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Document 52014TA1210(23)
Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2013, together with the Centre’s replies
Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2013, together with the Centre’s replies
Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2013, together with the Centre’s replies
OJ C 442, 10.12.2014, p. 201–209
(BG, ES, CS, DA, DE, ET, EL, EN, FR, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
10.12.2014 |
EN |
Official Journal of the European Union |
C 442/201 |
REPORT
on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2013, together with the Centre’s replies
(2014/C 442/23)
INTRODUCTION
1. |
The European Monitoring Centre for Drugs and Drug Addiction (hereinafter ‘the Centre’, aka ‘EMCDDA’), which is located in Lisbon, was established by Council Regulation (EEC) No 302/93 (1). Its main task is to collect, analyse and disseminate information as regards 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). |
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 Centre’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
The management’s responsibility
The auditor’s responsibility
Opinion on the reliability of the accounts
Opinion on the legality and regularity of the transactions underlying the accounts
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10. |
The comments which follow do not call the Court’s opinions into question. |
COMMENTS ON THE LEGALITY AND REGULARITY OF TRANSACTIONS
11. |
The Centre launched a procurement procedure to rent photocopying machines over a four-year period for a maximum amount of 1 60 000 euro. The technical requirements were subject to a significant modification during the procedure. Following this modification, an amended contract notice was published extending the deadline for the submission of tenders, but there was no clear indication of the changes in the technical requirements. The latter were again adjusted for the conclusion of the contract, in accordance with the option announced in the published specifications, leading to a decrease in the contract value by 35 %. The information published on the contract’s price structure was not sufficiently clear and this led to a misinterpretation by one bidder, who therefore had lower chances to win the procedure. In addition, the evaluation criteria were not sufficiently specific to ensure full transparency and equal treatment of bidders. The above referred weaknesses affected the efficiency and effectiveness of this procurement procedure and created a risk of hampering competition. |
FOLLOW-UP OF PREVIOUS YEARS’ COMMENTS
12. |
An overview of the corrective actions taken in response to the Court's comments from previous years is provided in Annex I. |
This Report was adopted by Chamber IV, headed by Mr Milan Martin CVIKL, Member of the Court of Auditors, in Luxembourg at its meeting of 22 July 2014.
For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
President
(1) OJ L 36, 12.2.1993, p. 1. This Regulation and its amendments were repealed by Regulation (EC) No 1920/2006 of the European Parliament and of the Council (OJ L 376, 27.12.2006, p. 1).
(2) Annex II summarises the Centre’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) Articles 39 and 50 of Commission Delegated Regulation (EU) No 1271/2013 (OJ L 328, 7.12.2013, p. 42).
(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 107 of Regulation (EU) No 1271/2013.
ANNEX I
Follow-up of previous years’ comments
Year |
Court's comment |
Status of corrective action (Completed/Ongoing/Outstanding/N/A) |
2011 |
The Centre currently bears the annual cost of about 2 75 000 euro for unused office space in its former building and in the new Headquarters. The Centre should continue, in cooperation with the European Commission and National Authorities, to seek adequate solutions for the unused office space. |
Ongoing |
2011 |
The Centre’s procurement files were not always complete and adequately organised. |
Completed |
2012 |
In 2012, the Centre gave grants to Member States’ national drug monitoring centres (beneficiaries) in order to support cooperation under the REITOX network (1). Total grant expenditure in 2012 was 2,6 million euro, representing 16 % of total operating expenditure. The Centre’s ex ante verifications before reimbursement of costs claimed by beneficiaries consist of a desk analysis of cost claims and of audit certificates issued by external auditors contracted by the beneficiaries. The Centre does not usually obtain from beneficiaries any documents to substantiate the eligibility and accuracy of the costs claimed. Ex post on-the-spot verifications of costs at beneficiary level are rare (2). Existing controls therefore provide only limited assurance to the Centre’s management as to the eligibility and accuracy of the costs claimed by beneficiaries. For the transactions audited by the Court supporting documentation was obtained by the Centre on the Court’s behalf which provided reasonable assurance as to their legality and regularity. A random verification of supporting documents and a higher coverage of beneficiaries by on-the-spot verifications could considerably increase assurance. |
Ongoing |
2012 |
No ex post verifications were carried out for any transactions made after 2008, except for grants |
Ongoing |
2012 |
The Centre had not yet adopted Business Continuity or Disaster Recovery Plans. |
Completed |
2012 |
The Centre currently bears the annual cost of about 2 00 000 euro for unused office space in its former building and in the new Headquarters. The Centre should continue, in cooperation with the Commission and National Authorities, to seek adequate solutions for this unused office space. |
Ongoing |
(1) Under the European Information Network on Drugs and Drug Addiction (REITOX) the Centre collects country data on drugs from national drug monitoring centres.
(2) In 2011, two ex post verifications were carried out in two Member States. No such verifications took place in 2012.
ANNEX II
European Monitoring Centre for Drugs and Drug Addiction (Lisbon)
Competences and activities
Areas of Union competence deriving from the Treaty (Articles 168 and 114 of the Treaty on the Functioning of the European Union) |
The Union shall complement the Member States’ action in reducing drugs-related health damage, including information and prevention. |
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Competences of the Centre (Regulation (EC) No 1920/2006 of the European Parliament and of the Council) |
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:
Tasks
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Governance |
Management Board Comprises one representative from each Member State, two representatives from the Commission and two independent experts, designated by the European Parliament, who are particularly knowledgeable in the field of drugs. The Management Board adopts the work programme, the general activities report and the budget, and gives an opinion on the final accounts. Executive Committee Composition Chairperson of the Management Board Vice-Chairperson of the Management Board Two other elected members from the Management Board representing the Member States Two representatives from the Commission Director Appointed by the Management Board on a proposal by the Commission. Scientific Committee Delivers opinions. It consists of, at most, fifteen 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 the risk assessment of new psychoactive substances. External audit European Court of Auditors. Internal audit European Commission's Internal Audit Service (IAS). Discharge authority European Parliament, acting on a recommendation from the Council. |
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Resources made available to the Centre in 2013 (2012) |
Budget 16,31(16,32) million euro. Union subsidy: 95,4 % (95,3 %). Staff at 31 December 2013 Number of posts in establishment plan: 84 (84) Posts occupied: 76 (79) + 24 (25) other staff (seconded national experts, contract staff and temporary replacements) Total staff: 100 (104) Allocated to the following tasks:
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Products and services 2013 (2012) |
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 2013 was the first year of the 2013-15 EMCDDA strategy and work programme and the first year of implementation of the new communication strategy adopted by the Management Board in July 2012, together with the three-year work programme. In accordance with this strategy, some product lines were streamlined and others were redesigned. There is therefore no strict correspondence between the 2013 products and those of 2012.
Other websites Reorganisation/updating/content development of public Centre website including:
Promotional material Conference materials: 4 EN (2) Media products: 12 (13) news releases and 13 (10) fact sheets, EN Participation in international conferences, technical and scientific meetings: 285 (266). |
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Source: Annex supplied by the Centre. |
THE CENTRE’S REPLIES
11. |
The referred modification of the technical specifications was intended to update the Centre’s capacity/speed for copying/printing. The relevant contract notice was duly published via the information system for European public procurement (SIMAP). This system imposes some restrictions to the information that can be published on the terms and content of changes to the initial publication. The published technical specifications, along with the draft contract attached to these specifications, explicitly gave the option of adjusting the number and combination of the equipment to be provided by the winning tenderer/contractor, depending on the EMCDDA’s actual needs. This adjustment was the result of a review of the use of the EMCDDA’s printing and copying devices, carried out in 2013 in order to promote efficiency. All tenderers were treated equally and evaluated in accordance with the established and published award criteria and method, which determined the tender providing the best value for money. The EMCDDA will pursue its efforts to improve its procurement processes, namely to reduce further the need to adjust technical specifications and ensure the provision of more effective information to tenderers on such adjustments. |