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Document 52017TA1206(06)
Report on the annual accounts of the European Union Agency for Law Enforcement Training for the financial year 2016, together with the Agency’s reply
Report on the annual accounts of the European Union Agency for Law Enforcement Training for the financial year 2016, together with the Agency’s reply
Report on the annual accounts of the European Union Agency for Law Enforcement Training for the financial year 2016, together with the Agency’s reply
OJ C 417, 6.12.2017, p. 47–51
(BG, ES, CS, DA, DE, ET, EL, EN, FR, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
6.12.2017 |
EN |
Official Journal of the European Union |
C 417/47 |
REPORT
on the annual accounts of the European Union Agency for Law Enforcement Training for the financial year 2016, together with the Agency’s reply
(2017/C 417/06)
INTRODUCTION
1. |
The European Union Agency for Law Enforcement Training (hereinafter ‘the Agency’, aka CEPOL), located in Budapest, was established by Regulation (EU) 2015/2219 (1) of the European Parliament and of the Council replacing and repealing Council Decision 2005/681/JHA. The Agency’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. |
2. |
The Table below presents key figures for the Agency (2). Table Key figures for the Agency
|
INFORMATION IN SUPPORT OF THE STATEMENT OF ASSURANCE
3. |
The audit approach taken by the Court comprises analytical audit procedures, direct testing of transactions and an assessment of key controls of the Agency’s supervisory and control systems. This is supplemented by evidence provided by the work of other auditors and an analysis of management representations. |
OPINION
Reliability of the accounts Opinion on the reliability of the accounts
Legality and regularity of the transactions underlying the accounts Revenue Opinion on the legality and regularity of revenue underlying the accounts
Payments Opinion on the legality and regularity of payments underlying the accounts
Responsibilities of management and those charged with governance
Auditor’s responsibilities for the audit of the accounts and underlying transactions
|
16. |
The comments which follow do not call the Court’s opinion into question. |
COMMENTS ON BUDGETARY MANAGEMENT
17. |
Carry-overs of committed appropriations were high for Title II (expenditure for support activities) at 140 055 euro, i.e. 30 % (2015: 212 456 euro, i.e. 49 %). They mainly refer to IT consulting and IT related goods and services ordered late in the year. |
OTHER COMMENTS
18. |
There is a high staff turnover which may impact business continuity and the Agency’s ability to implement the activities foreseen in its work programme. In 2016, 11 staff members left the Agency, while 21 were recruited. The low number of applications, particularly from Member States other than the host state, puts at risk the Agency’s ability to recruit suitable candidates. Between 2013 and 2016 staff from the host state increased from 1 to 16, representing 31 % of total staff in 2016. Possible reasons for the limited number of applications from other Member States are the salary correction coefficient applied for the host state (69 %) and competition with another EU body located in Budapest. |
FOLLOW-UP OF PREVIOUS YEARS’ COMMENTS
19. |
An overview of the corrective action taken in response to the Court’s comments from previous years is provided in the Annex. |
This Report was adopted by Chamber IV, headed by Mr Baudilio TOMÉ MUGURUZA, Member of the Court of Auditors, in Luxembourg at its meeting of 12 September 2017.
For the Court of Auditors
Klaus-Heiner LEHNE
President
(1) Regulation (EU) 2015/2219 of the European Parliament and of the Council of 25 November 2015 on the European Union Agency for Law Enforcement Training (CEPOL) and replacing and repealing Council Decision 2005/681/JHA (OJ L 319, 4.12.2015, p. 1).
(2) More information on the Agency’s competences and activities is available on its website: www.cepol.europa.eu.
(3) Staff includes officials, temporary and contract staff and seconded national experts.
Source: data provided by the Agency.
(4) The financial statements comprise the balance sheet, the statement of financial performance, the cashflow statement, the statement of changes in net assets and a summary of significant accounting policies and other explanatory notes.
(5) The reports on implementation of the budget comprise the reports which aggregate all budgetary operations and the explanatory notes.
(6) Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (OJ L 298, 26.10.2012, p. 1).
ANNEX
Follow-up of previous years’ comments
Year |
Court's comments |
Status of corrective action (Completed/Ongoing/Outstanding/N/A) |
2015 |
The Agency’s audited budgetary implementation report differs from the level of detail provided by most other agencies which demonstrates the need for clear guidelines on the agencies’ budget reporting. |
Completed |
2015 |
The level of committed appropriations carried over was high for Title II (administrative expenditure) at 212 456 euro, i.e. 49 % (2014: 383 940 euro or 59 %). This resulted from the Agency’s relocation from the UK to Hungary in September 2014 and the consequential need to initiate new service and supply contracts. Most of the services procured under these annual contracts had not been provided by the end of 2015. |
N/A |
THE AGENCY’S REPLY
18. |
The Agency has taken note of the Court’s comments. The carry-over rate for Title II is justified having in view IT consulting and IT related goods and services ordered late in the year. CEPOL further improved its budget management and commits to maintain compliance with the budgetary principle of annuality provided in the Financial Regulation. |
19. |
The Agency has taken note of the Court’s comments. As a consequence of the relocation from UK to Hungary, due to significantly lower correction coefficient applied to staff salaries, the number of resignation increased. The number of applications decreased compared to the period before relocation, however, this did not impact on the quality of applications received and the Agency’s ability to recruit suitable candidates. The low grading of posts combined with low correction coefficient, does not encourage foreigners (especially from West and Northern Europe) to move to Hungary, therefore the geographical balance cannot be always ensured during the recruitment process. CEPOL will continue to implement staff retention and business continuity measures, however as long as the Agency cannot positively amend the grades, the staff turnover may keep its high trend. |