound implemented a 
new policy on sensitive posts on 23 June 2021. 

Ongoing 

N/A 

Completed 

 
 
 
203 

European Foundation for the Improvement of Living and Working Conditions (Eurofound) 

Eurofound’s reply 

3.23.9. The 2019 finding was already accepted, and the contract ended in June 2021. The 
associated payments in 2021 were a direct consequence of the original tender procedure. The 
internal procedures for procurement were adjusted accordingly. The final payments from 
January to June 2021 were executed according to our legal obligation. 

 
 
 
 
European Union Agency for Criminal Justice Cooperation (Eurojust) 

3.24. European Union Agency for 
Criminal Justice Cooperation (Eurojust) 

204 

Introduction 

3.24.1. The European Union Agency for Criminal Justice Cooperation (“Eurojust”), which 
is located in The Hague, was set up by Regulation (EU) 2018/1727 of the European Parliament 
and of the Council130. Eurojust’s mission is to support the fight against serious organised crime 
by improving the coordination of cross-border investigations and prosecutions. Figure 3.24.1 
presents key figures for Eurojust131. 

Figure 3.24.1 – Key figures for Eurojust 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

57

51

254

242

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of Eurojust for the 2020 and 2021 financial years; staff figures provided by 
Eurojust. 

Information in support of the statement of assurance 

3.24.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by Eurojust’s management. 

3.24.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of Eurojust’s management and of those charged with governance, 

130 Regulation (EU) 2018/1727 on the European Union Agency for Criminal Justice Cooperation. 

131 More information on Eurojust’s role and activities is available on its website: 

www.eurojust.europa.eu. 

 
 
 
 
                                                             
European Union Agency for Criminal Justice Cooperation (Eurojust) 

and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

205 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.24.4. We have audited: 

(a) 

the accounts of the European Union Agency for Criminal Justice Cooperation 
(“Eurojust”), which comprise the financial statements132 and the reports on the 
implementation of Eurojust’s budget133 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.24.5. In our opinion, Eurojust’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, Eurojust’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

132 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

133 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Union Agency for Criminal Justice Cooperation (Eurojust) 

206 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.24.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.24.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.24.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on the legality and regularity of transactions 

3.24.9. In our audit report for the 2020134 financial year, we concluded that a 
procurement procedure for leasing of vehicles was irregular. As a result, all subsequent 
payments made based on this framework contract are irregular. In 2021, the associated 
payments amounted to €34 022. 

Follow-up of previous years’ observations 

3.24.10. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

134 Paragraph 3.27.9 of the ECA’s annual report on EU agencies for the financial year 2020 

 
 
                                                             
207 

European Union Agency for Criminal Justice Cooperation (Eurojust) 

Annex – Follow-up of previous year’s observations 

Year 

2020 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Eurojust signed a framework contract with a single company for the 
leasing of vehicles. As the vehicle-leasing market is subject to frequent 
fluctuations in price, Eurojust should have reopened the procurement 
procedure when a vehicle was required. 

Eurojust signed a specific contract whose pricing deviated from the price 
lists attached to the original framework contract. Eurojust approved the 
invoice and made the payment to the contractor without noticing the 
discrepancy in the hourly pricing rate. This indicates weaknesses in 
Eurojust’s internal controls. 

Ongoing 

N/A 

 
 
 
European Union Agency for Criminal Justice Cooperation (Eurojust) 

208 

Eurojust’s reply 

The Agency has taken note of the ECA’s report. 

 
 
 
 
European Union Agency for Fundamental Rights (FRA) 

3.25. European Union Agency for 
Fundamental Rights (FRA) 

209 

Introduction 

3.25.1. The European Union Agency for Fundamental Rights (“the FRA”), which is 
located in Vienna, was established by Council Regulation (EC) No 168/2007135. The FRA 
provides assistance and expertise in implementing EU law related to fundamental rights to EU 
and Member State authorities. Figure 3.25.1 presents key figures for the FRA136. 

Figure 3.25.1 – Key figures for the FRA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

33

30

101

105

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the FRA for the 2020 and 2021 financial years; staff figures provided by the 
FRA. 

Information in support of the statement of assurance 

3.25.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the FRA’s management. 

3.25.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the FRA’s management and of those charged with governance, 

135 Council Regulation (EC) No 168/2007 establishing a European Union Agency for 

Fundamental Rights. 

136 More information on the FRA’s role and activities is available on its website: 

www.fra.europa.eu. 

 
 
 
                                                             
European Union Agency for Fundamental Rights (FRA) 

and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

210 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.25.4. We have audited: 

(a) 

the accounts of the European Union Agency for Fundamental Rights (“the 
FRA”), which comprise the financial statements137 and the reports on the 
implementation of the FRA’s budget138 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.25.5. In our opinion, the FRA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, the FRA’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

137 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

138 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Union Agency for Fundamental Rights (FRA) 

211 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.25.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.25.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.25.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on budgetary management 

3.25.9. We found that the FRA had carried over €7 million (27 %) of 2021 commitment 
appropriations to 2022. Of that amount, €6.7 million (96 %) related to operational activities. 
Recurrent high rates of carry-overs contradict the budgetary principle of annuality and are 
indicative of structural issues in the implementation of the budget. 

Follow-up of previous years’ observations 

3.25.10. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Union Agency for Fundamental Rights (FRA) 

Annex – Follow-up of previous year’s observations 

Year 

2018 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Carry-overs of committed appropriations were high for operating 
expenditure and only partially justified. The FRA should improve its 
budget planning and its implementation cycles. 

Ongoing 

212 

 
 
 
European Union Agency for Fundamental Rights (FRA) 

The FRA’s reply 

213 

3.25.9. The level of carry-overs mainly reflects the nature of the Agency’s core business 
including activities that span several months, possibly extending beyond the end of a year. To 
improve its budget planning and its implementation cycles, the Agency has established a 
monitoring tool on planned carry overs from one year to the next. 

The Agency believes that a good budget implementation is also measured by the outturn rate 
(above 99.5%) and, consequently, the low level of cancelled appropriations. 

 
 
 
214 

Agencies funded under MFF heading 3 
– Natural Resources and Environment 

 
 
 
 
European Environment Agency (EEA) 

215 

3.26. European Environment Agency 
(EEA) 

Introduction 

3.26.1. The European Environment Agency (“the EEA”), which is located in Copenhagen, 
was established by Council Regulation (EEC) No 1210/90139, repealed and replaced by 
Regulation (EC) No 401/2009 of the European Parliament and of the Council140. The EEA is 
responsible for an observation network to provide the Commission, the Parliament, the 
Member States and, more generally, the public with reliable information on the state of the 
environment. Figure 3.26.1 presents key figures for the EEA 141. 

Figure 3.26.1 – Key figures for the EEA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

92

97

230

213

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the EEA for the 2020 and 2021 financial years; staff figures provided by the 
EEA. 

Information in support of the statement of assurance 

3.26.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the EEA’s management. 

139 Regulation (EEC) (No) 1210/90 on the establishment of the European Environment Agency 

and the European Environment Information and Observation Network. 

140 Regulation (EC) No 401/2009 on the European Environment Agency and the European 

Environment Information and Observation Network. 

141 More information on the EEA’s role and activities is available on its website: 

www.eea.europa.eu. 

 
 
                                                             
European Environment Agency (EEA) 

216 

3.26.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the EEA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.26.4. We have audited: 

(a) 

the accounts of the European Environment Agency (“the EEA”), which 
comprise the financial statements142 and the reports on the implementation of 
the EEA’s budget143 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.26.5. In our opinion, the EEA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, the EEA’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its financial regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

142 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

143 The reports on the implementation of the budget comprise the reports which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Environment Agency (EEA) 

217 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.26.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.26.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.26.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on the legality and regularity of transactions 

3.26.9. The EEA amended a framework service contract for the provision of building 
repair and maintenance services by doubling the initial maximum budget from €500 000 to 
€1 000 000. The legal justification used was the derogation applicable to negotiated 
procedures without prior publication, as laid down in paragraphs 11.1(e) and 11.4 of Annex I to 
the Financial Regulation. The cumulative conditions of paragraphs 11.1(e) and 11.4 were not 
met. In such cases, Article 172 (3) of the Financial Regulation allows contracts to be modified 
without a new procurement procedure, under certain conditions, but in most cases with a limit 
on the value of the modification. These conditions were not met for the contract modification 
in question. Therefore, the amendment was irregular. However, in 2021 there were no related 
payments. 

Observations on management and control systems 

3.26.10. We audited a framework contract for the provision of canteen and catering 
services on EEA premises. We found that the initial contract had been extended on two 
separate occasions: in February 2021 by eight months, and again in December 2021 by another 
six months, increasing the total duration from 48 months to 62 months. The EEA’s internal 
control standards require it to document, justify and approve all deviations from established 

 
 
European Environment Agency (EEA) 

218 

policies and procedures. Concerning the first extension above, the EEA did not file any 
exception note. Regarding the second extension, the EEA drew up such a note to the file, but 
had not filed it in the central register of exceptions at the time of the ECA’s audit in 
February 2022. 

3.26.11. In a service contract for the provision of the Geographic Information System 
support services, the EEA used a contract amendment to extend the performance of the 
services by one month, from 28 February 2021 to 31 March 2021. However, the amendment 
only entered into force on 22 March 2021 when signed by both contracting parties, effectively 
leaving a period of 22 days of service provision with no contract. Although the EEA had 
discovered this, as demonstrated by the retroactive effect of the amendment (from 
28 February 2021), no exception note was filed. 

3.26.12. We audited a payment made under a framework contract for the provision of 
IT services. Under this contract, the EEA could order ancillary, non-core services under a 
separate work package. The price for these ancillary services depended on the daily rates for 
the different consultancy profiles, and whether the services were performed on or off-site. The 
audited transaction included an amount of €25 000 for such ancillary consultancy services. We 
found that the EEA had paid this amount without first verifying which exact profiles and daily 
rates the contractor had effectively applied when delivering and invoicing the services. 

 
 
219 

European Environment Agency (EEA) 

EEA’s reply 

Observations on the legality and regularity of transactions 

3.26.9. The Agency confirms having carried out a negotiated procedure pursuant to Article 
164.1(d) of the Financial Regulation and point 11.1(e) of Annex I thereto, namely negotiated 
procedure without publication of a contract notice Ref. No EEA/ADS/21/003 as evidenced by 
the invitation to tender registered both in the Agency’s Management Plan System and in its 
Documents Management System. In doing so, the Agency consulted thoroughly the general 
guidance from the Central Financial Service Helpdesk of DG BUDG which provides for a step-
by-step procurement process leading to the amendment of the existing contract. 

The responsible authorising officer signed the award decision for this negotiated procedure on 
19.10.2021, whereas a contract award notice indicating the new total budget of the 
framework contract was published on TED on 21.12.2021. 

Observations on management and control systems 

3.26.10. The Agency had initially planned launching a call for tenders for the award of a new 
framework service contract for the provision of canteen and catering services in the last 
quarter of 2020. The constantly evolving COVID pandemic hindered however the planning and 
compelled the Agency to seek alternatives to ensure the business continuity, owing to the 
important role played by the canteen in terms of social cohesion and wellbeing for staff 
members in period of crisis. 

The Agency acknowledges that the third amendment to the framework contract leading to the 
first extension of its duration was not supplemented by an exception note. The exception note 
for the second extension was attached as supporting document in the ARES signatory 
workflow for the signature of the fourth amendment to the framework contract, but not 
included in the central register of exceptions. 

3.26.11. The Agency confirms the facts established by the ECA in their findings and 
observation. Although the Agency’s representatives discussed and agreed with the supplier in 
early February, an extension of the specific contract, owing to an oversight, the issuing and 
signature of the amendment was delayed. 

The Agency will reinforce its controls and procedures firstly, to lessen the risk of delays in 
entering into contract extensions and secondly, to ensure exception notes are filed where 
involuntary breaches of the Finance Regulation occur. 

3.26.12. The Agency takes note of the ECA’s analysis. The budget estimate of this consultancy 
task came from an exchange between the project manager and the service provider. An 
estimation of 35 person days, based on Senior consultancy rate (P2), amounting to EUR 25 
000, was deemed reasonable in the project manager’s best professional judgement. The offer 
provided in reply to the request for services was perfectly aligned with what had been 

 
 
European Environment Agency (EEA) 

220 

discussed and agreed and, therefore, accepted as a lump sum. The provision of timesheets for 
this component was not requested. 

The Agency takes note of the ECA’s concerns and confirms that it has taken steps to address 
them for future orders. 

 
 
 
 
European Fisheries Control Agency (EFCA) 

3.27. European Fisheries Control 
Agency (EFCA) 

221 

Introduction 

3.27.1. The European Fisheries Control Agency (“EFCA”), which is located in Vigo, was 
established by Council Regulation (EC) No 768/2005144, repealed and replaced by Regulation 
(EU) 2019/473 of the European Parliament and of the Council145. EFCA’s main task is to 
organise the operational coordination of fisheries control and inspection activities by the 
Member States in order to ensure an effective and uniform application of the rules of the 
common fisheries policy. Figure 3.27.1 presents key figures for EFCA146. 

Figure 3.27.1 – Key figures for EFCA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

25

20

80

81

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EFCA for the 2020 and 2021 financial years; staff figures provided by EFCA. 

The budget of EFCA was reinforced in 2021 in view of additional activities assigned to EFCA in 
the framework of the Trade and Cooperation Agreement with the UK. 

Information in support of the statement of assurance 

3.27.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

144 Council Regulation (EC) No 768/2005 establishing a Community Fisheries Control Agency. 

145 Regulation (EU) 2019/473 on the European Fisheries Control Agency. 

146 More information on EFCA’s role and activities is available on its website: 

www.efca.europa.eu. 

 
 
 
                                                             
222 

European Fisheries Control Agency (EFCA) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EFCA’s management. 

3.27.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EFCA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.27.4. We have audited: 

(a) 

the accounts of the European Fisheries Control Agency (EFCA), which comprise 
the financial statements147 and the reports on the implementation of EFCA’s 
budget148 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.27.5. In our opinion, EFCA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EFCA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

147 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

148 The reports on the implementation of the budget comprise the reports which aggregate all 

budgetary operations and the explanatory notes. 

 
 
                                                             
European Fisheries Control Agency (EFCA) 

223 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.27.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.27.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

 
 
 
European Fisheries Control Agency (EFCA) 

EFCA’s reply 

The Agency has taken note of the Court’s report 

224 

 
 
 
 
225 

Agencies funded under MFF heading 4 
– Migration and Border Management 

 
 
 
 
European Asylum Support Office (EASO) 

226 

3.28. European Asylum Support Office 
(EASO) 

Introduction 

3.28.1. The European Asylum Support Office (“EASO”) was located in Valletta. It was 
established by Regulation (EU) No 439/2010 of the European Parliament and of the Council149 
to enhance practical cooperation on asylum matters and to help Member States fulfil their 
European and international obligations to give protection to people in need. It had regional 
offices in Italy and Greece and, from 2018, in Cyprus. In 2022, it was superseded 150 by the 
European Union Agency for Asylum (“EUAA”), which assumed all of EASO’s responsibilities and 
legal commitments, as well as a number of new tasks associated with the Common European 
Asylum System. Figure 3.28.1 presents key figures for EASO151. 

Figure 3.28.1 – Key figures for EASO 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

177

149

423

380

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EASO for the 2020 and 2021 financial years; staff figures provided by EASO. 

Information in support of the statement of assurance 

3.28.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EASO’s management. 

149 Regulation (EU) No 439/2010 establishing a European Asylum Support Office. 

150  Regulation (EU) No 2021/2303 on the European Union Agency for Asylum. 

151 More information on EASO’s role and activities is available on its website: 

www.easo.europa.eu. 

 
 
 
                                                             
European Asylum Support Office (EASO) 

227 

3.28.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EASO’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.28.4. We have audited: 

(a) 

the accounts of the European Asylum Support Office (“EASO”), which comprise 
the financial statements152 and the reports on the implementation of EASO’s 
budget153 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.28.5. In our opinion, EASO’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EASO’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

152 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

153 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Asylum Support Office (EASO) 

228 

Emphasis of matter 

3.28.6. We draw attention to note 3.7.1 of EASO’s final accounts, which discloses 
that the lack of human resources in 2022 may limit the ability to perform some of the 
tasks of its new EUAA mandate; and to note 3.7.2, which discloses that the financial 
effects of the Russian war of aggression against Ukraine cannot be reliably estimated. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.28.7. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.28.8. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.28.9. The observations which follow do not call the ECA’s opinion into question. 

Observations on legality and regularity of transactions 

3.28.10. In our report for the 2017154 and 2020155financial years, we concluded that the 
procurement procedures for rented premises in Lesbos and Rome were irregular. As a result, 
all subsequent payments made in connection with these procedures are irregular. In 2021, the 
associated payments amounted to €362 204. 

154 Paragraph 3.20.23 of ECA’s annual report on EU agencies for the financial year 2017. 

155 Paragraph 3.20.12 of ECA’s annual report on EU agencies for the financial year 2020. 

 
 
                                                             
European Asylum Support Office (EASO) 

229 

Follow-up of previous years’ observations 

3.28.11. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Asylum Support Office (EASO) 

230 

Annex – Follow-up of previous year’s observations 

Year 

2017 

2017 

2017 

2017 

2017 

2018 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

EASO did not achieve the target for staff recruitment set out in its 
establishment plan. 

Contract monitoring for compliance with national rules on interim 
workers was poor. 

In 2017, we found that EASO’s procedures for monitoring travel-related 
expenditure were weak. In particular, supporting documents were often 
not required. EASO is carrying out an internal inquiry into this matter. 

There were significant weaknesses in the areas of needs assessment and 
amendments to contracts. 

In its audit reports for the 2017 financial year, the ECA concluded that 
the procurement procedures for EASO’s rented premises in Lesbos were 
irregular. As a result, all subsequent payments on this contracts are 
irregular. 

Contracts with IT companies were formulated in a way that could imply 
the assignment (“mise à disposition”) of temporary agency workers 
instead of clearly defined IT services or products. This would contravene 

Completed 

Completed 

Completed 

Completed 

Ongoing 

Completed 

 
 
European Asylum Support Office (EASO) 

231 

Year 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

the EU Staff Regulations and EU social and employment rules. EASO 
should ensure that contracts are drafted in a way which prevents any 
confusion between the procurement of IT services and of interim 
workers. 

2018 

EASO should establish effective financial ex-post controls. 

2018 

2019 

2020 

2020 

The procurement of interim workers in Italy was irregular. As a result, all 
subsequent payments under this contract are irregular. 

The procedures used for selecting and contracting external experts 
systematically lacked a solid audit trail (as set out in Article 36(3) of the 
Financial Regulation). As a result, all subsequent payments on these 
contracts are irregular. 

The procurement procedure used for the rented premises in Rome was 
irregular. As a result, all subsequent payments under these contracts are 
irregular. 

A high number of management posts are vacant, of these many had 
been occupied on an acting basis for more than one year. This is at odds 
with the Staff Regulations, which limits the duration of temporary 
management appointments to one year. This precarity at the level of 
managerial positions may impair EASO’s leadership and its strategic 
continuity. 

Ongoing 

Completed 

Completed 

Ongoing 

Ongoing 

 
 
European Asylum Support Office (EASO) 

232 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The carry-overs to 2021 on Title III and the cancellation rate of budget 
appropriation from 2019 to 2020 were high. EASO should improve its 
budget planning and its implementation cycles. 

EASO has not updated its policy for the management and prevention of 
conflict of interest. 

EASO had not finalised and adopted a business continuity plan. The size 
and complexity of EASO’s operations, and recent events such as the 
COVID-19 pandemic, underline the importance of having a formalised, 
up-to-date business continuity plan in place. The issue constitutes an 
internal weakness in EASO’s procedures. Following our audit, EASO 
approved its business continuity plan on 31 May 2021. 

We note a case pending before the European General Court case  
T-621/20 (EMCS), challenging the outcome of the procurement 
procedure for the provision of temporary agency workers in Malta. 

Completed 

Ongoing 

Completed 

Completed 

Year 

2020 

2020 

2020 

2020 

 
 
 
European Asylum Support Office (EASO) 

EASO’s reply 

The Agency has taken note of the ECA's report. 

233 

 
 
 
 
234 

European Union Agency for the Operational Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

3.29. European Union Agency for the 
Operational Management of Large-
Scale IT Systems in the Area of 
Freedom, Security and Justice (eu-LISA) 

Introduction 

3.29.1. The European Union Agency for the Operational Management of Large-Scale IT 
Systems in the Area of Freedom, Security and Justice (“eu-LISA”), which is located in Tallinn, 
Strasbourg and St Johann im Pongau, was established by Regulation (EU) No 1077/2011 of the 
European Parliament and of the Council156, repealed and replaced by Regulation (EU) 
2018/1726 of the European Parliament and of the Council, which strengthened the mandate of 
eu-LISA157. The core mission of eu-LISA is to fulfil the operational management tasks for the 
Second Generation Schengen Information System (SIS II), the Visa Information System (VIS) 
and the European System for the comparison of fingerprints (Eurodac). The 2018 extension of 
eu-LISA’s mandate covers the development and operational management of the Entry/Exit 
System of non-EU nationals and the European Travel Information and Authorisation System. 
Figure 3.29.1 presents key figures for eu-LISA158. 

156 Regulation (EU) No 1077/2011 establishing a European Agency for the operational 
management of large-scale IT systems in the area of freedom, security and justice. 

157 Regulation (EU) 2018/1726 on the European Union Agency for the Operational 

Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice 
(eu-LISA). 

158 More information on eu-LISA’s role and activities is available on its website: 

https://www.eulisa.europa.eu. 

 
 
                                                             
235 

European Union Agency for the Operational Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

Figure 3.29.1 – Key figures for eu-LISA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

264

256

310

274

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of eu-LISA for the 2020 and 2021 financial years; staff figures provided by eu-
LISA. 

Information in support of the statement of assurance 

3.29.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by eu-LISA’s management. 

3.29.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of eu-LISA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

 
 
 
European Union Agency for the Operational Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

236 

Opinion 

3.29.4. We have audited: 

(a) 

the accounts of the European Union Agency for the Operational Management 
of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-
LISA), which comprise the financial statements159 and the reports on the 
implementation of eu-LISA’s budget160 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.29.5. In our opinion, eu-LISA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, eu-LISA’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

159 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

160 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Union Agency for the Operational Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

237 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.29.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Basis for a qualified opinion on the legality and regularity of the payments underlying 
the accounts 

3.29.7. We audited 28 eu-LISA payments. Of these, six were non-compliant. We 
also identified other payments, outside our initial sample, affected by the same non-
compliance. The total amount of expenditure affected is €18.11 million. This represents 
6.2 % of the total payment appropriations available in 2021. This exceeds the materiality 
threshold set for this audit. 

3.29.8. eu-LISA signed a specific contract of €40 million to implement a framework 
contract related to large-scale IT systems, without specifying the details of the services 
acquired (quantities, date of deliveries). The specific contract contained generic 
provisions and stated that service request forms would contain further details. The 
duration of the specific contract was more than three years. Because of its extended 
duration and lack of precision on the services and dates required, in practice, the specific 
contract worked like a framework contract inside another framework contract. According 
to eu-LISA’s explanation, the reason for signing such a contract was to create a legal 
commitment to allow the carryover of funds that would have otherwise been cancelled 
by the end of 2018. For the 2019 financial year161, we reported about the risk associated 
with the practice of giving resources to eu-Lisa before the adoption of legislation 
(including delegated and implementing regulations) defining the requirements for the IT 
systems to be developed. 

We consider that the specific contract did not properly implement the framework 
contract because it did not create a clear legal commitment. The payments made in 2021 

161 Report on the annual accounts of the European Union Agency for the Operational 

Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice 
(eu-LISA) for the financial year 2019, paragraph 19. 

 
 
                                                             
European Union Agency for the Operational Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

238 

linked to this specific contract, with a total value of €15.67 million, are non-compliant 
with article 73(3) of eu-Lisa’s Financial Regulation. 

3.29.9. For three of the audited payments, we found that specific contracts 
fundamentally deviated from framework contracts, and that no amendments were made 
to the framework contracts. As a result the specific contracts were non-compliant with 
the framework contracts, as were the associated 2021 payments of €2.44 million. 

For one specific contract related to the Maintenance of the Common Shared 
Infrastructure (CSI) catalogue that included a fixed part and a variable part, we found that 
while the fixed part corresponded to the price of the framework contract, the variable 
part was nearly ten times higher. After an amendment to the specific contract the 
variable part was more than 22 times higher than the initial amount of the framework 
contract. In addition, the pricing structure of the specific contract does not correspond to 
the one of the framework contract. We audited a payment of €796 838.82 related to this 
contract. 

For another specific contract, the contractual delivery dates were not respected. 
Nevertheless, eu-LISA paid €1.2 million without a modification to the specific contract and 
the framework contract. 

For another specific contract related to fixed price elements, the value of the contract, 
€1.77 million, corresponded to the value of the framework contract. Subsequently,  
eu-LISA signed an amendment to the specific contract and increased the amount to 
€2.15 million. We audited a payment of €443 684.32 related to this contract. 

In previous years, we and the Commission’s Internal Audit Service reported non-
compliances and deficiencies in eu-LISA’s internal control systems related to procurement 
and contract management. 

Qualified opinion on the legality and regularity of payments underlying the accounts 

3.29.10. In our opinion, except for the issues explained in the “Basis for a qualified 
opinion on the legality and regularity of the payments” paragraph, the payments 
underlying the accounts for the year ended 31 December 2021 are legal and regular in all 
material respects. 

3.29.11. The observations which follow do not call the ECA’s opinion into question. 

Observation on management and control systems 

3.29.12. Eu-LISA amended the value of three contracts, two in 2021 and one 2019: one 
for the Implementation and Maintenance in Working Order of the Entry Exit System (EES), one 
for the provision of the Common Shared Infrastructure (CSI) and one for the Maintenance in 
Working Order of the Schengen Information System (MWO SIS II). 

 
 
239 

European Union Agency for the Operational Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

The amendments increased the maximum amount of the contracts by 50 % (€70.4 million, 
€20 million and €40 million respectively). 

The CSI and the MWO SIS II contracts expire in 2022 and the EES contract expires in 2023. The 
amount committed at the signature of the amendment was less than 50 % for the CSI contract, 
86 % for the MWO SIS II contract and 76 % for the EES contract. 

In 2020 Eu-LISA signed new contracts under its new procurement approach for the Transversal 
Engineering Framework (TEF). In addition, the Transversal Operational Framework (TOF) 
contracts are to be signed in 2022. These contracts supersede the contracts amended. 

Because the contracts amended were close to expiry and that the amount committed was still 
considerably lower than the maximum amount of the contract, eu-LISA could have used the 
TEF and TOF contracts as soon as possible instead of amending the legacy contracts by the 
maximum amount allowed by the Financial Regulation. 

3.29.13. For two audited payments with a total value of €2.56 million, we found that 
products that were included in the specific contract were not included in the framework 
contract. 

Eu-LISA should improve the contracts management in order to assure that specific contracts 
are always aligned with the framework contracts. 

Observations on budgetary management 

3.29.14. We found that eu-LISA had carried over €11.41 million of 2021 commitment 
appropriations to 2022. Of that amount, €11.1 million, (97 %), related to administrative 
expenditure (Title II). Recurrent high rates of carry-overs contradict the budgetary principle of 
annuality and are indicative of structural issues in the implementation of the budget. 

Follow-up of previous years’ observations 

3.29.15. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA) 

Annex – Follow-up of previous year’s observations 

240 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Year 

2017 

2018 

eu-LISA currently manages three separate, non-integrated large-scale IT 
systems (SIS II, VIS and Eurodac), all dealing with data in the EU’s policy 
area of freedom, security and justice. Such an approach may prevent eu-
LISA from achieving economies of scale and synergies between the 
different systems. 

eu-LISA increased the prices of a framework contract without amending 
it and extended one specific contract after the expiry of the framework 
contract. 

2018/2019/2020 

Budget implementation was less than planned. eu-LISA, together with 
the European Commission, should improve alignment of budgetary 
planning with the timing of the related legal acts. 

2019 

eu-LISA made a payment of €284 000 for services provided in a time 
period not covered by the underlying framework contract. 

2020 

eu-LISA signed a specific contract for software different from the 
software offered by the contractor in its tender for the associated 
framework contract. Acquiring a different product which is not included 
in the price offer, at a different price than the product originally offered, 
is a deviation from the framework contract. The specific contract is 

Ongoing 

(Not under the control of the eu-LISA) 

N/A 

Ongoing 

N/A 

N/A 

 
 
241 

European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA) 

Year 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

therefore non-compliant with the framework contract, as is the 
associated payment of €10.4 million. 

2020 

eu-LISA signed an order form for maintenance services covering the 
period from 7 November 2020 to December 2024 (four years). This 
contravened the provisions of the framework contract, which allowed 
services to be invoiced in advance for one year. 

N/A 

 
 
 
European Union Agency for the Operational Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

242 

eu-LISA’s reply 

3.29.7. The Agency takes note of the ECA’s conclusion. 

3.29.8. The Agency takes note of the ECA’s observation. Specific contract (SC) 19/2018 was 
signed at a time when the budget made available in 2017 for the Exit Entry System – Visa 
Information System interoperability had to be committed by end 2018 or lost. It was only in 
February 2019 that the Commission Implementing Decision was adopted, and all necessary 
technical aspects became definitively known. 

The Implementing Decision allowed the Agency to implement SC 19 through 36 Service 
Requests, which provide a clear and detailed description of tasks, deliverables and timelines. 
Payments were based on Service Requests signed by an authorising officer, not on the SC only. 

The Agency is of the view that: 

•  payments were executed in respect of the underlying Framework Contract, Specific 

Contract and Service Request; 

•  no prejudice to the EU financial interests occurred; 
• 
• 

the project on the EES-VIS integration is nearing successful conclusion; 
the inscription of resources in the Agency’s budget for legislation not yet adopted by 
the co-legislators introduces significant risks to sound financial management. Such 
risks have been systematically reported to the Management Board. 

3.29.9. The Agency takes note of the ECA’s observation. Regarding the payment of € 1.2 
million (for the modular data centre) the Agency would like to clarify that the contracted 
services and products were eventually fully delivered and the non-compliance of the payment 
did not have a negative effect on the EU budget. 

For the other two payments, the Agency is of the view that the requirements of the project 
needed adaptation due to factors outside the control of the Agency. Furthermore, the Agency 
has already taken actions to reinforce contract monitoring practices. 

3.29.12. The Agency takes note of the observation which does not call into question the 
legality and regularity of the amendments. The Agency has already undertaken a transition to 
horizontal procurement with the Transversal Engineering Framework, recently complemented 
by the Transversal Operational Framework. 

3.29.13. The Agency takes note of the observation and is revising its processes in order to 
respond to change management by prior amendment of Framework Contracts when required. 

3.29.14. The Agency takes note of the ECA’s observation. In this context, the Agency would like 
to emphasise that the 2021 global implementation rate was 100% in both commitment and 

 
 
European Union Agency for the Operational Management of Large-Scale IT Systems in the Area 
of Freedom, Security and Justice (eu-LISA) 

payment appropriations. In addition, cancellations of carry-overs in administrative expenditure 
in 2021 were reduced in half, compared to 2020. 

243 

 
 
 
 
European Border and Coast Guard Agency (Frontex) 

3.30. European Border and Coast 
Guard Agency (Frontex) 

244 

Introduction 

3.30.1. The European Border and Coast Guard Agency (Frontex), which is located in 
Warsaw, was established by Regulation (EU) 2016/1624 of the European Parliament and of the 
Council162, repealed and replaced by Regulation (EU) 2019/1896 of the European Parliament 
and of the Council163. Frontex is the successor to the European Agency for the Management of 
Operational Cooperation at the External Borders of the Member States of the European Union, 
created by Council Regulation (EC) No 2007/2004164. Frontex and the national authorities of 
Member States responsible for border management and return operations jointly constitute 
the European Border and Coast Guard, sharing responsibilities for ensuring European 
integrated border management and managing entries across the external borders efficiently. 
Figure 3.30.1 presents key figures for Frontex 165. 

Figure 3.30.1 – Key figures for Frontex 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

741

495

1 554

1 234

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of Frontex for the 2020 and 2021 financial years; staff figures provided by 
Frontex. 

162 Regulation (EU) 2016/1624 on the European Border and Coast Guard. 

163 Regulation (EU) 2019/1896 on the European Border and Coast Guard. 

164 Council Regulation (EC) No 2007/2004 establishing a European Agency for the Management 
of Operational Cooperation at the External Borders of the Member States of the European 
Union. 

165 More information on Frontex’s role and activities is available on its website: 

www.frontex.europa.eu. 

 
 
 
                                                             
European Border and Coast Guard Agency (Frontex) 

The significant increase in Frontex’s budget and staff figures is due to the enlarged mandate 
under Regulation (EU) 2019/1896. 

245 

Information in support of the statement of assurance 

3.30.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by Frontex’s management. 

3.30.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of Frontex’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.30.4. We have audited: 

(a) 

the accounts of the European Border and Coast Guard Agency (Frontex), which 
comprise the financial statements166 and the reports on the implementation of 
Frontex’s budget167 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

166 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies, and other explanatory notes. 

167 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Border and Coast Guard Agency (Frontex) 

246 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.30.5. In our opinion, Frontex’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, Frontex’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its financial regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Emphasis of matter 

3.30.6. We refer to Note 4.0.4 “Other important information regarding the budget 
implementation” on the carry-over to 2021 of a budgetary commitment dated 
21 December 2020 “Preparatory measures for 2021 deployments SC Cat 1 and 2” without 
the backing of a legal commitment before the end of 2020. We reported this issue in our 
2020 specific annual report168. The total payments in 2021 were €18 375 458. Frontex 
addressed this non-compliance by means of subsequent legal commitments throughout 
2021. 

3.30.7. We draw attention to Note 4.0.3 “The financing sources of the budget”, 
which explains that contributions from non-EU Schengen area countries (SAC) and, in 
consequence, the balancing EU contribution are not correctly calculated. The EU 
contribution is overstated by €2.6 million and the SAC contributions are understated by 
the same amount. As the EU contribution is a balancing contribution, and there is a 
surplus in 2021, there is no impact on the operating revenue of the statement of financial 
performance for the year 2021. 

3.30.8. We draw attention to Note 1.3 “Certification of the accounts” where the 
Accounting Officer declares the lack of the necessary information for the validation of a 
new system laid down by the authorising officer and used for supplying accounting 
information. 

168 Annual Report on EU Agencies for the financial year 2020, paragraph 3.30.15. 

 
 
                                                             
European Border and Coast Guard Agency (Frontex) 

247 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.30.9. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.30.10. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

Emphasis of matter 

3.30.11. We note that the emphasis of matter paragraph for reliability of the 
accounts described in paragraph 3.30.6 also applies in full for the legality and regularity of 
payments. 

3.30.12. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.30.13. In July 2021, Frontex launched a procurement procedure for a framework 
contract with a single contractor for a maximum duration of four years, for the provision of 
travel services including the deployment of the Standing Corps. The contract was signed at the 
end of December 2021. We found the following: 

(a)  For the evaluation of technical and professional capacity, Frontex required bidders 

to provide an experienced team of at least 10 travel agents plus a team manager, 
without requiring a minimum size in terms of overall staff. Setting the technical and 
professional capacity requirement so low exposed Frontex to a risk that the 
contractor would not be able to deliver the contracted services at the minimum 
quality and on time. 

 
 
248 

European Border and Coast Guard Agency (Frontex) 

(b) 

In order to assess the economic and financial capacity of bidders, Frontex based its 
work on the estimated value of the contract, which was €15 million. However, this 
amount included only the fees paid to the contractor and not the underlying value 
of the contract covering planned mission costs, which were estimated at 
approximately €240 million. Frontex required bidders to demonstrate an average 
annual turnover of at least €2 million. Setting the financial capacity requirement so 
low exposed Frontex to a risk that the contract would not be performed correctly. 

In February 2022, Frontex suspended the contract due to lack of performance that resulted in 
serious disruptions of business continuity. In May 2022, following verifications, the contract 
was terminated. 

3.30.14. Frontex’s internal guidelines for recruitment procedures require selection 
committees to attempt to reach their conclusions by consensus. In two audited recruitment 
procedures, we found that the selection committees applied the arithmetical average of their 
members’ individual assessments, instead of a consensual method. Furthermore, there was a 
lack of clear standards or instructions to selection committee members on how to assess the 
individual selection criteria. These design and implementation weaknesses undermine the 
principles of transparency and equal treatment of the candidates in recruitment procedures 
and may expose Frontex to reputational and legal risks. 

3.30.15. The authorising officers (by delegation or sub-delegation) approving payments 
in 2021, as well as the related legal and budgetary commitments, had not formally accepted 
the conditions of the Executive Director’s Decision of 22 December 2020 on delegations. 
Moreover, they have not formally declared their compliance with Article 4 of the decision on 
the declaration of the absence of conflicts of interest. This is a serious internal control 
weakness in Frontex’s delegation process. 

3.30.16. In May 2021, Frontex signed multiple interinstitutional framework contracts 
through the re-opening of competition for the provision of personal protective equipment and 
sanitary items. The contracts did not have a standard price list but included a maximum gross 
margin percentage for every product ordered. When implementing the contracts, Frontex did 
not carry out systematic checks on the gross margin applied to some of the orders placed. This 
is not compliant with the Financial Regulation and constitutes an internal weakness in 
Frontex’s ex-ante controls. 

3.30.17. We also found the following internal control weaknesses in Frontex’s 
procurement procedures: 

(a)  For a framework contract comprising two lots, Frontex had published the award 
decision significantly later than the deadlines set by the Financial Regulation. 

 
 
249 

European Border and Coast Guard Agency (Frontex) 

(b) 

In another procurement procedure, in order to assess bidders’ economic and 
financial capacity Frontex requested twice the average minimum annual turnover 
allowed by the Financial Regulation. Setting a higher threshold is only allowed in 
duly justified cases. However, there was no documented justification for using a 
higher threshold amount. 

3.30.18. In the case of three audited grant agreements, the beneficiaries did not 
respect the 75-day deadline after the end of the agreements for requesting final payment. 
Frontex did not ensure that the processing and final monitoring of these grants was carried out 
at the right time. Furthermore, it did not make final payments within 60 days of receiving the 
corresponding requests for payment of the balance. These delays in the process are in breach 
of the grant agreement provisions and the Financial Regulation, and constitute a systematic 
issue with Frontex’s grant payment cycle. 

3.30.19. Our overall analysis of payments made in 2021 showed that: 

(a)  out of 7 776 payment requests, 1 269 were settled late (16.3 %, 2020: 23 %); 

(b)  out of the total value of payment requests (€317 994 125), €39 731 717 was paid 

late (12.5 %, 2020: 12.1 %); 

(c)  of the 1 269 late payments, 1 205 had been legally required within 30 days (2020: 

1 932 payments), and 62 within 60 days (2020: 38 payments). 

These payment delays are a serious deficiency in Frontex’s internal controls. 

Follow-up of previous years’ observations 

3.30.20. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Border and Coast Guard Agency (Frontex) 

Annex – Follow-up of previous year’s observations 

250 

Year 

2015 

2015 

2016 

2017 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

There is an unaddressed risk of double funding from the Internal Security 
Fund managed by the European Commission and Frontex funding. 

Completed 

Completed 

States participating in border operations declare the costs incurred on 
the basis of cost claim sheets. The ECA in its special report 12/2016 
recommended that agencies should use simplified cost options 
whenever appropriate to avoid such inefficiencies. 

for the deployment of human resources 

Ongoing 

for the deployment of heavy technical equipment 

The level of carry-overs was high. There is a need to obtain more precise 
cost estimates and more timely cost reporting from cooperating 
countries. Frontex may also consider introducing differentiated budget 
appropriations. 

Although Frontex already moved to its current premises in 2014, it still 
has no comprehensive Business Continuity Plan approved by the 
Management Board. 

Ongoing 

Completed 

 
 
European Border and Coast Guard Agency (Frontex) 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

251 

The ex-ante verifications were ineffective. Frontex should work on the 
development of a simplified and transparent financing scheme that also 
covers equipment-related costs. 

Completed 

for ex-ante verifications 

Ongoing 

for the simplification of costs related to heavy 
technical equipment 

Year 

2018 

2018 

Frontex should adopt and implement a sensitive post policy. 

2018 

The budget carry-overs to 2019 and the cancelled carry-overs in 2018 
were high. Frontex should strive for more precise cost estimates and 
budget forecasts. 

2018/2019 

Frontex did not reach the required occupancy laid down in the staff 
establishment plan. Frontex should improve the guidance given to 
selection committee members and verify more closely the candidates’ 
financial entitlements for salary payments. 

2020 

Declaration by a national authority of unannounced return operations 
totalling €355 000 in a grant agreement at the financial closure of the 
action. Frontex made an ex-post budgetary commitment to cover the 
resulting budget deficit, which is not in line to its financial regulation. 

Ongoing 

Ongoing 

Ongoing 

Ongoing 

 
 
European Border and Coast Guard Agency (Frontex) 

252 

Year 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

2020 

Ombudsman opened two inquiries: (a) In November 2020 it assessed the 
effectiveness and transparency of Frontex's Complaint's mechanism and 
the role and independence of Frontex’s ‘Fundamental Rights Officer’ and 
issued on 15 June 2021 nine suggestions. (b) In March 2021 aimed to 
look into how Frontex complies with its fundamental rights obligations 
and ensure accountability in relation to its new enhanced 
responsibilities. There are also two ongoing investigations: (a) From OLAF 
over allegations of harassment, misconduct and migrant pushbacks 
concerning Frontex and (b) from the European Parliament (EP) into 
possible allegations of violations of fundamental rights in Frontex. 

2020 

Delay in the recruitment of the required 40 fundamental rights monitors, 
which poses a serious risk to the operations and reputation of Frontex. 

2020 

Frontex was exposed to reputational damage and litigation due to offers 
for AD7 posts sent to 47 advanced-level candidates (instead of the 
approved AST posts), in anticipation of the Commission’s reply on the 
posts. Commission subsequently concluded that Frontex had not legal 
authority to upgrade these posts. 

Ongoing 

Ongoing 

Ongoing 

2020 

No registration of an authorised exception in a payment schedule 
governing a contract, into Frontex's central registry. 

Completed 

 
 
European Border and Coast Guard Agency (Frontex) 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

253 

The four Schengen Associated Countries (SAC) contributions in Frontex 
initial budget are understated as they made up of 6.91 % instead of 
7.43 % of the budget. There is a need for horizontal guidance from the 
European Commission to EU bodies on how to calculate contributions 
from non-EU countries consistently. 

A provisional budgetary commitment of €18.1 million for the preparation 
of field deployments in 2021 was carried forward without Frontex having 
entered into legal commitments within the time limit laid down in 
Article 75 of the Frontex’s Financial Regulation. 

When calculating its performance indicators, Frontex treated the 
reductions to the budget not as amending budgets but as acts of budget 
implementation which contradicts two decisions by the Management 
Board. 

An increase of €10 million of the EU funding by the EU amending budget 
no1 is not visible in Frontex’s budgetary accounts. This reduces 
transparency. 

Outstanding 

N/A 

Outstanding 

N/A 

Year 

2020 

2020 

2020 

2020 

 
 
European Border and Coast Guard Agency (Frontex) 

Frontex’s reply 

254 

3.30.7. In 2021 MB has decided that the Agency should continue using the same calculation 
method, taking into account internal advice and the several meetings on the topic. The annual 
report from ECA for the 2020 accounts indicates that in this matter there is the need for 
horizontal guidance of the EC in this matter to all bodies, not only Frontex, and that the issue 
of different interpretation of the legal framework regarding contributions by non-EU countries, 
is also highlighted in ECA review 3/2021. 

3.30.13. The Agency takes note and will follow up this observation in the upcoming public 
procurement procedures. 

3.30.14. Frontex acknowledged a room for improvement in the implementation of the defined 
rules on selection procedures and in January 2022 adopted more clear instructions to the 
selection committee members ensuring more consistent assessment and harmonised 
procedures. 

3.30.15. There was indeed an oversight at the time the ED Decision on the budget 
implementation powers was approved. This was a result of all AOs having it already signed at 
the time the new decision was approved. This was detected during the year, and it will be 
corrected in 2022 with a new ED Decision. In the meantime, new AOs were required to sign 
the documentation. 

3.30.16. The Agency accepted, that as binding obligation, the margin will be checked by the 
Contract Managers of the Contracting Authority unilaterally, whenever it is decided, following 
a relevant risk assessment. 

3.30.17. a) The Agency agrees with the finding. The Agency incorporated a control mechanism 
to monitor and prevent such situations in the future. 

b) The Agency takes note of the finding and that this exception was not documented in the 
procurement file. The Agency, in order to safeguard its financial interests and to ensure that 
the contractor would be able to manage such a contract and order scheme, indicated that 
level of turnover, after having assessed thoroughly various factors: 

The level of annual turnover in similar tenders at national and international level and 

• 
the specificities of the market of weapons and ammunition. 

• 

The analysis by a defence procurement advisor contracted by the Authority. 

3.30.18. The Agency takes note of the finding. Grant Agreements issued by Frontex cover 
deployments of technical equipment and human resources in various locations in the Member 
States, therefore the process of collection of documents by the central financial unit is lengthy. 
Moreover, in case of deployment of heavy technical equipment, there are multiple service 
providers to the MS beneficiaries and late submission of invoices, causes delays in the process. 

 
 
255 

European Border and Coast Guard Agency (Frontex) 

The Agency often needs to cooperate with new beneficiaries that are not familiar with grant 
provisions. This may generally imply additional challenges in getting the required 
documentation on time. 

3.30.19. The Agency takes note of the finding and would like to underline that there are 
various reasons for these delays that are not always under the Agency’s control. For example, 
several late payments, with high amounts that stem from delays of the Member States in 
introducing their claims for grants. The Agency is committed to continuously improving in the 
field of late payments. 

 
 
 
256 

Agencies funded under MFF heading 5 
– Security and Defence 

 
 
 
 
European Union Agency for Law Enforcement Training (CEPOL) 

3.31. European Union Agency for Law 
Enforcement Training (CEPOL) 

257 

Introduction 

3.31.1. The European Union Agency for Law Enforcement Training (“CEPOL”), which is 
located in Budapest, was established by Regulation (EU) 2015/2219169 of the European 
Parliament and of the Council. CEPOL’s task is to function as a network and to bring together 
the national police training institutes in the Member States to provide training sessions, based 
on common standards, for senior police agents. Figure 3.31.1 presents key figures for 
CEPOL170. 

Figure 3.31.1 – Key figures for CEPOL 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

30

32

95

84

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of CEPOL for the 2020 and 2021 financial years; staff figures provided by 
CEPOL. 

Information in support of the statement of assurance 

3.31.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by CEPOL’s management. 

3.31.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of CEPOL’s management and of those charged with governance, 

169 Regulation (EU) 2015/2219 on the European Union Agency for Law Enforcement Training. 

170 More information on CEPOL’s role and activities is available on its website: 

www.cepol.europa.eu. 

 
 
 
                                                             
European Union Agency for Law Enforcement Training (CEPOL) 

and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

258 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.31.4. We have audited: 

(a) 

the accounts of the European Union Agency for Law Enforcement Training 
(“CEPOL”), which comprise the financial statements171 and the reports on the 
implementation of CEPOL’s budget172 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.31.5. In our opinion, CEPOL’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, CEPOL’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

171 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

172 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Union Agency for Law Enforcement Training (CEPOL) 

259 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.31.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.31.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.31.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on the legality and regularity of transactions 

3.31.9. CEPOL had a valid framework contract on travel arrangement services until 
March 2022, the scope of which did not include certain countries outside EU. Travel services 
for these non-EU countries were covered by other contracts until the end of 2020. Due to the 
COVID-19 pandemic, it was uncertain whether actual on-site events could be organised. In 
summer 2021, it became probable that CEPOL, despite the still very unpredictable travel 
situation related to COVID-19, might need to organise on-site activities in non-EU countries. 
After assessing the situation and the various available options, CEPOL opted to use the existing 
framework contract to cover the events in these countries, although they did not fall within 
the scope of the contract. This contravened the Article 172 of the Financial Regulation. CEPOL 
noted this decision in its registry of exceptions. The related payments, amounting to €76 590 in 
2021, are irregular. In January 2022, CEPOL signed a new framework covering events in those 
countries. 

Observations on management and control systems 

3.31.10. In August 2021, CEPOL launched a procurement procedure for a framework 
contract with a single operator for the provision of educational editorial services, for a value of 
€1 080 000. We found that in one award criterion CEPOL evaluated higher the winning bidder, 

 
 
260 

European Union Agency for Law Enforcement Training (CEPOL) 

which used its subcontractor’s prior CEPOL experience, to include in its offer more CEPOL-
related content. The other two bidders provided offers with more generic content and were 
scored lower. However, the tender specifications for that award criterion did not clearly 
require such CEPOL-related content. In addition, given that the procurement was for editing 
educational content which is produced by law enforcement experts, the emphasis on CEPOL-
related content in the procedure was not justified. Nevertheless, we found no evidence that 
the result of the procurement would have been different, had the criterion in question been 
assessed differently. 

3.31.11. In another procurement procedure, we noticed an overlap between selection 
criteria and award criteria. A lack of clear separation between the two constitutes a procedural 
weakness, compromises the principle of transparency and exposes CEPOL to reputational and 
legal risks. 

3.31.12. For a training event that took place in December 2019, CEPOL failed to 
monitor outstanding payments and closed the budgetary commitment in December 2020. 
Immediately afterwards, it received three invoices amounting to €28 032 related to this event. 
To pay them, CEPOL had to open a new budgetary commitment in February 2021. This internal 
control failure exposed CEPOL to the risk of not meeting its financial obligations towards third 
parties in case of budget restrictions. 

Follow-up of previous years’ observations 

3.31.13. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Union Agency for Law Enforcement Training (CEPOL) 

Annex – Follow-up of previous year’s observations 

261 

Year 

2016 

2020 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Staff turnover is high, which may impact business continuity and CEPOL’s 
ability to implement the activities provided for in its work programme. 
There was only a limited number of employment applications from other 
Member States. 

CEPOL paid a cancellation fee of €5 335 for a hotel booking in Budapest 
which was cancelled due to COVID-19 restrictions imposed by the 
Hungarian government. It did not invoke the "force majeure" clause in 
the framework contract, which could have allowed to cancel the 
reservation without cost.  

We observed weaknesses in CEPOL’s internal control environment, in 
relation to the management of budgetary commitments; (a) CEPOL 
signed three legal commitments before the respective budgetary 
commitments had been approved; (b) two different specific contracts 
(legal commitments) were linked with the same individual budgetary 
commitment. 

N/A 

N/A 

Ongoing 

 
 
 
262 

European Union Agency for Law Enforcement Training (CEPOL) 

CEPOL’s reply 

3.31.9. The Agency has taken note of the Court's findings. Under the 2018 framework contract, 
CEPOL introduced a disclaimer to exclude booking of local transportation, accommodation, 
restaurants and meeting venues booked in specific countries in the context of CEPOL projects. 
This is a significant clarification, since all tenderers that submitted a tender in the original 
procedure were still supposed to be able to provide those services in those countries for 
activities that were not related to CEPOL projects. To ensure transparency, we have formalised 
an exception note with proposals to reduce to the minimum the usage of the 2018 framework 
contract in project activities in non-EU countries, thus covering exclusively for urgent business 
needs. We therefore consider this is a justified exception to the rules in order to ensure 
business continuity and sound financial management until the finalisation of an open 
procedure that resulted in the signing of a new all-inclusive framework contract with no 
limitations in January 2022.  

3.31.10. The Agency has taken note of the Court’s findings; CEPOL established award criteria 
and weightings with the aim to award the contract to the tender offering the best value for 
money. The scoring method, emphasising how CEPOL would provide higher scores for tenders 
providing “added value” was also published under the award criteria section. The effort put by 
tenderers to make specific reference to CEPOL educational context as described under the 
award criteria section was recognised and where the offer contained solutions that went 
beyond the required solution, “added value” was recognised and awarded through points. 
However, tenderers that did not make a specific reference were not deemed non-compliant 
under this criterion.  

3.31.11. The Agency has taken note of the Court's findings. CEPOL as a complement to the 
award criteria, indicated information to be provided with the technical offer, not with the aim 
to assess the capacity of tenderers, but to support the elaboration of how the works would be 
executed in full compliance with the relevant standards.  

3.31.12. The Agency acknowledges and accepts the Court's findings. CEPOL has regular 
contract management training for project managers and other relevant staff and will repeat 
them in 2022 to increase awareness and reduce occurrence of such cases. 

 
 
 
 
European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) 

3.32. European Monitoring Centre for 
Drugs and Drug Addiction (EMCDDA) 

263 

Introduction 

3.32.1. The European Monitoring Centre for Drugs and Drug Addiction (“the EMCDDA”), 
which is located in Lisbon, was created by Council Regulation (EEC) No 302/93173, which was 
repealed by Regulation (EC) No 1920/2006 of the European Parliament and of the Council174. 
The EMCDDA’s main task is to collect, analyse and disseminate information about drugs and 
drug addiction in order to prepare and publish objective, reliable and comparable information 
at European level. The information is intended to provide a basis for analysing demand for 
drugs and ways of reducing it, as well as other phenomena associated with the drug market. 
Figure 3.32.1 presents key figures for the EMCDDA 175. 

Figure 3.32.1 – Key figures for the EMCDDA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

25

23

110

102

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the EMCDDA for the 2020 and 2021 financial years; staff figures provided by 
the EMCDDA. 

Information in support of the statement of assurance 

3.32.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

173 Regulation (EEC) No 302/93 establishing a European Monitoring Centre for Drugs and Drug 

Addiction. 

174 Regulation (EC) No 1920/2006 on the European Monitoring Centre for Drugs and Drug 

Addiction. 

175 More information on the EMCDDA’s role and activities is available on its website: 

www.emcdda.europa.eu. 

 
 
 
                                                             
264 

European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the EMCDDA’s management. 

3.32.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the EMCDDA’s management and of those charged with 
governance, and the auditor’s responsibilities for the audit of the accounts and underlying 
transactions. The signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.32.4. We have audited: 

(a) 

the accounts of the European Monitoring Centre for Drugs and Drug Addiction 
(“the EMCDDA”), which comprise the financial statements176 and the reports 
on the implementation of the EMCDDA’s budget177 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.32.5. In our opinion, the EMCDDA’s accounts for the year ended 31 December 
2021 present fairly, in all material respects, the EMCDDA’s financial position at 
31 December 2021, the results of its operations, its cash flows, and the changes in net 
assets for the year then ended, in accordance with its Financial Regulation and with 

176 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

177 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) 

accounting rules adopted by the Commission’s accounting officer. These are based on 
internationally accepted accounting standards for the public sector. 

265 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.32.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.32.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

Follow-up of previous years’ observations 

3.32.8. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
266 

European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) 

Annex – Follow-up of previous year’s observations 

Year 

2018 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The EMCDDA hired interim workers through a framework contract 
without respecting the requirements of Directive 2008/104/EC and of 
the Portuguese labour law. The EMCDDA should analyse the working 
conditions of its interim workers and ensure they are in line with 
European and national labour law. 

Ongoing 

 
 
 
European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) 

The EMCDDA’s reply 

The EMCDDA has no comments/remarks. 

267 

 
 
 
 
European Union Agency for Law Enforcement Cooperation (Europol) 

3.33. European Union Agency for Law 
Enforcement Cooperation (Europol) 

268 

Introduction 

3.33.1. The European Union Agency for Law Enforcement Cooperation (“Europol”), 
which is located in The Hague, was established by Regulation (EU) 2016/794 of the European 
Parliament and of the Council of 11 May 2016178 replacing and repealing Council Decision 
(2009/371/JHA)179. Europol’s objective is to support action by the Member States’ police 
authorities and other law enforcement services. It also supports mutual cooperation in 
preventing and combating serious crime affecting two or more Member States, forms of crime 
which affect a common interest covered by EU policy, and terrorism. Figure 3.33.1 presents 
key figures for Europol180. 

Figure 3.33.1 – Key figures for Europol 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

210

183

979

884

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of Europol for the 2020 and 2021 financial years; staff figures provided by 
Europol. 

Information in support of the statement of assurance 

3.33.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

178 Regulation (EU) 2016/794 on the European Union Agency for Law Enforcement Cooperation 

(Europol). 

179 Council Decision of 6 April 2009 establishing the European Police Office (Europol). 

180 More information on Europol’s role and activities is available on its website: 

www.europol.europa.eu. 

 
 
 
                                                             
269 

European Union Agency for Law Enforcement Cooperation (Europol) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by Europol’s management. 

3.33.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of Europol’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.33.4. We have audited: 

(a) 

the accounts of the European Union Agency for Law Enforcement Cooperation 
(“Europol”), which comprise the financial statements181 and the reports on the 
implementation of Europol’s budget182 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.33.5. In our opinion, Europol’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, Europol’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 

181 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

182 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
270 

European Union Agency for Law Enforcement Cooperation (Europol) 

the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.33.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.33.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.33.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.33.9. Between 2019 and 2021, Europol assessed two cases of a potential conflict of 
interest in relation to a senior member of staff taking up a new job elsewhere. In the one case 
we reviewed, we found that, in contravention of Article 16 of the Staff Regulations, Europol 
did not issue its decision within the deadline and thus effectively authorised the person 
concerned to take up the new job without any restrictions. 

Follow-up of previous years’ observations 

3.33.10. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Union Agency for Law Enforcement Cooperation (Europol) 

Annex – Follow-up of previous year’s observations 

271 

Year 

2018 

2019 

2019 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Europol irregularly prolonged the duration of a framework contract for 
the provision of business travel services after it expired, and introduced 
new price aspects. Europol’s contract management and ex-ante controls 
should be improved. 

Europol irregularly prolonged the duration of a framework contract for 
the provision of business travel services by signing two amendments to it 
after it had expired in 2018. This demonstrates weaknesses in contract 
management and ex-ante controls. 

The tender specifications for a framework contract for furniture, 
accessories and related services were not specific enough. This 
undermined the competitive nature of the tendering procedure. Europol 
should ensure that tender specifications are sufficiently well thought out 
to allow fair and effective competition, so that procurement procedures 
deliver the best possible value for money. 

Europol had paid late in 33 % of cases. We observed similar levels of 
delays in 2019, 2018 and 2017. This recurrent weakness exposes Europol 
to reputational risk. 

Completed 

Completed 

N/A 

Ongoing 

 
 
272 

European Union Agency for Law Enforcement Cooperation (Europol) 

Europol’s reply 

3.33.9. Europol takes note of the ECA’s observation and will adapt its procedures for 
communicating to the concerned senior staff member the related decision within the 
applicable timelines. From a present-day assessment of the case ex-post, Europol ascertains 
that the organisation was not exposed to a conflict of interest situation under Article 16 of the 
EU Staff Regulations, and thus no restrictions were required. 

 
 
 
273 

Agencies funded under MFF heading 7 
– European Public Administration 

 
 
 
 
Euratom Supply Agency (ESA) 

274 

3.34. Euratom Supply Agency (ESA) 

Introduction 

3.34.1. The Euratom Supply Agency (‘’ESA’’), located in Luxembourg, was created in 
1958183. Its statutes were overhauled by Council Decision 2008/114/EC, Euratom 184. ESA's 
main task is to ensure there is a regular supply of nuclear materials, in particular nuclear fuels, 
to EU users. It does so by managing a common supply policy based on the principle of equal 
access to sources of supply. Figure 3.34.1 presents key figures for ESA185. 

Figure 3.34.1 – Key figures for ESA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

0.3

0.4

16

16

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of ESA for the 2020 and 2021 financial years; staff figures provided by ESA. 

Information in support of the statement of assurance 

3.34.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by ESA’s management. 

3.34.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of ESA’s management and of those charged with governance, and 

183 OJ 27, 6.12.1958, p. 534/58. 

184 Council Decision 2008/114/EC, Euratom establishing Statutes for the Euratom Supply 

Agency. 

185 More information on ESA’s role and activities is available on its website: 

http://ec.europa.eu/euratom/index.html. 

 
 
 
                                                             
Euratom Supply Agency (ESA) 

275 

the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.34.4. We have audited: 

(a) 

the accounts of the Euratom Supply Agency (ESA), which comprise the financial 
statements186 and the reports on the implementation of ESA’s budget187 for 
the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.34.5. In our opinion, ESA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, ESA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

186 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

187 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
Euratom Supply Agency (ESA) 

276 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.34.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.34.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

Follow-up of previous years’ observations 

3.34.8. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
Euratom Supply Agency (ESA) 

277 

Annex – Follow-up of previous year’s observations 

Year 

2020 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Carry-overs of committed appropriations were high for Title II 
(administrative expenditure). This creates risks on the implementation of 
the payment appropriations of 2021 considering that in the previous 
years there was high cancellation rate. The ESA should further improve 
its budget planning and its implementation cycles. 

Completed 

 
 
 
Euratom Supply Agency (ESA) 

ESA’s reply 

The Agency has taken note of the ECA's report. 

278 

 
 
 
279 

Self-financed Agencies 

 
 
 
Translation Centre for the Bodies of the European Union (CdT) 

280 

3.35. Translation Centre for the Bodies 
of the European Union (CdT) 

Introduction 

3.35.1. The Translation Centre for the Bodies of the European Union (“the CdT”), which 
is located in Luxembourg, was created by Council Regulation (EC) No 2965/94188. The CdT's 
task is to provide European Union bodies with translation services. Figure 3.35.1 presents key 
figures for the CdT189. 

Figure 3.35.1 – Key figures for the CdT 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

56

50

205

207

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the CdT for the 2020 and 2021 financial years; staff figures provided by the 
CdT. 

Information in support of the statement of assurance 

3.35.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the CdT’s management. 

3.35.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the CdT’s management and of those charged with governance, 

188 Regulation (EC) No 2965/94 setting up a Translation Centre for bodies of the European 

Union. 

189 More information on the CdT’s role and activities is available on its website: 

www.cdt.europa.eu. 

 
 
                                                             
Translation Centre for the Bodies of the European Union (CdT) 

and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

281 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.35.4. We have audited: 

(a) 

the accounts of the Translation Centre for the Bodies of the European Union 
(“the CdT”), which comprise the financial statements190 and the reports on the 
implementation of the CdT’s budget191 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.35.5. In our opinion, the CdT’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, the CdT’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

190 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

191 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
Translation Centre for the Bodies of the European Union (CdT) 

282 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.35.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.35.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.35.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on the legality and regularity of transactions 

3.35.9. We observed a number of weaknesses in the CdT’s public procurement 
procedures. In two cases, the CdT had signed a contract using a negotiated procedure with a 
single provider and in one case – with three providers, in all three cases, without the prior 
publication of a contract notice. In two of the three cases, the CdT justified its choice of 
procedure by the need to protect exclusive rights, including intellectual property rights. In the 
other case, it justified its choice of procedure by extreme urgency. In all three cases, we found 
that the CdT’s justification was insufficient, as the intellectual property rights were not 
identified and the extreme urgency was not demonstrated. Consequently, the contracts are 
irregular, as is the total amount of €108 200 in associated payments. 

Observations on management and control systems 

3.35.10. We also found weaknesses in the way that two of these three procedures had 
been documented. In one case, the members of the evaluation committee had not signed 
declarations of absence of conflict of interest. In the other case, the CdT had not taken a 
formal decision not to appoint an evaluation committee, had not issued an evaluation report 
or an award decision, and had not published an award notice. 

 
 
Translation Centre for the Bodies of the European Union (CdT) 

The CdT’s reply 

283 

3.35.9. The Centre takes note of the observation and is committed to take swift action in order 
to ensure that applicable rules and regulations are respected. 

3.35.10. The Centre takes note of the observation and is committed to ensure that all 
pertinent actions are taken in order to address it. 

 
 
 
 
Community Plant Variety Office (CPVO) 

284 

3.36. Community Plant Variety Office 
(CPVO) 

Introduction 

3.36.1. The Community Plant Variety Office (“the CPVO”), which is located in Angers, 
was created by Council Regulation (EC) No 2100/94192. Its main task is to register and examine 
applications for the grant of EU industrial property rights for plant varieties and to ensure that 
the necessary technical examinations are carried out by the competent offices in the Member 
States. Figure 3.36.1 presents key figures for the CPVO193. 

Figure 3.36.1 – Key figures for the CPVO 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

20

20

49

48

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the CPVO for the 2020 and 2021 financial years; staff figures provided by the 
CPVO. 

Information in support of the statement of assurance 

3.36.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the CPVO’s management. 

3.36.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the CPVO’s management and of those charged with 

192 Regulation (EC) No 2100/94 on Community plant variety rights. 

193 More information on the CPVO’s role and activities is available on its website: 

www.cpvo.europa.eu. 

 
 
 
                                                             
Community Plant Variety Office (CPVO) 

governance, and the auditor’s responsibilities for the audit of the accounts and underlying 
transactions. The signature on page 344 forms an integral part of the opinion. 

285 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.36.4. We have audited: 

(a) 

the accounts of the Community Plant Variety Office (“the CPVO”), which 
comprise the financial statements194 and the reports on the implementation of 
the CPVO’s budget195 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.36.5. In our opinion, the CPVO’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, the CPVO’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

194 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

195 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
Community Plant Variety Office (CPVO) 

286 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.36.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.36.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.36.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on the legality and regularity of transactions 

3.36.9. In a procurement procedure for security services, we found the following 
shortcomings. 

(a)  The annual turnover threshold had been set too high in the tender specifications, at 
€240 000, or four times the estimated annual contract value. This goes against 
point 19 of Annex I of the Financial Regulation, which stipulates that the minimum 
yearly turnover must not exceed two times the estimated annual contract value. 
One tenderer had been incorrectly excluded for not reaching this threshold. 

(b)  Another tenderer, a business created in April 2019, was unable to produce annual 

accounts for the last two years to show the required yearly turnover. The evaluation 
committee had not accepted the insurance (to cover a risk of €8 000 000) provided 
by the tenderer, or asked it to demonstrate its financial capacity in another way; for 
example, by producing a business plan for 2021, which contravenes Article 167 of 
the Financial Regulation. The evaluation committee excluded this tenderer. 

Based on the above, we consider that the procurement procedure (which concluded with a 
contract to the value of €249 604 being awarded) and the associated payments (€37 441 in 
2021) were irregular. 

 
 
Community Plant Variety Office (CPVO) 

287 

Follow-up of previous years’ observations 

3.36.10. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
Community Plant Variety Office (CPVO) 

288 

Annex – Follow-up of previous year’s observations 

Year 

2014 

2016 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Although the CPVO became operational in 1995, no headquarters 
agreement has yet been signed with the host Member State. 

The CPVO’s founding Regulation does not require periodic external 
performance evaluations. 

Ongoing 

(Not under the CPVO’s control) 

Ongoing 

(Not under the CPVO’s control) 

 
 
 
289 

Community Plant Variety Office (CPVO) 

CPVO’s reply 

The CPVO takes note of the observations of the Court on the legality and regularity of 
transactions and shall apply this in future procedures. 

 
 
 
 
European Union Intellectual Property Office (EUIPO) 

3.37. European Union Intellectual 
Property Office (EUIPO) 

290 

Introduction 

3.37.1. The European Union Intellectual Property Office (“EUIPO”), which is located in 
Alicante, was established by Regulation (EU) 2017/1001 of the European Parliament and of the 
Council196. EUIPO is responsible for managing the EU trademark and registered Community 
designs, European and international cooperation in the field of intellectual property, as well as 
the European Observatory on Infringements of Intellectual Property Rights. EUIPO is the 
successor of the Office for Harmonisation in the Internal Market (“OHIM”) set up by Council 
Regulation (EC) No 40/94197. Figure 3.37.1 presents key figures for EUIPO198. 

Figure 3.37.1 – Key figures for EUIPO 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

534

465

1 166

1 093

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EUIPO for the 2020 and 2021 financial years; staff figures provided by EUIPO. 

Information in support of the statement of assurance 

3.37.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EUIPO’s management. 

196 Regulation (EU) 2017/1001 on the European Union trade mark. 

197 Regulation (EC) No 40/94 on the Community trade mark. 

198 More information on EUIPO’s role and activities is available on its website: 

www.euipo.europa.eu. 

 
 
 
                                                             
European Union Intellectual Property Office (EUIPO) 

291 

3.37.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EUIPO’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.37.4. We have audited: 

(a) 

the accounts of the European Union Intellectual Property Office (“EUIPO”), 
which comprise the financial statements199 and the reports on the 
implementation of EUIPO’s budget200 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.37.5. In our opinion, EUIPO’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EUIPO’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

199 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

200 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Union Intellectual Property Office (EUIPO) 

292 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.37.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.37.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.37.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on the legality and regularity of transactions 

3.37.9. In our audit report for the 2018201 financial year, we concluded that a 
procurement procedure for cleaning services was irregular. As a result, all subsequent 
payments made based on this framework contract are irregular. In 2021, the associated 
payments amounted to €1 708 242. 

Observations on budgetary management 

3.37.10. EUIPO modified its budget structure in 2021, presenting the payment of 
€8.5 million made to the European School in Alicante under Title 4, “Contribution to EU 
policies”, instead of Title 1, “Expenditure relating to persons working with the Office”, which 
had been the practice in previous years. 

EUIPO justified this change, stating in its accounts that the “financing of the European School 
of Alicante, under a renewed agreement concluded in 2020 in accordance with Article 7 of the 
Office’s Financial Regulation, is treated since 2021 as ‘separate budget items’, within the 
meaning of Article 10(4) of the Office’s Financial Regulation, and therefore funded through the 

201 Paragraph 3.34.8 of ECA’s annual report on EU Agencies for the financial year 2018.  

 
 
                                                             
293 

European Union Intellectual Property Office (EUIPO) 

Office’s financial reserves. This allows for productively mobilising the financial reserves. It is 
therefore reported under a different category together with the other contributions to EU 
policies funded through the financial reserves.” However, we note that the agreement 
concerning the financing of the European School in Alicante by EUIPO does not meet the 
cumulative conditions set in Article 7(1) of the EUIPO’s Financial Regulation, i.e. the 
requirement of making use of specific expertise of the Office and of the contribution to the 
financing of the European School in Alicante falling within EUIPO’s objectives. 

In this context, it should also be noted that under the EU multiannual financial framework 
(MFF), the expenditure for the financing of European Schools is covered under the same 
heading as the administrative expenditure of the institutions, which includes staff expenditure 
(e.g. Heading 7 – European Public Administration of the 2021-2027 MFF or Heading 5 – 
Administration of the 2014-2020 MFF). 

Therefore, and in view of the School’s role in educating EUIPO staff members’ children and its 
contribution to attracting and retaining EUIPO’s highly qualified staff, we consider that EUIPO’s 
payment to the European School is not a contribution to EU policies, as suggested by the 
inclusion of that expenditure in Title 4 of EUIPO’s budget. 

In essence, we consider co-financing of the European School to be an instrument of human 
resources policy, linked to the wellbeing of the EUIPO’s staff and their families. Re-classifying 
the related payments as a contribution to an EU policies goes against the nature of the 
expenditure. 

Follow-up of previous years’ observations 

3.37.11. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Union Intellectual Property Office (EUIPO) 

Annex – Follow-up of previous year’s observations 

294 

Year 

2018 

2019 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

EUIPO signed a contract for cleaning services with a tenderer who 
submitted an abnormally low offer. The procurement procedure and the 
underlying payments are irregular. EUIPO should analyse situations of 
potentially abnormal offers in a rigorous manner to ensure compliance 
with the Financial Regulation and fair competition. 

EUIPO published a vacancy notice to constitute a reserve list of Project 
Specialists in its Customer Department. The vacancy notice established 
two different candidate profiles which were to be evaluated separately. 
However, during the selection process, all candidates were assessed 
against all selection criteria, thus giving an advantage to candidates with 
both profiles. 

Furthermore, in the same procedure, the selection committee replaced a 
candidate who had declined an invitation for an interview with a 
candidate who had not reached the pre-established pass-mark. While 17 
other candidates had been awarded at least the same number of points 
as the invited candidate, the selection committee did not provide any 
documentary justification as to why this candidate, who was already 
employed by EUIPO, had been invited. 

Ongoing 

Ongoing 

 
 
European Union Intellectual Property Office (EUIPO) 

295 

Year 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The selection procedure was therefore irregular, as these weaknesses 
undermined the principles of transparency and equal treatment of 
candidates. 

EUIPO grants an allowance to staff performing stand-by duty in the areas 
of infrastructure. Because the activation of the business continuity plan 
is highly exceptional, we consider that there is no confirmed need for a 
stand-by duty allowance to be paid to the senior management of EUIPO. 
This is in line with the practice in the EU institutions. Furthermore, EUIPO 
should improve the checks it carries out in connection with stand-by duty 
in order to prevent irregular payments. 

In November 2018, the Budget Committee authorised the purchase of 
the plot for €4 700 000. EUIPO did not provide any further evidence to 
demonstrate the need to secure a long-term extension of its premises. 
We therefore consider that buying the land was not a productive use of 
EUIPO’s budget surplus, and contravened the principle of sound financial 
management. 

We recall that in the ECA’s opinion No 01/2019 on EUIPO’s Financial 
Regulation, the ECA concluded that EUIPO’s budget surpluses were not 
being put to any productive use, either at the level of EUIPO or at the 
level of the EU, and that EUIPO, together with the European Commission, 
should explore for example the possibility of using the budget surpluses 

2019 

2019 

2019 

N/A 

N/A 

Completed 

 
 
European Union Intellectual Property Office (EUIPO) 

296 

Year 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

to back up financial instruments supporting European enterprises' 
research and innovation activities and growth. 

 
 
 
European Union Intellectual Property Office (EUIPO) 

EUIPO’s reply 

297 

3.37.9 As stated in the Office’s reply included in the 2018 audit report, the Office has followed 
all steps foreseen by the Financial Regulation when dealing with an offer which could appear 
as abnormally low. Consequently, the Office did not concur with the Court’s statement that 
offering a service (which is exceptional and rarely used) for a reduced price represents unfair 
practice and offers unfair competitive advantage vis-à-vis competitors. 

The Office did not identify any reasons to terminate the contract early and consequently it has 
remained in force until its expiry in March 2022. 

3.37.10 The reporting of the Office’s contribution to the European School of Alicante under 
Title 4 of the budget was performed in 2021 as a consequence of a renewed agreement with 
the Commission and the European School entering into force end of 2020 and with the aim of 
complying with the new provisions of its revised Financial Regulation (which came into force in 
2019), in particular Article 10 (4) which holds, amongst others, that “where the Office 
implements agreements concluded in accordance with Article 7 of this Regulation 
(contribution Agreements, grant agreements and financial framework partnerships), it shall 
hold separate budget items on the revenue and expenditure operations” and in order to 
productively use the budget surplus; alleviating pressure on the EU budget. 

In view of the above, the Office considered appropriate to report separately in its budget the 
co-financing of the complementary contribution which, in the absence of contribution 
agreement with the Office, would continue to be paid by the European Commission from the 
EU budget, in accordance with Article 25 of the Convention defining the Statute of the 
European Schools of 21 June 1994. 

Besides, the agreement, being limited in time and only renewable upon approval of the 
Office’s governing bodies, the Office considers that it does not constitute recurrent 
administrative expenditure of the Office, all the more relevant since the legislator did not 
include this type of expenditure amongst the tasks or other obligations of the Office. 

This was transparently presented to all stakeholders involved in the adoption of the Office’s 
budget and the work programme, including representatives of the European Commission. 

Furthermore, prior to adoption, a formal consultation on the work programme was carried out 
with the European Commission in accordance with the Financial Regulation of the Office and 
did not call its sound character into question. Also, the SPD template expressly provides for 
contribution agreements by agencies with the European Commission for the European 
Schools. 

The Office’s co-financing of the European School is performed via a tri-partite agreement, most 
recently renewed in 2020 for a period of 5 years. With this agreement, the Office continued to 
pay a complementary contribution with own financial resources. 

 
 
298 

European Union Intellectual Property Office (EUIPO) 

The final beneficiary of the agreement between the Commission, the Office and the European 
School is the Commission since the former reduced its financing to the European school 
against the Office´s contribution. 

The Office considers that reporting the co-financing of the European School of Alicante as staff 
related cost under the operational budget would go against the requirements (“shall hold 
separate budget items”) of Article 10(4) of the Financial Regulation. 

Given that the expenditures relating to the Contribution relate to an agreement signed 
between EUIPO, the Commission and the European Schools based on Article 7, the Office 
considers that the use of the surplus for the financing of the contribution and its itemisation in 
Title 4 is not only legal but also legitimate. 

For this reason, the Office considers that the contribution to the European School does not 
correspond to recurrent administrative expenditure of the Office since the agreement is 
limited in time and there is no legal instrument other than the agreement that would require 
the Office to pay the contribution (contractual nature). 

The Office will however take into consideration the Court’s observation together with the 
stakeholders involved in the context of future budgeting exercises. 

 
 
 
 
Single Resolution Board (SRB) 

299 

3.38. Single Resolution Board (SRB) 

Introduction 

3.38.1. The Single Resolution Board (“the SRB”), which is located in Brussels, was 
established by Regulation (EU) No 806/2014 of the European Parliament and of the Council, on 
the Single Resolution Mechanism (“the SRM Regulation”)202. The SRB’s mission is to ensure 
that credit institutions and certain investment firms (“credit institutions”) which fail, or which 
are likely to fail, can be resolved in an orderly fashion with as little impact as possible on the 
real economy and the public finances of the participating Member States of the Banking 
Union. The SRB is in charge of administrating the Single Resolution Fund, which was 
established by the SRM Regulation and which is intended to support the Single Resolution 
Mechanism. 

3.38.2. The SRB has its own budget, which is separate from the EU budget. Contributions 
are raised from credit institutions established in Member States participating in the Banking 
Union. Figure 3.38.1 presents key figures for the SRB 203. 

202 Regulation (EU) No 806/2014 establishing uniform rules and a uniform procedure for the 
resolution of credit institutions and certain investment firms in the framework of a Single 
Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) 
No 1093/2010. 

203 More information on the SRB’s role and activities is available on its website: 

https://www.srb.europa.eu. 

 
 
                                                             
300 

399

397

Single Resolution Board (SRB) 

Figure 3.38.1 – Key figures for the SRB 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

122

37 866

47 489

37 988

Part I (Board’s 
administrative budget)

122

Part II (Budget of the 
Fund and Reserve)

47 367

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of the SRB for the 2020 and 2021 financial years; staff figures provided by the 
SRB. 

The Single Resolution Fund is being gradually built up during the period from 2016 to 2023 and 
should reach the target of at least 1 % of the amount of covered deposits of all credit 
institutions within the European Banking Union by 31 December 2023. 

Information in support of the statement of assurance 

3.38.3. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by the SRB’s management. 

3.38.4. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of the SRB’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

 
 
 
Single Resolution Board (SRB) 

301 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.38.5. We have audited: 

(a) 

the accounts of the Single Resolution Board (“the SRB”), which comprise the 
financial statements204 and the reports on the implementation of the SRB’s 
budget205 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.38.6. In our opinion, the SRB’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, the SRB’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Emphasis of matter 

3.38.7. We draw attention to note 8.L “Disclosure on appeals and legal cases”of the 
SRB’s accounts, which describes administrative appeals and judicial proceedings related 
to the ex-ante contributions between some credit institutions and national resolution 
authorities and the SRB as well as other legal proceedings brought against the SRB before 
the General Court and the Court of Justice of the European Union. 

204 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

205 The reports on the implementation of the budget comprise the reports which aggregate all 

budgetary operations and the explanatory notes. 

 
 
                                                             
Single Resolution Board (SRB) 

302 

The SRB considers that it is probable that some of the pending cases will require an 
outflow of economic resources to settle. Consequently, the exposure related to those 
cases is recognised as a provision for an amount of € 242 750 corresponding to the legal 
costs of the opposing party's legal representations (in note 7.F). The SRB considers it is 
not probable that an outflow of economic resources will be required to settle the other 
cases. Therefore, the related exposure is not recognised as a provision in the statement of 
financial position.. Their possible impact on the SRB’s financial statements for the 
financial year ended 31 December 2021 (in particular on contingent liabilities, provisions 
and liabilities) is subject to a specific annual audit, as stipulated under Article 92(4) of the 
SRM Regulation. 

3.38.8. We draw attention to Note 8.S “Events after the reporting period” of the 
SRB’s accounts, which describes the subsequent events of the resolution of Sberbank AG 
and the effect of the Russian war of aggression against Ukraine on the activities of the 
SRB and its portfolio of investments. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.38.9. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Emphasis of matter 

3.38.10. We note that the emphasis of matter paragraph for reliability of the 
accounts described in paragraph 3.38.7 also applies in full for the legality and regularity of 
revenue. 

Other matter 

3.38.11. Without calling into question the opinion expressed above, we wish to 
emphasise that Fund contributions are calculated on the basis of information provided by 
credit institutions (and some investment firms) to the SRB. Our audit of the SRB's revenue 
was based on this information, but we did not verify its reliability. The SRM Regulation 
does not insist that a comprehensive and consistent control framework be put in place to 
ensure the reliability of the information. However, the SRB performs consistency and 
analytical checks of the information, as well as some ex post checks at the level of the 
credit institutions. We also noted that for entities that are part of a group referred to in 
Article 7(2) (a) of SRM Regulation, agreed procedures by auditors are mandatory from 

 
 
Single Resolution Board (SRB) 

303 

2022. The SRB cannot release details of the risk assessed contribution calculation for each 
credit institution, as they are interlinked and include confidential information about other 
credit institutions. Although this may affect the transparency of these calculations, the 
Court of Justice considered that the SRB’s obligation to state reasons for its ex-ante 
contributions’ decisions must be balanced against the principle of the protection of 
business secrets. It ruled206 that “Delegated Regulation 2015/63 does not prevent the SRB 
from disclosing, in collective and anonymised form, sufficient information to enable an 
institution to understand how its individual situation was taken into account in the 
calculation of its ex ante contribution to the SRF relative to the situation of all the other 
institutions concerned.” We noted that for the calculation of the 2021 contributions, SRB 
organised a consultation phase for the institutions in question in order for them to issue 
comments on any aspect of the calculation exercise. ln this consultation, common data 
points from the contributions calculation exercise were communicated that allowed 
institutions, together with the data in the institution's individual data reporting form, to 
simulate the calculation of the 2021 ex-ante contribution. This new step in the 
contribution calculation process has increased the SRB’s transparency towards 
institutions. Such a consultation phase was also organised for the calculation of the 2022 
contributions.  

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.38.12. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.38.13. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.38.14. We found some deficiencies in two audited recruitment procedures which 
could undermine the principle of transparency. 

(a) 

In one of these procedures, even though the selection panel had initially decided to 
place a maximum of five candidates on the reserve list, after evaluating the 
candidates, it decided to increase the number to eight. 

(b)  We could not find a direct link between some of the general competences 
mentioned in the vacancy notice and the agreed interview questions, oral 
presentations and written tests. 

206 Judgment of 15 July 2021, Commission / Landesbank Baden-Württemberg and SRB (C-

584/20 P and C-621/20 P), paragraphs 120 and 139. 

 
 
                                                             
Single Resolution Board (SRB) 

304 

Follow-up of previous years’ observations 

3.38.15. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
Single Resolution Board (SRB) 

305 

Annex – Follow-up of previous year’s observations 

Year 

ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

The SRB has not carried out an assessment of whether the service 
provider of the Investment Management Agreement with a national 
central bank of the Eurosystem for the outsourcing of the operational 
aspects of the investment process of the Single Resolution Fund (SRF) 
and the custodian agreement with the same NCB for the safeguarding of 
assets, cash management, and reconciliation and oversight duties on the 
assets under management, had adequate and effective organisational 
and administrative arrangements in place in order to mitigate a potential 
conflict of interest arising from assuming the roles of both Investment 
Manager and Custodian. 

The capacity of the SRB’s risk management process to carry out an 
independent monitoring of the investment portfolio of SRF is limited. Its 
first limitation is that it is not automated. Its second limitation is that it 
relies on reports and analysis from the NCB and the SRB’s front office. 

2020 

2020 

Ongoing 

Ongoing 

 
 
 
306 

Single Resolution Board (SRB) 

SRB’s reply 

3.38.11. The annual ex-ante contributions to the Fund are calculated on the basis of 
information provided by credit institutions and some investment firms to the Board. Even 
though, the SRM Regulation does not provide for a comprehensive and consistent control 
framework to ensure the reliability of the information, the SRF addresses this issue to the 
extent possible. The data provided is verified against the data submitted in the previous year 
by the institutions as well as against the data in the ECB database. Validation rules have been 
implemented in the data collection portal and additional assurance, in the form of Agreed 
Upon Procedures report, is collected from the significant institutions. Discrepancies are flagged 
to the NRAs, asking for clarification, thus having been able to improve the quality of the data in 
the previous cycles. In addition to the ex-ante data verification steps already implemented by 
the SRB, ex-post checks are performed in a form of desk reviews in order to collect additional 
evidence on the reliability of the data. 

3.38.14. a) The SRB takes note of the finding and will document the reasons for any changes in 
the pre-defined number of the candidates to be placed in the final reserve list. 

3.38.14. b) The SRB takes note of the observation and has added an additional internal 
document to map the competences explicitly to the current assessment documents (interview 
questions, oral presentation and written test). 

 
 
 
307 

European Commission Executive 
Agencies 

 
 
 
 
Consumers, Health, Agriculture and Food Executive Agency (Chafea) 

3.39. Consumers, Health, Agriculture 
and Food Executive Agency (Chafea) 

308 

Introduction 

3.39.1. Between its establishment on 1 January 2005 and its closure on 31 March 2021, 
the Consumers, Health, Agriculture and Food Executive Agency (“Chafea”) was located in 
Luxembourg. On 1 April 2021, Chafea’s tasks were taken over by the European Innovation 
Council and SMEs Executive Agency (EISMEA), European Research Executive Agency (REA), and 
by a newly created European Health and Digital Executive Agency (HaDEA)207. All remaining 
assets and liabilities were taken over HaDEA. Figure 3.39.1 presents key figures for Chafea208. 

Figure 3.39.1 – Key figures for Chafea 

Budget (million euros)*

Staff (as at 31 March)**

2021

2020

12

13

76

75

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of Chafea for the 2020 and 2021 financial years; staff figures provided by 
Chafea. 

Information in support of the statement of assurance 

3.39.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by Chafea’s management. 

3.39.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of Chafea’s management and of those charged with governance, 

207 Commission Implementing Decision (EU) 2021/173 on the executive agencies. 

208 More information on Chafea’s role and activities is available on its website: 

http://ec.europa.eu/chafea. 

 
 
 
                                                             
Consumers, Health, Agriculture and Food Executive Agency (Chafea) 

and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

309 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.39.4. We have audited: 

(a) 

the accounts of the Consumers, Health, Agriculture and Food Executive Agency 
(Chafea), which comprise the financial statements209 and the reports on the 
implementation of Chafea’s budget210 for the period 1 January to 
31 March 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.39.5. In our opinion, Chafea’s accounts for the period 1 January to 31 March 2021 
present fairly, in all material respects, Chafea’s financial position at 31 March 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

209 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

210 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
Consumers, Health, Agriculture and Food Executive Agency (Chafea) 

310 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.39.6. In our opinion, the revenue underlying the accounts for the period 
1 January to 31 March 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.39.7. In our opinion, the payments underlying the accounts for the period 
1 January to 31 March 2021 are legal and regular in all material respects. 

Follow-up of previous years’ observations 

3.39.8. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
311 

Consumers, Health, Agriculture and Food Executive Agency (Chafea) 

Annex – Follow-up of previous year’s observations 

Year 

2019 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

Following the Communication to the Commission C(2020)2880/1 of 
29 April 2020 on Delegation of implementation tasks to Executive 
Agencies for the 2021-2027 EU programmes, Chafea's tasks will be 
transferred to other EU consolidated agencies. At the time of the 2019 
audit, contingent liabilities resulting from this transfer could not be 
reliably estimated. 

Completed 

 
 
 
Consumers, Health, Agriculture and Food Executive Agency (Chafea) 

312 

Chafea’s reply 

“The Agency has taken note of the ECA's report”. 

 
 
 
313 

European Climate Infrastructure and Environment Executive Agency (CINEA) 

3.40. European Climate Infrastructure 
and Environment Executive Agency 
(CINEA) 

Introduction 

3.40.1. The European Climate, Infrastructure and Environment Executive Agency 
(‘’CINEA’’), which is located in Brussels, was set up by Commission Implementing Decision 
(EU) 2021/173211, applicable from 1 April 2021 to 31 December 2028. CINEA’s mission is to 
support stakeholders in delivering the European Green Deal. It also implements parts of 
various EU programmes, most of them associated with environment and climate policy. CINEA 
is the successor of the Innovation and Networks Executive Agency (“INEA”), set up by 
Commission Implementing Decision 2013/801/EU212, which operated from 1 January 2014 to 
31 March 2021. Figure 3.40.1 presents key figures for CINEA213. 

Figure 3.40.1 – Key figures for CINEA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

47

32

474

313

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of CINEA for the 2020 and 2021 financial years; staff figures provided by CINEA. 

The increase to the budget and the staff numbers is explained by the expansion of the agency’s 
mandate in 2021. 

211 Commission Implementing Decision (EU) 2021/173 establishing the European Climate, 

Infrastructure and Environment Executive Agency. 

212 2013/801/EU: Commission Implementing Decision establishing the Innovation and 

Networks Executive Agency. 

213 More information on CINEA’s role and activities is available on its website: 

https://cinea.ec.europa.eu/index_en. 

 
 
 
                                                             
314 

European Climate Infrastructure and Environment Executive Agency (CINEA) 

Information in support of the statement of assurance 

3.40.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by CINEA’s management. 

3.40.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of CINEA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.40.4. We have audited: 

(a) 

the accounts of the European Climate Infrastructure and Environment 
Executive Agency (“CINEA”), which comprise the financial statements214 and 
the reports on the implementation of CINEA’s budget215 for the financial year 
ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

214 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

215 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Climate Infrastructure and Environment Executive Agency (CINEA) 

315 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.40.5. In our opinion, CINEA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, CINEA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.40.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.40.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

 
 
European Climate Infrastructure and Environment Executive Agency (CINEA) 

316 

CINEA’s reply 

The Agency has taken note of the Court's report. 

 
 
 
 
European Education and Culture Executive Agency (EACEA) 

317 

3.41. European Education and Culture 
Executive Agency (EACEA) 

Introduction 

3.41.1. The European Education and Culture Executive Agency (“EACEA”), which is 
located in Brussels, was set up by Commission Implementing Decision (EU) 2021/173216, 
applicable from 1 April 2021 to 31 December 2028. EACEA’s thematic focus remains on 
educational and creative activities, and on projects close to EU citizens. EACEA is the successor 
of the Education, Audiovisual and Culture Executive Agency (“EACEA”), set up by Commission 
Decision 2013/776/EU 217, which had operated from 1 January 2014 to 31 March 2021. 
Figure 3.41.1 presents key figures for EACEA218. 

Figure 3.41.1 – Key figures for EACEA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

58

56

454

432

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EACEA for the 2020 and 2021 financial years; staff figures provided by 
EACEA. 

216 Commission Implementing Decision (EU) 2021/173 establishing the European Climate, 
Infrastructure and Environment Executive Agency, the European Health and Digital 
Executive Agency, the European Research Executive Agency, the European Innovation 
Council and SMEs Executive Agency, the European Research Council Executive Agency, and 
the European Education and Culture Executive Agency.  

217 Commission Implementing Decision (EU) 2013/776 establishing the ‘Education, Audio-visual 

and Culture Executive Agency’. 

218 More information on EACEA’s role and activities is available on its website: 

www.eacea.europa.eu. 

 
 
 
                                                             
318 

European Education and Culture Executive Agency (EACEA) 

Information in support of the statement of assurance 

3.41.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EACEA’s management. 

3.41.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EACEA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.41.4. We have audited: 

(a) 

the accounts of the European Education and Culture Executive Agency 
(“EACEA”), which comprise the financial statements219 and the reports on the 
implementation of EACEA’s budget220 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

219 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

220 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Education and Culture Executive Agency (EACEA) 

319 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.41.5. In our opinion, EACEA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EACEA’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.41.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.41.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.41.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on budgetary management 

3.41.9. We found that EACEA had carried over €6.36 million (12 %) of 2021 
appropriations to 2022. Of that amount, €2.6 million, (29 %), related to administrative 
expenditure (Title II), and €2.7 million, (54 %), to operational expenditure (Title III). High rates 
of carry-overs contradict the budgetary principle of annuality and suggest structural issues in 
the implementation of the budget. 

 
 
European Education and Culture Executive Agency (EACEA) 

Out of the Title II appropriations carried over to 2022, €938 thousand were justified by EACEA 
by high inflation expectations. However, such considerations should have been taken into 
account when deciding EACEA’s budget. When implementing it, the budgetary principle of 
annuality should be respected. 

320 

 
 
European Education and Culture Executive Agency (EACEA) 

321 

EACEA’s reply 

The Agency has taken note of the Court’s report. 

 
 
 
 
European Innovation Council and SMEs Executive Agency (EISMEA) 

3.42. European Innovation Council and 
SMEs Executive Agency (EISMEA) 

322 

Introduction 

3.42.1. The European Innovation Council and SME Executive Agency (“EISMEA”), which 
is located in Brussels, was set up by Commission Implementing Decision (EU) 2021/173221, 
applicable from 1 April 2021 to 31 December 2028. EISMEA’s mission is to reinforce the EU’s 
position as a global leader in research and innovation by providing support to European 
innovators, researchers, businesses and consumers. EISMEA is the successor of the Executive 
Agency for Small and Medium-sized Enterprises (“EASME”), which operated from 1 January 
2014 to 31 March 2021. Figure 3.42.1 presents key figures for EISMEA 222. 

Figure 3.42.1 – Key figures for EISMEA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

48

54

370

485

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of EISMEA for the 2020 and 2021 financial years; staff figures provided by 
EISMEA. 

The differences in the number of staff between 2021 and 2020 is due to the new mandate of 
EISMEA, which is different from that of EASME. 

Information in support of the statement of assurance 

3.42.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

221 Commission Implementing Decision (EU) 2021/173 establishing the “European Innovation 

Council and SME’s Executive Agency”. 

222 More information on EISMEA’s role and activities is available on its website: 

https://eismea.ec.europa.eu/index_en. 

 
 
 
                                                             
323 

European Innovation Council and SMEs Executive Agency (EISMEA) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by EISMEA’s management. 

3.42.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of EISMEA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344  forms an integral part of the opinion. 

Opinion 

3.42.4. We have audited: 

(a) 

the accounts of the European Innovation Council and SMEs Executive Agency 
(EISMEA), which comprise the financial statements 223 and the reports on the 
implementation of EISMEA’s budget224 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.42.5. In our opinion, EISMEA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, EISMEA’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

223 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

224 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Innovation Council and SMEs Executive Agency (EISMEA) 

324 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.42.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.42.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.42.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on management and control systems 

3.42.9. In May 2020 EISMEA’s predecessor, EASME, launched an inter-institutional 
procurement procedure for communication and event organisation services, with a total 
estimated value of €130 million, comprising estimates of the participating institutions. 
EASME’s initial estimate for its share in the contract, substantiated by a supporting 
justification, was €30 million. However, before the launch of the procurement procedure, 
some of the participating institutions lowered their initial estimates and the overall estimate 
was €22 million less as a result. Although EASME’s initial estimate of its needs did not change, 
its share of the contract value was subsequently increased to €52 million, i.e. including a buffer 
of €22 million, in order to maintain the initial estimated €130 million budget for the whole 
inter-institutional framework contract. This contravenes point 34 of Annex I of the Financial 
Regulation. 

3.42.10. In 2021 EISMEA made several entries related to contract management issues 
in its registry of exceptions and non-compliance events. These included cases where services 
had been provided before a contract had been signed, and contract had been amended 
without any valid budgetary or legal commitments in place. We observed similar issues in 2020 
in EISMEA’s predecessor (EASME) This recurrence of non-compliance events during the 
implementation of contracts suggests a weakness of EISMEA’s internal controls. This could 
expose EISMEA to financial, legal and reputational risks. 

 
 
European Innovation Council and SMEs Executive Agency (EISMEA) 

Follow-up of previous years’ observations 

3.42.11. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

325 

 
 
European Innovation Council and SMEs Executive Agency (EISMEA) 

Annex – Follow-up of previous year’s observations 

Year 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

326 

EASME signed a legal commitment without having a corresponding 
budgetary commitment in place. The payment made under this contract 
in 2019, to the value of €10 435, is therefore irregular. This instance of 
non-compliance was not recorded in the register of exceptions, and was 
not followed up by EASME. Four further such cases also occurred under 
similar circumstances. Descriptions of these further errors had been 
recorded in the register of exceptions. This raises specific concerns about 
the risk of irregularities in the management of EASME’s commitments. 

EASME ran a recruitment procedure in which one of the members of the 
selection board was not formally appointed and did not sign any 
declaration of confidentiality or of absence of conflict of interest, even 
though this was a requirement under the Staff Regulations. This opened 
EASME to the risk that potential conflicts of interest may have remained 
undetected. 

EASME paid for a software licence and maintenance under a framework 
contract for the acquisition of software licences and IT services without 
performing any internal controls to ascertain whether the contractor had 
used the correct prices and charged the correct mark-ups. This indicates 
weak ex-ante internal controls. 

2019 

2019 

2020 

Ongoing 

Completed 

Ongoing 

 
 
327 

European Innovation Council and SMEs Executive Agency (EISMEA) 

EISMEA’s reply 

3.42.9. At the time of the launch of the tender procedure, negotiations were still ongoing 
regarding EU’s budget 2021-2027, so that the final list of programmes and final figures were 
not yet available. In addition, at the time of the assessment of the estimated budget, it was 
still expected that EASME would add more programmes to its portfolio and would grow bigger. 
Therefore, the estimations had to provide for a margin for possible future unexpected needs, 
including additional contingency to cover for any institution, agency or body, which may be 
established within the duration of the future contract. 

3.42.10. 2021 was a transition year, witnessing significant changes as to the composition of 
staff and the management of newly delegated programs, at the time where the procedures 
were in the process of being established. 

The Agency reviews its register of deviations two times per year to ensure that action plans to 
prevent similar events from happening in the future have been effectively implemented. 
Awareness raising activities and trainings are also organised. 

 
 
 
 
European Research Council Executive Agency (ERCEA) 

3.43. European Research Council 
Executive Agency (ERCEA) 

328 

Introduction 

3.43.1. The European Research Council Executive Agency (“ERCEA”), which is located in 
Brussels, was created by Commission Decision 2008/37/EC225, repealed and replaced by 
Commission Implementing Decision 2013/779/EU226, itself replaced by the new Commission 
Implementing Decision227 (EU) 2021/173. The new Decision, which is applicable from 1 April 
2021 until 31 December 2028, gives ERCEA responsibility for implementation of European 
Research Council actions under Horizon Europe. Figure 3.43.1 presents key figures for 
ERCEA228. 

Figure 3.43.1 – Key figures for ERCEA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

57

55

500

515

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of ERCEA for the 2020 and 2021 financial years; staff figures provided by 
ERCEA. 

225 Commission Decision 2008/37 EC setting up the European Research Council Executive 

Agency for the management of the specific Community programme Ideas in the field of 
frontier research. 

226 Commission Implementing Decision 2013/779/EU establishing the European Research 

Council Executive Agency. 

227 Commission Implementing Decision (EU) 2021/173 establishing the European Climate, 
Infrastructure and Environment Executive Agency, the European Health and Digital 
Executive Agency, the European Research Executive Agency, the European Innovation 
Council and SMEs Executive Agency, the European Research Council Executive Agency, and 
the European Education and Culture Executive Agency. 

228 More information on ERCEA’s role and activities is available on its website: 

https://erc.europa.eu/about-erc/erc-executive-agency-ercea. 

 
 
 
                                                             
329 

European Research Council Executive Agency (ERCEA) 

Information in support of the statement of assurance 

3.43.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by ERCEA’s management. 

3.43.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of ERCEA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.43.4. We have audited: 

(a) 

the accounts of the European Research Council Executive Agency (“ERCEA”), 
which comprise the financial statements229 and the reports on the 
implementation of ERCEA’s budget230 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

229 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

230 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Research Council Executive Agency (ERCEA) 

330 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.43.5. In our opinion, ERCEA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, ERCEA’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.43.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.43.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

3.43.8. The observations which follow do not call the ECA’s opinion into question. 

Observations on budgetary management 

3.43.9. ERCEA’s rental contract obliged it to reimburse its landlord for any taxes 
associated with the premises. The commune of Saint-Josse-ten-Noode (Brussels), where the 
premises are located, imposed a municipality tax on the landlord, who asked ERCEA for 
reimbursement. The landlord disputes its liability for this tax and has initiated a legal 
procedure in this matter before a Belgian Court. At the end of 2021, the Commission’s Office 
for Infrastructure in Brussels recommended to ERCEA to reimburse the landlord. The 2021 

 
 
331 

European Research Council Executive Agency (ERCEA) 

budgetary appropriations were insufficient to cover the legal obligations. ERCEA did not ask for 
an amending budget. The gap was €222 667. 

The insufficiency of appropriations to cover legal obligations entered into in 2021 was not 
entered into the register of exceptions until after our audit, going against internal control 
principles. 

Follow-up of previous years’ observations 

3.43.10. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
332 

European Research Council Executive Agency (ERCEA) 

Annex – Follow-up of previous year’s observations 

Year 

2020 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

In July 2019, ERCEA launched a procurement procedure for the provision 
of audio-visual services. The evaluation committee did not properly 
assess the quality criterion for a case study. The procedure and the 
related payments of €36 400 made in 2020 were irregular. ERCEA 
subsequently re-evaluated the tenders, terminated the framework 
contract and ranked the tenders afresh. 

Completed 

 
 
 
European Research Council Executive Agency (ERCEA) 

ERCEA’s reply 

333 

3.43.9. ERCEA followed the common approach recommended by OIB. This recommendation to 
commit and pay the municipality tax for the years 2019-2021 was received only on 21st 
December 2021. ERCEA committed all funds available at that date to cover the tax amount, 
and lacked €222 667. A budget amendment was impossible, both in terms of time and due to 
lack of possibility (administrative expenditure is not foreseen by the central services in the end 
of year transfer exercise). 

The insufficiency of appropriations to cover legal obligations was entered into the register of 
exceptions in May 2022. 

 
 
 
 
European Health and Digital Executive Agency (HaDEA) 

3.44. European Health and Digital 
Executive Agency (HaDEA) 

334 

Introduction 

3.44.1. The European Health and Digital Executive Agency (“HaDEA”), which is located in 
Brussels, was set up by Commission Implementing Decision (EU) 2021/173231. HaDEA was 
established for a period beginning on 16 February 2021 and ending on 31 December 2028. Its 
tasks include managing EU action in the area of public health, coordinating digital programmes 
in areas including industry and space, and implementing outstanding elements of former EU 
programmes232. In April 2021, HaDEA also took over certain support activities previously 
performed by the Consumers, Health, Agriculture and Food Executive Agency (“Chafea”)233. 

3.44.2. Commission Implementing Decision (EU) 2021/173 established a transitional 
period234 during which the Commission managed HaDEA. The transitional period ended on 
16 February 2022, when HaDEA gained the operational capacity to implement its own budget. 
Figure 3.44.1 presents key figures for HaDEA235. 

231 Commission Implementing Decision (EU) 2021/173 establishing the European Climate, 
Infrastructure and Environment Executive Agency, the European Health and Digital 
Executive Agency, the European Research Executive Agency, the European Innovation 
Council and SMEs Executive Agency, the European Research Council Executive Agency, and 
the European Education and Culture Executive Agency. 

232 Article 7(2) of Commission Implementing Decision (EU) 2021/173. 

233 Article 21(3) of Commission Implementing Decision (EU) 2021/173. 

234 Article 22 of Commission Implementing Decision (EU) 2021/173. 

235 More information on HaDEA’s role and activities is available on its website: 

https://hadea.ec.europa.eu. 

 
 
                                                             
335 

European Health and Digital Executive Agency (HaDEA) 

Figure 3.44.1 – Key figures for HaDEA 

Budget (million euros)*

Staff (as at 31 December)**

27

324

2021

2020

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of HaDEA for the 2020 and 2021 financial years; staff figures provided by 
HaDEA. 

Information in support of the statement of assurance 

3.44.3. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 
systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by HaDEA’s management. 

3.44.4. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of HaDEA’s management and of those charged with governance, 
and the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

 
 
 
European Health and Digital Executive Agency (HaDEA) 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

336 

Opinion 

3.44.5. We have audited: 

(a) 

the accounts of the European Health and Digital Executive Agency (“HaDEA”), 
which comprise the financial statements236 and the reports on the 
implementation of HaDEA’s budget237 for the financial year ended 
31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.44.6. In our opinion, HaDEA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, HaDEA’s financial position at 31 December 2021, 
the results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

Emphasis of matter 

3.44.7. We draw attention to note 3.3 of HADEA’s final accounts, which discloses 
that the rental agreement with the Commission’s Office for Infrastructure and Logistics in 
Brussels (OIB) has not been signed yet. Therefore, the figures related to the rental of 
HaDEA’s premises from OIB disclosed in the accounts are based on an estimate. 

236 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

237 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Health and Digital Executive Agency (HaDEA) 

337 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.44.8. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.44.9. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

Other matter 

3.44.10. Article 22 of Commission Implementing Decision (EU) 2021/173 entrusted 
the Director-General of DG SANTE with the authority to act as HaDEA’s interim Director 
until HaDEA gained the operational capacity to implement its own budget. On 
19 February 2021, the Director-General of DG SANTE delegated that authority to another 
DG SANTE official, appointing him as interim Director of HaDEA. Article 26 of HaDEA’s 
Financial Regulation allows budgetary powers to be delegated. However, it cannot be 
interpreted as allowing the whole authority of the interim Director to be delegated, 
because this would empty Article 22 of Commission Implementing Decision (EU) 
2021/173 of its substance and meaning. 

3.44.11. The observations which follow do not call the ECA’s opinion into question. 

Observations on budgetary management 

3.44.12. By 31 December 2021, HaDEA had not signed a service-level agreement with 
the Commission for the rental of its office space. Therefore, the provisional budgetary 
commitments for office rental in 2021 – a total amount of €2 479 446 – were carried forward 
without HaDEA having entered into a legal commitment within the time limit laid down in 
Article 114 of the EU Financial Regulation. 

 
 
European Health and Digital Executive Agency (HaDEA) 

HaDEA’s reply 

338 

3.44.7. HaDEA wishes to clarify that has “de facto” occupied the premises in question since 
1/4/2021. Therefore, HaDEA incurred the associated costs and has the legal obligation to pay 
it. HaDEA has been waiting for the OIB to finalise the rental agreement. HaDEA will execute the 
payment after the signature of the rental agreement in 2022 that will take effect retroactively 
to 2021. 

 
 
 
 
European Research Executive Agency (REA) 

339 

3.45. European Research Executive 
Agency (REA) 

Introduction 

3.45.1. The European Research Executive Agency (“REA”), which is located in Brussels, 
was set up by Commission Implementing Decision238 (EU) 2021/173, applicable from 
1 April 2021 to 31 December 2028. REA supports the EU Research and Innovation policy by 
managing projects supported by Horizon Europe framework programme and by its 
predecessor Horizon 2020. REA also manages the Research Fund for Coal and Steel and 
promotion measures concerning agricultural products. REA is the successor of the Research 
Executive Agency, set up by Commission Decision 2008/46/EC239, which operated until 
31 March 2021. Figure 3.45.1 presents key figures for REA240. 

Figure 3.45.1 – Key figures for REA 

Budget (million euros)*

Staff (as at 31 December)**

2021

2020

96

87

866

781

* 

** 

Budget figures are based on the total payment appropriations available during the financial year. 

‘’Staff’’ includes EU officials, EU temporary agents, EU contract staff and seconded national 
experts, but excludes interim workers and consultants. 

Source: Annual accounts of REA for the 2020 and 2021 financial years; staff figures provided by REA. 

Information in support of the statement of assurance 

3.45.2. The ECA’s audit approach comprises analytical audit procedures, direct tests of 
transactions, and an assessment of key components of an agency’s supervisory and control 

238 Commission Implementing Decision (EU) 2021/173 establishing the European Research 

Executive Agency. 

239 2008/46/EC: Commission Decision setting up the Research Executive Agency. 

240 More information on REA’s role and activities is available on its website: 

www.ec.europa.eu/rea. 

 
 
 
                                                             
340 

European Research Executive Agency (REA) 

systems. This is supplemented by evidence resulting from the work of other auditors, and by 
an analysis of information provided by REA’s management. 

3.45.3. Please refer to section 3.1 of the report for the description of the basis for our 
opinion, the responsibilities of REA’s management and of those charged with governance, and 
the auditor’s responsibilities for the audit of the accounts and underlying transactions. The 
signature on page 344 forms an integral part of the opinion. 

The ECA’s statement of assurance provided to the European 
Parliament and the Council – Independent auditor’s report 

Opinion 

3.45.4. We have audited: 

(a) 

the accounts of the European Research Executive Agency (“REA”), which 
comprise the financial statements241 and the reports on the implementation of 
REA’s budget242 for the financial year ended 31 December 2021, and 

(b) 

the legality and regularity of the transactions underlying those accounts, 

as required by Article 287 of the Treaty on the Functioning of the European Union (TFEU). 

Reliability of the accounts 

Opinion on the reliability of the accounts 

3.45.5. In our opinion, REA’s accounts for the year ended 31 December 2021 
present fairly, in all material respects, REA’s financial position at 31 December 2021, the 
results of its operations, its cash flows, and the changes in net assets for the year then 
ended, in accordance with its Financial Regulation and with accounting rules adopted by 
the Commission’s accounting officer. These are based on internationally accepted 
accounting standards for the public sector. 

241 The financial statements comprise the balance sheet, the statement of financial 

performance, the cash flow statement, the statement of changes in net assets and a 
summary of significant accounting policies and other explanatory notes. 

242 The reports on the implementation of the budget comprise the reports, which aggregate all 

budgetary operations, and the explanatory notes. 

 
 
                                                             
European Research Executive Agency (REA) 

341 

Legality and regularity of the transactions underlying the 
accounts 

Revenue 

Opinion on the legality and regularity of revenue underlying the accounts 

3.45.6. In our opinion, the revenue underlying the accounts for the year ended 
31 December 2021 is legal and regular in all material respects. 

Payments 

Opinion on the legality and regularity of payments underlying the accounts 

3.45.7. In our opinion, the payments underlying the accounts for the year ended 
31 December 2021 are legal and regular in all material respects. 

Follow-up of previous years’ observations 

3.45.8. An overview of the action taken in response to the ECA’s observations from 
previous years is provided in the Annex. 

 
 
European Research Executive Agency (REA) 

342 

Annex – Follow-up of previous year’s observations 

Year 

2017 

The ECA’s observations 

Status of corrective action 
(Completed / Ongoing / Outstanding / N/A) 

By the end of 2017, REA had introduced e-invoicing for certain 
procedures, but it had not yet implemented e-tendering or e-submission. 

Completed 

 
 
 
European Research Executive Agency (REA) 

REA’s reply 

The Agency has taken note of the Court’s report.  

343 

 
 
 
 
 
344 

This Report was adopted by Chamber IV, headed by Mr Mihails Kozlovs, Member of the Court 
of Auditors, in Luxembourg at its meeting of 20 September 2022. 

For the Court of Auditors 

Klaus-Heiner Lehne 
President 

 
 
 
 
 
 
 
 
COPYRIGHT 
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