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Document 52013TA1213(34)
Report on the annual accounts of the European Union Fundamental Rights Agency for the financial year 2012, together with the Agency’s replies
Report on the annual accounts of the European Union Fundamental Rights Agency for the financial year 2012, together with the Agency’s replies
Report on the annual accounts of the European Union Fundamental Rights Agency for the financial year 2012, together with the Agency’s replies
OJ C 365, 13.12.2013, p. 245–250
(BG, ES, CS, DA, DE, ET, EL, EN, FR, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
13.12.2013 |
EN |
Official Journal of the European Union |
C 365/245 |
REPORT
on the annual accounts of the European Union Fundamental Rights Agency for the financial year 2012, together with the Agency’s replies
2013/C 365/34
INTRODUCTION
1. |
The European Union Fundamental Rights Agency (hereinafter ‘the Agency’, aka ‘FRA’), which is located in Vienna, was established by Council Regulation (EC) No 168/2007 (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). |
INFORMATION IN SUPPORT OF THE STATEMENT OF ASSURANCE
2. |
The audit approach taken by the Court comprises analytical audit procedures, direct testing of transactions and an assessment of key controls of the Agency’s supervisory and control systems. This is supplemented by evidence provided by the work of other auditors (where relevant) and an analysis of management representations. |
STATEMENT OF ASSURANCE
3. |
Pursuant to the provisions of Article 287 of the Treaty on the Functioning of the European Union (TFEU), the Court has audited:
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The management’s responsibility
4. |
In accordance with Articles 33 and 43 of Commission Regulation (EC, Euratom) No 2343/2002 (5), the management is responsible for the preparation and fair presentation of the annual accounts of the Agency and the legality and regularity of the underlying transactions:
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The auditor’s responsibility
5. |
The Court’s responsibility is, on the basis of its audit, to provide the European Parliament and the Council (7) with a statement of assurance as to the reliability of the annual accounts and the legality and regularity of the underlying transactions. The Court conducts its audit in accordance with the IFAC International Standards on Auditing and Codes of Ethics and the INTOSAI International Standards of Supreme Audit Institutions. These standards require the Court to plan and perform the audit to obtain reasonable assurance as to whether the annual accounts of the Agency are free from material misstatement and the transactions underlying them are legal and regular. |
6. |
The audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and the legality and regularity of the underlying transactions. The procedures selected depend on the auditor’s judgement, which is based on an assessment of the risks of material misstatement of the accounts and material non-compliance by the underlying transactions with the requirements in the legal framework of the European Union, whether due to fraud or error. In assessing these risks, the auditor considers any internal controls relevant to the preparation and fair presentation of the accounts, as well as the supervisory and control systems that are implemented to ensure the legality and regularity of underlying transactions, and designs audit procedures that are appropriate in the circumstances. The audit also entails evaluating the appropriateness of accounting policies, the reasonableness of accounting estimates and the overall presentation of the accounts. |
7. |
The Court considers that the audit evidence obtained is sufficient and appropriate to provide a basis for its statement of assurance. |
Opinion on the reliability of the accounts
8. |
In the Court’s opinion, the Agency’s annual accounts present fairly, in all material respects, its financial position as at 31 December 2012 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation and the accounting rules adopted by the Commission’s accounting officer. |
Opinion on the legality and regularity of the transactions underlying the accounts
9. |
In the Court’s opinion, the transactions underlying the annual accounts for the year ended 31 December 2012 are legal and regular in all material respects. |
10. |
The comments which follow do not call the Court’s opinions into question. |
COMMENTS ON THE LEGALITY AND REGULARITY OF TRANSACTIONS
11. |
In 2012, the Agency procured cleaning services via cascading framework contracts to two suppliers. Due to a clerical error during the evaluation of offers, the ranking of the contractors was incorrect. One specific contract for 56 784 euro awarded in 2012 and the related payments are irregular. Following the Court’s audit, the Agency has amended the ranking of the contractors accordingly. |
COMMENTS ON INTERNAL CONTROLS
12. |
The Agency did not have a formal ex post verification procedure in place during 2012. A formal procedure was however implemented at the beginning of 2013, following a comprehensive risk analysis conducted by the Agency. |
COMMENTS ON BUDGETARY MANAGEMENT
13. |
While budget implementation for title III (operational expenditure) was low at 49 % of committed appropriations, this did not arise from delays in the implementation of the Agency’s Annual Work Programme and reflects the multi-annual nature of activities. The Agency has adopted a budgetary planning module that is linked directly to its Annual Work Programme and payments were planned and executed according to operational needs. |
This Report was adopted by Chamber IV, headed by Dr Louis GALEA, Member of the Court of Auditors, in Luxembourg at its meeting of 15 July 2013.
For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
President
(2) Annex summarises the Agency’s competences and activities. It is presented for information purposes.
(3) These include the balance sheet and the economic outturn account, the cash flow table, the statement of changes in net assets and a summary of the significant accounting policies and other explanatory notes.
(4) These comprise the budgetary outturn account and the annex to the budgetary outturn account.
(5) OJ L 357, 31.12.2002, p. 72.
(6) The accounting rules adopted by the Commission’s accounting officer are derived from the International Public Sector Accounting Standards (IPSAS) issued by the International Federation of Accountants or, where relevant, the International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board.
(7) Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (OJ L 248, 16.9.2002, p. 1).
ANNEX
European Union Agency for Fundamental Rights (Vienna)
Competences and activities
Areas of Union competence deriving from the Treaty |
Collection of information
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Competences of the Agency (Council Regulation (EC) No 168/2007) |
Objectives
Tasks
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Governance |
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. Duties 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. Executive Board Composition
Scientific Committee Composition
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 preference). External audit European Court of Auditors. Internal audit European Commission’s Internal Audit Service (IAS). Discharge authority European Parliament on a recommendation from the Council. |
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Resources made available to the Agency in 2012 (2011) |
Final Budget 20,376 (20,180) million euro of which the Union subsidy is 99 % (99 %) Staff as at 31 December 2012 72 (72) posts foreseen in the establishment plan, of which occupied: 70 (70) + 22 (22) other staff (contract staff, seconded national experts) Total staff: 94 (94), undertaking the following tasks:
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Products and services 2012 (2011) (1) |
FRANET Number of contributions by the 28 national focal points (national lots): 185 (29) Number of contributions by the partner in charge of the EU International analysis: 1 (0) Number of contributions by the partner in charge of the Comparative analysis: 1 (0) Number of meetings: 3 (2) (1 with 4 participants, 1 with 10 participants and 1 with 20 participants) Research Reports Number of reports: 13 (26) plus 23 (113) language versions Number of meetings: 2 (11) Annual reports: 2 (2) plus 3 (2) language versions Annual report Summary: 1 (1) plus 2 (4) language versions FRA opinions: 3 Factsheets: 11 (10) plus 118 (149) language versions Non-Research Materials Various FRA publications: 5 (5) plus 31 (27) language versions Posters: 20 (1) Key Conferences and Events Fundamental Rights Conference: 1 (1) Diversity Day Event: 1 (1) FRA Symposium: 1 (1) Meeting of Fundamental Rights Platform: 1 (0) Joint Seminar with (Danish) EU Presidency 1 (0) Cooperation with institutions and bodies at EU and Member State level Member States: 7 (13) Council of the EU: 9 (9) European Commission: 12 (18) European Parliament: 20 (10) European Court of Justice: 1 (1) Committee of the Regions: 1 (3) European Economic and Social Committee: 1 (1) European Ombudsman: 1 (0) Fundamental Rights Platform: 3 (3) Council of Europe: 24 (10) OSCE: 2 (3) United Nations: 2 (2) Specialised Bodies (NHRIs and Equality Bodies): 3 (4) Other Meetings and Round Tables: 12 (20) |
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Source: Information supplied by the Agency. |
(1) Please note that from year 2011, we have separated reports from factsheets, and we also explicitly state the total amount of language versions for each category.
Source: Information supplied by the Agency.
THE AGENCY’S REPLIES
11. |
The Agency corrected the clerical error in the evaluation of the offers and amended the framework contract accordingly, with the agreement of all parties involved. Moreover, the Agency is in the process of enhancing its tender and contract manager (TCM) software, which will eliminate such clerical errors in the future. This software is used to produce tenders and will now include an eEvaluation module. Upon a request from the Commission, the Agency has agreed to provide this software to the Commission services through a service level agreement. |
12. |
The Agency considers that the internal control system is adequate and provides reasonable assurance including good practices. Moreover, in 2013 the Agency also introduced a formal procedure for ex post verification further to an internal risk assessment, and in line with the Court’s request. |
13. |
The Court’s comment is welcomed as it confirms the multiannual nature of most of the Agency’s operational projects. The Agency’s budget execution for the year 2012 indicated satisfactory payment implementation rates for Titles I and II of 98 % and 89 %, respectively. For Title III, the rate of payment implementation of 49 % is well justified, as this is in line with the implementation of the Agency’s Annual Work Programme. In order to further improve its efficiency, the Agency has adopted a budgetary planning module (Budget Module) that is linked directly to the Annual Work Programme. The carry overs represent payment appropriations needed to cover existing legal commitments. |