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Document 52017TA1206(27)
Report on the annual accounts of the European Research Council Executive Agency for the financial year 2016, together with the Agency’s reply
Report on the annual accounts of the European Research Council Executive Agency for the financial year 2016, together with the Agency’s reply
Report on the annual accounts of the European Research Council Executive Agency for the financial year 2016, together with the Agency’s reply
OJ C 417, 6.12.2017, p. 171–175
(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 417/171 |
REPORT
on the annual accounts of the European Research Council Executive Agency for the financial year 2016, together with the Agency’s reply
(2017/C 417/27)
INTRODUCTION
1. |
The European Research Council Executive Agency (hereinafter ‘the Agency’, aka ‘ERCEA’), which is located in Brussels, was created by Commission Decision 2008/37/EC (1). The Agency was established for a period beginning on 1 January 2008 and ending on 31 December 2017 with the aim of managing the ‘Ideas’ specific programme under the 7th Framework Programme for Research. As per Council Decision 2013/743/EU (2) the Agency became the dedicated implementation structure responsible for the administrative implementation and programme execution of the Horizon 2020 research programme and implements the actions under the programme’s part I ‘Excellent science’ which relate to the specific objective of strengthening frontier research, through the activities of the European Research Council (ERC). |
2. |
The table presents key figures for the Agency (3). 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 (where relevant) 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
|
15. |
The comments which follow do not call the Court’s opinion into question. |
COMMENTS ON INTERNAL CONTROLS
16. |
Opening and evaluation committee reports prepared by the Agency’s public procurement and recruitment committees do not present a full and accurate record of the actual followed procedures. The inadequate reports compromise the transparency of these procedures. |
17. |
In its audit report dated September 2016, the Commission’s Internal Audit Service (IAS) concluded that the Agency has taken a number of strategic and operational measures to enhance the process for the recruitment, retention and allocation of its staff. The IAS concluded in this context that the Agency has designed and implemented an adequate HR management process to deploy a competent and engaged workforce to ensure the achievement of its objectives. While no critical or very important issues were identified, the Agency and IAS agreed on an action plan to further improve this process in certain areas. |
COMMENTS ON BUDGETARY MANAGEMENT
18. |
The level of committed appropriations carried over was still high for Title III (operational expenditure) at 1,3 million euro, i.e. 40 % (2015: 1,5 million euro, i.e. 43 %), mainly in relation to external audits and communication, going beyond the year-end. The high level of carry-overs is in contradiction with the budgetary principle of annuality. |
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
(2) OJ L 347, 20.12.2013, p. 965.
(3) More information on the Agency’s competences and activities is available on its website: www.erc.europa.eu
(4) Staff includes officials, temporary and contract staff and seconded national experts.
Source: data provided by the Agency.
(5) 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.
(6) The reports on implementation of the budget comprise the reports which aggregate all budgetary operations and the explanatory notes.
ANNEX
Follow-up of previous years’ comments
Year |
Court's comments |
Status of corrective action (Completed/Ongoing/Outstanding/N/A) |
2015 |
Carry-overs of committed appropriations for Title III (operational expenditure) were high at 1 457 920 euro, i.e. 43,14 % (2014: 1 126 275 euro, i.e. 38,50 %). They mainly relate to the multiannual nature of IT contracts (504 473 euro) and the ex post audits of grant schemes (687 522,50 euro) that were initiated in 2015 but had not been concluded by the year-end. |
N/A |
THE AGENCY’S REPLY
16. |
While considering paying attention in future to the clarity of its opening record (for public procurement) and recruitment reports’ wording, the ERCEA still considers the Court’s conclusion on the transparency of these procedures as disproportionate in the light of the reported facts’ seriousness and of their occurrence observed. |
17. |
The ERCEA action plan related to the IAS Audit on HR Management is currently being implemented. |
18. |
The ERCEA takes note of the Court’s comment and considers that it does not give rise to corrective actions, as the ‘carry-overs of committed appropriations for Title III’ are justified based on the nature and timing of the underlying economic transactions. The ERCEA also observes that the carry-overs of committed appropriations has decreased in 2016 compared to 2015, from 43,1 % to 40,1 %. |