Source: EURLEX
Language: en
Format: md

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| 19.12.2007 | EN | Official Journal of the European Union | C 309/72 |

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REPORT

on the annual accounts of the European GNSS Supervisory Authority for the financial year 2006 together with the Authority's replies

(2007/C 309/13)

CONTENTS

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| 1-5 | INTRODUCTION |

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| 6-9 | STATEMENT OF ASSURANCE |

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| 10-11 | OBSERVATIONS |

Tables 1 to 4

The Authority's replies

INTRODUCTION

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| 1. | The European GNSS (Global Navigation Satellite System) Supervisory Authority (hereinafter ‘the Authority’) was set up as a Community Agency by Council Regulation (EC) No 1321/2004[(1)](#ntr1-C_2007309EN.01007201-E0001) of 12 July 2004 to manage the public interests relating to the European GNSS programmes and to act as the regulatory authority for the programme during the deployment and operational phases of the Galileo Programme. Table 1 summarises the Authority's objectives and activities. |

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| 2. | Council Regulation (EC) No 1942/2006[(2)](#ntr2-C_2007309EN.01007201-E0002) of 12 December 2006 extended the mandate of the Authority to cover the activities of the development phase (first phase of the Galileo Programme[(3)](#ntr3-C_2007309EN.01007201-E0003)) which the Galileo Joint Undertaking was not able to finalise before its winding-up on 31 December 2006. |

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| 3. | The Authority began operations in 2006. Initially, all the financial transactions of the Authority were carried out on its behalf by the Directorate-General for Energy and Transport. Following the installation of the necessary financial systems, the Authority took over responsibility for its financial operations in September 2006[(4)](#ntr4-C_2007309EN.01007201-E0004). |

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| 4. | The handover of activities from the Galileo Joint Undertaking to the Authority started in December 2006 with the transfer of 70 million euro and the rights and obligations related to FP6[(5)](#ntr5-C_2007309EN.01007201-E0005), MEDA[(6)](#ntr6-C_2007309EN.01007201-E0006), EGNOS[(7)](#ntr7-C_2007309EN.01007201-E0007) and other contracts. Therefore, although the Community subsidy and other revenue for the Authority in 2006 was just over 7 million euro, the total assets of the Authority amounted to 76,6 million euro at the end of 2006. |

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| 5. | Key information from the financial statements drawn up by the Authority for the financial year 2006 is presented in Tables 2, 3 and 4. |

STATEMENT OF ASSURANCE

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| 6. | This Statement is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002[(8)](#ntr8-C_2007309EN.01007201-E0008); it was drawn up following an examination of the Authority's accounts, as required by Article 248 of the Treaty establishing the European Community. |

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| 7. | The Authority's accounts for the financial year ended 31 December 2006 were drawn up by its Executive Director, pursuant to Article 12 of Council Regulation (EC) No 1321/2004, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions. The financial statements cover the period from 18 September (the starting date for independent financial operations) to 31 December 2006. |

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| 8. | The Court conducted its audit in accordance with the IFAC and INTOSAI International Auditing Standards and Codes of Ethics, insofar as these are applicable in the European Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and that the underlying transactions are legal and regular. |

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| 9. | The Court has thus obtained a reasonable basis for the statement expressed below.  Reliability of the accountsThe Authority's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Authority's annual accounts for the financial year ended 31 December 2006 are, taken as a whole, legal and regular.The observations which follow do not call the Court's statement into question. |

OBSERVATIONS

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| 10. | The Court's testing of a representative sample of 80 transactions identified weaknesses in the operation of the management and control systems. In 12 cases, the initiating official for the transaction did not have the delegated authority and the appropriate financial circuit was not followed. In two cases the Authority's authorising officer did not approve a budgetary commitment before entering into a legal commitment, contrary to the requirements of the Financial Regulation. |

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| 11. | According to the Regulation, as of 1 January 2007, the Authority is the owner of all tangible and intangible assets created or developed during the development phase of the Galileo Programme[(9)](#ntr9-C_2007309EN.01007201-E0009). A part of the assets were transferred from the Galileo Joint Undertaking in December 2006 (paragraph 4 above). Due to the absence of agreement between three of the members of the Joint Undertaking[(10)](#ntr10-C_2007309EN.01007201-E0010) and the Authority, the transfer of the further identified assets of 65 million euro[(11)](#ntr11-C_2007309EN.01007201-E0011) was delayed until mid 2007. |

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 20 September 2007.

For the Court of Auditors

Hubert WEBER

President

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