14.12.2010

Official Journal of the European Union

C 338/1

REPORT

on the annual accounts of the Community Fisheries Control Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/01

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	2
STATEMENT OF ASSURANCE …	3-12	2
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT…	13-14	3
Table …		4
The Agency’s replies …		5

INTRODUCTION

The Community Fisheries Control Agency (hereinafter ‘the Agency’), located in Vigo, was created by Council Regulation (EC) No 768/2005 of 26 April 2005 (1). The Agency’s main task is to organise the operational coordination of fisheries control and inspection activities by the Member States in order to ensure effective and uniform application of the rules of the common fisheries policy (2).

2.	The Agency’s 2009 budget amounted to 10,1 million euro, compared with 8,5 million euro the previous year. The number of staff employed by the Agency at the end of the year was 49 as compared with 47 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

In its report concerning the 2008 financial year, the Court observed shortcomings in the Agency’s 2008 work programme and the related activity-based management issues (12). The Agency’s 2009 work programme lacked specific and measurable objectives, both at policy area level and at operational activity level. For each policy area several operational activities, outputs and indicators were listed but no clear link was established between them and indicators were often neither relevant nor measurable. Moreover, for each policy area, only the direct financial and human resources were allocated. Consequently, the activity-based management approach for the 2009 budget was not fully implemented.

14.	The 2009 establishment plan provided for 55 temporary posts. At December 2009 only 44 of these posts (80 %) had been filled. Compared to December 2008 the backlog for filling temporary posts increased from 9 to 11. This situation indicated weaknesses in recruitment planning.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 12 October 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Community Fisheries Control Agency (Vigo)

Areas of Union competence deriving from the Treaty

Competences of the Agency

(Council Regulation (EC) No 768/2005)

Governance

Resources made available to the Agency in 2009

Products and services 2009

Article 38 of the Treaty on the Functioning of the European Union.

Article 28 of Council Regulation (EC) No 2371/2002 on the conservation and sustainable exploitation of fishery resources under the common fisheries policy requires Member States to ensure effective control, inspection and enforcement of the rules of the common fisheries policy and to cooperate with each other and with third countries to this end.

Council Regulation (EC) No 768/2005 establishing a Community Fisheries Control Agency and amending Regulation (EEC) No 2847/93 establishing a control system applicable to the common fisheries policy.

Objectives

The Regulation establishes a Community Fisheries Control Agency, the objective of which is to organise operational coordination of fisheries control and inspection activities by the Member States and to help them cooperate so as to comply with the rules of the common fisheries policy in order to ensure its effective and uniform application.

Tasks

(i)	To coordinate the control and inspection obligations of the Union.

(ii)	To coordinate the deployment of the national means of control and inspection pooled by the Member States concerned.

(iii)

To assist Member States in reporting information on fishing activities and control and inspection activities.

(iv)	To assist Member States to fulfil their tasks and obligations under the rules of the common fisheries policy.

(v)	To assist Member States and the Commission in harmonising the application of the common fisheries policy throughout the Union.

(vi)	To contribute to the work of Member States and the Commission on research into and development of control and inspection techniques.

(vii)

To contribute to the coordination of inspector training and the exchange of experience between Member States.

(viii)

To coordinate operations to combat illegal, unreported and unregulated fishing, in conformity with Union rules.

1 — Administrative Board

Comprises one representative from each Member State and six representatives of the Commission.

2 — Executive Director

Appointed by the Administrative Board from a list of at least two candidates proposed by the Commission.

3 — External audit

Court of Auditors.

4 — Discharge authority

Parliament acting on a recommendation from the Council.

Budget

Title I— 5,6 million euro

Title II— 1,4 million euro

Title III— 3,1 million euro

Staff at 31 December 2009

Employed staff 49.

Operational Activities

—	JDP (Joint Deployment Plan) Cod fishery in the North Sea, Skagerrak, Kattegat and the Eastern Channel.

—	JDP in the North Western Waters (West of Scotland and the Irish Sea).

—	JDP in the Baltic Sea.

—	JDP Bluefin tuna fishery in the Mediterranean Sea and Eastern Atlantic.

—	JDP in Northwest Atlantic Fisheries organisation area.

—	JDP in North East Atlantic Fisheries Organisation area.

—	Support activities to fight illegal unreported and unregulated fisheries.

—	Consolidation of the JDPs.

Capacity Building

—	Draft of evaluation reports.

—	Establishment of protocols for data access and exchange.

—	Organisation of training sessions and development of a Common Core Curriculum.

—	Setting up of the Fishnet) network to speed up communication with the customer, to ensure transparency and to facilitate secure data exchange.

—	Strengthening of the capabilities of the Union and the Member States.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.

The Agency is continuously developing and fine-tuning outputs and relevant performance indicators for each policy area. The Agency’s Annual report 2009 presents a table with the deliverable of activities and the performance indicators evaluation and the Work Programme 2010 includes more specific performance indicators for most activities.

At the same time the ABC (activity-based costing) will be further developed and implemented to allow allocation of administrative overhead costs over the different policy areas.

14.

The rate of occupation of posts in the establishment plan in 2009 was made in line with budget availability for salaries and other staff costs (96,5 % execution in chapter 11). Most of these posts have been occupied in early 2010 as planned in line with the budget and currently 52 of the 53 posts from the 2010 establishment plan (amended in early 2009 from 55 to 53) are occupied.

(1) OJ L 128, 21.5.2005, p. 1.

(2) The Table summarises the Agency’s competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements, which includes a description of the main accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(9) The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VII of Regulation (EC, Euratom) No 2343/2002 as last amended by Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 23) and are integrated as such into the Agency’s Financial Regulation.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 1 July 2010 and received by the Court on 2 July 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://cfca.europa.eu/

(12) OJ C 304, 15.12.2009, p. 1.

14.12.2010

Official Journal of the European Union

C 338/6

REPORT

on the annual accounts of the Euratom Supply Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/02

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	7
STATEMENT OF ASSURANCE …	3-12	7
The Agency’s replies …		9

INTRODUCTION

The Euratom Supply Agency (hereinafter ‘the Agency’), located in Luxembourg, was created in 1958 (1). A Council Decision 2008/114/EC, Euratom of 12 February 2008 (2) replaced the preceding Statutes of the Agency. The Agency’s main tasks are to provide the Union with expertise on the market in nuclear materials and services and to monitor it.

2.	In 2009, as in 2008, the Agency did not receive any subsidy to cover its operations. The Commission bore the costs incurred by the Agency for implementing the 2009 activities.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

THE AGENCY’S REPLIES

12.

The present situation reflects the necessary balance in accordance with the Euratom Treaty between:

—	on the one hand, the clear relationship with the European Commission (e.g. the Commission may issue directives and appoints the Director-General of the Agency), and

—	on the other hand a level of legal and financial autonomy (e.g. the Agency co-signs all commercial contracts related to the procurement of nuclear materials, which allows it to ensure the policy of diversification of the sources of supply).

This provides, in cooperation with the Commission, for initiatives that will reinforce the effectiveness and efficiency of the activities of the Agency.

However, the Agency will, together with all interested parties, consider the most appropriate measures to take into account the Court’s comments.

(1) OJ 27, 6.12.1958, p. 534.

(2) OJ L 41, 15.2.2008, p. 15.

(3) These accounts should be accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations, with summary information on transfers of appropriations among the various budget items.

(5) The budget implementation reports should comprise the budget outturn account and its annex.

(6) The responsibilities of the Director-General are described in Articles 7 and 8 of Decision 2008/114/EC, Euratom of 12 February 2008.

(7) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(8) The Final Annual Accounts were drawn up on 25 May 2010 and received by the Court on 1 July 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://ec.europa.eu/eahc/about/about.html

14.12.2010

Official Journal of the European Union

C 338/10

REPORT

on the annual accounts of the European Fundamental Rights Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/03

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	11
STATEMENT OF ASSURANCE …	3-12	11
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13	12
OTHER MATTERS …	14-15	12
Table …		13
The Agency’s replies …		15

INTRODUCTION

The European Union Fundamental Rights Agency (hereinafter ‘the Agency’), located in Vienna, was established by Council Regulation (EC) No 168/2007 of 15 February 2007 (1). The objective of the Agency is to provide the relevant authorities of the Union and its Member States with assistance and expertise when implementing Union law relating to fundamental rights (2).

2.	The Agency’s 2009 budget amounted to 17 million euro compared with 15 million euro the previous year.The number of staff employed by the Agency at the end of the year was 64 as compared with 47 the previous year.

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

COMMENTS ON BUDGETARY AND FINANCIAL MANAGEMENT

13.

The Agency increased its operating budget by 38 %, transferring 1,9 million euro from Title I (staff) to Title III (operational activities) due to delays in recruitment and in order to finance operational activities not foreseen in the initial budget. The 2009 establishment plan provided for 61 posts. As at December 2009 only 48 of these posts had been filled. 50 % of appropriations for Title II (administration) as well as two thirds of appropriations for Title III were carried forward to 2010. This situation showed a lack of consistency between budgetary and staff forecasting.There is significant room for the Agency to improve its budgetary and recruitment planning.

OTHER MATTERS

14.

For the award of three framework contracts (12), the evaluation of financial offers were based on scenarios insufficiently representative of the requested services. The financial offers differed considerably in both unit prices and the tenderers’ estimates of the number of man-days necessary for the implementation of one and the same technical scenario. For the award of the framework contracts, some bidders submitted very low financial offers. However, the evaluation committee files did not include a sufficiently detailed analysis of the low-value bids, in particular the low estimates for the man-days.

15.

In July 2007, the Agency directly awarded (13) a framework contract for an amount of 2 million euro (14) for a four-year period. By June 2009 the maximum amount had been fully used. Although the contract notice did not foresee an increase in the maximum amount, the Agency continued to award specific contracts in 2009 amounting to a further 500 000 euro. This situation shows that there is room of improvement in procurement planning and monitoring.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 5 October 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Union Agency for Fundamental Rights (Vienna)

Areas of Union competence deriving from the Treaty

Competences of the Agency

(Council Regulation (EC) No 168/2007 of 15 February 2007)

Governance

Resources made available to the Agency in 2009

(Data for 2008)

Products and services 2009

(Data for 2008)

The Commission may, within the limits and under conditions laid down by the Council acting by a simple majority in accordance with the provisions of the Treaties, collect any information and carry out any checks required for the performance of the tasks entrusted to it.

(Article 337 of the Treaty on the Functioning of the European Union)

Objectives

To provide the relevant institutions, bodies, offices and agencies of the Union and its Member States when implementing Union law with assistance and expertise relating to fundamental rights in order to support them when they take measures or formulate courses of action within their respective spheres of competence to fully respect fundamental rights.

Tasks

—	To collect, record, analyse and disseminate relevant, objective, reliable and comparable information and data.

—	To develop methods and standards to improve the comparability, objectivity and reliability of data at European level.

—	To carry out, cooperate with or encourage scientific research and surveys, preparatory studies and feasibility studies.

—	To formulate and publish conclusions and opinions on specific thematic topics for the Union institutions and the Member States when implementing Union law.

—	To publish an annual report on fundamental-rights issues covered by the areas of the Agency's activity.

—	To publish thematic reports based on its analysis, research and surveys.

—	To publish an annual report on its activities.

—	To develop a communication strategy and promote dialogue with civil society.

1 — Management Board

Composition

One independent person appointed by each Member State, one independent person appointed by the Council of Europe and two representatives of the Commission.

Task

To adopt the budget, work programme and annual reports. To adopt the final budget and the establishment plan. To give an opinion on the final accounts.

2 — Executive Board

Composition

—	Chairperson of the Management Board,

—	vice-Chairperson of the Management Board,

—	one representative of the Commission,

—	two other members of the Management Board,

—	the person appointed by the Council of Europe to the Management Board may participate in the meetings of the Executive Board.

3 — Scientific Committee

Composition

—	Eleven independent persons, highly qualified in the field of fundamental rights,

—	appointed by the Management Board, shall appoint the members following a transparent call for applications and selection procedure.

4 — Director

Appointed by the Management Board on a proposal from the Commission and after opinions of the European Parliament and the Council of the European Union (who will state their preferences).

5 — External audit

Court of Auditors.

6 — Internal control

Internal audit service of the European Commission.

7 — Discharge authority

Parliament, on a recommendation from the Council.

Budget

17,0 million euro (15,0 million euro)

of which the Union subsidy is 100 % (100 %)

Staff at 31 December 2009

61 (49) foreseen in the establishment plan,

of which occupied: 48 (35)

+ 16 (12) other staff (contract agents, detached national experts)

Total staff: 77 (61)

Allocated to

operational: 46 (37)

administrative: 27 (19)

mixed: 4 (5)

RAXEN

Number of contributions by the 27 national focal points 189 (219)

Number of meetings 1 (1)

FRALEX

Number of contributions by legal experts 27 (201)

Number of meetings 1 (2)

Research Reports:

Number of reports: 19 (6)

Number of meetings: 20 (21)

Annual Reports: 2 (2)

Non-Research Materials

Various publications: 1 (13)

Key Conferences and Events

Fundamental Rights Conference: 1 (1)

Diversity Day Event: 3 (1)

Cooperation with Member States and other Institutions:

Member States: 10 (9)

Council of the EU: 2 (0)

European Commission: 17 (17)

European Parliament: 2 (6)

Committee of the Regions: 2 (2)

European Economic and Social Committee: 1 (0)

Fundamental Rights Platform: 2 (1)

Council of Europe: 16 (25)

OSCE: 6 (7)

United Nations: 3 (6)

External Stakeholders 22

Specialised Bodies: 9

Other Meetings and Round Tables: 11 (18)

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.

The Agency will take measures to reduce the rate of the carry forward of its appropriations as much as is possible. It has to be noted that the situation described by the Court was due to external factors such as delays in the recruitments due to the nomination of a new director or in the finalisation of an important framework contract launched by the Commission. However, by the end of 2009 five job-offers, which were legally binding, were accepted by the candidates who took up duty in March 2010.

14.

The Evaluation Committee considered that the scenarios used were representative and thoroughly assessed the low value bids. However, the Agency will take measures to ensure as far as is possible that the scenarios used to evaluate the tender are realistic. In particular, attention will be given to the clarity and the documentation of the evaluation methods applied by the Evaluation Committee. The Agency notes that so far the contracts mentioned by the Court have been implemented without problem.

15.

The awarding of these specific contracts was due to the need to prepare four events urgently, and, in particular, one organised in cooperation with the Swedish Presidency, involving a high reputational risk. The Agency has already started to take measures to avoid similar situations by improving the programming and the monitoring of its contracts.

(1) OJ L 53, 22.2.2007, p. 1.

(2) The Table summarises the Agency's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 27 May 2010 and received by the Court on 9 June 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or www.fra.europa.eu/fraWebsite/home/home_en.htm

(12) Contract F/SU/09/01 for an amount of 800 000 euro, contract F/SE/09/02 for an amount of 900 000 euro, contract FRA-CAR-2009-T01-A (lot 1) for an amount of 875 000 euro.

(13) Use of negotiated procedure without prior publication of a contract notice as no suitable tenders were submitted in response to an open procedure (Article 126.1.a of the General Implementing Rules).

(14) Contract FR2-2007/3401/3402/3403/NP01.

14.12.2010

Official Journal of the European Union

C 338/16

REPORT

on the annual accounts of the European Network and Information Security Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/04

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	17
STATEMENT OF ASSURANCE …	3-12	17
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-15	18
OTHER MATTERS …	16-17	18
Table …		19
The Agency’s replies …		21

INTRODUCTION

The European Network and Information Security Agency (hereinafter ‘the Agency’), located in Heraklion, was created by Regulation (EC) No 460/2004 of the European Parliament and of the Council of 10 March 2004 (1). The Agency’s main task is to enhance the Union’s capability to prevent and respond to network and information security problems by building on national and Union efforts (2).

2.	After the adoption of two amending budgets, the Agency’s final 2009 budget was 8,1 million euro, compared with 8,4 million euro the previous year. The number of staff employed by the Agency at the end of the year was 57 as compared with 58 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

The appropriations carried forward to the following year amounted to 19 % of the budget. In particular, 41 % of operational appropriations (Title III) were carried forward to 2010 mainly due to delays in two big projects. This situation indicated delays in the implementation of the activities financed from the Title III and was at odds with the budgetary principle of annuality.

14.	One budget transfer (12) between titles was made without informing the Management Board and without obtaining its prior consent, contrary to the budgetary principles of specification.

15.	The inventory of fixed assets was managed using a spreadsheet, which did not guarantee the integrity of the data. No exhaustive physical inventory was made and the correctness of the accounting records was not ensured.

OTHER MATTERS

16.

17.

With regard to procurement procedures, in one case (13), services not provided for by the contract were requested. In two other cases (14), errors (use of incorrect quality-price weightings and wrong value for the financial offer) were made during the awarding phase of the contracts. There is room for the Agency to strengthen its internal controls to make sure that contracts and procurement procedures are correctly applied.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Network and Information Security Agency (Heraklion)

Areas of Union competence deriving from the Treaty

Competences of the Agency

(Regulation (EC) No 460/2004 of the European Parliament and of the Council)

Governance

Resources made available to the Agency in 2009

(Data for 2008)

Products and services 2009

(Data for 2008)

The representatives of the Member State governments have, by common agreement, adopted a statement on the creation of a European Network and Information Security Agency. The Agency should operate as a point of reference and establish confidence by virtue of its independence, the quality of the advice it delivers and the information it disseminates, the transparency of its procedures and methods of operating, and its diligence in performing the tasks assigned to it.

(Council Decision of 19 February 2004, taken on the basis of the TFEU).

Objectives

—

The Agency enhances the capability of the Union, the Member States and the business Union to prevent, address and respond to network and information security problems.

The Agency provides assistance and delivers advice to the Commission and the Member States on issues related to network and information security falling within its competencies.

—	The Agency develops a high level of expertise and uses this expertise to stimulate broad cooperation between actors from the public and private sectors.

Tasks

The Agency:

(a)	collects information on current and emerging risks that could produce an impact on electronic communications networks;

(b)	provides the European Parliament, the Commission and European bodies or competent national bodies with advice and assistance;

(c)	enhances cooperation between actors in its field;

(d)	facilitates cooperation on common methodologies to address network and information security issues;

(e)	contributes to awareness-raising on network and information security issues for all users;

(f)	assists the Commission and the Member States in relations with industry;

(g)	tracks standards;

(h)	advises the Commission on research in the area of network and information;

(i)	promotes risk assessment activities on prevention solutions;

(j)	contributes to cooperation with third countries.

1 — Management Board

The Management Board shall be composed of one representative of each Member State, three representatives appointed by the Commission, as well as three representatives, proposed by the Commission and appointed by the Council, without the right to vote, each of whom represents one of the following groups:

(a)	information and communication technologies industry;

(b)	consumer groups;

(c)	academic experts in network and information security.

2 — Executive Director

1.	The Agency is managed by its Executive Director, who is independent in the performance of his duties.

2.	The Executive Director is appointed for a term of office of up to five years.

3 — External audit

Court of Auditors.

4 — Internal audit

Internal audit service of the European Commission.

5 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

Total revenue 2009 (2008): 8,1 million euro (8,4 million euro)

T1: Staff

Available: 5,2 million euro (4,7 million euro)

T2: Buildings, Equipment and Miscellaneous Operating Expenditure

Available: 0,5 million euro (0,7 million euro)

T3: Operating Expenditure

Available: 2,5 million euro (2,9 million euro)

Staff at 31 December 2009

—	44 (44) posts according to the establishment plan.

Posts occupied 43 (39);

—

Other posts:

Contract staff planned 68 (50)

Contract staff occupied 60 (44)

SNE’s planned: 70 (70)

SNE’s occupied: 66 (66)

Total staff number: 255 (214)

of which occupied: 226 (185)

Assigned to the following occupied tasks:

*	operational: 157 (126)

*	administrative: 69 (59)

Risk Analysis has produced 14 long–term strategic assessments, 4 quarterly reports, 294 analytical products supporting Joint Operations (including Weekly Briefings), 64 reports of other types, including briefings for Frontex Management and contributions to other organisations or institutions. 4 regular FRAN meetings and 2 regional Expert Meetings were organised. 6 FronBAC training sessions were organised with the total participation of 108 MS and RAU analysts.

On the Operational Cooperation side, 16 joint operations, 2 pilot projects and 32 return operations were organised. Total number of operational days reached the level of 5 086. Moreover 4 conferences were organised.

Training has continued with 192 training development activities; based on F’x tools about 250 000 BG officers in MS/SAC/3rd countries attended training activities centrally organised by F’x or nationally carried out or accessed self-learning based on these F’x curricula/training tools.

The mechanism for the creation of Rapid Border Intervention Teams has been further developed through the conduct of induction training courses, (5) workshops and (two) full-scale exercises for the Rapid Pool.

Frontex Situation Centre, as the single point of contact for information exchange with externals, implemented the Frontex-One-Stop-Shop, a web-based information sharing portal, being used by 28 countries and 250 users. Frontex Situation Centre started providing situation and crisis monitoring on a 9/7 basis delivering early alerts, situation and mission awareness reports to internal and external customers. Daily newsletters were delivered to 300 accounts, amongst which many external portals which provide distribution to many more external clients.

Research & Development Unit organised and held 6 major workshops/conferences, and started preparations for 3 follow-up events scheduled for 2010. It participated in over 180 internal and external workshops, conferences and working meetings. R&D produced 10 reports, 4 studies and 1 booklet/manual. The unit initiated 5 new projects and continued 1 large-scale project from 2008. It also intensified preparations for a EUROSUR Big Pilot Project. The unit arranged and made country visits to Latvia, Lithuania, Estonia and Greece.

Cooperation with Non-EU countries included the conclusion of working arrangements with the competent authorities of Albania, Serbia, Bosnia and Herzegovina, Montenegro, the USA, Belarus, and the former Yugoslav Republic of Macedonia. A cooperation Plan with Moldova was signed.

Cooperation with EU Bodies and international organisations has continued and has been strengthened. By the end of 2009, a working arrangement had been signed with Europol, Interpol, the SGC Sitcen, Cepol, IOM, ICMPD, UNHCR, EMSA, CFCA. A MoU has been signed with DG JLS for the development of ICONet and a coordination mechanism Council document was agreed with CCWP. With Europol and IOM we have signed a cooperation plan and with JRC two service level agreements.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.	The Agency has continued its efforts to better plan and implement its budget. Significant progress has been registered in the first half of 2010, based on effective monitoring of activities with Member States.

14.	The Agency has significantly improved its internal procedures related to payments and carry forwards. In 2010, similar situations should not happen.

15.	Transfers in Title 2 occurred to bring the present size and pattern of administrative expenditure in line with the Agency’s needs.

16.	The Agency budgets its activities in accordance with the operational plans jointly made with the Member States. At times, lower participation leads to the need to recover advances made. Efforts are constantly being made to improve the accuracy of the operational budget.

17.	The Agency has introduced a new legal form of agreement with the Member States that is producing the intended objectives.

(1) OJ L 349, 25.11.2004, p. 1.

(2) The Table summarises the Agency's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 22 June 2010 and received by the Court on 12 July 2010. The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://www.frontex.europa.eu/budget_and_finance/

(12) 6,7 million of 2009 appropriations and 7,2 million of appropriations carried over from 2008.

(13) Paragraph 15 of the 2008 Annual Report (OJ C 304, 15.12.2009, p. 38).

(14) OJ L 181, 10.7.2008, p. 23.

14.12.2010

Official Journal of the European Union

C 338/46

REPORT

on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2009, together with the Agency’s replies

2010/C 338/09

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	47
STATEMENT OF ASSURANCE …	3-12	47
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-14	48
Table …		49
The Agency’s replies …		51

INTRODUCTION

The European Agency for Safety and Health at Work (hereinafter ‘the Agency’), located in Bilbao, was established by Council Regulation (EC) No 2062/94 of 18 July 1994 (1). The Agency’s task is to collect and disseminate information on national and Union priorities in the field of health and safety at work, to support national and Union organisations involved in policymaking and implementation and provide information on preventive measures (2).

2.	The Agency’s 2009 budget amounted to 15 million euro, approximately the same amount as the previous year. The number of staff employed by the Agency at the end of the year was 68, as compared with 64 in the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

For Title III — Operational activities, 3,5 million euro, 47 % of the commitments made, were carried forward to the budgetary year 2010. According to the accounting information, approximately two million euro of the appropriations carried forward correspond to activities not yet implemented at the year end. This situation indicated delays in the implementation of the activities financed from Title III of the Agency’s budget and was at odds with the budgetary principle of annuality.

14.	Appropriations carried over from 2008 amounting to 0,7 million euro, or 18 % (compared to 10 % in 2008), had to be cancelled. The increased cancellation rate again indicates the need for stricter application of the annuality principle by the Agency.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Agency for Safety and Health at Work (Bilbao)

Areas of Union competence deriving from the Treaty

Competences of the Agency as defined in the Council Regulation

(Council Regulation (EC) No 2062/94 of 18 July 1994 as amended by Council Regulation (EC) No 1112/2005 of 24 June 2005)

Governance

Resources available to the Agency in 2009

(Data for 2008)

Products and services provided during 2009

Social provisions

The Union and the Member States …, shall have as their objectives the promotion of employment, improved living and working conditions, so as to make possible their harmonisation while the improvement is being maintained, proper social protection, dialogue between management and labour, the development of human resources with a view to lasting high employment and the combating of exclusion.

With a view to achieving the objectives of Article 151, the Union shall support and complement the activities of the Member States in the following fields:

(a)	improvement in particular of the working environment to protect workers’ health and safety;

(b)	working conditions;

(e)	the information and consultation of workers;

(h)	the integration of persons excluded from the labour market, without prejudice to Article 166;

(i)	equality between men and women with regard to labour market opportunities and treatment at work;

(j)	the combating of social exclusion;

(Extracts from Article 151 and 153 of the TFEU)

Objectives

In order to improve the working environment, as regards the protection of the safety and health of workers as provided for in the Treaty and successive strategies and action programs concerning health and safety at the workplace, the aim of the Agency shall be to provide the Union and the Member States, the social partners and those involved in the field with technical, scientific and economic information of use in the field of safety and health at work.

Tasks

—	To collect, analyse and disseminate information on national and Union priorities and on research.

—	To promote cooperation and the exchange of information, including information on training programmes.

—	To supply the Union bodies and the Member States with the information they require for formulating and implementing policies, in particular as regards the impact on small and medium-sized enterprises.

—	To make available information on preventive activities.

—	To contribute to the development of strategies and Union action programmes.

—	To set up a network comprising national focal points and topic centres.

1 — Governing Board

Composition

—	1 representative of the Government of each Member State.

—	1 representative of the employers’ organisations of each Member State.

—	1 representative of the employees’ organisations of each Member State.

—	3 representatives of the Commission.

Members and alternate members from the first three categories shall be appointed from the members and alternate members of the Advisory Committee on Safety and Health at Work.

Task

To adopt the Agency’s work programme, budget and annual general report.

2 — Bureau

Composition

—	Chair and 3 vice-chairs of the Board

—	Coordinators from each of the three interest groups

—	1 additional member from each of the groups and the Commission.

Task

Overseeing the preparation and follow-up of the Board’s decisions.

3 — The Director

Appointed by the Governing Board on a proposal from the Commission.

4 — Committees

Obligatory consultation of the Commission and the Advisory Committee on Safety and Health at Work in respect of the work program and budget.

5 — External audit

Court of Auditors.

6 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

—	15,0 million euro (14,9 million euro)

including:

—	Union subsidy, DG Employment: 92,6 % (96,5 %)

—	Union subsidy, DG Enlargement: 6,5 % (2,4 %)

—	Other: 0,9 % (1,1 %)

Staff at 31 December 2009

44 (44) posts in the establishment plan,

of which, posts filled: 42 (41)

Posts vacant: 2 (3)

26 (23) other posts (contract staff — of which one financed by earmarked funds — seconded national experts, local staff and trainee).

Total staff: 68 (64)

assigned to

operational tasks: 50 (45)

administrative tasks: 9 (10)

mixed tasks: 9 (9)

European Risk Observatory (ERO):

—	Completion of fieldwork of the European Survey of Enterprises on New and Emerging Risks (ESENER): 31 countries, 36 000 interviews. First results presented at Board meeting.

—

Publications on: Emerging chemical risks. Nanoparticles. Stress: facts and figures. Biological agents and pandemics. Labour inspectorates’ strategic planning. Occupational safety and health of cleaning workers. The human-machine interface as an emerging risk. Exploratory Survey of Occupational Exposure Limits for Carcinogens, Mutagens and Reprotoxic substances at EU Member States level.

—	Launched foresight on safety and health impact of technological innovations in ‘green jobs’ by 2020.

—	Data collection on safety and health of women at work.

—	Seminars on emerging chemical risks, and violence and harassment.

Working environment information:

—	Data collection and risk assessment (RA) tools database on the Agency’s website.

—	Publication of two reports and fact sheets on RA.

—	Development of the Online Interactive Risk Assessment Tool (OiRA).

—	Continued development of a network of European organisations which can provide OSH economic incentives and preparation of a report on the topic.

—	Seminar and publication of a report on preventing harm to cleaning workers.

—	Publication of a report on OSH in the school curriculum and activities in Member States.

—	Publication of a report on preventing risks to young workers: policy, programmes and working practices.

—	Collection of case studies on mental health promotion and workplace health promotion for young workers under the Occupational Health Promotion project.

—	Revision and development of the Agency’s website Legislation area.

—	Participation in seminars, conferences and other events.

Communication, campaigning and promotion:

‘Healthy Workplaces Campaign. Good for you. Good for Business.’ — European campaign on risk assessment: good practice awards event (with Czech Presidency); closing summit (with Swedish Presidency).

—	Multilingual web-based and printed information products, tools and services on occupational safety and health.

—	Awareness raising activities: promotion of results of OSH opinion poll; photo competition; documentary film award.

—	Monitoring and evaluation: real-time evaluation of Healthy Workplace campaign; website survey and benchmarking.

Networking and coordination:

—	Further development of focal point network.

—	Liaison with European and international organisations.

—	Institutional capacity building in candidate and potential candidate countries.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.

The Agency acknowledges the necessity to reduce the carry forward to the minimum taking into account the implementation period of the Agency’s projects. This should lead to a reduction in the level of cancelled credit appropriations.

With this in mind, the management put in place, early in 2010, a monthly reporting mechanism to monitor the implementation of the activities foreseen in its annual work programme and the corresponding budgetary aspects.

Particular attention will be paid to the commitments still open at year-end with a view to de-committing the amounts not needed to cover subsequent financial and legal obligations.

(1) OJ L 216, 20.8.1994, p. 1. The Regulation was last amended by Council Regulation (EC) No 1112/2005 of 24 June 2005 (OJ L 184, 15.7.2005, p. 5).

(2) The Table summarises the Agency’s competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 17 June 2010 and received by the Court on 22 June 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://osha.europa.eu/en/about/finance/

14.12.2010

Official Journal of the European Union

C 338/52

REPORT

on the annual accounts of the European Maritime Safety Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/10

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	53
STATEMENT OF ASSURANCE …	3-12	53
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-14	54
OTHER MATTERS …	15-16	54
Table …		55
The Agency’s replies …		57

INTRODUCTION

The European Maritime Safety Agency (hereinafter ‘the Agency’), located in Lisbon, was set up by Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 (1). The Agency’s tasks are to ensure a high level of maritime safety and to prevent pollution by ships, provide the Commission and the Member States with technical assistance, and monitor the implementation of Union legislation, as well as to evaluate its effectiveness (2).

2.	The Agency’s 2009 budget amounted to 53,3 million euro, compared with 50,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 212, as compared with 211 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

As in 2008 (12), the procedures for drawing up the budget were not sufficiently rigorous and led to a significant number of budgetary transfers (13). To cover expenses of a programme financed from assigned revenue (14), a transfer of 260 000 euro was made from the European Commission subsidy. This increased the amount of appropriations carried forward to 2010 and reduced the amount to be repaid to the Commission. Weaknesses in the planning and monitoring of anti-pollution measures (15) and of the new LRIT (16) activity contributed to the cancellation of payment appropriations amounting to 6,6 million euro.

14.	For one project, the budgetary commitment (498 780 euro) was made against the 2009 appropriations while the legal commitment was entered in 2010. This situation was at odds with the principle of annuality of the budget.

OTHER MATTERS

15.

More than 75 % of the procurement procedures (17) launched during the year were negotiated procedures, mainly based on the exceptions set out in Articles 126 and 127 of the Implementing rules of the Financial Regulation. Such procedures should be reported to the Budgetary authority, as required under Article 30 of Agency’s Financial Regulation.

16.

The audit of recruitment procedures showed weaknesses: the anonymity of the written tests was not respected, candidates not complying with the predefined criteria were invited to the interview and criteria for shortlisting the candidates were not applied consistently. These practices put at risk the transparency of the recruitment procedures.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Maritime Safety Agency (Lisbon)

Areas of Union competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 1406/2002 of the European Parliament and of the Council as amended by Regulations (EC) No 1644/2003 and (EC) No 724/2004

Governance

Resources made available to the Agency 2009

(Data for 2008)

Products and services supplied in 2009

Common transport policy

‘The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may lay down appropriate provisions for sea and air transport’.

(Article 100 of the Treaty on the Functioning of the European Union)

Objectives

—	To ensure a high, uniform and effective level of maritime safety and prevention of pollution by ships.

—	To provide the Member States and the Commission with technical and scientific assistance.

—	To monitor the implementation of Union legislation in this field and to evaluate the effectiveness of the measures in place.

—	To introduce operational methods for fighting pollution in European waters.

Tasks

The Agency undertakes a broad range of activities in the fields of maritime safety, security and prevention of pollution and response to pollution by ships.

Firstly, the Agency has been tasked with assisting the Commission in monitoring the implementation of EU legislation relating, among others, to classification societies, Port State Control, the reception of ship waste in EU ports, certification of marine equipment, ship security, the training of seafarers in EU and non-EU countries and vessel traffic monitoring.

Secondly, the Agency develops and operates maritime information capabilities at EU level. Significant examples are the SafeSeaNet vessel traffic monitoring system, to enable effective tracking of vessels and their cargoes; the EU LRIT Data Centre, to ensure the identification and tracking of EU flagged ships worldwide; THETIS, the information system needed for the implementation of the EU Port State Control regime.

In parallel, a marine pollution preparedness, detection and response capability has been established, including a European network of stand-by oil spill response vessels as well as a European satellite oil spill monitoring service (CleanSeaNet), both with the aim of contributing to an effective system for protecting EU coasts and waters from pollution by ships.

Finally, the Agency provides technical and scientific advice to the Commission in the field of maritime safety and prevention of pollution by ships in the continuous process of evaluating the effectiveness of the measures in place, and in the updating and development of new legislation. It also provides support to, and facilitates cooperation between, the Member States and disseminates best practices. A substantial programme of training has been made available to Member States’ experts. At the same time assistance is provided to new and incoming Member States in transposing and implementing EU legislation.

1. Administrative Board

Composition

One representative per Member State, four representatives of the Commission and four representatives, without the right to vote from the professional sectors concerned.

Tasks

—	To adopt the multiannual staff policy plan, the annual budget, the work programme, the annual report and a detailed plan for the Agency’s pollution preparedness and response activities.

—	To supervise the work undertaken by the Executive Director

2. Executive Director

Appointed by the Administrative Board. The Commission may propose one or more candidates.

3. External audit

Court of Auditors.

4. Discharge Authority

Parliament, acting on a recommendation from the Council.

Budget

48,3 million euro CA

(50,2 million euro CA)

53,3 million euro PA

(50,2 million euro PA)

Staff at 31 December 2009

Permanent and temporary staff:

192 (181)

Contract staff:

27 (27)

SNEs:

15 (15)

—	37 Workshops and other events (with about 900 participants in workshops)

—	34 different training sessions (including 4 for Port State Control (PSC) officers) which resulted in 486 national experts trained (from which 230 PSC officers)

—	113 inspections and visits

—	SafeSeaNet system fully operational

—	2 275 satellite images ordered and 2 113 analysed through CleanSeaNet

—	EU LRIT Data Centre entered into production

—	13 anti-pollution vessel contracts (2 new vessels contracted in 2009)

—	47 drills and 12 exercises with the anti-pollution vessels

—	EMSA Maritime Support Services operating on a 24/7 basis

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.

The Agency continues its efforts to improve its planning and monitoring and consequently reduce the number of budget transfers. The Agency, confronted with an exceptional situation, had to make available appropriations for Equasis by way of a transfer, in addition to its budgeted contribution. These resources will, as approved by the Equasis Supervisory Committee, economically remain with EMSA once the project ends or is transferred to another management entity and be used for EMSA maritime safety tasks.

The IMO decided to shift the start of LRIT from 1.1. to 1.7.2009. As the size of the relevant flag registries was unknown and the phasing-in of vessels slower than expected, the budgeted appropriations could not be consumed as the number of vessels to be covered was lower than assumed.

14.

Despite the fact that it was sent to the contractor for signature end 2009, the final signatures were only received by beginning of 2010. The Agency has taken the necessary measures to avoid such exceptional situations in the future e.g. by providing clear instructions to the contractors as to deadlines for signing contracts.

15.	The Agency has already taken the necessary actions and the report to the Budgetary Authority is now in line with the provisions of the Financial Regulation.

16.	The Agency has taken the necessary actions: the recruitment procedures have been updated to ensure an even more transparent and non-discriminatory recruitment procedure.

(1) OJ L 208, 5.8.2002, p. 1.

(2) The Table summarises the Agency's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 13 June 2010 and received by the Court on 25 June 2010. The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or www.emsa.europa.eu

(12) Paragraph 13 of the 2008 annual report (OJ C 304 of 15.12.2009, p. 55).

(13) 49 transfers of appropriations in 2009.

(14) Project Equasis co-financed with three Member States and four third countries.

(15) Clean Seanet payment appropriations were reduced by 1,3 million euro.

(16) Long Range Identification and Tracking Data Centre (LRIT), payment appropriations were reduced by 1,3 million euro.

(17) In 2009, 53 procurement procedures were launched of which 40 were negotiated procedures, 22 of these based on exceptions.

14.12.2010

Official Journal of the European Union

C 338/58

REPORT

on the annual accounts of the European Environment Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/11

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	59
STATEMENT OF ASSURANCE …	3-12	59
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-15	60
OTHER MATTERS …	16	60
Table …		61
The Agency’s replies …		64

INTRODUCTION

The European Environment Agency (hereinafter ‘the Agency’), located in Copenhagen, was established by Council Regulation (EEC) No 1210/90 of 7 May 1990 (1). It is responsible for setting up 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. This information should, in particular, enable the European Union and the Member States to take action to safeguard the environment and assess the effectiveness of such action (2).

2.	The Agency’s 2009 budget was 39,9 million euro, compared with 37,1 million euro the previous year. The number of staff employed by the Agency at the end of the year was 133, as compared with 123 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

The procedures for drawing up the budget were not sufficiently rigorous and led to a considerable number of budgetary transfers affecting most of the budget lines (12). Some of these transfers led to successive increases and decreases in the same budget headings (13). Some appropriations were not used and were transferred to other lines during the year (14). This shows that the link between the budget and the work programme needs to be improved.

14.

On 23 December 2009, transfers increased the budget line 2100‘Rent’ by 364 355,02 euro in order to pay (on 30 December 2009) the rent for the Agency’s premises for the first quarter of 2010 and charge it to the 2009 budget. This practice is at odds with the principle of annuality and reduced the amount to be repaid to the Commission.

15.	The audit showed weaknesses in the estimation of accrued operational expenditure. The sample of items tested (15) was overstated by 147 000 euro. The accuracy of the information provided by the operational departments should be improved in the year-end exercise.

OTHER MATTERS

16.

The recruitment procedures showed weaknesses: the vacancy notices did not specify a maximum number of candidates to be put on the reserve lists. Questions used during written tests and interviews were not decided before the examination of the applications. The decisions of the selection boards were insufficiently documented, thresholds for being invited to interview or put on the reserve list were not set in advance and minutes were not complete. These practices put at risk the transparency of the recruitment procedures.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Environment Agency (Copenhagen)

Areas of Union competence deriving from the Treaty

Competences of the Agency

(Council Regulation (EEC) No 1210/90)

Governance

Resources made available to the Agency in 2009

(Data for 2008)

Main products and services supplied in 2009

Environment policy

Union policy on the environment shall contribute to pursuit (…) the objectives of preserving, protecting and improving the quality of the environment, protecting human health, prudent and rational utilisation of natural resources, promoting measures at international level to deal with regional or worldwide environmental problems, and in particular combating climate change.

Union policy on the environment shall aim at a high level of protection taking into account the diversity of situations in the various regions of the Union. It shall be based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source and that the polluter should pay. (…) In preparing its policy (…), the Union shall take account of available scientific and technical data environmental conditions in the various regions of the Union, the potential benefits and costs of action or lack of action, the economic and social development of the Union as a whole and the balanced development of its regions (…).

(Article 191 of the Treaty on the Functioning of the European Union)

Objectives

—

To set up a European environment information and observation network to provide the Union and the Member States with:

Objective, reliable and comparable information at European level enabling them to:

(a)	take the requisite measures to protect the environment;

(b)	assess the results of such measures;

(c)	ensure that the public is properly informed about the state of the environment.

2.	The necessary technical and scientific support.

Tasks

—	To establish, in cooperation with the Member States, and coordinate the European Environment Information and Observation Network.

—	To provide the Union and the Member States with the objective information necessary for framing and implementing sound and effective environmental policies.

—	To assist the monitoring of environmental measures through appropriate support for reporting requirements.

—	To advise individual Member States on the development, establishment and expansion of their systems for the monitoring of environmental measures.

—

To record, collate and assess data on the state of the environment, to report on the quality of and pressures on the environment within the territory of the Union, to provide uniform assessment criteria for environmental data to be applied in all Member States and to develop further and maintain a reference centre of information on the environment.

—	To help ensure that environmental data at European level are comparable and, if necessary, to encourage by appropriate means improved harmonisation of methods of measurement.

—	To promote the incorporation of European environmental data into international programmes.

—	To publish a report on the state of, trends in and prospects for the environment every five years.

—

To stimulate the development of environmental forecasting techniques, exchanges of information on technologies for preventing or reducing damage to the environment, methods of assessing the costs of damage to the environment and the costs of environmental preventive, protection and restoration policies; and

—	To ensure the broad dissemination of reliable and comparable environmental information, in particular on the state of the environment, to the general public and, to this end, to promote the use of new telematics technology for this purpose.

1 — Management Board

Composition

—	One representative per member country,

—	two representatives of the Commission,

—	two scientists appointed by the European Parliament.

Tasks

To adopt the multiannual and annual work programmes and ensure their implementation.

2 — Executive Director

Appointed by the Management Board on a proposal from the Commission.

3 — Scientific Committee

Consisting of qualified figures in the field of the environment, designated by the Management Board.

4 — External audit

Court of Auditors.

5 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

39,9 million euro

(37,1 million euro)

Union subsidy

87 % (85 %)

Staff at 31 December 2009

Number of posts in the Establishment plan:

133 (123)

Posts occupied: 121 (116) plus 56 (51) other posts (contract staff and seconded national experts).

Total staff numbers: 133 (123) posts assigned to the following tasks:

Allocated to

—	operational 89 (80)

—	administrative 43 (42)

—	mixed 1 (1).

—	EEA signals 2009, key environmental issues facing Europe.

—	Support to European Union Delegation, Members of European Parliament and others during the Climate Change Conference in Copenhagen in December.

—	Launch of Eye-on Earth portal in December.

—	A global setting for European environmental monitoring — measuring what we must manage. International conference, May 2009.

—	Greenhouse gas emission trends and projections 2009.

—	Regional climate change and adaptation — The Alps facing the challenge of changing water resources.

—	Annual European Union greenhouse gas inventory 1990-2007 and inventory report 2009.

—	Air pollution by ozone across Europe during summer 2008.

—	Launch of Noise Observation and Information System for Europe (NOISE).

—	Quality of bathing water — 2008 bathing season.

—	Ensuring quality of life in Europe’s cities and towns.

—	Progress towards the European 2010 biodiversity target.

—	Looking back on looking forward — a review of evaluative scenario literature.

—	Transport at a cross roads: indicators tracking transport and environment in the European Union (TERM 2008).

—	Water resources across Europe — confronting water scarcity and drought.

—	Diverting waste from landfill — Effectiveness of waste management policies in the European Union.

—	Waste without borders in the EU? Transboundary shipments of waste.

—	Territorial cohesion — Analysis of environmental aspects of the EU Cohesion Policy in selected countries.

—	Developments on Gross Domestic Product and beyond (including a seminar in November 2009).

The EEA also continued to collaborate closely with DG Environment, ESTAT and the JRC in the ‘Group of Four’ to streamline environmental reporting. The EEA takes the lead in the following five areas: climate change, air quality, water and marine environment, biodiversity and land use.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.

Operational needs and developments are always at the very centre of transfer decisions made — attempting to maximise responsiveness to stakeholder needs, which develop throughout the year.

In particular 2009 was the first year in a new five-year strategic plan with a new nomenclature for the operational budget to better mirror the EEA work programme. Thus, in many areas it was not possible to base the forecasts on past experience. Nevertheless, EEA managed to keep the level of transfers between titles to 2,3 %, of the appropriations, well below the 10 % foreseen in the EEA financial regulation.

14.	The Agency takes note of the observation of the Court.

15.	The Agency will continue to improve the internal control with a view to improving the accuracy of the accrued expenses evaluation.

16.

The Agency is currently revising the methodology followed by the Selections Boards in order to ensure more transparency in the selection procedures.

At the beginning of each selection procedure the Selection Board is reminded about its obligation to fully and properly document its decisions. The Agency will continue its efforts to improve the documentation of the selection procedures.

(1) OJ L 120, 11.5.1990, p. 1.

(2) The Table summarises the Agency’s competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 25 May 2010 and received by the Court on 5 July 2010. The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://www.eea.europa.eu/about-us/documents/administrativedocuments/eea-accounts-for-the-year-2009/

(12) Total value 3,3 million euro (transfers within and between titles), equivalent to 8 % of the Agency’s budget.

(13) Budget line 3324‘Translations’ was increased on 17 December 2009 by 73 070,42 euro and reduced on 23 December 2009 by 60 000 euro. Budget line 3401‘Environmental themes’ decreased by 71,6 % (501 354 euro).

(14) Initial appropriations amounting to 250 082 euro on budget lines 3405‘EEA Governance and partnerships’ and 3406‘EEA internal management and administration’ were not used and were transferred to other lines during the year.

(15) Total value of the sample: 1 202 000 euro.

14.12.2010

Official Journal of the European Union

C 338/65

REPORT

on the annual accounts of the Education, Audiovisual and Culture Executive Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/12

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	66
STATEMENT OF ASSURANCE …	3-12	66
OTHER MATTERS …	13	67
Table …		68
The Agency’s replies …		70

INTRODUCTION

The Education, Audiovisual and Culture Executive Agency (hereinafter ‘the Agency’), located in Brussels, was set up by Commission Decision 2005/56/EC of 14 January 2005 (1). The Agency manages programmes decided by the Commission in the educational, audiovisual and cultural fields, including undertaking the detailed implementation of technical projects (2).

2.	After the adoption of two amending budgets, the Agency’s 2009 administrative budget was 47,7 million euro, compared with 38,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 414, as compared with 362 the previous year.

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

OTHER MATTERS

13.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Education, Audiovisual and Culture Executive Agency (Brussels)

Areas of Union competence deriving from the Treaty on the Functioning of the European Union

Competences of the Agency as defined in Commission Decision 2005/56/EC of 14 January 2005

Governance

Resources made available to the Agency in 2009

(Data for 2008)

Activities and outputs in 2009

The European Union shall contribute to the development of quality education.

(Article 165(1) of the Treaty)

The European Union shall implement a vocational training policy.

(Article 166(1) of the Treaty)

The European Union shall contribute to the flowering of the cultures of the Member States.

(Article 167(1) of the Treaty)

The European Union and the Member States shall ensure that the conditions necessary for the competitiveness of the Union’s industry exist.

(Article 173(1) of the Treaty)

Objectives

In the framework of the education, culture and industry policies, numerous measures have been taken to promote education, vocational training, audiovisual, culture, youth and active citizenship in the European Union. The main objectives of these measures are to reinforce social cohesion and to contribute to competitiveness, to economic growth and to an ever closer union amongst the people of Europe.

These measures include a variety of programmes.

The Agency is responsible for managing certain strands of these programmes (e.g. ‘Lifelong learning’, ‘Culture’, ‘Youth in Action’, ‘Europe for Citizens’, ‘MEDIA’, ‘Erasmus Mundus’ (including the new ‘Action 2’) and ‘Tempus’). In this respect, it implements theaid of the Union, except for programme evaluation, strategic studies and any other task which requires discretionary powers in translating political choices.

Tasks

—	To manage, throughout their duration, the specific projects entrusted to it in the context of the implementation of programmes of the Union.

—	To adopt the instruments of budget implementation for revenue and expenditure and to carry out, where the Commission has empowered it to do so, the operations necessary for the management of the programmes of the Union and, in particular, those linked to the award of grants and contracts.

—	To gather, analyse and pass on to the Commission all the information needed to guide the implementation of the programmes of the Union.

—	To implement, at the level of the Union, the network of information on education in Europe (Eurydice) for the collection, analysis and dissemination of information and the production of studies and publications.

1 — Steering Committee

Comprises five members appointed by the European Commission.

It adopts the Agency’s annual work programme after approval by the European Commission. In addition, it adopts the administrative budget of the Agency and its annual activity report.

2 — Director

Appointed by the European Commission.

3 — External audit

Court of Auditors.

4 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

The 2009 administrative budget of the Agency has reached 48 million euro (38 million euro in 2008) (100 % financed by the general budget of the European Union).

The Agency has managed 629 million euro related to the programmes and projects delegated by the Commission to the Executive Agency (492 million euro in 2008)

Staff at 31 December 2009

(1)

Temporary staff:

99 posts for temporary staff in the establishment plan (92 in 2008)

Post occupied: 91 (85 in 2008).

(2)	Contract staff: 327 contract staff (303 in 2008) Posts occupied: 323 (277 in 2008)

(3)	Total staff: 414 posts occupied (362 in 2008) Allocated to Operational: 340 Administrative: 74

—

The following activities and results were performed in 2009:

—	Regarding the Agency administrative budget, 46 million euro were committed (97 %) and 41 million euro were paid (85 %) to cover staff expenses, infrastructure cost and administrative expenses linked to operational activities.

—	Regarding the operational budget, 625 million euro were committed (99,3 %) to cover the award of grants and contracts and 528 million euro were paid (99,9 %).

—

A range of simplification measures were implemented to improve management processes and procedures for beneficiaries and to harmonise and accelerate internal working procedures. They include in particular contracting by decision, the introduction of lump sum and flat rate payments, the electronic submission of proposals,framework partnership agreements, rationalisation of grants and consolidation of experts’ comments.

—

The following outputs were produced in 2009:

—	31 calls for proposals and 3 programme guides were published for all programmes 2007-2013. The relevant selection processes were organised on schedule,

—	8 InfoDays and a range of projects’ kick off meetings took place in 2009,

—	about 4 100 projects were selected for grant award,

—	4 700 contracts were signed,

—	around 7 960 payments were carried out,

—	5 462 projects were closed in 2009,

—	6 calls for tenders/procurement procedures were launched for the supply of studies and services,

—	154 audits were closed in 2009, whereas 98 new audits were launched and all on-the-spot missions carried out.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.	The Agency has taken note of the Court’s finding and amended its procedure in order to mention in the vacancy notice not only the number of candidates to be put on the reserve list but also the number of highest scoring candidates to be interviewed.

(1) OJ L 24, 27.1.2005, p. 35.

(2) The Table summarises the Agency’s competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 11, 16.1.2003, p. 1.

(7) Article 25 of Commission Regulation (EC) No 1653/2004 of 21 September 2004 (OJ L 297, 22.9.2004, p. 6).

(8) Article 29 of Regulation (EC) No 1653/2004.

(9) The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VI of Regulation (EC) No 1653/2004 as last amended by Regulation (EC) No 651/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 15).

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 31 May 2010 and received by the Court on 9 July 2010. The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or www.europa.eu/agencies/executive_agencies/eacea/index_en.htm

14.12.2010

Official Journal of the European Union

C 338/71

REPORT

on the annual accounts of the European Research Council Executive Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/13

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	72
STATEMENT OF ASSURANCE …	3-12	72
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-14	73
OTHER MATTERS …	15	73
Table …		74
The Agency’s replies …		76

INTRODUCTION

The European Research Council Executive Agency (hereinafter ‘the Agency’), located in Brussels, was set up by Commission Decision 2008/37/EC of 14 December 2007 (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 specific programme ‘Ideas’ in the field of frontier research (2). The Agency became fully autonomous in 2009.

2.	The Agency’s 2009 budget was 18,3 million euro. The number of staff employed by the Agency at the end of the year was 262.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

The Agency’s initial 2009 budget, 18,3 million euro, was reduced by 3,9 million euro in October 2009 and returned to the Commission for the Ideas Programme. The final budget implementation was 13,4 million euro. There is significant room to make more realistic assumptions for recruitment and operating expenditure with a view to improving the Agency’s budgetary forecasts.

14.

Three cases of appropriations carried forward to 2010 concern purchase orders not signed by the suppliers despite the contractual obligations (12). Several contracts (13) were signed in the last days of 2009 for services linked to activities initially planned for 2010. For recurrent administrative expenses (14), appropriations carried over from 2008 were used to pay for services to be delivered in 2009 (15). These situations were at odds with the budgetary principle of annuality.

OTHER MATTERS

15.

There were shortcomings in the recruitment procedures. The vacancy notices did not specify the thresholds or the maximum number of candidates to be put on the reserve lists, nor their period of validity. The selection board’s decisions were insufficiently justified and documented. In one selection procedure, two candidates were interviewed despite the fact that they were ‘not to be invited for interview’. One of these candidates was recruited by the Agency.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Research Council Executive Agency (Brussels)

Areas of Union competence deriving from the Treaty

Competences of the Agency as defined in Commission Decision 2008/37/EC of 14 December 2007

Governance

Resources made available to the Agency in 2009

Products and services provided during 2009

A multiannual framework programme, setting out all the activities of the Union, shall be adopted by the European Parliament and the Council, after consulting the Economic and Social Committee. The framework programme shall:

—	establish the scientific and technological objectives to be achieved by the activities provided for in Article 180 and fix the relevant priorities,

—	indicate the broad lines of such activities,

—	fix the maximum overall amount and the detailed rules for Union financial participation in the framework programme and the respective shares in each of the activities provided for.

2.	The framework programme shall be adapted or supplemented as the situation changes.

The framework programme shall be implemented through specific programmes developed within each activity. Each specific programme shall define the detailed rules for implementing it, fix its duration and provide for the means deemed necessary. The sum of the amounts deemed necessary, fixed in the specific programmes, may not exceed the overall maximum amount fixed for the framework programme and each activity.

4.	The Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament and the Economic and Social Committee, shall adopt the specific programmes.

(Article 182 of the Treaty on the Functioning of the European Union)

Objectives

The Agency is responsible for carrying out the implementation of the tasks for the management of the Ideas Specific Programme (see Council Decision 2006/972/EC) under the Seventh Framework Programme for Union research FP7 (2007-2013), as adopted by Decision No 1982/2006/EC of the European Parliament and of the Council.

Tasks

Within the Ideas Specific Programme, under the Seventh Framework Programme for Union Research, the Agency is responsible for the following tasks (see Commission Decision C(2008) 5694 of 8 October 2008):

(a)

collect, process and distribute data, and in particular compile, analyse and transmit to the Commission and the Scientific Council all information required to guide implementation of the Ideas Specific Programme as well as policy development in the field of frontier research, and assist the Commission and the Scientific Council in establishing contacts with other programmes of the Union, the Member States or international organisations;

(b)	contribute to the evaluation by the Commission of the impact of the programme and to the monitoring of the effects of the measures taken;

(c)

carry out studies and assessments, in particular in support of the Commission annual report on the ERC operations and achievement of the objectives of the Ideas Specific Programme as well as the mid-term evaluation of implementation of the programme, and contribute to the preparation and implementation of follow-up action on evaluations, with a view to transmitting them to the Scientific Council and the Commission;

(d)	prepare draft recommendations for the Scientific Council and the Commission on implementation of the Ideas Specific Programme and its future development;

(e)	plan and implement information, communication and dissemination actions;

(f)	participate in preparatory work on Commission specific financing decisions relating to the Ideas Specific Programme.

1 — Steering Committee

Five members appointed by the European Commission. Adopts the Agency’s annual work programme after approval by the European Commission, the administrative budget of the Agency and its annual activity report.

2 — Scientific Council of the ERC

The Scientific Council of the ERC is entrusted by virtue of Council Decision 2007/134/EC with establishing a scientific strategy for the Ideas Specific Programme, deciding on the type of research to be funded in accordance with Article 6(6) of Decision 2006/972/EC and acting as a guarantor of the quality of the activity from a scientific perspective. Its tasks cover, in particular, the establishment of the annual work programme for the Ideas Specific Programme, and of the peer review process, as well as the monitoring and quality control of the implementation of the Specific Programme ‘Ideas’, without prejudice to the responsibility of the Commission.

3 — Director

Appointed by the European Commission for 4 years.

4 — External audit

Court of Auditors

5 — Discharge authority

Parliament, following a recommendation from the Council.

Budget

The Agency’s administrative budget for 2009 totalled 14,4 million euro.

Staff at 31 December 2009

On 31 December 2009, the Agency employed 262 staff members:

—	93 temporary staff (13 seconded and 80 external),

—	162 contract staff,

—	7 seconded national experts.

The Ideas work programme is implemented via the publication of the annual calls for proposals, which are followed by an evaluation (by external experts), negotiation and signing of grant agreements and finally monitoring the projects awarded. Each call for proposal results in a series of Grant Agreements with an expected project cycle of about 5 years. At the end of 2009 four ‘lots’ were managed following completion of various calls. The first reporting cycle started for Starting Grants 2007.

Execution of the 2009 Calls for proposals for the Ideas work programme. (Starting Grants and Advanced Grants): 4 083 proposals’ applications were submitted in 2009, out of which 2 503 for Starting Grants and 1 583 for Advanced Grants. Of these a total of 3 918 were eligible and thus evaluated by the review panels. A total of 449 proposals were selected for the granting process.

3.	Generation and dissemination of information on the Ideas Specific Programme and the Executive Agency’s activities in 2009.

Support to the Scientific Council of the ERC: Two Scientific Council plenary sessions were organised in the period between 15 July and 31 December 2009, one in October in Brussels and one in December in Rehovot (Israel). In order to facilitate the Scientific Council’s strategy discussion, the Agency, in conjunction with the Secretary-General of the Scientific Council, has carried out an analysis drawing lessons from the first 3 years of the Agency’s existence. Three new ERC Working Groups were created at the Scientific Council plenary in July 2009, meetings of the Working Groups on ‘Relations with Industry’, ‘Open Access’, ‘Third Countries Participation’ and ‘Gender Balance’ (pre-existing) were organised by the Agency. A series of documents containing analysis and key messages on the specific issues dealt with by the Working Groups were prepared by the Agency in conjunction with the members of the said Groups.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.	The Agency is already implementing tools in order to improve its budget forecasts management.

14.	The Agency will develop a procurement planning and monitoring system to facilitate the annual follow up of procurement workflows.

15.

The Agency will issue guidelines to prevent the identified weaknesses. Concerning the specific case, the selection panel extended the list of eligible candidates invited for interview to have a sufficient pool of candidates for the final selection. The Agency recognises that this decision was not properly documented.

(1) OJ L 9, 12.1.2008, p. 15.

(2) The Table summarises the Agency’s competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 11, 16.1.2003, p. 1.

(7) Article 25 of Commission Regulation (EC) No 1653/2004 of 21 September 2004 (OJ L 297, 22.9.2004, p. 6).

(8) Article 29 of Regulation (EC) No 1653/2004.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(12) Total value: 168 378 euro.

(13) Total value: 227 878 euro.

(14) Total value: 320 600 euro.

(15) Article 7(3) of the Financial Regulation of the Agency.

14.12.2010

Official Journal of the European Union

C 338/77

REPORT

on the annual accounts of the Trans-European Transport Network Executive Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/14

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	78
STATEMENT OF ASSURANCE …	3-12	78
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13	79
Table …		80
The Agency’s replies …		82

INTRODUCTION

The Executive Agency for the Trans-European Transport Network (hereinafter ‘the Agency’), located in Brussels, was set up by Commission Decision 2007/60/EC of 26 October 2006 (1) and amended by Commission Decision 2008/593/EC (2). The Agency was established for a period beginning on 1 November 2006 and ending on 31 December 2015 for the management of Union actions in the field of the trans-European transport network. The Agency acquired its financial independence on 15 April 2008 (3).

2.	The Agency’s 2009 administrative budget amounted to 8,9 million euro, compared with 5,2 million the previous year. The number of staff employed by the Agency at the end of the year was 91, compared with 67 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

In 2009, the Agency’s budget for Title II Administrative expenditure increased by 1,3 million euro (0,8 million increase compared to 2008 and 0,5 million euro transfer from Title I). For the same Title II the Agency carried forward appropriations amounting to 0,8 million euro and cancelled an equivalent amount. This situation was at odds with the principle of annuality.

This report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Trans-European Transport Network Executive Agency (Brussels)

Areas of Union competence deriving from the Treaty

Competences of the Agency as defined in Commission Decision 2007/60/EC of 26 October 2006

Governance

Resources made available to the Agency in 2009

Products and services

To help achieve the objectives referred to in Articles 26 and 174 and to enable citizens of the Union, economic operators and regional and local communities to derive full benefit from the setting-up of an area without internal frontiers, the Union shall contribute to the establishment and development of trans-European networks in the areas of transport, telecommunications and energy infrastructures.

Within the framework of a system of open and competitive markets, action by the Union shall aim at promoting the interconnection and interoperability of national networks as well as access to such networks. It shall take account in particular of the need to link island, landlocked and peripheral regions with the central regions of the Union.

(Article 170 TFEU)

In order to achieve the objectives referred to in Article 170, the Union:

—	shall establish a series of guidelines covering the objectives, priorities and broad lines of measures envisaged in the sphere of trans-European networks; these guidelines shall identify projects of common interest,

—	shall implement any measures that may prove necessary to ensure the interoperability of the networks, in particular in the field of technical standardisation,

—

may support projects of common interest supported by Member States, which are identified in the framework of the guidelines referred to in the first indent, particularly through feasibility studies, loan guarantees or interest-rate subsidies; the Union may also contribute, through the Cohesion Fund set up pursuant to Article 177, to the financing of specific projects in Member States in the area of transport infrastructure.

The Union’s activities shall take into account the potential economic viability of the projects.

Member States shall, in liaison with the Commission, coordinate among themselves the policies pursued at national level which may have a significant impact on the achievement of the objectives referred to in Article 170. The Commission may, in close cooperation with the Member State, take any useful initiative to promote such coordination.

3.	The Union may decide to cooperate with third countries to promote projects of mutual interest and to ensure the interoperability of networks.

(Article 171 TFEU)

Objectives

TEN-TEA is responsible for managing the technical and financial implementation of the Commission’s TEN-T Programme. Its role is to improve the effectiveness of TEN-T implementation at a lower cost; to strengthen the links between the TEN-T and communities of experts; to mobilise a high level of expertise and make the recruitment of specialised staff easier; to ensure a better coordination of funds with other Union instruments; to enable the simplification and flexibility of TEN-T implementation; to raise the profile of Union action in the field of TEN-T; and in general to add value to the management of the TEN-T Programme.

Tasks

(a)	ensure the technical and financial management of projects and events which are co-financed under the TEN-T budget;

(b)	collect, analyse and transmit to the Commission all information required for the implementation and programming of the TEN-T;

(c)	provide technical support to project promoters and the financial institution responsible for managing the loan guarantee instrument for the TEN-T projects;

(d)	provide any technical and administrative support requested by the Commission.

Its parent, DG MOVE, continues to address all policy-making and institutional tasks related to the TEN-T.

1 — Steering Committee

The Agency’s activities are supervised by a Steering Committee which is currently composed of five members and one observer. The members of the Steering Committee are appointed for two years. The Steering Committee meets in principle four times a year. Certain measures or decisions need its approval before they can be implemented. This applies for example to the administrative budget, the establishment plan, the Work Programme, the Annual Activity Report, the provisional accounts of all revenue and expenditure, the external evaluation report and the adoption of several special rules and measures etc. On a number of other actions, the committee is kept informed. In exceptional and urgent cases, decisions are taken through a written procedure.

2 — Director

Appointed by the European Commission for five years.

3 — Internal audit

The Internal Audit Service of the European Commission and the Internal Audit Capability of the Agency.

4 — External audit

Court of Auditors.

5 — Discharge Authority

Parliament acting on a recommendation from the Council.

Budget

(A)

8,0 billion euro (100 % general budget of the European Union) for the TEN-T budget linked to the 2007-2013 Financial Perspective.

555,6 million euro in outstanding commitments linked to the 2000-2006 Financial Perspective.

The Agency implements the operational budget under the responsibility of the Commission.

(B)	8,86 million euro (100 % Union subsidy) for the administrative budget for which the Agency is autonomous.

Staff at 31 December 2009

TA posts:

32 posts listed in the establishment plan, of which 31 (97 %) occupied.

Contract staff: 67 posts planned, of which 60 (90 %) were occupied.

Total staff: 99 (91 occupied)

Responsible for

(a)	Operational tasks: 64 (59 occupied)

(b)	Administrative tasks: 16 (15 occupied)

(c)	Financial control/accounting: 19 (17 occupied)

TEN-T EA set five specific objectives for 2009. The first and the most fundamental task was to further develop measures to increase the efficiency and improve the management of the TEN-T Programme and projects. The second related to the successful organisation and administration of all the 2009 Calls for Proposals, including the European Economic Recovery Plan. The third concerned the follow-up and successful implementation of projects selected under the 2007 and 2008 Calls for Proposals. The fourth concerned increased emphasis on information and communications on projects, in order to promote and support the TEN-T programme to all stakeholders. The fifth and final specific objective was to establish and consolidate the Agency in its final operational form.

In addition, a number of actions from the 2008 Work Programme were carried over to 2009: the treatment of old payment requests received by DG MOVE before the Agency’s autonomy; the creation of the Agency’s website and the improvement of the visibility of the TEN-T programme; the creation of the TEN-T EA Staff Committee and the finalisation of the Implementing Rules for personnel management; the development of the Geographical Information System, statistical tools and innovative financing methods.

The Agency also performed additional tasks: staff assisted DG MOVE to finalise the project selection from the 2009 Calls, for the adoption of the EERP Decisions and by preparing the work programmes for the 2010 calls under the Multi-Annual Programme and the Annual Programme for the Loan Guarantee Instrument and the 2020 European Fund for Energy, Climate Change and Infrastructure. The Agency contributed to the preparation of the methodology for the ‘2010 MAP project portfolio review’.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.

The 0,8 million euro of cancelled appropriations concern the anticipated expenditure for works in the new premises, which, after discussions with the Commission, appeared not to be possible. The 0,8 million euro carried forward appropriations concern legal commitments made in 2009, for which the delivery and/or invoices will only be received in 2010.

(1) OJ L 32, 6.2.2007, p. 88.

(2) OJ L 190, 18.7.2008, p. 35.

(3) The Table summarises the Agency’s competences and activities. It is presented for information purposes.

(4) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(5) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(6) The budget implementation reports comprise the budget outturn account and its annex.

(7) OJ L 11, 16.1.2003, p. 1.

(8) Article 25 of Commission Regulation (EC) No 1653/2004 of 21 September 2004 (OJ L 297, 22.9.2004, p. 6).

(9) Article 29 of Regulation (EC) No 1653/2004.

(10) The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VI of Regulation (EC) No 1653/2004 as last amended by Regulation (EC) No 651/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 15).

(11) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(12) The Final Annual Accounts were drawn up on 29 June 2010 and received by the Court on 5 July 2010. The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://tentea.ec.europa.eu/en/about_us/mission__introduction/key_documents.htm

14.12.2010

Official Journal of the European Union

C 338/83

REPORT

on the annual accounts of the Executive Agency for Competitiveness and Innovation for the financial year 2009, together with the Agency’s replies

2010/C 338/15

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	84
STATEMENT OF ASSURANCE …	3-12	84
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13	85
OTHER MATTERS …	14	85
Table …		86
The Agency’s replies …		89

INTRODUCTION

The Executive Agency for Competitiveness and Innovation (hereinafter referred to as ‘the Agency’), located in Brussels, is the former Intelligent Energy Executive Agency (IEEA). Its mandate and the duration thereof were altered following Commission Decision 2007/372/EC of 31 May 2007 (1) amending Decision 2004/20/EC of 23 December 2003 (2). The Agency was established for a limited period, beginning on 1 January 2004 and now ending on 31 December 2015, with the aim of managing Union actions in the field of energy, entrepreneurship and innovation, and sustainable freight transport (3).

2.	The Agency’s final 2009 administrative budget amounted to 13,3 million euro, compared with 11,5 million euro the previous year. The number of staff employed by the Agency at the end of the year was 141, as compared with 131 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

The initial 2009 budget of 14,9 million euro was reduced by 1,6 million euro in October 2009 (13), mainly due to an overestimation of staff needs (912 500 euro) and the take-over of some activities by the Commission. This situation is similar to the one observed in 2008 (14) and indicates the need for a stricter approach when forecasting staff needs.

OTHER MATTERS

14.

The audit of recruitment procedures showed that the selection of applicants invited for an interview — about 80 % of applicants are rejected at this stage — was made by only one member of the jury. Moreover, the thresholds for passing the next stage of the selection process were not determined before the evaluation process started. These practices put at risk the transparency of the recruitment procedures.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Executive Agency for Competitiveness and Innovation (Brussels)

Areas of Union competence deriving from the Treaty

Competences of the Agency as defined in Commission Decision 2004/20/EC amended by Decision 2007/372/EC

Governance

Resources available to the Agency in 2009

(Data for 2008)

Activities and services provided in 2009

Union policy on the environment shall contribute to pursuit of the following objectives:

—	preserving, protecting and improving the quality of the environment,

—	protecting human health,

—	prudent and rational utilisation of natural resources,

—	promoting measures at international level to deal with regional or worldwide environmental problems, and in particular combating climate change.

(Article 191(1) TFEU)

The Union and the Member States shall ensure that the conditions necessary for the competitiveness of the Union’s industry exist.

For that purpose, in accordance with a system of open and competitive markets, their action shall be aimed at:

—	speeding up the adjustment of industry to structural changes,

—	encouraging an environment favourable to initiative and to the development of undertakings throughout the Union, particularly small and medium-sized undertakings,

—	encouraging an environment favourable to cooperation between undertakings,

—	fostering better exploitation of the industrial potential of policies of innovation, research and technological development.

(Article 173(1) TFEU)

For the purpose of implementing Article 90, and taking into account the distinctive features of transport, the European Parliament and the Council shall, acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee and the Committee of the Regions, lay down:

(a)	common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States;

(b)	the conditions under which non-resident carriers may operate transport services within a Member State;

(c)	measures to improve transport safety;

(d)	any other appropriate provisions.

(Article 91(1) TFEU)

Objectives

Within the framework of the Lisbon strategy for growth and jobs, the European Union has adopted measures to promote and develop competitiveness and innovation. These measures include the establishment of the Competitiveness and Innovation Framework Programme (CIP) 2007-2013 (Decision No 1639/2006/EC), notably with the programmes Intelligent Energy — Europe (IEE) and Entrepreneurship and Innovation (EIP). The measures also include the Marco Polo (MP) programme (Regulation (EC) No 1692/2006).

The main objectives are to foster competitiveness of enterprises, in particular SMEs; to promote all forms of innovation, as well as eco-innovation; to promote energy efficiency and new and renewable energy sources in all sectors, including transport.

Under these EU programmes, the Agency is responsible for all implementing tasks concerning EU aid, except for programme evaluation, monitoring of legislation and strategic studies, or any other action which comes under the exclusive competence of the European Commission.

Tasks

Implementing the EU programmes according to the delegations received from the Commission:

—	To manage all phases in the lifetime of specific projects.

—	To carry out all operations necessary to manage the EU programmes, in particular budget implementation including awarding contracts and grants.

—	To gather, analyse and pass on to the Commission all the information needed to guide the implementation of the programmes as well as to promote coordination and synergy among the programmes.

—	As regards the EIP, to be in charge of project and network management by the Enterprise Europe Network, eco-innovation pilot and market replication projects, and innovation actions with a high degree of standardisation (IP Base project).

1 — Management Board

Comprises five members appointed by the European Commission. It adopts the Agency's annual work programme after approval by the European Commission. In addition, it adopts the administrative budget of the Agency and its annual activity report.

2 — Director

Appointed by the European Commission.

3 — External Audit

Court of Auditors.

4 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

(A)

203,1 (204,8) million euro (100 % general budget of the EU). The EACI implements the operational budget under the responsibility of the Commission:

—	for IEE 72,1 (55,8) million euro,

—	for EIP-eco-innovation 32,2 (27,9) million euro,

—	for EIP-Networks 32,0 (82,8) million euro,

—	for MP 66,9 (38,3) million euro.

(B)	13,3 (11,5) million euro (100 % Union subsidy) for the administrative budget for which the EACI is autonomous.

Staff at 31 December 2009

37 (36) posts listed in the establishment plan, of which 28 (27) occupied.

Contract staff: 110 (108) posts planned, 113 (104) were occupied.

Total staff: 141 (131)

Allocated to

(a)	Operational tasks: 118 (110)

(b)	Administrative tasks: 23 (21).

For the Intelligent Energy Europe (IEE) programme, the Agency monitored 388 ongoing IEE projects and signed 57 new grant agreements related to the 2008 call for proposals. For the 2009 call, the Agency selected 59 projects out of 372 proposals submitted. As happens every year, European Info Day (400 participants) was organised, and National Info Days attended (15 days with 2 500 participants). The latter increased by almost 70 % in comparison to last year.

The Agency disseminated information about the programme and its results via the IEE website with a 66 % increase in page views (2 million), a searchable project database, five new project brochures, two new News Reviews and nine electronic news alerts mailed to 13 600 subscribers. Since September, the Agency has also managed the contract for the Sustainable Energy Campaign. Through numerous channels, the Agency fed back results from IEE projects to the Commission, e.g. on the energy performance of the buildings Directive.

The EIP programme — Enterprise Europe Network was launched at the beginning of 2008. The Network offers a ‘one-stop shop’ to meet the business and innovation needs of SMEs and companies in the EU. The Agency manages 92 ongoing projects with 532 partners as well as a grant for ‘intellectual property rights awareness and enforcement for SMEs’ as well as eight cooperation agreements with Armenia, Chile, China, Egypt, Russia, Switzerland, Syria, and the USA.

For the Network animation, the EACI developed the Network's visual identity and branching, a video news release with 2,2 million viewers, five newsletters and several training sessions for Network partners of which one ‘train the trainers’. Together with the Swedish EU Presidency, the Agency organised an annual conference with more than 800 participants, including an award competition for best practices.

For the eco-innovation market replication projects, the Agency monitored 44 ongoing projects from the 2008 call for proposals. The 2009 call attracted almost 50 % more proposals (202) than the previous one. It was promoted via one European and 13 National Info Days with 1 355 participants (8 % increase). The programme website was viewed by half a million, like last year, however the number of subscribers to the news alert increased by 65 % (5 100). Efforts to promote the scheme also include a graphical charter, posters and flyers.

For the Marco Polo programme the Agency monitored 64 ongoing projects and signed 28 new grant agreements related to the 2008 call for proposals. In 2009, the Agency organised the first European Info Day with 300 participants; the 2009 call attracted 70 proposals, which is an increase of 60 % in comparison with last year. The Agency promotes the programme through a dedicated website with 0,4 million viewers (25 % increase) and electronic news alerts with 57 % more subscribers (1 300) than last year. Communication efforts also include a regional conference, participation in 17 MP events throughout Europe, a graphical charter, a brochure and leaflet as well as a video that attracted 5 million viewers.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.	The initial 2009 budget was based on estimated staff numbers indicated in the ‘fiche financiere’ of the Commission decision to extend the Agency's tasks. Staff were recruited according to the successively expanding needs to cover the tasks handed over from the parent Directorates-General.

14.

The EACI will adapt its selection procedure in order to incorporate the Court's finding regarding the screening stage of the recruitment and its documentation. However, while the eligibility and selection criteria are determined beforehand to ensure legal certainty, thresholds are established only after having examined all applications, as their sole purpose is to keep the number of candidates to be interviewed at a reasonable level.

(1) OJ L 140, 1.6.2007, p. 52.

(2) OJ L 5, 9.1.2004, p. 85.

(3) The Table summarises the Agency's competences and activities. It is presented for information purposes.

(6) The budget implementation reports comprise the budget outturn account and its annex.

(7) OJ L 11, 16.1.2003, p. 1.

(8) Article 25 of Commission Regulation (EC) No 1653/2004 of 21 September 2004 (OJ L 297, 22.9.2004, p. 6).

(9) Article 29 of Regulation (EC) No 1653/2004.

(11) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(12) The Final Annual Accounts were drawn up on 23 June 2010 and received by the Court on 30 June 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or www.europa.eu/agencies/executive_agencies/eaci/index_en.htm

(13) Amending Budget 1/2009 (OJ L 333, 17.12.2009, p. 35).

(14) See paragraph 13 of the Report on the annual accounts 2008 (OJ C 304, 15.12.2009, p. 77).

14.12.2010

Official Journal of the European Union

C 338/90

REPORT

on the annual accounts of the Research Executive Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/16

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	91
STATEMENT OF ASSURANCE …	3-12	91
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-14	92
OTHER MATTERS …	15	92
Table …		93
The Agency’s replies …		95

INTRODUCTION

The Research Executive Agency (hereinafter ‘the Agency’), located in Brussels, was set up by Commission Decision 2008/46/EC of 14 December 2007 (1). The Agency was established for a limited period beginning on 1 January 2008 and ending on 31 December 2017 with the aim of managing specific Union activities in the field of research (2). On 15 June 2009 the Agency was officially granted its administrative and operational autonomy by the European Commission.

2.	The Agency’s final 2009 administrative budget was 21,6 million euro. The number of staff employed by the Agency at the end of the year was 310.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

In October 2009 the Agency’s initial 2009 administrative budget of 25,8 million euro was reduced by an amending budget by 4,2 million euro. The staff appropriations were reduced by almost 3 million euro (18 %), which indicates that the Agency’s budget forecast for staff was based on unrealistic assumptions for recruitments. The 2009 annual work programme, based on 88 temporary and 261 contract staff, was not adjusted in line with the decreased human resources available (72 temporary and 238 contract staff were actually employed as at 31 December 2009).

14.

An analysis of the commitments carried forward to 2010 revealed that, for provisional commitments, the automatic carry-forward was overestimated. About 770 000 euro (28 % of the tested commitments) were not covered by a legal obligation, or the services concerned related to 2010. This situation was at odds with the principle of annuality.

OTHER MATTERS

15.

With regard to staff selection procedures, the vacancy notices did not specify the maximum number of candidates to be put on the reserve lists. Insufficient justification and documentation were provided for the selection boards’ decisions, since thresholds for being invited to interview or put on the reserve list were not defined in advance and minutes were missing. These practices put at risk the transparency of the recruitment procedures.

This report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Research Executive Agency (Brussels)

Areas of Union competence deriving from the Treaty

Competences of the Agency

(Commission Decision 2008/46/EC of 14 December 2007)

Governance

Resources made available to the Agency in 2009

Products and services supplied in 2009

The Union shall have the objective of strengthening its scientific and technological bases by achieving a European research area in which researchers, scientific knowledge and technology circulate freely, and encouraging it to become more competitive, including in its industry.

For this purpose the Union shall encourage undertakings, including SMEs, research centres and universities in their research and technological development activities of high quality; it shall support their efforts to cooperate with one another, aiming, notably, at permitting researchers to cooperate freely across borders and at enabling undertakings to exploit the internal market potential to the full, (…) the definition of common standards and the removal of legal and fiscal obstacles to that cooperation.

In pursuing these objectives, the Union shall carry out the following activities, complementing the activities carried out in the Member States:

(a)	implementation of research, technological development and demonstration programmes, by promoting cooperation with and between undertakings, research centres and universities;

(b)	promotion of cooperation in the field of Union research, technological development and demonstration with third countries and international organisations;

(c)	dissemination and optimisation of the results of activities in Union research, technological development and demonstration;

(d)	stimulation of the training and mobility of researchers in the Union.

(Articles 179 and 180 of the TFEU)

Objective

The objective of the Agency is to manage the Programmes entrusted to it under FP7 (the People Programme, the SME actions of the Capacities Programme, and the Space and Security themes of the Cooperation Programme) efficiently and effectively, to deliver efficient and effective services to the research community and to provide centralised FP7 support services to the respective Commission services for all areas of the Cooperation, Capacities and People Specific Programmes.

With regard to the efficient and effective Programmes implementation, the Agency — as promoter of the European Research Area — aims at improving project management, establishing close contact with final beneficiaries and providing a high visibility of the European Union.

Tasks

With regard to the management of projects, the Agency concludes and manages grant agreements, involving the following operations:

—	preparation and publication of calls for proposals,

—	evaluation of proposals,

—	preparation and signature of grant agreements,

—	monitoring the implementation of projects including acceptance of reports and other deliverables,

—	payments, recoveries, and application of sanctions within the meaning of Article 114(4) of the general Financial Regulation, notably when errors in declared costs have been identified following ex-post audits at the level of the final beneficiaries,

—	ex-post publicity and dissemination of results.

With regard to FP7 Support Services, the Agency performs the following tasks:

—	administrative support for call publication,

—	management of the electronic reception of proposals,

—	support for remote and on-site evaluations,

—	support to the preparation of appointment letters and payments for experts,

—	management of the Central FP7 participants database (Unique Registration Facility — URF), including support for financial capacity checks of selected beneficiaries,

—	management of the Research Enquiry Service.

1 — Steering Committee

Comprises five members appointed by the Commission. It adopts the Agency's organisation chart and its Annual Work Programme after approval by the Commission. In addition, it adopts the administrative budget of the Agency and its Annual Activity Report.

2 — Director

Appointed by the European Commission, manages the agency together with the Steering Committee, implements the administrative budget, sets up management and internal control systems adapted to the tasks entrusted to the agency and prepares the reports which the executive agency must present to the Commission.

3 — External audit

Court of Auditors.

4 — Discharge authority

Parliament, acting on recommendation from the Council.

Operational Budget

811,2 million euro of commitment appropriations and 679,5 million euro of payment appropriations. The Agency implements the Commission's operational budget under a delegation decision of the Commission.

Administrative Budget

21,6 million euro. The Agency implements the administrative budget autonomously.

Staff at 31 December 2009

TA posts: 88 listed in the establishment plan of which 72 occupied.

Contract staff: 261 staff planned of which 238 were in place as of 31 December 2009.

Total staff

Responsible for

—	Programme management: 169

—	FP7 Support Services: 73

—	Administrative functions: 69

For 2009, the results related to programme implementation tasks listed below cover the whole year and therefore relate to the work of the Agency and of the parent DGs (before the Agency's autonomy on 15 June).

For the People Programme, 10 calls were closed in 2009 and 9 evaluations completed. 1 290 new grant agreements were signed and 1 277 payments made (excluding payments for expert evaluators). The Agency now manages a total of 2 495 projects under this programme.

For the SME actions of the Capacities Programme, 2 calls were closed and 2 evaluations completed. 120 new grant agreements were signed and 122 payments made (excluding payments for expert evaluators). The Agency now manages a total of 247 projects under this scheme.

For the Space and Security themes of the Cooperation Programme, 2 calls were closed in 2009 and 2 evaluations completed. 32 new grant agreements were signed and 52 payments made (excluding payments to expert evaluators). TheAgency now manages a total of 78 projects under these themes.

As regards the FP7 support services, the results obtained for the period 15 June to 31 December 2009 are as follows:

—	64 call publications supported,

—	13 832 proposals received through the electronic proposal submission tool,

—	3 067 expert evaluators contracted and 912 expert payments made (for programmes managed by the Agency only),

—	2 795 validations of participants completed,

—	3 772 replies sent following questions to the Research Enquiry Service.

In addition, as 2009 was the first operational year for the agency and staff increased from 55 to 310, great efforts were made in recruiting qualified staff to the agency and to prepare for taking over the management of programmes in June 2009.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.

The reduction of the initial budget via an amending budget was the result of the inherent conflict between the ambitious target of setting up quickly a new organisation with the new qualified staff on the one hand and the complex and time consuming recruitment process of the public sector on the other hand. The recruitment targets have been reached with some delay and the Agency therefore did not see a valid reason for adjusting the initial annual work programme and its performance targets.

14.

More than 65 % of the overestimated automatic carry-forwards were related to building charges for which the Agency had to base its estimates on information of the building promoter. The Agency is confident that for subsequent years it will be able to build on the experience of its first year of existence. Provisional commitments to be carried forward and the related legal obligations will be reassessed at year-end and adjusted to more reliable cost estimates.

15.

For the recruitment of temporary staff the Agency established reserve lists with at least twice as many candidates as vacant posts. The pre-selection of candidates to interview was done without fixing threshold, in order to get a reasonable number of shortlisted candidates.

For future calls for expressions of interest, the Agency will take up the suggested good practices of:

—	defining in the notice an indicative maximum number of candidates to be shortlisted and to be put on the reserve list(s),

—	fixing thresholds for the shortlist(s) before the start of the selection process.

(1) OJ L 11, 15.1.2008, p. 9.

(2) The Table summarises the Agency’s competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 11, 16.1.2003, p. 1.

(7) Article 25 of Commission Regulation (EC) No 1653/2004 of 21 September 2004 (OJ L 297, 22.9.2004, p. 6).

(8) Article 29 of Regulation (EC) No 1653/2004.

(9) The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VI of Commission Regulation (EC) No 1653/2004 as last amended by Regulation (EC) No 651/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 15).

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 15 June 2010 and received by the Court on 2 July 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://ec.europa.eu/research/rea/

14.12.2010

Official Journal of the European Union

C 338/96

REPORT

on the annual accounts of the Executive Agency for Health and Consumers for the financial year 2009, together with the Agency’s replies

2010/C 338/17

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	97
STATEMENT OF ASSURANCE …	3-12	97
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-14	98
Table …		99
The Agency’s replies …		102

INTRODUCTION

The Executive Agency for Health and Consumers (hereinafter ‘the Agency’), located in Luxembourg, was set up by Commission Decision 2004/858/EC (1) and amended by Commission Decision 2008/544/EC (2). The Agency was established for a period beginning on 1 January 2005 and ending in 2013 for the management of Union actions in the field of health and consumer policy (3).

2.	The Agency’s 2009 administrative budget amounted to 6,4 million euro, compared with 4,4 million euro the previous year. The number of staff employed by the Agency at the end of the year was 48, as compared with 42 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

For Title III — Expenditure linked to the Agency’s operations, 1,1 million euro, or 61 % of commitments made, were carried forward to the budgetary year 2010. According to the accounting information, approximately 0,8 million euro of the appropriations carried forward correspond to activities not yet implemented at the year end. This situation indicated delays in the implementation of the activities financed from the Title III of the Agency’s budget and was at odds with the budgetary principle of annuality.

14.	Appropriations carried over from 2008 amounting to 0,3 million euro (37 % of total carried over appropriations) had to be cancelled. The high cancellation rate again indicates the need for stricter application of the annuality principle by the Agency.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Executive Agency for Health and Consumers (Luxembourg)

Areas of Union competence deriving from the Treaty

Competences of the Agency

(Commission decision 2004/858/EC of 15 December 2004 amended by decision 2008/544/EC of 20 June 2008)

Governance

Resources made available to the Agency in 2009

Products and services supplied in 2009

A high level of human health protection shall be ensured in the definition and implementation of all Union policies and activities. Union action, which shall complement national policies, shall be directed towards improving public health, preventing physical and mental illness and diseases, and obviating sources of danger to physical and mental health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education, and monitoring, early warning of and combating serious cross-border threats to health.

(Article 168 of the Treaty on the Functioning of the European Union)

Objectives

The Agency is responsible for carrying out the implementation tasks for the management of the second Public Health Programme 2008-2013 as adopted by Decision No 1350/2007/EC, the Consumer programme for 2007-2013 as adopted by Decision No 1926/2006/EC and the food safety training measures covered by Regulation (EC) No 882/2004 and Directive 2000/29/EC.

The Agency also manages all the phases in the lifetime of the implementing measures delegated to it in the framework of the programme of action in the field of public health 2003-2008, adopted by Decision No 1786/2002/EC of the European Parliament and of the Council of 23 September 2002.

Tasks

Under the Union programmes mentioned below, the Agency is responsible for implementing the following tasks as defined in the delegation act adopted on 9 September 2008 (13):

Public Health Programme 2003-2008 — Decision No 1786/2002/EC

Public Health Programme 2008-2013 — Decision No 1350/2007/EC

Consumers Programme 2007-2013 — Decision No 1926/2006/EC

Food Safety Training Measures — Regulation (EC) No 882/2004 and Directive 2000/29/EC:

(a)	managing all the phases of the cycle of projects (for monitoring and dissemination purposes, the Agency shall take the necessary steps to create a database of projects or to continue an existing one, incorporating a project description and the final results);

(b)	monitoring projects implemented under these programmes and measures including the necessary checks;

(c)

collecting, processing and distributing data and in particular compiling, analysing and transmitting to the Commission all information required to guide implementation of the programmes and measures, promote coordination and synergy with other programmes of the Union, the Member States or international organisations;

(d)	organising meetings, seminars, talks, and training measures;

(e)	helping to evaluate the programme's impact, in particular the annual and/or mid term evaluation of implementation of the programmes, and implementing the follow-up actions on evaluations decided by the Commission;

(f)	disseminate the results of the information operations planned and implemented by the Commission;

(g)	producing overall control and supervision data;

(h)	participating in preparatory work on financing decisions.

1 — Steering Committee

Comprises five members appointed by the European Commission. The members of the Steering Committee are appointed for two years.

It adopts the Agency's annual work programme after approval by the European Commission. In addition, it adopts the administrative budget of the Agency and its annual activity report.

2 — Director

Appointed by the European Commission for four years.

3 — External audit

Court of Auditors.

4 — Discharge Authority

Parliament, acting on a recommendation from the Council.

Budget

The Agency's administrative final budget for 2009 amounted to 6,4 million euro.

Staff at 31 December 2009

On 31 December 2009, the Agency employed 48 statutory staff members, including 11 temporary staff and 37 contract staff.

Monitor the grant agreements awarded under the 2005, 2006, 2007, 2008 Public Health Programme Calls and grants and contracts awarded under the 2008 calls for proposals and for tenders of the 2007-2013 Consumer Programme and projects awarded under the 2007, 2008 and 2009 calls for tender under Food Safety Training Measures.

Execution of the 2009 Call for proposals ‘Public Health programme’ and 2009 Work Programme of the 2007-2013 Consumer Programme. The Agency organised 17 info days and the evaluation of the received proposals. Fifty-six grant agreements were concluded in 2009, respectively Joint Actions (5), Operating Grants (1), Grants to the European Consumer Centres network (ECC) (28) and financial contributions towards travel and subsistence expenses in the form of grants for the exchange of officials of competent authorities (22). In addition, in 2009, 9 public procurement contracts were concluded under the Consumers Programme, totalling acontracted value of 4,2 million euro. Six service contracts were made under the Better Training for Safer Food initiative, representing a total amount of 5,4 million euro.

3.	Generation and dissemination of information on the Public Health programme, Consumer Programme, projects financed by BTSF programme and the Executive Agency's activities in 2009.

Organisation of Expert Meetings. ‘The Agency organised for DG SANCO 7 experts meetings. Meetings were held with project coordinators in the same field (e.g. projects on generic preparedness)’. In addition a meeting with the coordinators of the co-funded projects between 2005 and 2008 in the area of nutrition and physical activity was held in January 2009 to which 35 persons were invited from 25 projects. This meeting was seen as very valuable by all involved and this type of meeting will be repeated in 2010. A meeting with the National Focal Points was held on Menorca on 21 September 2009, followed by a training seminar, together with the Summer School in Public Health on Menorca and the Carlos III Institute of Spain.

At the end of 2009, the Agency was managing a portfolio of 361 cost-shared Public Health programme projects of which 287 signed agreements, representing a total EC contribution of 156 million euro. In 2009, 10 public procurement contracts were concluded under the PH Programme, representing a contracted value of 1,5 million euro. Activities under the Consumers Programme were carried out via grants and public procurement contracts. By the end of the reporting year, the Agency managed a portfolio of 90 grant agreements, mostly mono-beneficiary for a cumulative amount of 14,4 million euro.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.

The Agency recognises that carry-forwards should be further reduced. Despite the positive tendency since 2007, in 2010 particular attention shall be given to the timely planning and implementation of budget implementation, especially in Title III. For 2010, the Agency has already implemented structured reporting methods which will allow for better monitoring of the budget execution and regular reporting to bimonthly management meetings.

(1) OJ L 369, 16.12.2004, p. 73.

(2) OJ L 173, 3.7.2008, p. 27.

(3) The Table summarises the Agency's competences and activities. It is presented for information purposes.

(6) The budget implementation reports comprise the budget outturn account and its annex.

(7) OJ L 11, 16.1.2003, p. 1.

(8) Article 25 of Commission Regulation (EC) No 1653/2004 of 21 September 2004 (OJ L 297, 22.9.2004, p. 6).

(9) Article 29 of Regulation (EC) No 1653/2004.

(11) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(12) The Final Annual Accounts were drawn up on 8 June 2010 and received by the Court on 30 June 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://ec.europa.eu/eahc/about/about.html

(13) Commission Decision of 9 September 2008 — delegating powers to the Agency.

14.12.2010

Official Journal of the European Union

C 338/103

REPORT

on the annual accounts of the European Railway Agency for the financial year 2009, together with the Agency’s replies

2010/C 338/18

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	104
STATEMENT OF ASSURANCE …	3-12	104
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-17	105
Table …		106
The Agency’s replies …		107

INTRODUCTION

The European Railway Agency (hereinafter ‘the Agency’), located in Lille-Valenciennes, was created by Regulation (EC) No 881/2004 of the European Parliament and of the Council of 29 April 2004 (1). The Agency’s aim is to enhance the level of interoperability of railway systems and to develop a common approach to safety in order to contribute to creating a more competitive European railway sector with a high level of safety (2).

2.	The Agency’s 2009 budget amounted to 21,0 million euro, compared with 18,0 million euro the previous year. The number of staff employed by the Agency at the end of the year was 127, compared with 113 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.	As in 2008, the volume of the appropriations carried forward for Titles II and III was considerable: 1 135 000 euro or 41 % of Title II appropriations, and 3 164 000 euro or 61 % of Title III appropriations. Some 75 % of these commitments concern goods and services to be delivered in 2010.

14.

The number of transfers and the large carry-overs were mainly due to cancellation and delays in procurement procedures (12), recurrent delays in the execution of payments (13) and significant changes made to the annual work programme during the year. This situation indicated delays in the implementation of the activities financed from Titles II and III of the Agency’s budget and was at odds with the budgetary principle of annuality.

15.

The Agency migrated to a new accounting and budgeting system (ABAC) in April 2009. However, no centralised system for registering incoming invoices was in place. This situation did not ensure the timely recording of all invoices and contributed significantly to the delays in processing payments (see paragraph 14).

16.

Shortcomings in the management of the fixed assets inventory were found. Physical checks carried out in the Conference Centre in Lille showed discrepancies in the current inventory list. Items were incorrectly reported in the list or were not tagged. The exact location of the items between the two sites of Lille and Valenciennes could not always be identified. Moreover, the assets are recognised at the moment invoices are paid and not when assets are delivered and accepted.

17.

The Agency decided to modify the place of origin for three members of staff retroactively and to grant a correction to their annual return trip allowance for all the years since their recruitment (14). For the staff concerned, the conditions of the Staff Regulations (15) and their implementing rules (16) were not complied with. There was not sufficient documentation to justify these changes of place of origin and the related retroactive payments made.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Railway Agency (Lille/Valenciennes)

Areas of Union competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 881/2004 of the European Parliament and of the Council

Governance

Resources available to the Agency in 2009

(Data for 2008)

Activities and services provided in 2009

(a)	common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States;

(b)	the conditions under which non-resident carriers may operate transport services within a Member State;

(c)	measures to improve transport safety;

(d)	any other appropriate provisions.

Article 91(1) of the Treaty on the Functioning of the European Union

Objectives

To contribute, on technical matters, to the implementation of the Union legislation aimed at:

—	improving the competitive position of the railway systems,

—	developing a common approach to safety on the European railway system,

in order to contribute to creating a European railway area without frontiers and guaranteeing a high level of safety.

Tasks:

1 — Address recommendations to the Commission on

—	the common safety methods (CMS) and common safety targets (CSTs) provided in the Railway Safety Directive (2004/49/EC),

—	safety certificates and measures in the field of safety,

—	development of Technical specifications for Interoperability,

—	monitoring interoperability,

—	certification of maintenance workshops,

—	vocational competencies,

—	registration of rolling stock.

2 — Issue opinions on

—	national safety rules,

—	monitoring the quality of work of notified bodies,

—	interoperability of the trans-European network.

3 — Coordination of national bodies

—	coordination of national safety authorities and national investigation bodies (as described in Directive 2004/49/EC, Articles 17 and 21).

4 — Publications and databases

—	report on safety performance (every two years),

—	report on progress with interoperability (every two years),

—	public database of safety documents,

—	public register of documents on interoperability.

1 — Administrative Board

Comprises one representative from each Member State, four representatives from the Commission and six representatives, without the right to vote, from the professional sectors concerned.

2 — Director

Appointed by the Administrative Board on a proposal from the Commission.

3 — External audit

Court of Auditors.

4 — Discharge Authority

Parliament following a recommendation from the Council.

Budget

21 million euro

(18 million euro)

Staff at 31 December 2009

Posts listed in the establishment plan: 124 (116)

Posts occupied on 31.12.2009: 113 (106)

Other staff: 14 (7)

Total staff: 127 (113)

of which assigned to:

—	operational tasks: 84 (69)

—	administrative tasks: 43 (44)

Recommendations relating to Safety Certification, including the migration to a single Union safety certificate, recommendations for a Union model of a train driver licence and register, certification of maintenance workshops and entities in charge of maintenance.

Recommendations in respect of safety regulation, including evaluating the way national safety rules are made available, examination of the transposition of the Railway Safety Directive in the Member States.

Recommendations relating to Safety Reporting, including Common Safety Indicators, coordination of safety authorities’ and investigation bodies and reporting on safety performance in the Member States.

Recommendations on safety assessment, including Common Safety Methods.

Drafting Recommendations for Technical Specifications for Interoperability and their Revision, including evaluation of extension of scope and error correction.

Publish a report on interoperability and provide Technical Opinions on national rules and monitor the work of Notified Bodies.

Set up and maintain a series of registers for Interoperability.

Act as the System Authority and Change Control Manager for ERTMS assisting the Commission in evaluating ERTMS projects.

Define and compile the Reference Document of national rules for vehicle authorisation.

Accompany all recommendations with an impact assessment.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

13.	Due to delays in the execution of payments and to the late conclusion of procurement procedures, the Agency has made important carry-overs.

14.	The Agency will continue to make efforts to improve and respect the procurement planning and to decrease the payment delays with the limited resources allocated.

15.	Following the Court of Auditors’ report and the draft report on the validation of local systems carried out by the Accounting Officer, the Agency will implement the central registration of commercial invoices as of 1 September 2010.

16.	The Agency started using ABAC ASSETS since 1 January 2010 and will reconcile the physical inventory with the accounts for the annual accounts 2010.

17.	ERA has taken measures to review the entitlements of its staff in cooperation with PMO and will make corrections as necessary. In addition, the procedure for the establishment of individual entitlements within ERA has been reinforced and information sessions for newcomers introduced.

(1) OJ L 220, 21.6.2004, p. 3.

(2) The Table summarises the Agency’s competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 15 June 2010 and received by the Court on 2 July 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. They can be found on the following website http://eca.europa.eu or www.era.europa.eu

(12) More than half of the contracts were signed after November 2009.

(13) In 2009, 75 % of payments were made outside the time limits, with an average delay of 88 days.

(14) The total impact is 28 258 euro for retroactive payments since 2005 and around 11 300 euro annually from 2010 onwards.

(15) In particular, Article 7(3) of Annex VII to the Staff Regulations.

(16) Commission Decision C(2004) 1364.

14.12.2010

Official Journal of the European Union

C 338/108

REPORT

on the annual accounts of the European Food Safety Authority for the financial year 2009, together with the Authority’s replies

2010/C 338/19

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	109
STATEMENT OF ASSURANCE …	3-12	109
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-15	110
OTHER MATTERS …	16	110
Table …		111
The Authority’s replies …		113

INTRODUCTION

The European Food Safety Authority (hereinafter referred to as ‘the Authority’), which is located in Parma, was established by Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 (1). Its main tasks are to supply the scientific information needed for Union legislation to be drawn up, to collect and analyse data that allow risks to be identified and monitored and to provide independent information on these risks (2).

2.	The Authority’s 2009 budget amounted to 71,4 million euro (including the released reserve of 2 million euro), compared with 66,4 million euro the previous year. The number of staff employed by the Authority at the end of the year was 326 as compared with 318 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

For the 2009 budget, the Authority introduced differentiated appropriations for science grants and scientific cooperation projects totalling 7,9 million euro. At the year end, 6 million euro (75 %) of the related payment appropriations had to be cancelled of which 3,1 million were funds allocated in excess of the needs identified by the Authority. This situation suggests that the Authority should strengthen the budget processes related to its differentiated appropriations and the planning and monitoring of their multiannual implementation.

14.

Of the 9,3 million euro carried over from 2008 for Title III (operating activities) 1,8 million euro (19 %) had to be cancelled at year end, mainly due to the delayed implementation of 2007 and 2008 science grants. This situation shows that the Authority should reinforce contract management and the monitoring of the remittance of reports and cost statements.

15.

The initial 2009 budget for IT of 4,2 million euro was increased by budget transfers of 2,5 million euro. These funds were mainly used to finance hardware and software consultancy projects in the 2010 work programme. This situation, like those described above, indicates difficulties in the implementation of the 2009 work programme and is at odds with the budget principles of annuality and specification.

OTHER MATTERS

16.	For eight 2008 science grant agreements, the Authority paid an additional pre-financing of 383 627 euro in the absence of supporting documents proving that the first pre-financing payments had been used.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Food Safety Authority (Parma)

Areas of Union competence deriving from the Treaty

Competences of the Authority

(Regulation (EC) No 178/2002 of the European Parliament and of the Council)

Governance

Resources made available to the Authority in 2009

(Data for 2008)

Products and services in 2009

(Data for 2008)

Free movement of goods

(Article 28 of the Treaty on the Functioning of the European Union)

In order to promote the interests of consumers and to ensure a high level of consumer protection, the Union shall contribute to protecting the health, safety and economic interests of consumers, as well as to promoting their right to information, education and to organise themselves in order to safeguard their interests.

(Article 169(1) of the Treaty on the Functioning of the European Union)

Common trade policy

(Article 206 of the Treaty on the Functioning of the European Union)

Objectives

—	To provide scientific opinions and scientific and technical support for legislation and policies which have a direct or indirect impact on food and food safety.

—	To provide independent information on risks relating to food safety.

—	To contribute to the achievement of a high level of protection of human life and health.

—	To collect and analyse data needed to allow characterisation and monitoring of risks.

Tasks

—	To issue scientific opinions and studies.

—	To promote uniform risk-assessment methodologies.

—	To assist the Commission.

—	To search analyse and summarise the requisite scientific and technical data.

—	To identify and characterise emerging risks.

—	To establish a network of organisations operating in similar fields.

—	To provide scientific and technical assistance in crisis management.

—	To improve international cooperation.

—	To provide the public and interested parties with reliable, objective and easily comprehensible information.

—	To take part in the Commission's rapid alert system.

1 — Management Board

Composition

14 members appointed by the Council (in cooperation with the European Parliament and the Commission) and 1 representative of the Commission.

Task

To adopt the work programme and the budget and ensure that they are implemented.

2 — Executive Director

Appointed by the Management Board on the basis of a list of candidates proposed by the Commission, following a hearing before the European Parliament.

3 — Advisory Forum

Composition

One representative per Member State.

Task

To advise the Executive Director.

4 — Scientific Committee and scientific panels

To draw up the Authority's scientific opinions.

5 — External audit

Court of Auditors.

6 — Discharge authority

Parliament, acting on recommendation from the Council.

Budget

71,4 (66,4) million euro, 100 % of which is a Union subvention (100 %)

Staff at 31 December 2009

355 (335) posts foreseen in the establishment plan, of which occupied: 326 (318)

+ 81 (77) other staff (contractual, SNE)

Total staff: 407 (395), of which for:

Allocated for

—	Operational duties: 324 (298)

—	Administrative duties: 83 (97)

Risk assessment and scientific cooperation outputs (12)

—	Application opinions of the SC/Panels: 331 (227)

—	Conclusions on Pesticides Peer Review: 28 (new)

—	Reasoned opinions: 76 (new)

Subtotal 1: 435 (227)

—	Generic opinions of the SC/Panels: 81 (84)

—	Statements of the SC/Panels: 44 (10)

—	Guidance documents SC/Panels: 9 (23)

—	Statements of the Authority: 8 (2)

—	Guidance of the Authority: 5 (6)

—	Scientific or technical reports: 54 (116)

—	Data collection reports: n/a (21)

Subtotal 2: 201 (262)

Total (1+2): 636 (489)

Communicate scientific advice and facilitate dialogue with interested parties

—	Scientific opinions supported by communication activities: 34 % (20 %)

—	Public consultations: 66 (38)

—	Web visits: 2,4 million (2,1)

—	Highlights subscribers: 25 690 (21 140)

—	Media coverage: 9 038 (11 652)

—	Media queries: 694 (676)

—	Press releases: 21 (30)

—	Web News stories: 50 (39)

—	Interviews: 72 (123)

Source: Information supplied by the Authority.

THE AUTHORITY’S REPLIES

13.

The Authority has made contact with the Commission to improve its budgetary processes and to avoid the repetition, in 2010, of the situation described by the Court. The Authority wants to underline that, in 2009, it implemented for the first time the concept of differentiated appropriations for Scientific Cooperation Projects and, on the basis of this experience, has taken measures to improve the planning and the monitoring of the use of its differentiated appropriations.

14.

Over the 2007-2008 period, the issuance of science grants was a new process for the Authority. Experience showed in particular that the time required for delivery of scientific reports fulfilling the Authority’s quality standards by the beneficiaries, was underestimated.

After consulting all actors, measures were taken in April 2010 to improve the project planning and monitoring as well as the evaluation of the financial offers.

Furthermore, the Authority confirms the closure of all 2007/2008 grants.

15.	The Authority acknowledges the necessity to further strengthen its planning and monitoring of IT projects and has introduced additional controls during 2010.

16.	The Authority acknowledges the Court’s finding and will take measures to better pre-define and document the conditions triggering payment of possible additional pre-financing.

(1) OJ L 31, 1.2.2002, p. 1.

(2) The Table summarises the Authority's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 17 June 2010 and received by the Court on 24 June 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://www.efsa.europa.eu/en/funding/accounts.htm

(12) Please note that, for the sake of comparability, the (2008) data have been adapted in order to reflect the new classification of the Authority outputs. The total number of outputs is unchanged.

14.12.2010

Official Journal of the European Union

C 338/114

REPORT

on the annual accounts of the European GNSS Supervisory Authority for the financial year 2009, together with the Authority’s replies

2010/C 338/20

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	115
STATEMENT OF ASSURANCE …	3-12	115
OTHER MATTERS …	13-17	116
Table …		117
The Authority’s replies …		118

INTRODUCTION

The European GNSS (Global Navigation Satellite System) Supervisory Authority (hereinafter ‘the Authority’), located in Brussels, was set up by Council Regulation (EC) No 1321/2004 of 12 July 2004 (1) 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. Regulation (EC) No 683/2008 of the European Parliament and the Council of 9 July 2008 (2) reduced the responsibilities of the Authority to the control of the security of Galileo systems and to the preparation of their commercialisation. The Commission may possibly entrust specific tasks to the Authority (3).

2.	The Authority’s 2009 adopted budget amounted to 44,4 million euro, compared with 125 million euro the previous year. The number of staff employed by the Authority at the end of the year was 35, as compared with 52 the previous year.

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

OTHER MATTERS

13.

With regard to the four staff selection procedures audited, no evidence exists that the weightings of the selection criteria and the thresholds that candidates had to meet in order to be invited to the written tests and interviews were established before the evaluation process begins. Additionally, no evidence exists that the questions for the written tests and interviews were defined prior to drawing up the shortlist of candidates. These practices put at risk the transparency of the recruitment procedures.

14.

In one recruitment procedure audited, the vacancy notice stated that the candidates should have had at least 12 years of professional experience. One candidate was considered eligible even though it had been clearly established from the beginning of the procedure that he did not meet this criterion. This candidate was appointed by the Director, who acknowledged in his decision that he did not have sufficient professional experience. An ex-post decision was issued by the Director, granting internal candidates a 10 % reduction of the professional experience required for a GSA post. This decision infringes the principle of equal treatment in the application of the eligibility criteria in recruitment procedures open to both internal and external candidates.

15.

For the ‘Framework Programme 7/Galileo/Call 1’ grants procedure (17,5 million euro) the exclusion criteria were not published and checked. As regards the eligibility criteria, the Authority did not systematically evidence its verification of the small and medium enterprises criteria for the potential beneficiaries participating in one of the topics (12).

16.	The final budget published by the Authority on 31 March 2010 (13) did not reflect the final budget for 2009 approved by the Administrative Board and did not include its revenue.

17.

Following the entry into force of Regulation (EC) No 683/2008 of the European Parliament and of the Council, most of the activities and assets related to the EGNOS and Galileo programmes were transferred to the Commission in December 2009. The remaining part of the activities and assets will be transferred in 2010.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European GNSS Supervisory Authority (Brussels)

Areas of Union competence deriving from the Treaty

Competences of the Authority as defined in Council Regulation (EC) No 1321/2004 and as amended by European Parliament and Council Regulation (EC) No 683/2008

Governance

Resources made available to the Authority in 2009

(Data for 2008)

Products and services in 2009

Competitive-ness for growth and employment.

Objectives

—	To manage the public interests relating to the European GNSS programmes.

—	To be the regulatory authority for the European GNSS programmes.

Tasks

The Authority shall:

(a)	ensure security accreditation and the operation of the Galileo security centre;

(b)	contribute to the preparation of the commercialisation of the systems, including the necessary market analysis;

(c)	accomplish other tasks that may be entrusted to it by the Commission.

1 — Administrative Board

Composition

—	one representative per Member State,

—	one representative from the Commission.

Tasks

—	appoints the Director,

—	adopts the annual work programme,

—	adopts the budget,

—	adopts the annual report on the activities and prospects of the Authority.

2 — Executive Director

Appointed by the Administrative Board.

3 — System Safety and Security Committee

Composed of one representative per Member State and one representative from the Commission.

4 — External audit

Court of Auditors.

Parliament, acting on a recommendation from the Council.

Budget

44,4 million euro (125,0 million euro), of which 7,4 million euro (10,6 million euro) was the operating subsidy from the Commission and 37,0 million euro (114,4 million euro) was operational funds from the Commission

Staff at 31 December 2009

23 (50) establishment plan posts, of which filled: 23 (49) + 12 (3) other staff (contract staff and seconded national staff)

Number of staff:

35 (52), of which assigned to:

—	operational tasks: 14 (31),

—	administrative tasks: 12 (13),

—	mixed tasks: 9 (8).

28 temporary staff were transferred to the European Commission (DG TREN) in January 2009, which left the GSA with 22 temporary staff.

Programmes

—	Support to the European Commission in the implementation of the EGNOS and Galileo programmes.

Systems Security

—	Galileo and EGNOS Systems Security (Galileo Security Accreditation, System Safety and Security Committee — 3SC, GNSS Security Requirements, EGNOS Security),

—	Public Regulated Service — PRS (Preparation of the PRS User Segment),

—	Galileo Security Monitoring Centre — GSMC,

—	GNSS Technology Control Regime.

Market development

—	EGNOS Market Entry (Aviation, Agriculture, Road, EDAS, Market Monitoring),

—	International activities (Latin America, Israel, China, Africa),

—	Information and Outreach (EGNOS Information Portal, ‘Growing Galileo 2009’ event).

Research and development

—	Management of projects under the 6th Framework Programme and 7th Framework Programme (1st and 2nd calls) for research,

—	Implementation/update of a web-based knowledge management and dissemination tool.

Source: Information supplied by the Authority.

THE AUTHORITY’S REPLIES

13.

The Authority is of the opinion that the transparency of the recruitment procedures was ensured, even if the thresholds the candidates had to meet for being invited to the written tests and interviews were established after the beginning of the evaluation process. The principle of sound financial management requires that the Authority invites for interview only a reasonable number of candidates. The number of candidates to be invited is a result of the ranking established and documented by the selection panel.

14.

The winner of this recruitment competition was an internal candidate who at the time of the recruitment was performing the majority of the tasks of the job, due to the departure of the former job holder. Notwithstanding the demonstration of his competences on the job, the candidate had to compete with external candidates in an open and fair competition.

The appointment decision grants a reduction in experience of 4 months and is reasoned with the fact that the candidate is experienced in GSA financial practices and that he has been already performing many of the tasks of the job. The Director issued in 2010 a general decision on a reduction of 10 % professional experience, which since its issue is published with the vacancy notice.

15.

The Authority has followed the rules defined by the Commission.

In particular:

(a)	all criteria were published either in the Guide for Applicants or in the detailed topic description (including the SME requirement, benchmarks for evaluation and the funding levels);

(b)	the evaluation and ranking process was fully conforming to Commission's FP7 guidelines and, accordingly, all the information was available to participants.

16.

The 3rd Amending Budget (Official Journal of the European Union of 31 March 2010) reflected an amendment adopted by the Administrative Board in December 2009; it entailed reduction of the staff expenditure by 450 000 euro and the increase of the budget for studies by the same amount in payment appropriations only. This amendment did not affect the revenue side. Accordingly, the template of the Publications Office that was used had no revenues because these were unchanged compared to the previous published version of Budget 2009.

(1) OJ L 246, 20.7.2004, p. 1.

(2) OJ L 196, 24.7.2008, p. 1.

(3) The Table summarises the Authority’s competences and activities. It is presented for information purposes.

(6) The budget implementation reports comprise the budget outturn account and its annex.

(7) OJ L 248, 16.9.2002, p. 1.

(8) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(9) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 15 June 2010 and received by the Court on 2 July 2010. The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or www.gsa.europa.eu

(12) Topic ‘Mass Market GNSS Applications’.

(13) OJ C 86, 31.3.2010, p. 157.

14.12.2010

Official Journal of the European Union

C 338/119

REPORT

on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2009, together with the Centre’s replies

2010/C 338/21

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	120
STATEMENT OF ASSURANCE …	3-12	120
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13	121
OTHER MATTERS …	14-15	121
FOLLOW-UP FROM PREVIOUS YEAR’S FINDINGS …	16	121
Table …		122
The Centre’s replies …		123

INTRODUCTION

The Translation Centre for the Bodies of the European Union (hereinafter ‘the Centre’), which is located in Luxembourg, was established by Council Regulation (EC) No 2965/94 (1). The Centre’s role is to provide any European Union Institutions and Bodies, which call upon its services with the translation services necessary for their activities (2).

2.	The Centre’s 2009 budget amounted to 62,6 million euro, compared with 59,9 million euro the previous year. The number of staff employed by the Centre at the end of the year was 202, as compared with 189 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

Article 8.2 of the Centre’s Financial Regulation requires that ‘commitments appropriations shall cover the total cost of the legal commitments entered into in the current financial year’ whereas the Centre entered budgetary commitments only for the part of the costs relating to the year when the legal obligation was contracted. This approach was irregular and was systematically applied.

OTHER MATTERS

14.	The Centre did not issue a comprehensive written procedure defining roles, timing and workflows for the establishment, validation and booking of recovery orders for translations delivered to customers. This situation did not comply with the internal control standards applicable to the Centre (12).

15.

The ABAC accounting system will replace the Centre’s current budgetary system (SI2), but the date for this replacement has not been decided yet. The Commission no longer fully supports and maintains SI2. As the Centre does not have the necessary expertise for this, there is a significant risk for the continuity of its financial operations until ABAC is operational.

FOLLOW-UP FROM PREVIOUS YEAR’S FINDINGS

16.

The Centre has decided to redistribute 11 million euro of its cumulative surplus to its clients thereby reducing the balance to 24 million euro at the year end. Some 18 million of this is earmarked to pay the employer contribution to the Commission retirement scheme pending a ruling of the European Court of Justice.

This Report was adopted by Chamber CHAMBER IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Translation Centre for the Bodies of the European Union (Luxembourg)

Areas of Union competence

Competences of the Centre

Council Regulation (EC) No 2965/94 as last amended by Regulation (EC) No 1645/2003

Governance

Resources made available to the Centre in 2009

(Data for 2008)

Products and services provided in 2009

(Data for 2008)

The representatives of the Member States’ governments adopted by mutual agreement a declaration concerning the creation, under the aegis of the Commission’s translation departments in Luxembourg, of a Translation Centre for the bodies of the Union, which would provide the necessary translation services for the operation of the bodies and services whose seats were established by the Decision of 29 October 1993.

Objectives

To provide the necessary translation services for the operation of the following bodies:

—	the European Environment Agency,

—	the European Training Foundation,

—	the European Monitoring Centre for Drugs and Drug Addiction,

—	the European Medicines Agency,

—	the Executive Agency for Health and Consumers,

—	the Office for Harmonisation in the Internal Market (Trademarks and Designs),

—	the European Police Office (Europol) and the Europol Drugs Unit.

Bodies set up by the Council other than the above may use the Centre’s services. The institutions and bodies of the European Union which already have their own Translation Services may, if need be, call upon the Centre’s services on a voluntary basis.

The Centre plays a full part in the work of the Interinstitutional Translation Committee.

Tasks

—	To make arrangements for cooperation with the bodies and institutions.

—	To participate in the work of the Interinstitutional Translation Committee.

1 — Management Board

Composition

—	one representative per Member State,

—	two representatives from the Commission,

—	one representative from each body or institution calling upon the Centre’s services.

Task

Adopts the Centre’s annual work programme and annual report.

2 — Director

Appointed by the Management Board on a proposal from the Commission.

3 — External audit

Court of Auditors.

4 — Internal audit

Internal Audit Service (IAS).

5 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

62,63 (59,94) million euro.

Staff at 31 December 2009

233 (233) provided in the establishment plan, of which 202 (189) were occupied.

Allocated to

—	operational tasks: 103 (97)

—	administrative tasks: 99 (92)

Number of pages translated

736 008 (747 416)

Number of pages by languages

—	official languages: 730 565 (742 256)

—	other languages: 5 443 (5 160)

Number of pages per client

—	Bodies: 708 589(731 944)

—	Institutions: 21 789(15 472)

Number of pages translated by freelances: 409 788(441 223)

Source: Information supplied by the Centre.

THE CENTRE’S REPLIES

13.	The Centre took note of the Court’s observation and has addressed this issue. Detailed instructions were adequately communicated to all financial actors.

14.	The Centre took note of the Court’s observation, and a procedure for revenue management has been included in the Annual work programme 2010 of the Administration department. Necessary resources have been allocated to complete this task before the end of year 2010.

15.	The Centre is making its best efforts to have the SI2 system supported until the implementation of ABAC, including, but not limited to, seeking an external expertise by way of subcontracting.

(1) OJ L 314, 7.12.1994, p. 1.

(2) The Table summarises the Centre’s competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(12) Internal Control Standards Nos 6 ‘Risk Management Process’ and 8 ‘Processes and Procedures’.

14.12.2010

Official Journal of the European Union

C 338/124

REPORT

on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2009, together with the Centre’s replies

2010/C 338/22

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	125
STATEMENT OF ASSURANCE …	3-12	125
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13	126
Table …		127
The Centre’s replies …		129

INTRODUCTION

The European Centre for Disease Prevention and Control (hereinafter ‘the Centre’), which is located in Stockholm, was set up by Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 (1). Its main tasks are to collect and disseminate data on the prevention and control of human diseases and to provide scientific opinions on this subject. It is also required to coordinate the European network of bodies operating in this field (2).

2.	The Centre’s 2009 budget amounted to 51 million euro, compared with 40,6 million euro the previous year. The number of staff employed by the Centre at the end of the year was 199, as compared with 154 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

As in previous years, the high level of carry-overs has had a negative impact on the implementation of the budget. Appropriations carried forward from 2008, amounting to 2,2 million euro, had to be cancelled. In 2009, appropriations carried forward represented 42 % of Title II — Administrative expenditure and 63 % of Title III — Operational expenditure. This situation may compromise the 2010 budget implementation and is at odds with the principle of annuality.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Centre for Disease Prevention and Control (Stockholm)

Areas of Union competence deriving from the Treaty

Competences of the Centre as specified in Council Regulation (EC) No 851/2004

Governance

Resources made available to the Centre In 2009

(Data for 2008)

Products and services supplied in 2009

A high level of human health protection shall be ensured in the definition and implementation of all Union policies and activities.

(Article 168 of the Treaty on the Functioning of the European Union)

Objectives

—	Strengthen Europe’s defences against infectious diseases; specifically, to identify, assess and communicate current and emerging threats to human health from communicable diseases.

—	Therefore the Centre shall operate dedicated surveillance networks, provide scientific opinions, operate the early warning and response system (EWRS) and provide scientific and technical assistance and training.

Tasks

—	Operate dedicated disease surveillance networks and enhance networking activities. The Centre has a specific role in data collection, validation, analysis and dissemination.

—	Provide authoritative expert advice and scientific opinions and studies on communicable diseases.

—	Operate the Early Warning and Response System. Develop procedures for identifying emerging health threats.

—	Strengthen Member States’ capacity in preparedness planning and in training.

—	Inform the general public and interested parties of its work.

1. Management Board

Composition

One member designated by each Member State, two members designated by the European Parliament and three representatives of the Commission.

Tasks

The Board adopts the Centre's annual programme and budget and monitors their implementation.

2. Director

Appointed by the Management Board on the basis of a list of candidates proposed by the Commission.

3. Advisory Forum

Composition

A representative of each Member State and three non-voting representatives of the Commission.

Tasks

The Forum is to assure the scientific excellence of the work and the independence of the activities and opinions of the Centre.

4. External audit

Court of Auditors.

5. Discharge Authority

Parliament, acting on recommendation from the Council.

Budget

51 million euro (40,7 million euro)

Staff at 31 December 2009

Authorised: 170 (130)

Occupied: 129 (101)

Other posts: 70 (53)

TOTAL: 199 (154)

assigned to the following duties:

Allocated to:

—	operational tasks: 120 (91)

—	administrative and support tasks: 79 (63)

—	A (H1N1) pandemic; risk assessment and support for Member States.

—	191 threats monitored using the Threat Tracking Tool (TTT).

—	52 weekly threat reports on communicable diseases.

—	Provision of support to epidemic intelligence for five large mass-gathering events.

—	Preparation of 25 original threat assessments and six threat updates.

—	Conducted two simulation exercises.

—	78 fellows coached in the European Programme for Intervention Epidemiology Training (EPIET).

—	346 public health experts from 30 EU-EEA countries participated in ECDC short training modules.

—	Launch of the new ECDC web portal.

—	43 scientific publications published.

—	Second European Antibiotic Awareness Day organised, with participation of 34 countries.

—	Enhanced surveillance; further integration of the dedicated surveillance networks.

—	Annual Epidemiological Report published.

—	Tuberculosis and HIV/AIDS annual reports published.

—	28 weekly influenza bulletins/weekly influenza surveillance overviews for 2009.

—	More than 50 scientific opinions produced.

—	Organisation of the third European Scientific Conference on Applied Infectious Disease Epidemiology (ESCAIDE) in October 2009 in Stockholm, with more than 500 participants.

—	Competent bodies meeting in Uppsala in October 2009, with 270 participants.

Source: Information supplied by the Centre.

THE CENTRE’S REPLIES

13.

The Centre is conscious of the problem mentioned by the Court and is considering measures to improve budget implementation in particular through improved estimates and enhanced planning in order to better comply with the annuality principle. This should also be facilitated by the fact that the Centre reached maturity in 2010.

(1) OJ L 142, 30.4.2004, p. 1.

(2) The Table summarises the Centre's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations, with summary information on transfers of appropriations among the various budget items.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(9) The rules concerning the presentation of the accounts and the accounting by the Agencies are laid down in Chapter 1 of Title VII of Regulation (EC, Euratom) No 2343/2002 as last amended by Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 23) and are integrated as such into the Financial Regulation of the Centre.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 26 March 2010 and received by the Court on 28 June 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://ecdc.europa.eu/en/aboutus/Pages/AboutUs_KeyDocuments.aspx

14.12.2010

Official Journal of the European Union

C 338/130

REPORT

on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2009, together with the Centre’s replies

2010/C 338/23

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	131
STATEMENT OF ASSURANCE …	3-12	131
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-15	132
OTHER MATTERS…	16	132
Table …		133
The Centre’s replies …		136

INTRODUCTION

The European Centre for the Development of Vocational Training (hereinafter ‘the Centre’), located in Thessaloniki, was established by Council Regulation (EEC) No 337/75 (1). Its core mandate is to serve the development of vocational training at Union level. In order to achieve this objective, it has the task of compiling and disseminating documentation on vocational training systems (2).

2.	The Centre’s 2009 budget amounted to 18,5 million euro, compared with 18,3 million euro the previous year. The number of staff employed by the Centre at the end of the year was 129, compared with 128 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

The Centre carried forward 0,4 million euro of its 2009 appropriations for Title II — Administrative expenditure (31 %), out of which 0,3 million euro corresponded to commitments without payments, mostly for activities related to the 2010 financial year. The cancelled payment appropriations for Title III — Operating expenditure, which are managed through differentiated appropriations, amounted to 1,6 million euro, representing 24 % of total appropriations for operating activities. The Centre should continue to improve the programming and monitoring of activities with a view to maximising the use of the available appropriations and to better respect the principle of annuality.

14.

The Centre received annual contributions (12) booked in its budget as assigned revenue from Norway and Iceland for their participation in the Centre’s activities. The contributions for the years 2007 to 2009, amounting to 1,2 million euro, were not used and were carried forward. The Centre should take measures to ensure that these contributions are used on an annual basis at the same rate as the Commission subsidy.

15.

In 2009, 43 budget transfers amounting to 0,7 million euro were made without the Management Board being informed in due time. Moreover, transfers from one title to another, representing more than 10 % of the appropriation for the year shown on the line from which the transfers were made (13), were not submitted to the Governing Board for approval. Thus, the budgetary principles of specification and transparency should be more strictly observed.

OTHER MATTERS

16.

With regard to staff selection procedures, neither the weightings of the selection criteria nor the thresholds candidates had to meet in order to be invited to written tests and interviews were established (14). Additionally, the questions for written tests and interviews were defined after a short list of candidates had been drawn up. These practices put at risk the transparency of the recruitment procedures.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Centre for the Development of Vocational Training (Thessaloniki)

Area of Union competence deriving from the Treaty

Competence of the Centre

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

Governance

Resources made available to the Centre in 2009

(Data for 2008)

Products and services supplied in 2009 (major results)

(Data for 2008)

The Union shall implement a vocational training policy which shall support and supplement the action of the Member States, while fully respecting the responsibility of the Member States for the content and organisation of vocational training.

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

The Centre’s mandate

In its capacity as the European Union reference centre for vocational training and education, the Centre provides political decision-makers, researchers and professionals with information aimed at developing a clearer understanding of current trends that will thus enable them to reach more soundly based decisions with a view to future action.

The Centre assists the European Commission in promoting and developing vocational training and education at Union level.

Tasks

—	to compile selected documentation and produce data analysis,

—	to contribute to research development and coordination,

—	to utilise and disseminate relevant information,

—	to encourage and support a concerted approach to matters relating to the development of vocational training,

—	to provide a forum for a broad and diverse public.

1 — Governing Board

Composition

For each Member State:

—	one member representing the Government,

—	one member representing the employers’ organisations,

—	one member representing the employees’ organisations and three members representing the European Commission.

2 — Bureau

Composition

The chairman and the three vice-chairmen of the Governing Board (one from each of the groups), one coordinator per group and one representative of the Commission.

3 — Director

Appointed by the Commission from a list of candidates submitted by the Governing Board; is responsible for the management of the Centre and implements the decisions of the Governing Board and the Bureau.

4 — Internal audit

Internal Audit Service of the European Commission.

5 — External audit

Court of Auditors.

6 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

18,53 million euro

(18,35 million euro)

Union contribution (15): 97 % (97 %)

Staff at 31 December 2009

Number of posts in establishment

plan: 101 (99)

Posts occupied: 96 (97)

Other staff:

contract staff, 26 (25)

seconded national experts 7 (6).

Total staff: 129 (128)

Allocated to

operational: 88

administrative: 41

(in 2008: operational: 87 administrative: 41)

Highlights in the implementation of the work programme 09 supporting 4 priorities (informing EU VET policies, interpreting trends and challenges for skills, competences and learning, assessing VET benefits, raising the profile of VET): The 2008 policy report was published and discussed at high level conference in March. Results reflect progress of Copenhagen process and inform discussion of future strategy. Preparation of 2010 Report with EC and future Belgian presidency. Questionnaires were sent, for the first time incl. Social Partners directly. VET in Europe, updated system descriptions for 23 countries. VET measures for recovery in response to the crisis in Member States collected, analysed and disseminated at Swedish presidency conferences. Close cooperation with both presidencies in preparation and content of VET related events. Informing skill agenda, cooperation with EC on New skills for new jobs (results on Skill supply forecast, anticipation of occupational skill needs, skill mismatch). Dissemination at high level policy events (EU Parliament, Economic and Social Committee, Presidencies, etc.) This is supported by the work on learning outcomes, validation of non-formal learning, the work on occupational and educational standards. Cont. support of VET topics of education and training 2010 agenda. In particular, implementation of EQF — supporting the development of national qualification frameworks, work on development and implementation of ECVET/EQARF, guidance, and teachers and trainers in VET. Europass: continuously growing acceptance by citizens. Since its launch over 7 million documents completed online, ca. 250 000 CVs completed online every month. Publication of 4th Research Report: Modernising VET; cont. work on older workers, active ageing and financing of VET. Dissemination of work on innovative financing schemes, cost-sharing and (tax) incentives for learners and companies. Research on socio-economic benefits of VET to underpin investment decisions in VET. Successful coordination of Study Visits programme with over 245 visits in academic year 08/09. Implementation of user oriented communication strategy, shift to electronic publishing to meet changing requirements, minimise delays and economise. Launch of the new WebPortal in December 2009. Design of performance measurement system (PMS) completed. Indicators reflect outputs, outcomes and impact. ABB report shows resources by activities

Organisation level impact 2009: Cedefop referred to in 32 EU policy documents (2008: 21). More information and indicator measurements available in Annual (Activity) Report 2009.

Source: Information supplied by the Centre.

THE CENTRE’S REPLIES

13.

The Centre takes note of the comment of the Court and will pursue its efforts to reduce the volume of carried forward and cancelled appropriations. In particular the Centre has introduced, in June 2009, a system for monitoring more closely the use of Title III payment appropriations and staff have been made aware of the issue.

14.	The Centre has decided on a plan (May 2010) which will allow it to comply as of 2013 fully with the Court’s observation. Lines have already been created in the 2010 budget to allow a general distribution of these contributions.

15.

Due to the numerous budget lines with relatively small amounts, the approval of the Governing Board was requested only if the transfer exceeded 10 % of the amount of a chapter in view to alleviate the administrative burden. In June 2010, the Centre has fully informed the Governing Board on 2009 and 2010 transfers and will continue to regularly inform on all transfers.

16.	The Centre will revise its vacancy notices to give candidates a clear indication of the conditions under which they will be pre-selected. Following the Court’s comments, the Centre now establishes, since June 2010, questions for written tests and interviews before pre-selections.

(1) OJ L 39, 13.2.1975, p. 1.

(2) The Table summarises the Centre’s competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(9) The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VII of Regulation (EC, Euratom) No 2343/2002 of as last amended by Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 23) and are integrated as such in the Financial Regulation of the Centre.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 11 June 2010 and received by the Court on 25 June 2010 The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://www.cedefop.europa.eu/about/budget_discharge.asp

(12) Value: approximately 0,4 million euro per year.

(13) Two (total value: 25 000 euro and 31 360 euro) out of seven transfers from one title to another.

(14) Four staff selection procedures were audited and the problems found were systematic.

(15) Note: Union contribution includes Union subvention as well as BRS. (In 2008 table, supplementary budget (BRS) had not been included, for this reason percentage shown had only amounted to 93 %.)

14.12.2010

Official Journal of the European Union

C 338/137

REPORT

on the annual accounts of the European Police College for the financial year 2009, together with the College’s replies

2010/C 338/24

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	138
STATEMENT OF ASSURANCE …	3-13	138
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	14-15	139
OTHER MATTERS …	16-19	139
Table …		141
The College’s replies …		143

INTRODUCTION

The European Police College (hereinafter ‘the College’), located in Bramshill, was established by Council Decision 2000/820/JHA, as repealed in 2005 and replaced by Council Decision 2005/681/JHA (1). The College’s task is to function as a network and bring together the national police training institutes in the Member States to provide training sessions, based on common standards, for senior police officers (2).

2.	The College’s 2009 budget amounted to 8,8 million euro, compared with 8,7 million euro the previous year. The number of staff employed by the College at the end of the year was 28, as compared to 27 in the previous year.

13.	In the Court’s opinion, except for the matters presented in paragraphs 11 and 12, the transactions underlying the College's annual accounts for the financial year ended 31 December 2009 are, in all material respects, legal and regular.

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

14.

More than 3,8 million euro of the 2009 payment appropriations (C1), equivalent to 43 % of the total budget, were carried forward to 2010. In addition, 46 % of the appropriations carried over from 2008 (C8) had to be cancelled. This situation, as in the financial year 2008 (18), indicated severe and recurrent weaknesses in the programming and the monitoring of the implementation of the budget and was at odds with the principle of annuality.

15.

Significant delays and errors in the preparation of the 2009 provisional accounts were observed. There was a backlog of unprocessed invoices totalling 900 000 euro at the end of 2009. This situation was due to an unsatisfactory distribution of financial responsibilities, weak internal control procedures and difficulties in recruiting and retaining staff qualified and experienced in financial and accounting matters.

OTHER MATTERS

16.	At the end of the year, the College had not yet implemented a procedure for the recording of exceptions in all fields of activity, as requested on several occasions by the Internal Audit Service of the European Commission (19).

17.

With regard to staff selection procedures, neither the thresholds that candidates had to meet in order to be invited to interview nor those necessary to be put on the reserve list were fixed in advance, but were set by the selection boards after the evaluation and ranking of the candidates. The documentation of the procedures was inadequate, and questions for the interview were often prepared after the examination of applications. These practices, put at risk the transparency of the recruitment procedures.

18.

In two cases (20), it was impossible to establish whether the successful candidates met the requirements in terms of the length of professional experience required. In one of these cases (21) the selection board took its decisions solely on the basis of the curriculum vitae. In the other case (22), the successful candidate did not meet the minimum requirements in terms of professional experience. In another case (23), a staff member with management responsibilities was authorised to be based outside the United Kingdom, but to work on the College’s premises in Bramshill for a limited number of days per year. The College reimbursed the travel expenses. Furthermore, the staff member concerned did not undergo any probationary period. These practices are not allowed under the Staff Regulations and were illegal.

19.

In its reports concerning the financial years 2007 and 2008 (24), the Court noted cases where appropriations were used to finance private expenditure. The College replied on several occasions that an ex-post check would be carried out by an external company. As at the end of June 2010 no such action had been taken.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Police College (Bramshill)

Areas of Union competence deriving from the Treaty

Competences of the College as defined in Council Decision 2005/681/JHA

Governance

Resources made available to the College in 2009

Products and services in 2009

Approximation of laws

1.	The Union shall establish police cooperation involving all the Member States’ competent authorities, including police, customs and other specialised law enforcement services in relation to the prevention, detection and investigation of criminal offences.

2.	For the purposes of paragraph 1, the European Parliament and the Council, acting in accordance with the ordinary legislative procedure, may establish measures concerning: …

(b)	support for the training of staff, and cooperation on the exchange of staff, on equipment and on research into crime-detection;

(Article 87 of the TFEU)

Objectives

The aim of College shall be to help train senior police officers in the Member States by optimising cooperation between College’s various components. It shall support and develop a European approach to the main problems facing Member States in the fight against crime, crime prevention and the maintenance of law and order and public security, in particular the cross-border dimensions of those problems.

Tasks

—	To increase knowledge of the national police systems and structures of other Member States and of cross-border police cooperation within the European Union.

—

To improve knowledge of international and European Union instruments, particularly in the following sectors:

(a)	the institutions of the European Union, their functioning and role, as well as the decision-making mechanisms and legal instruments of the European Union, in particular as regards their implications for law-enforcement cooperation;

(b)	Europol’s objectives, structure and functioning, as well as ways to maximise cooperation between Europol and relevant law-enforcement services in the Member States in the fight against organised crime;

(c)	Eurojust’s objectives, structure and functioning;

—	To provide appropriate training with regard to respect for democratic safeguards, with particular reference to the rights of defence.

1 — Governing Board

Composition

—	One delegation from each Member State. Each delegation shall have one vote. Representatives of the European Commission and of the General Secretariat of the Council of the European Union and Europol shall be invited to attend meetings as non-voting observers.

2 — Director

Manages the College, is appointed and removed by the Governing Board.

3 — External audit

Court of Auditors.

4 — Internal Audit

Internal Audit Service of the Commission.

5 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

8,8 milion euro

Staff

At the beginning of 2009, College had 26 staff posts and 2 Seconded National Experts.

Courses and Seminars

College organised 88 courses, seminars and conferences. Early indications show that the general satisfaction with College activities increased as compared with the previous year. The number of trainers increased (to 841). 1997 participants took part in College activities. The College Secretariat organised seven activities in support of the network and launched a new Course Managers’ Tool to aid the network when implementing College activities.

External Relations

College signed a Cooperation Agreement with Frontex in June 2009 and instigated a Memorandum of Understanding with Eurojust and ENFSI (European Network of Forensic Science Institutes). A conference with Russia took place in June 2009.

Common Curricula

Four Common Curricula were launched for implementation within the Member States: Europol, Police Ethics and Prevention of Corruption, Domestic Violence (I & II) and Trafficking in Human Beings.

Evaluation

A project on Post-course Evaluation was piloted and, for the first time, College used an online survey environment (LimeSurvey).

Research and Science

The first issue of the new College Research and Science Bulletin was launched; the first Research Symposium (Policing Major Events) and the first meeting of the new Research and Science Correspondents took place.

Euromed Police II Project

Three seminars (two on Drug Trafficking and one on Trafficking in Human Beings), one study visit (Trafficking in Human Beings) and one meeting of the Directors-General of police from MEDA and EU countries took place.

Exchange Programme

The College Exchange Programme, a one-year project, started in 2009. 21 Member States and one Candidate country are taking part. The priority topics are Community Policing or Organised Crime (senior police officers) and Learning Environment (trainers).

Electronic Network (e-Net)

College’s website had 76 000 unique visitors (an increase of over 74 000 on the previous year) and an increase of 903 registered users. College’s Learning Management System, which provides tools for all users of the College network to manage and promote learning in courses and seminars and for self-paced e-learning, went live. College’s Document Management System, a tool which allows the network to work together on documents more efficiently, went live.

Source: Information supplied by the College.

THE COLLEGE’S REPLIES

11.

In the period since the contracts referenced were established, the College’s procurement procedures have been improved and brought into line with the applicable regulations. A Procurement Officer has been appointed and a Procurement Manual, including templates and checklists, was adopted on 8 June 2010 by Decision No 002/2010 of the Director.

12.

In March 2010, the College was informed that the Commission considered that the College’s Financial Regulation was legally in force except for the provisions covering engagement contracts for ‘module advisers’ and ‘educational experts’. In April 2010 a formal request for derogation from the Financial Regulations was submitted by the College to the Commission. In 2010, no contracts with Member States for the provision of module advisers and educational experts have been signed.

14.

Since March 2010, weekly financial management meetings have been introduced to improve budgetary implementation and control. In addition, with the support of the Commission, improvements in budgetary programming are being implemented. Further improvements are scheduled to be introduced in association with the College’s Multi-Annual Activity Plan.

15.

In order to avoid the problems mentioned by the Court, the financial workflows, processes, procedures as well as roles and responsibilities are the subject of on-going review and improvement. Expert advice has been received from the Commission and consultants. The issue of the backlog of payments is close to resolution. Recruitment procedures have been launched to recruit key financial actors, the selection criteria for these posts having been appropriately revised.

16.	In 2010 a new procedure for the recording of exceptions was developed and has been adopted by Decision of the Director No 010/2010 of 21 June 2010.

17.	The staff selection procedures have now been reviewed and improved. By Decision of the Director No 004/2010, the College’s Recruitment Guide entered into force, bringing the procedures in line with the Staff Regulations and best practice.

18.

The new recruitment procedures in place ensure that errors or omissions are avoided in future. In addition, the control of Human Resource information has been improved to ensure that proof of professional experience as well as references are checked prior to appointment and then held on file. All new recruits are now required to undergo a probationary period. The contract of employment enabling a member of staff to be based outside the UK will end in September 2010 and will not be renewed. Since March 2009 no travel expenses have been reimbursed.

19.	In 2009, the College implemented a number of measures that resulted in the recovery of GBP 17 612,91; the ex-post check remains outstanding. The tender process for the required audit was launched in July 2010.

(1) OJ L 256, 1.10.2005, p. 63.

(2) The Table summarises the College's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 5 July 2010 and received by the Court on 13 July 2010. The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or https://www.cepol.europa.eu/index.php?id=final-accounts

(12) Interim staff services (292 000 euro), mobile communications services (11 111 euro), stationery supplies (12 000 euro) and taxi services (29 000 euro).

(13) Procurement procedure for courier services, 11 000 euro.

(14) Paragraph 14 (OJ C 304, 15.12.2009, p. 124).

(15) Revised Financial regulation of 2008.

(16) This was required by Article 1 of the framework Financial Regulation, since these provisions were anti-competitive for they allowed for a significant departure from the ordinary procurement rules and the underlying principle of ‘genuine competition’.

(17) The overall amount, since the beginning of the project, is estimated at 200 000 euro, of which 34 800 euro for 2009.

(18) Paragraph 16.

(19) The Internal Audit Service of the Commission is also the Internal Auditor of the College.

(20) Vacancy notice CEPOL/2008/TA/001 and CEPOL/2008/TA/007.

(21) Vacancy notice CEPOL/2008/TA/001.

(22) Vacancy notice CEPOL/2008/TA/005.

(23) Employment contract for the Euromed/Meda II Project Manager.

(24) OJ C 311, 5.12.2008, p. 136 (paragraph 15) and OJ C 304, 15.12.2009, p. 124 (paragraph 21).

14.12.2010

Official Journal of the European Union

C 338/144

REPORT

on the annual accounts of Eurojust for the financial year 2009, together with Eurojust’s replies

2010/C 338/25

CONTENTS

	Paragraph	Page
INTRODUCTION…	1-2	145
STATEMENT OF ASSURANCE…	3-12	145
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT…	13	146
OTHER MATTERS…	14	146
Table…		147
Eurojust’s replies…		148

INTRODUCTION

Eurojust, located in The Hague, was set up by Council Decision 2002/187/JHA (1) with a view to stepping up the fight against serious organised crime. Its objective is to improve the coordination of investigations and prosecutions covering the territories of several Member States of the European Union, as well as that of non-member States (2).

2.	After the adoption of amending budget No 1, the Eurojust 2009 final budget amounted to 28,2 million euro compared with 24,8 million euro the previous year. The number of staff employed by Eurojust at the end of the year was 248 as compared with 222 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

In its 2007 and 2008 annual reports (12), the Court commented on the high rate of vacant posts at Eurojust (33 % and 26 % respectively). In 2009, no recruitment plan was prepared. As a result, the rate of vacant posts remains high (24 % at year end). In addition, three out of six middle management (Head of Unit) posts at Eurojust were filled on a temporary basis by ‘acting’ members of staff. This situation indicated difficulties in attracting and retaining the right staff as well as continuing shortcomings in the planning of recruitments.

OTHER MATTERS

14.

With regard to staff selection procedures, neither the thresholds candidates had to meet in order to be invited to interview nor those necessary to be put on the reserve list were fixed in advance. They were set by the selection boards after the evaluation and ranking of the candidates. In addition, important criteria set in the vacancy notices, such as relevant university degree and professional experience, were not taken into account in the final evaluation of the candidates, which was based only on the results of the written and oral tests. These practices put at risk the transparency of the recruitment procedures.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Eurojust (The Hague)

Areas of Union competence deriving from the Treaty

Competences of Eurojust as defined in Council Decision 2002/187/JHA

Governance

Resources made available to Eurojust in 2009

(Data for 2008)

Products and services 2009

(Data for 2008)

Eurojust’s mission shall be to support and strengthen coordination and cooperation between national investigating and prosecuting authorities in relation to serious crime affecting two or more Member States or requiring a prosecution on common bases, on the basis of operations conducted and information supplied by the Member States’ authorities and by Europol.

(Article 85 of the Treaty on the Functioning of the European Union)

Objectives

Article 3 Eurojust Decision

—	To stimulate and improve the coordination, of investigations and prosecutions between the competent national authorities of the Member States.

—	To improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests.

—	To support the competent authorities of the Member States in order to render their investigations and prosecutions more effective.

—	To provide support with procedures involving a Member State and a non-member State.

—	To provide support with procedures involving a Member State and the Union.

Tasks

Articles 5, 6 and 7 Eurojust Decision

To organise cooperation between the various national legal systems, Eurojust acts:

—	through its national members, or

—	as a College.

If the competent authorities of the Member State concerned decide not to respond to the requests which Eurojust has issued as a College, they shall inform Eurojust of the reasons for their decision.

1 — The College is responsible for the organisation and operation of Eurojust.

2 — The College is composed of national members who are seconded by each Member State in accordance with its legal system and who are prosecutors, judges or police officers of equivalent competence.

3 — The College elects its President from among the national members.

4 — The Joint Supervisory Body checks the processing of personal data.

5 — The Administrative Director is unanimously appointed by the College.

6 — External audit

Court of Auditors.

7 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

26,4 million euro subsidy plus 1,8 million euro assigned revenue (24,8 million euro subsidy)

Staff at 31 December 2009

185 (175) planned in the EP

of which occupied:

141 (130)

60 (43) other positions:

32 contract agents,

18 seconded national experts, 10 agency staff.

47 (49) others:

27 National members,

2 Liaison prosecutors,

12 deputies and 6 assistants.

Total staff: 248 (222)

Allocated to

Operational tasks: 131 (117)

Administrative tasks 89 (80)

Combined tasks: 28 (25)

Number of coordination meetings:

132 (132)

dealing with

Standard cases: 1 222 (1 025)

Complex cases: 150 (168)

Total number of cases:

1 372(1 193)

Fraud: 612 (810)

Fraud %: 45 % (68 %)

Drug trafficking: 230 (223)

Drug trafficking %: 17 % (19 %)

Terrorism: 19 (23)

Terrorism %: 14 % (2 %)

Murder: 90 (86)

Murder %: 6 % (7 %)

Trafficking in human beings:

74 (83)

Trafficking in human beings:

5 % (7 %)

Source: Information supplied by Eurojust.

EUROJUST’S REPLIES

13.	Eurojust acknowledges the Court’s observation. A recruitment plan was prepared towards the end of 2009 for recruitment activities in 2010 to ensure that the backlog in recruitment procedures could be significantly reduced by year end 2010.

14.

Eurojust acknowledges the Court’s findings. Since 1 March 2010 thresholds that applicants must meet in order to be invited for interview and thresholds necessary to be put on the reserve list are fixed in advance. As regards the final assessment of applicants, Eurojust will determine the importance and weight to be granted to each of the elements and start applying a holistic approach to staff selection procedures.

(1) Decision of 28 February 2002 setting up Eurojust (OJ L 63, 6.3.2002, p. 1).

(2) The Table summarises Eurojust's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 15 June 2010 and received by the Court on 29 June 2010. The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://www.eurojust.europa.eu/adm_budg_finance.htm

(12) See paragraph 14 of the 2008 Annual Report (OJ C 304, 15.12.2009, p. 131) and paragraph 9 of the 2007 Annual Report (OJ C 311, 5.12.2008, p. 142).

14.12.2010

Official Journal of the European Union

C 338/149

REPORT

on the annual accounts of the European Training Foundation for the financial year 2009, together with the Foundation’s replies

2010/C 338/26

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	150
STATEMENT OF ASSURANCE …	3-12	150
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13	151
Table …		152
The Foundation’s replies …		154

INTRODUCTION

The European Training Foundation (hereinafter ‘the Foundation’), located in Turin, was created by Council Regulation (EEC) No 1360/90 (1). The Foundation's purpose is to support the reform of vocational training in the European Union's partner countries. As such, it assists the Commission in the implementation of various programmes (Phare, Tacis, CARDS and MEDA) (2).

2.	The Foundation’s 2009 budget was 19,1 million euro, compared with 19,2 million euro the previous year. The number of staff employed by the Foundation at the end of the year was 123 as compared with 124 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

The procedures for drawing up the budget were not sufficiently rigorous and led to a considerable number of budgetary transfers (12). Some of these transfers led to sucessive increases and decreases in the same budget headings (13). More than 0,7 million euro were transferred from Title I — Staff expenditure to Title III — Operational expenditure. This increased the amount carried forward to 2010 and reduced the amount to be repaid to the Commission. Contrary to the rules in force, the Governing Board was not requested to authorise the transfers when required (14). Moreover the budget presentation is not in line with the requirements of the Foundation’s Financial Regulation (15).

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

ETF — European Training Foundation (Turin)

Areas of Union competence deriving from the Treaty

Competences of the Foundation

(Council Regulation (EEC) No 1360/90)

Governance

Resources made available to the Foundation in 2009

(Data for 2008)

Product and services supplied during the financial year 2009

The Union and the Member States shall foster cooperation with third countries and the competent international organisations in the sphere of vocational training.

(Article 166(3) of the Treaty on the Functioning of the European Union)

Objectives

—

To contribute, in the context of EU external relations policies, to improving human capital development in the following countries: the countries eligible for support under Regulations (EC) No 1085/2006 and (EC) No 1638/2006 and subsequent related legal acts; other countries designated by decision of the Governing Board on the basis of a proposal supported by two-thirds of its members and a Commission opinion, and covered by a Union instrument or international agreement that includes an element of human capital development, and as far as available resources allow.

—	For the purpose of this Regulation, ‘human capital development’ shall be defined as work which contributes to the lifelong development of individuals’ skills and competences through the improvement of vocational education and training systems.

Tasks

For the purpose of achieving the objective, the Foundation, within the limits of the powers conferred on the Governing Board and following the general guidelines established at Union level, shall have the following functions:

—	to provide information, policy analyses and advice on human capital development issues in the partner countries,

—	to promote knowledge and analysis of skills needs in national and local labour markets,

—	to support relevant stakeholders in partner countries in building capacity in human capital development,

—	to facilitate the exchange of information and experience among donors engaged in human capital development reform in partner countries,

—	to support the delivery of Union assistance to partner countries in the field of human capital development,

—	to disseminate information and encourage networking and the exchange of experience and good practice between the EU and partner countries and amongst partner countries in human capital development issues,

—	to contribute, at the Commission’s request, to the analysis of the overall effectiveness of training assistance to the partner countries,

—	to undertake such other tasks as may be agreed between the Governing Board and the Commission, within the general framework of this Regulation.

1 — Governing Board

—	One representative of each Member State.

—	Three representatives of the Commission.

—	Three non-voting experts appointed by the European Parliament.

—	In addition, three representatives of the partner countries may attend meetings of the Governing Board as observers.

2 — Director

—	Appointed by the Governing Board on a proposal from the Commission.

3 — External Audit

Court of Auditors.

4 — Internal Audit

Internal Audit Service of the Commission.

5 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

19,1 (19,2) million euro, of which 18,8 (18) million euro funded by a Commission subsidy and 0,3 (1,2) million euro funded by other bodies as assigned revenue.

Staff at 31 December 2009

—	96 (96) temporary posts in the establishment plan, of which 86 (86) posts occupied.

—	37 (38) other staff (auxiliaries, local staff, contract staff, etc.)

—

Total staff: 123 (124), assigned to the following duties:

—	operational tasks: 64 (64)

—	administrative tasks: 40,5 (38,5)

—	mixed tasks: 20,5 (21,5).

Activities

The assistance provided by the Foundation covers a large range of technical fields including: initial vocational training, lifelong learning, continuing (adult) education, human resources development in companies, employment policies, training of the unemployed, poverty alleviation and social inclusion, and training to encourage local development.

Support to the Commission:

In 2009, 101 ongoing direct requests for support were received from the Commission. 56 % of total requests were for the IPA, reflecting a small decline, 40 % were for ENPI, representing a small increase, and 4 % were processed for DCI, reflecting a large decline.

The Foundation support to the delivery of Union assistance to partner countries was requested by the Commission. The most frequent applications were those in the field of policy advice (22 %), followed by formulation of projects (21 %), content review of ongoing projects (16 %) and inputs to the multiannual programming (12 %). The Commission’s satisfaction rate with the Foundation’s response was: 62 % very good quality/very useful and 25 % good/useful.

Operational activities are classified in outputs according to the following categories:

Policy reviews and analysis: 23 outputs

13 (IPA), 6 (ENPI), 4 (DCI)

Capacity building actions: 67 outputs

20 (IPA), 31(ENPI), 16 (DCI)

Support to programming cycle: 30 outputs

14 (IPA), 10(ENPI), 6 (DCI)

Dissemination and networking: 22 outputs

8 (IPA), 10(ENPI), 4 (DCI)

Action learning research: 13 outputs

13 (ILP)

Total: 55 (IPA), 57(ENPI), 30 (DCI), 13 (ILP)

155 outputs

IPA: Instrument for Pre-Accession Assistance

ENPI: European Neighbourhood and Partnership Instrument

DCI: Development Cooperation Instrument

ILP: Innovation and Learning Programmes

Source: Information provided by the Foundation.

THE FOUNDATION’S REPLIES

13.

The Foundation 2009 budget planning and execution was affected by the delay in the revision of the Agency’s legal base (16) and the last-minute suspension of a reserve of 2 million euro set by the European Parliament on Titles I and II of its budget.

The Foundation enjoys a more stable perspective in 2010. It has already put in place tighter monitoring and control of budget transfers to limit the number of transfers and prepares measures to further enhance budget planning and forecasting for the 2011 financial year.

The Foundation, in accordance with the Court’s finding will follow a more strict interpretation of the Financial Regulation regarding the transfers. The Foundation will publish a payments schedule in accordance with Article 31(2)(c) of the Financial Regulation starting from the 2010 amending budget.

(1) OJ L 131, 23.5.1990, p. 1.

(2) The Table summarises the Foundation's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 14 June 2010 and received by the Court on 24 June 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://www.etf.europa.eu/Archive

(12) 37 transfers of appropriations in 2009.

(13) Budget heading 1100 — salaries decreased and re-increased by no less than 9 decisions.

(14) Two transfers from one Title to another exceeding 10 % of the appropriations for the year were not authorised by the Governing Board.

(15) The budget shall show a summary statement of the schedule of payments due in subsequent financial years to meet budget commitments entered into in earlier financial years (Article 31(2) of the Foundation’s Financial Regulation).

(16) Regulation (EC) No 1339/2008 of the European Parliament and of the Council of 16 December 2008 establishing a European Training Foundation (recast) (OJ L 354 of 31.12.2008, p. 82).

14.12.2010

Official Journal of the European Union

C 338/155

REPORT

on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2009, together with the Foundation’s replies

2010/C 338/27

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	156
STATEMENT OF ASSURANCE …	3-12	156
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-14	157
OTHER MATTERS …	15-17	157
Table …		158
The Foundation’s replies …		161

INTRODUCTION

The European Foundation for the Improvement of Living and Working Conditions (hereinafter ‘the Foundation’), located in Dublin, was set up by Council Regulation (EEC) No 1365/75 of 26 May 1975 (1). Its aim is to contribute to the planning and establishment of better living and working conditions in the Union by increasing and disseminating knowledge which is relevant to this subject (2).

2.	The Foundation’s 2009 budget amounted to 20,2 million euro, compared with 21 million euro the previous year. The number of staff employed by the Foundation at the end of the year was 94, as compared with 87 the previous year.

The Director’s responsibility

The Court’s responsibility

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

Contrary to its Financial Regulation (Article 19), the Foundation’s budget did not provide for specific headings for the various programmes financed from assigned revenue. Moreover, under a programme financed by assigned revenue, the Foundation committed 184 000 euro although the assigned revenue actually received was only 29 000 euro.

14.	There were significant delays in the preparation and presentation of the Foundation’s Accounts. The initial provisional accounts presented by the Foundation contained serious shortcomings, pointing to significant weaknesses in the Foundation’s Financial organisation.

OTHER MATTERS

15.	The Foundation had not yet at the end of 2009 implemented a system for recording and analysing the exceptions to its established policies and procedures (register of exceptions), in spite of the recommendations made by the Internal Audit Service and the Court.

16.

For seven audited staff selection procedures, there is no evidence that the thresholds candidates had to meet in order to be invited to interview and those necessary to be put on the reserve list were set by the Selection Board before examining the applications. These practices put at risk the transparency of the recruitment procedures.

17.	One open procurement procedure audited (12) revealed errors and anomalies in the evaluation which affected the quality of the procedure.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 12 October 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Foundation for the Improvement of Living and Working Conditions (Dublin)

Areas of Union competence deriving from the Treaty

Competences of the Foundation

(Council Regulation (EEC) No 1365/75 as amended by Regulation (EC) No 1111/2005)

Governance

Resources available to the Foundation in 2009

(Data for 2008)

Activities and services provided

The Union and the Member States, having in mind fundamental social rights such as those set out in the European Social Charter signed at Turin on 18 October 1961 and in the 1989 Community Charter of the Fundamental Social Rights of Workers, shall have as their objectives the promotion of employment, improved living and working conditions, so as to make possible their harmonisation while the improvement is being maintained, proper social protection, dialogue between management and labour, the development of human resources with a view to lasting high employment and the combating of exclusion.

(Article 151 of the Treaty on the Functioning of the European Union)

Objectives

The aim of the Foundation shall be to contribute to the establishment of better living and working conditions by increasing and disseminating knowledge which is relevant to this subject. In particular, it is required to consider the following areas:

—	man at work,

—	organisation of work and particularly job design,

—	problems peculiar to certain categories of workers,

—	long-term aspects of the improvement of the environment,

—	the distribution of human activities in space and in time.

Tasks

—	to foster the exchange of information and experience in these fields,

—	to facilitate contact between universities, study and research institutes, economic and social administrations and organisations,

—	to carry out studies or to conclude study contracts and to provide assistance for pilot projects,

—	to cooperate as closely as possible with existing specialised institutes in the Member States and at international level.

1. The Governing Board (GB)

—

from each Member State:

—	one government representative,

—	one representative from employers’ organisations and one workers’ representative,

—	three representatives from the Commission.

2. The Bureau of the GB

—	consists of 11 members; three members from each of the social partners and the governments, two from the Commission,

—	it monitors the implementation of decisions of the GB and takes measures for the proper management between GB meetings.

3. The Director

is appointed by the Commission from a list of candidates submitted by the GB, he implements the decisions of the GB and its Bureau and manages the Foundation.

4. The Committee of experts

is composed of up to three members from the Commission, governments and the social partners, with the aim to advice on the implementation of major projects and the assessment of results.

5. External audit

Court of Auditors.

6. Discharge authority

Parliament acting on recommendation of the Council.

Budget

20,2 million euro (21,0 million euro)

Staff at 31 December 2009

101 posts provided for in the establishment plan, of which 81 (78) were occupied

Other staff:

Seconded national experts: 0 (0)

Contract agents: 13 (9)

Total staff employed: 94 (87)

Allocated to

Operating activities: 62 (56)

Administrative tasks: 28 (27)

Mixed: 4 (4)

Monitoring and surveys

Net work of European Observatories (NEO):

—	European Industrial Relations Observatory (EIRO) 507 information updates added; five representativeness studies; annual updates on pay and working time; annual review on industrial relations,

—	European Working Conditions Observatory (EWCO) 123 information updates added; comparative analytical reports on occupational promotion of migrant workers and the self-employed,

—	European Restructuring Monitor (ERM) 2 176 restructuring fact sheets added; six comparative analytical reports.

Surveys:

—	Second European Quality of Life Survey: overview report based on 35 000 interviews in 31 countries published. Secondary analysis reports on family life and work; subjective well-being; quality of society and public services; social exclusion,

—	Fifth European Working Conditions Survey: preparation of field work,

—	European Company Survey: Field work completed in 30 countries; first results published (resume).

Employment and competitiveness

—	European Restructuring Monitor case studies

—	Impact of globalisation on selected sectors (contribution to DG

Employment’s sector studies)

—	Undeclared work (measures from 27 countries)

—	The economic crises and employment (Report ‘Restructuring in recession’)

Industrial relations and workplace development

—	Working conditions and social dialogue

—	Global comparison of working conditions

—	Industrial relations and sustainability

—	European Company Statute

—	The national industrial relations systems in the EU

—	Links between quality of work and performance

Social cohesion and quality of life

—	Company initiatives to reconcile employment with care

—	Role of local authorities in the integration of migrants

—	Active inclusion of young people with disabilities

—	Monitoring quality of life in Europe

—	Mobility trends

Communication and sharing ideas and experience

152 443 print publications disseminated; 637 new web and print publications; 803 contacts and briefing meetings with European level policy makers; 1,6 million user sessions; media activities resulted in reaching 114 million European citizens; 272 enquiries from journalists.Promotion campaigns: two resource packs (Recession, Poverty and social exclusion)

—	Foundation Forum 2009: ‘Global recession — Europe’s way out’

—	Foundation Seminar Series ‘Maintaining employment in times of crises’

—	23 exhibitions and 40 visits to Eurofound.

Source: Information supplied by the Foundation.

THE FOUNDATION'S REPLIES

13.

For the assigned revenue financial programmes, Eurofound will make sure that these will be presented in sufficient details in future budgets.

At the time of the creation of the commitment mentioned in the observation, a legally binding contract with the financing party amounting to 184 000 euro was in place. Based on this contract 29 000 euro were received in 2009 and the balance of 155 000 euro will be received in November 2010. Moreover, no payment was made against this commitment of 184 000 euro in 2009. Nevertheless, Eurofound will make sure that, in the future, appropriations are made available only when the corresponding assigned revenue has been received.

14.	Eurofound will ensure, through additional training and resources, the correct implementation of year-end procedures and adherence to the deadlines for the presentation of its accounts.

15.	Eurofound implemented a Register of Exceptions on 1 July 2010.

16.	In all cases, thresholds were set at the beginning of the recruitment process. Eurofound will make sure that these are documented in the reports of the Selection Committee.

17.	Eurofound will strengthen its evaluation and review procedures in an effort to avoid such errors in the future.

(1) OJ L 139, 30.5.1975, p. 1.

(2) The Table summarises the Foundation's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 29 July 2010 and received by the Court on 2 August 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or www.eurofound.europa.eu

(12) Procurement procedure for catering services for 122 000 euro (Contract No 09-1400-01).

14.12.2010

Official Journal of the European Union

C 338/162

REPORT

on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2009, together with the Centre’s replies

2010/C 338/28

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	163
STATEMENT OF ASSURANCE …	3-12	163
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-14	164
Table …		165
The Centre’s replies …		167

INTRODUCTION

The European Monitoring Centre for Drugs and Drug Addiction (hereinafter ‘the Centre’), which is located in Lisbon, was established by Council Regulation (EEC) No 302/93 of 8 February 1993 (1). Its main task is to collect data on drugs and drug addiction in order to prepare and publish information at European level that is objective, reliable and comparable. The information is intended to provide a basis for analysing the demand for drugs and ways of reducing it, as well as, in general, phenomena associated with the drug market (2).

2.	The Centre's 2009 budget amounted to 14,7 million euro, as compared with 15,1 million euro the previous year. The number of staff employed by the Centre at the end of the year was 78, the same as the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.

The Centre carried forward 339 000 euro of its 2009 appropriations for Title II — Administrative expenditure (26 %), 250 000 euro of which corresponded to commitments without any payment, mostly for activities related to 2010. Appropriate instructions and procedures for the analysis of potential carry-forwards should be put in place so as to reduce the volume of appropriations carried forward to the minimum necessary to cover the amounts still due against the year’s commitments. Alternatively, the programming and the monitoring of activities should be improved with a view to reducing carry-forwards.

14.

Pursuant to the decision of the Translation Centre’s Management Board to redistribute part of its accumulated surplus, in December 2009 the Centre received a refund of 177 976 euro from the Translation Centre. As this amount was not a reimbursement, it should have been returned to the Commission, according to it’s instructions. Instead, the funds were used to pay for extra translation services, above the limit in its budget and no amending budget was proposed.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Monitoring Centre for Drugs and Drug Addiction (Lisbon)

Areas of Union competence deriving from the Treaty

Competences of the Centre

(Regulation (EC) No 1920/2006 of the Parliament and of the Council of 12 December 2006)

Governance

Resources made available to the Centre in 2009

(Data for 2008)

Products and services in 2009

(Data for 2008)

The Union shall complement the Member States’ action in reducing drugs-related health damage, including information and prevention.

(Article 168(1) of the Treaty on the Functioning of the European Union)

Objectives

To provide the Union and its Member States with factual, objective, reliable and comparable information at Union level concerning drugs, drug addiction and their consequences.

The Monitoring Centre is to focus on the following priority areas:

(1)	monitoring the state of the drugs problem, and emerging trends, in particular those involving multi-drug use;

(2)	monitoring the solutions and providing information on best practices;

(3)	assessing the risks of new psychoactive substances and maintaining a rapid information system;

(4)	developing tools and instruments to help Member States to monitor and evaluate their national policies and the Commission to monitor and evaluate Union policies.

Tasks

—	To collect and analyse data.

—	To improve data-comparison methods.

—	To disseminate data.

—	To cooperate with European and international bodies and organisations and with third countries.

—	To identify new developments and changing trends.

1 — Management Board

Comprises one representative from each Member State, two representatives of the Commission and two independent experts appointed by the European Parliament.

It adopts the work Programme, the general activities report and the budget.

2 — Director

Appointed by the Management Board at the Commission’s proposal.

3 — Scientific Committee

Delivers opinions. It consists of at most 15 well-known scientists appointed in view of their excellence by the Management Board following a call for expressions of interest. The Management Board may also appoint a panel of experts to the extended Scientific Committee for risk assessment of new psychoactive substances.

4 — External audit

Court of Auditors.

5 — Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

14,72 million euro (15,06 million euro). Union subsidy 97,44 % (93,61 %).

Staff at 31 December 2009

Number of posts in establishment plan: 82 (82)

Posts occupied: 78 (78)

+ 26 (26) other staff (auxiliary contracts, contract staff and temporary replacements)

Total staff: 104 (104)

Allocated to

operational: 62,5 (62)

administrative and IT support: 30 (32)

mixed: 11,5 (10)

Network

The Centre runs a computerised network for the collection and exchange of information called the ‘European Information Network on Drugs and Drug Addiction’ (Reitox); this network connects national drug information networks, specialist centres in the Member States and the information systems of international organisations working with the Centre.

Publications

—	Annual report on the state of the drug problem in Europe; 23 (23) language versions, publication and interactive website).

—	Selected issues (2 (3) issues, publication, EN, multilingual summaries 23 language versions).

—	Statistical bulletin and interactive website containing over 350 (350) tables, 100 (100) graphs.

—	General activities report — annual, EN.

—	Drugnet Europe newsletter — 4 issues, EN (4).

—	Drugs in Focus (policy briefings) — 2 (1) issues, 25 language versions.

—	EMCDDA Scientific Monograph — 1 (1), EN.

—	EMCDDA Insights — 1 (3), EN.

—	EMCDDA thematic papers — 4 (0).

—	Joint publications — 1, EN; 1, 23 language versions (0).

—	Drug profiles — 3 new (5) and 11 updated (6), DE, EN, FR.

—	Technical and scientific studies, including Articles and scientific summaries 23 (53).

—	Scientific posters: 22 (0).

—	Data collection, validation, storage and retrieval system (Fonte).

Other websites:

Set-up/updating/content development of public EMCDDA website including:

—	Country overviews,

—	Drug treatment overviews,

—	European legal database on drugs,

—	Evaluation instruments bank,

—	Best practice portal (exchange on drug demand reduction action),

—	Thematic pages,

—	Publications database.

Promotional brochures: 1 EN; 1, 25 language versions (6)

Media products: 145 (177) miscellaneous products, 12 news releases (5 in 23 languages) and 6 fact sheets, EN.

Participation in international conferences/meetings: 174 (203)

Organisation of technical and scientific meetings: 29 (35).

Source: Information supplied by the Centre.

THE CENTRE'S REPLIES

13.

The amount carried forward corresponds to 2 % of the EMCDDA’s total budget commitments in 2009. This amount reflects an improvement compared to the previous year, as it represents a reduction of 25 % compared to the appropriations carried forward from Title II of the EMCDDA’s 2008 budget.

Part of the carried forward amount concerns commitments that were affected by the move of the EMCDDA to its new premises, which delayed some procurement and budget operations to the last quarter of 2009.

The EMCDDA has taken measures to further reduce, as much as is possible, the volume of appropriations carried forward.

14.

In accordance with Article 19(e) of the Financial Regulation applicable to the EMCDDA and pursuant to consolidated practice from previous years, the EMCDDA managed the appropriations received from the Translation Centre (177 976 euro) as an internal assigned revenue arising from the repayment of amounts previously paid. As such, the abovementioned appropriations were automatically made available when they were received and were used to meet translation needs that had been identified in the 2009 planning of activities. For the future, given that the issue at stake concerns several EU agencies, the EMCDDA is ready to take the measures that may be required to deal with this issue in accordance with a common approach.

(1) OJ L 36, 12.2.1993, p. 1. This Regulation and its amendments were repealed by European Parliament and Council Regulation (EC) No 1920/2006 of 12 December 2006 (OJ L 376, 27.12.2006, p. 1).

(2) The Table summarises the Centre's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) OJ L 248, 16.9.2002, p. 1.

(7) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(8) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(10) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(11) The Final Annual Accounts were drawn up on 22 June 2010 and received by the Court on 6 July 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://www.emcdda.europa.eu/html.cfm/index115776EN.html or www.emcdda.europa.eu

14.12.2010

Official Journal of the European Union

C 338/168

REPORT

on the annual accounts of the Community Plant Variety Office for the financial year 2009, together with the Office’s replies

2010/C 338/29

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	169
STATEMENT OF ASSURANCE …	3-15	169
OTHER MATTERS …	16	170
Table …		171
The Office’s replies …		172

INTRODUCTION

The Community Plant Variety Office (hereinafter ‘the Office’), located in Angers, was created by Council Regulation (EC) No 2100/94 of 27 July 1994 (1). Its main task is to register and examine applications for the grant of Union 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 (2).

2.	After the adoption of a supplementary amending budget, the Office’s 2009 budget was 13,2 million euro, compared with 12,5 million euro the previous year. The number of staff employed by the Office at the end of the year was 46, as compared with 44 the previous year.

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

OTHER MATTERS

16.

With regard to staff selection procedures, neither the thresholds that candidates had to meet in order to be invited to interview nor those necessary to be put on the reserve list were fixed in advance; they were set by the selection boards after the evaluation and ranking of the candidates. Similarly, the questions used during the written tests and interviews were decided after the examination of the applications. In addition, candidates were evaluated on the basis of criteria not announced in the vacancy notices. These practices put at risk the transparency of the recruitment procedures.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 12 October 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Community Plant Variety Office (Angers)

Areas of Union competence deriving from the Treaty

Competences of the Office

(Council Regulation (EC) No 2100/94)

Governance

Resources made available to the Office in 2009

(Data for 2008)

Products and services supplied in 2009

(Data for 2008)

Free movement of goods

Such prohibitions or restrictions (the protection of industrial and commercial property) shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.

(Extract of Article 36 of the Treaty on the Functioning of the European Union)

Objectives

—	To apply the system of Union plant variety rights as the sole and exclusive form of Union industrial property rights for plant varieties.

Tasks

—	To decide whether to refuse or grant applications for Union plant variety rights.

—	To decide on objections.

—	To decide on appeals.

—	To decide on the revocation or cancellation of a Union plant variety right.

1 — The President

Directs the Office. He is appointed by the Council from a list of candidates proposed by the Commission after obtaining the opinion of the Administrative Council.

2 — The Administrative Council

Oversees the Office's work programme and draws up rules governing the Office's working methods. It is composed of one representative of each Member State and one representative of the Commission, plus their alternates.

3 — Decisions regarding the grant of Community plant variety rights are adopted by Committees composed of three members of staff of the Office and by the Board of Appeal in appeal proceedings.

4 — Control of the legality of the Office's acts

Review by the Commission of the legality of the acts of the Office's President in respect of which Union law does not provide for any control on legality by another body and of the acts of the Administrative Council relating to the Office's budget.

5 — External audit

Court of Auditors.

6 — Discharge authority

Administrative Council.

Budget

13,2 (12,5) million euro

Staff at 31 December 2009

Number of posts in establishment plan: 46 (43)

Posts occupied: 46 (43)

Total staff: 46 (44)

Allocated to

Operational: 17,5 (17)

Administrative: 22,5 (21)

Mixed: 6 (6)

Applications received: 2 755(3 012)

Rights granted: 2 596(2 162)

Union rights in force at 31 December 2009: 16 783(15 599)

Source: Information supplied by the Office.

THE OFFICE’S REPLIES

12.	The Office takes note of the remarks.

13.

For contract 2009-056 time constraints did not allow to consult further candidates. The contract AO 2009-05 was not extended beyond the first year and an open call for tender was published. The purchases of legal services were based on Article 126(1)(c) (extreme urgency) of the Implementing Regulation of the Financial Regulation, as regards contracts CPV.EPM.7303132, CPV.EPM.7401037 and CPV.EPM.7401729, as concerns contract CPV.EPM.7401002 on Article 126(1)(e) (additional services). The requirement for appropriate advertisement laid down in Article 126(1)(i) was not applicable.

The Office will consider whether it is opportune to advertise for the expression of interest for the provision for legal services in the future.

14.	To avoid the repetition of the situations described by the Court the Office will put in place an annual procurement programme to make sure that procurement procedures are launched in due time and implemented under correct conditions.

16.

The risk mentioned by the Court did not materialise as confirmed by the fact that the CPVO has never received complaints from candidates concerning alleged discrimination or otherwise. The CPVO has, however, improved the transparency of the selection procedures as the criteria to be used in the evaluation of candidates are clearly indicated in its vacancy notices ‘new style’.

(1) OJ L 227, 1.9.1994, p. 27.

(2) The Table summarises the Office's competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(7) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(8) The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VII of Regulation (EC, Euratom) No 2343/2002 as last amended by Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 23) and are integrated as such in the Financial Regulation of the Office.

(9) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(10) The Final Annual Accounts were drawn up on 24 June 2010 and received by the Court on 24 June 2010. The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://www.cpvo.europa.eu/main/en/home/about-the-cpvo/financing

(11) Procedure CW MID V8-0208 (52 000 euro).

(12) Procedure ADMIN/D1/PR/2003/131/9 (43 000 euro) and contract for consultancy services for the ‘multi-beneficiary programme’ (24 000 euro).

(13) Contract 2009-056 (34 932 euro), and Contract AO 2009-05 (31 739 euro/year or 126 956 over 4 years).

(14) CPV.EPM.7401002, CPV.EPM.7303132, CPV.EPM.7401037 and CPV.EPM.7401729 (54 569 euro in total).

14.12.2010

Official Journal of the European Union

C 338/173

REPORT

on the annual accounts of the Office for Harmonization in the Internal Market for the financial year 2009, together with the Office’s replies

2010/C 338/30

CONTENTS

	Paragraph	Page
INTRODUCTION …	1-2	174
STATEMENT OF ASSURANCE …	3-12	174
COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT …	13-15	175
OTHER MATTERS …	16-18	175
Table …		176
The Office’s replies …		178

INTRODUCTION

The Office for Harmonization in the Internal Market (hereinafter ‘the Office’), located in Alicante, was set up by Council Regulation (EC) No 40/94 (1) of 20 December 1993. Its mandate is to implement the Union legislation on trade marks and designs, which gives undertakings uniform protection throughout the entire area of the European Union (2).

2.	The Office’s 2009 budget amounted to 338 million euro, compared with 318,4 million euro the previous year. The number of staff employed by the Office at the end of the year was 742, as compared with 724 the previous year.

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

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

13.	The works related to the fitting-out of buildings planned for 2009 suffered significant delays. Out of the 7 million euro of initial appropriations, only 1,6 million euro was committed and 0,3 million euro was paid.

14.	In 2009, the Office paid 305 984 euro to an external, commercial provider of short term contract staff. This payment was not provided for in the contract. This expenditure is not legal and regular according to the Office’s Financial Regulation.

15.	The cash held by the Office as at 31 December 2009 amounted to 474,2 million euro. Despite the size of this amount, the Budget Committee has not yet adopted instructions or guidelines for treasury management.

OTHER MATTERS

16.

For the past three years (11), the Court has noted the need for the Office to propose to the Commission a level of fees which more accurately reflects its real costs (12). The cumulated budgetary surplus has increased from 273 million euro in 2007 to 350 million euro in 2008 and 402,6 million euro in 2009. Although amendments to the Fees Regulation came into effect on 1 May 2009, the year-end surplus has increased by more than 50 million euro in 2009. The long-term impact of these amendments should be carefully evaluated by the Office and, if necessary, further adjustments to the fees should be proposed to the Commission in order to reach a more balanced budget in the near future.

17.	The Office has not yet adopted all the implementing rules of the Staff Regulations (13) or internal guidelines for recruitment.

18.	The President of the Office appointed himself and the Vice-President as the only members for a recruitment (14) selection committee. This did not respect the principle of segregation of duties, as the Office’s President is also its Appointing Authority. The procedure was thus irregular.

This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 5 October 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

Office for Harmonization in the Internal Market (Alicante)

Area of Union competence deriving from the Treaty

Competences of the Office

(Council Regulation (EC) No 40/94)

Governance

Resources made available to the Office in 2009

(Data for 2008)

Products and services supplied in the financial year 2009

(Data for 2008)

Free movement of goods

Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property must not constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.

(From Article 36 of the Treaty on the Functioning of the European Union)

Restrictions on freedom to provide services within the Union are prohibited in respect of nationals of Member States who are established in a State of the Union other than that of the person for whom the services are intended.

(From Article 56 of the Treaty on the Functioning of the European Union)

Objective

—	To implement the Union legislation on trade marks and designs, which gives undertakings the right to uniform protection throughout the entire area of the European Union.

Tasks

—	To receive and enter applications for registration.

—	To examine the conditions for entry in the Register and compatibility with Union legislation.

—	To search at the industrial property offices of the Member States for any pre-existing national trade marks.

—	To publish applications.

—	To examine any opposition by third parties.

—	To register or reject applications.

—	To examine applications for revocation or invalidity.

—	To handle appeals against decisions.

1 — Administrative Board

Composition

—	One representative of each Member State.

—	One representative of the Commission and their alternates.

Task

—	To advise the President on matters for which the Office is responsible.

—	To prepare lists of candidates (Article 120) for President, Vice-Presidents and chairmen and members of the Boards of Appeal.

2 — President of the Office

—	Appointed by the Council from a list of at most three candidates which has been prepared by the Administrative Board.

3 — Budget Committee

Composition

—	One representative of each Member State and one representative of the Commission and their alternates.

Task

—	To adopt the budget and the Financial Regulation, grant discharge to the President and determine the cost of search reports.

4 — Decisions related to the applications

Decisions are taken by:

(a)	the Examiners;

(b)	the Opposition Divisions;

(c)	the Administration of Trade Marks and Legal Division;

(d)	the Cancellation Divisions;

(e)	the Boards of Appeal.

5 — External audit

Court of Auditors.

6 — Discharge authority

The Office's Budget Committee.

Budget

338 million euro

(318 million euro)

Staff at 31 December 2009

658 (643) posts in the establishment plan, posts occupied 614 (606) + 128 (118) other staff (auxiliary contracts, seconded national experts, local and employment agency staff, special advisers)

Total staff: 742 (724)

Trade marks

Number of applications: 88 300 (87 400)

Number of registrations: 90 000 (81 400)

Cases of opposition: 13 900 (18 700)

Appeals to the Boards of Appeal: 1 588 (1 815)

Appeals pending: 1 378 (1 618)

Average time of registration (excluding opposition or appeal)

before publication: 4 (6) months

Designs

Designs received: 69 500 (72 700)

Designs registered: 71 500 (78 400)

Source: Information supplied by the Office.

THE OFFICE’S REPLIES

13.	Due to the economic situation in the building industry in Spain, the Office received far more bids than expected and the evaluation of the bids took more time than planned. However it turned out that the Office could conclude contracts with better prices than anticipated.

14.

The pay adjustments were based on the requirements of the Spanish national labour law and an EU Directive and were the consequence of changes introduced in the new Staff Regulations which entered into force on 1 May 2004. The Office acknowledges that they should have been provided for in the contract, but statutory requirements override contractual provisions. The Office does not accept therefore that the payments were not legal, or that they should be recovered.

15.

The Office believes that the treasury policy is not within the formal competence of the Budget Committee according to the Financial Regulation and the CTM Regulation. Nevertheless the Office will continue to keep the Committee informed of its overall approach, as it has done since 2008, and intends to submit a new policy document shortly for an opinion.

16.

The Office expects the biennial revision — as agreed in the September 2008 meeting — to ensure budgetary equilibrium in the future. However this is a matter for the legislators.

The projected impact of current fee levels on the future budget balances has for many years been a feature of the business plan documents submitted to the Budget Committee.

17.	The Office takes good note. A systematic review of the existing implementing rules available in the OHIM will be undertaken in the near future.

18.

The Office understands the reference made to Article 3, Annex III to the Staff Regulations, which refers to competitions, but considers that the provisions are not mandatory for the selection procedures for temporary agents. Nevertheless, the Office will consider other ways of strengthening the procedures although it believes as a matter of principle that the President should be closely involved in the selection procedures of its top management.

(1) OJ L 11, 14.1.1994. p. 1.

(2) The Table summarises the Office’s competences and activities. It is presented for information purposes.

(3) These accounts are accompanied by a report on the budgetary and financial management during the year which gives, inter alia, an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

(4) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

(5) The budget implementation reports comprise the budget outturn account and its annex.

(6) Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

(7) Article 38 of Regulation (EC, Euratom) No 2343/2002.

(9) International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

(10) The Final Annual Accounts were drawn up on 21 June 2010 and received by the Court on 5 July 2010. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or www.oami.europa.eu

(11) OJ C 304, 15.12.2009, p. 159, OJ C 311, 5.12.2008, p. 178 and OJ C 309, 19.12.2007, p. 141.

(12) Article 134(2) of Council Regulation (EC) No 40/94 of 20 December 1993.

(13) ‘Recruitment procedures for temporary and contract staff’, ‘Disciplinary procedures’, ‘Attestation’ and ‘Dealing with sexual and moral harassment’.

(14) Recruitment procedure VEXT/09/590/AD/12/HRD.

		ISSN 1725-2423 doi:10.3000/17252423.C_2010.338.eng
Official Journal of the European Union		C 338

English edition	Information and Notices	Volume 53 14 December 2010

Notice No	Contents	page
	IV Notices
	NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES
	Court of Auditors
2010/C 338/01	Report on the annual accounts of the Community Fisheries Control Agency for the financial year 2009, together with the Agency’s replies	1

2010/C 338/02	Report on the annual accounts of the Euratom Supply Agency for the financial year 2009, together with the Agency’s replies	6

2010/C 338/03	Report on the annual accounts of the European Fundamental Rights Agency for the financial year 2009, together with the Agency’s replies	10

2010/C 338/04	Report on the annual accounts of the European Network and Information Security Agency for the financial year 2009, together with the Agency’s replies	16

2010/C 338/05	Report on the annual accounts of the European Aviation Safety Agency for the financial year 2009, together with the Agency’s replies	22

2010/C 338/06	Report on the annual accounts of the European Medicines Agency for the financial year 2009, together with the Agency’s replies	28

2010/C 338/07	Report on the annual accounts of the European Chemicals Agency for the financial year 2009, together with the Agency’s replies	34

2010/C 338/08	Report on the annual accounts of the European Agency for the Management of Operational Cooperation at the External Borders of the Member States for the financial year 2009, together with the Agency’s replies	40

2010/C 338/09	Report on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2009, together with the Agency’s replies	46

2010/C 338/10	Report on the annual accounts of the European Maritime Safety Agency for the financial year 2009, together with the Agency’s replies	52

2010/C 338/11	Report on the annual accounts of the European Environment Agency for the financial year 2009, together with the Agency’s replies	58

2010/C 338/12	Report on the annual accounts of the Education, Audiovisual and Culture Executive Agency for the financial year 2009, together with the Agency’s replies	65

2010/C 338/13	Report on the annual accounts of the European Research Council Executive Agency for the financial year 2009, together with the Agency’s replies	71

2010/C 338/14	Report on the annual accounts of the Trans-European Transport Network Executive Agency for the financial year 2009, together with the Agency’s replies	77

2010/C 338/15	Report on the annual accounts of the Executive Agency for Competitiveness and Innovation for the financial year 2009, together with the Agency’s replies	83

2010/C 338/16	Report on the annual accounts of the Research Executive Agency for the financial year 2009, together with the Agency’s replies	90

2010/C 338/17	Report on the annual accounts of the Executive Agency for Health and Consumers for the financial year 2009, together with the Agency’s replies	96

2010/C 338/18	Report on the annual accounts of the European Railway Agency for the financial year 2009, together with the Agency’s replies	103

2010/C 338/19	Report on the annual accounts of the European Food Safety Authority for the financial year 2009, together with the Authority’s replies	108

2010/C 338/20	Report on the annual accounts of the European GNSS Supervisory Authority for the financial year 2009, together with the Authority’s replies	114

2010/C 338/21	Report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2009, together with the Centre’s replies	119

2010/C 338/22	Report on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2009, together with the Centre’s replies	124

2010/C 338/23	Report on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2009, together with the Centre’s replies	130

2010/C 338/24	Report on the annual accounts of the European Police College for the financial year 2009, together with the College’s replies	137

2010/C 338/25	Report on the annual accounts of Eurojust for the financial year 2009, together with Eurojust’s replies	144

2010/C 338/26	Report on the annual accounts of the European Training Foundation for the financial year 2009, together with the Foundation’s replies	149

2010/C 338/27	Report on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2009, together with the Foundation’s replies	155

2010/C 338/28	Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2009, together with the Centre’s replies	162

2010/C 338/29	Report on the annual accounts of the Community Plant Variety Office for the financial year 2009, together with the Office’s replies	168

2010/C 338/30	Report on the annual accounts of the Office for Harmonization in the Internal Market for the financial year 2009, together with the Office’s replies	173