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Document 52017TA1206(28)
Report on the annual accounts of the European Securities and Markets Authority for the financial year 2016, together with the Authority’s reply
Report on the annual accounts of the European Securities and Markets Authority for the financial year 2016, together with the Authority’s reply
Report on the annual accounts of the European Securities and Markets Authority for the financial year 2016, together with the Authority’s reply
OJ C 417, 6.12.2017, p. 176–180
(BG, ES, CS, DA, DE, ET, EL, EN, FR, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
6.12.2017 |
EN |
Official Journal of the European Union |
C 417/176 |
REPORT
on the annual accounts of the European Securities and Markets Authority for the financial year 2016, together with the Authority’s reply
(2017/C 417/28)
INTRODUCTION
1. |
The European Securities and Markets Authority (hereinafter ‘the Authority’, aka ‘ESMA’), which is located in Paris, was established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council (1). The Authority’s task is to improve the functioning of the EU internal financial market by ensuring a high, effective and consistent level of regulation and supervision, promoting the integrity and stability of the financial systems and strengthening international supervisory coordination in order to ensure the stability and effectiveness of the financial system. |
2. |
The table presents key figures for the Authority (2). Table Key figures for the Authority
|
INFORMATION IN SUPPORT OF THE STATEMENT OF ASSURANCE
3. |
The audit approach taken by the Court comprises analytical audit procedures, direct testing of transactions and an assessment of key controls of the Authority’s supervisory and control systems. This is supplemented by evidence provided by the work of other auditors and an analysis of management representations. |
OPINION
Reliability of the accounts Opinion on the reliability of the accounts
Legality and regularity of the transactions underlying the accounts Revenue Opinion on the legality and regularity of revenue underlying the accounts
Payments Opinion on the legality and regularity of payments underlying the accounts
Responsibilities of management and those charged with governance
Auditor’s responsibilities for the audit of the accounts and underlying transactions
Other matter
|
FOLLOW-UP OF PREVIOUS YEARS’ COMMENTS
17. |
An overview of the corrective action taken in response to the Court’s comments from previous years is provided in the Annex. |
This Report was adopted by Chamber IV, headed by Mr Baudilio TOMÉ MUGURUZA, Member of the Court of Auditors, in Luxembourg at its meeting of 12 September 2017.
For the Court of Auditors
Klaus-Heiner LEHNE
President
(1) OJ L 331, 15.12.2010, p. 84.
(2) More information on the Authority’s competences and activities is available on its website: www.esma.europa.eu
(3) Budget figures are based on payment appropriations.
(4) Staff includes officials, temporary and contract staff and seconded national experts.
Source: data provided by the Authority.
(5) The financial statements comprise the balance sheet, the statement of financial performance, the cash flow statement, the statement of changes in net assets and a summary of significant accounting policies and other explanatory notes.
(6) The reports on implementation of the budget comprise the reports which aggregate all budgetary operations and the explanatory notes.
(7) Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (OJ L 298, 26.10.2012, p. 1).
ANNEX
Follow-up of previous years’ comments
Year |
Court's comments |
Status of corrective action (Completed/Ongoing/Outstanding/N/A) |
2011 |
Weaknesses were noted as regards six legal commitments made in advance of budget commitments (483 845 euro). |
Completed |
2012 |
During its second year of activity, the Authority took an important step with the adoption and implementation of the baseline requirements for all internal control standards. However, full implementation of the standards has not been achieved. |
Completed |
2012 |
There is considerable room to improve the timeliness and documentation of procurement procedures. |
Completed |
2014 |
The amount of fees charged to supervised entities (credit-rating agencies and trade repositories) in 2014 (6 623 000 euro) appearing as revenue in the final statement of financial performance was based on estimated rather than actual costs of supervisory activities carried out. Fees levied on supervised entities should be as close as possible to the actual cost incurred in this area. An activity-based cost modelling exercise is currently being carried out by ESMA in order to achieve this. |
Completed |
2015 |
The level of committed appropriations carried over was high for Title II (administrative expenditure) at 2,2 million euro, i.e. 26 % (2014: 1,4 million euro, i.e. 19 %). These carry-overs mainly relate to IT projects for which services had not yet been delivered or invoices will only be received in 2016. |
N/A |
2015 |
The level of committed appropriations carried over was also high for Title III (operational expenditure) at 2,3 million euro, i.e. 33 % (2014: 4,1 million euro, i.e. 45 %). These carry-overs mainly relate to IT projects for which services had not yet been delivered or invoices will only be received in 2016 (1,7 million euro) as well as mission expenses that will only be reimbursed in 2016 (0,1 million euro). |
N/A |
THE AUTHORITY’S REPLY
Tha Authority has taken note of the Court’s report.