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Document 52007TA1219(20)
Report on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2006 together with the Foundation's replies
Report on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2006 together with the Foundation's replies
Report on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2006 together with the Foundation's replies
OJ C 309, 19.12.2007, p. 116–121
(BG, ES, CS, DA, DE, ET, EL, EN, FR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
19.12.2007 |
EN |
Official Journal of the European Union |
C 309/116 |
REPORT
on the annual accounts of the European Foundation for the Improvement of Living and Working Conditions for the financial year 2006 together with the Foundation's replies
(2007/C 309/20)
CONTENTS
1-2 |
INTRODUCTION |
3-6 |
STATEMENT OF ASSURANCE |
7-9 |
OBSERVATIONS |
Tables 1 to 4
The Foundation's replies
INTRODUCTION
1. |
The European Foundation for the Improvement of Living and Working Conditions (hereinafter referred to as ‘the Foundation’) 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 European Union by increasing and disseminating knowledge which is relevant to this subject. |
2. |
Table 1 summarises the Foundation's competences and activities. Key data summarised from the financial statements drawn up by the Foundation for the financial year 2006 is presented in Tables 2, 3 and 4 for information purposes. |
STATEMENT OF ASSURANCE
3. |
This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2). It was drawn up following an examination of the Foundation's accounts, as required by Article 248 of the Treaty establishing the European Community. |
4. |
The Foundation's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 16 of Council Regulation (EEC) No 1365/75, and sent to the Court, which is required to provide a statement on their reliability and on the legality and regularity of the underlying transactions. |
5. |
The Court conducted its audit in accordance with the IFAC and INTOSAI International Auditing Standards and Codes of Ethics, insofar as these are applicable in the European Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and that the underlying transactions are legal and regular. |
6. |
The Court has thus obtained a reasonable basis for the Statement set out below. Reliability of the accountsThe Foundation's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Foundation's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
OBSERVATIONS
7. |
The implementation rate for 2006 commitment appropriations was more than 97 %. Carryover rates were 43 % for administrative expenditure (Title II) and 45 % for operating activities (Title III). Thus, the budgetary principle of annuality was not strictly observed. |
8. |
At the year-end 2006, the Foundation signed two contracts for services to be rendered in 2007 for a total value of 305 987 euro. These contracts were covered by 2006 commitment appropriations from Title II — Administrative expenditure. Despite the fact that the above contracts related to services to be rendered exclusively in 2007, they were not charged to the budget of the related financial year. |
9. |
For recruitment procedures the selection criteria were neither decided by selection boards at the outset nor defined in conformity with the vacancy notice. This did not ensure transparent and non-discriminatory procedures. |
This report was adopted by the Court of Auditors in Luxembourg at its meeting of 27 September 2007.
For the Court of Auditors
Hubert WEBER
President
(1) OJ L 139, 30.5.1975, p. 1.
(2) OJ L 248, 16.9.2002, p. 1.
(3) These accounts were drawn up on 15 May 2007 and received by the Court on 3 July 2007.
Table 1
European Foundation for the Improvement of Living and Working Conditions (Dublin)
Areas of Community competence deriving from the Treaty |
Competences of the Foundation as defined in Council Regulation (EEC) No 1365/75 of 26 May 1975; amended by Council Regulation (EC) No 1111/2005 of 24 June 2005 |
Governance |
Resources available to the Foundation (2005 data) |
Activities and services provided |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
‘The Community and the Member States, having in mind fundamental social rights, … shall have as their objectives… improved living and working conditions, … the Community shall support and complement the activities of the Member States in the following fields; … b) working conditions; c) social security and the social protection of workers; d) protection of workers where their employment contract is terminated; e) the information and consultation of workers; f) representation and the collective defence of the interests of workers and employers, including co-determination; g) conditions of employment for third-country nationals; h) the integration of persons excluded from the labour market; i) equality between men and women…’ (Articles 136 and 137 of the Treaty) |
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:
|
Tasks
|
|
Final Budget for 2006 19,8 million euro (19,3) Including a Community subsidy of: 98,9 % (98,8%) Staff in December 2006 94 (94) posts provided for in the establishment plan; Posts occupied: 89 (82) Other staff: Seconded National Experts and employment-agency staff: 1 (12) Contract staff: 9 (3) Total staff employed: 99 (94) assigned to the following tasks:
|
Monitoring and surveys
Employment and restructuring
Work-life balance and Working Conditions
Industrial Relations (IR) and Partnership
Social Cohesion and Quality of Life
Communication and sharing ideas and experience
|
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Source: Information supplied by the Foundation. |
Source: Data supplied by the Foundation — This table summarises the data provided by the Foundation in its annual accounts: these accounts are drawn up on an accrual basis.
Table 2
European Foundation for the Improvement of Living and Working Conditions (Dublin) — Implementation of the budget for the financial year 2006
(1000 euro) |
|||||||||||
Revenue |
Expenditure |
||||||||||
Source of revenue |
Revenue entered in the final budget for the financial year |
Revenue collected |
Allocation of expenditure |
Appropriations for the financial year |
Appropriations carried over from previous financial year |
||||||
entered |
committed |
paid |
carried over |
cancelled |
available |
paid |
cancelled |
||||
Community subsidy |
19 000 |
19 000 |
Title I Staff (NDA) |
9 931 |
9 894 |
9 774 |
120 |
37 |
157 |
152 |
5 |
Other subsidies |
540 |
241 |
Title II Administration (NDA) |
1 530 |
1 463 |
862 |
634 |
34 |
507 |
482 |
24 |
Other revenue |
220 |
265 |
Title III Operating activities (NDA) |
8 299 |
7 860 |
4 612 |
3 558 |
129 |
3 954 |
3 713 |
241 |
Total |
19 760 |
19 506 |
Total |
19 760 |
19 217 |
15 248 |
4 312 |
200 |
4 618 |
4 347 |
270 |
Source: Data supplied by the Foundation — This table summarises the data supplied by the Foundation in its annual accounts. Revenue collected and payments are estimated on a cash basis. |
Table 3
European Foundation for the Improvement of Living and Working Conditions (Dublin) — Economic outturn account for the financial years 2006 and 2005
(1000 euro) |
||
|
2006 |
2005 |
Operating revenue |
||
Community subsidies |
19 000 |
18 600 |
Other subsidies |
517 |
— |
Other revenue |
248 |
366 |
Total (a) |
19 765 |
18 966 |
Operating expenses |
||
Staff expenses |
8 908 |
8 035 |
Fixed asset related expenses (1) |
724 |
576 |
Other administrative expenses |
2 106 |
2 117 |
Operational expenses |
7 409 |
8 581 |
Total (b) |
19 147 |
19 309 |
Surplus/(deficit) from operating activities (c = a – b) |
618 |
– 343 |
Financial operations revenue (e) |
— |
— |
Financial operations expenses (f) |
10 |
9 |
Surplus/(deficit) from non-operating activities (g = e – f) |
–10 |
–9 |
Economic result for the year (h = c + g) |
608 |
– 352 |
Table 4
European Foundation for the Improvement of Living and Working Conditions (Dublin) — Balance sheet at 31 December 2006 and 2005
(1000 euro) |
||
|
2006 |
2005 |
Non-current assets |
||
Intangible fixed assets |
84 |
22 |
Tangible fixed assets |
2 388 |
2 778 |
Current assets |
||
Short-term pre-financing |
344 |
539 |
Short-term receivables |
690 |
505 |
Cash and cash equivalents |
3 111 |
3 244 |
Total assets |
6 617 |
7 088 |
Current liabilities |
||
Provisions for risks and charges |
274 |
189 |
Accounts payable |
1 643 |
2 806 |
Total liabilities |
1 917 |
2 995 |
Net assets |
||
Accumulated surplus/deficit |
4 093 |
4 445 |
Economic result for the year |
608 |
– 352 |
Total net assets |
4 701 |
4 093 |
Total liabilities and net assets |
6 618 |
7 088 |
(1) Increase due to corrections following a physical inventory done in 2006.
THE FOUNDATION'S REPLIES
7. |
Measures will be taken to reduce significantly the carry-over rate for Title II in 2007. Taking into account the average duration of our study contracts (18 months) and our payments schedule, unavoidably about 35 % of Title 3 credits had to be carried over. |
8. |
Due to the fact that the mentioned contracts had to start on 1 January 2007 and that the budget 2007 was not yet established at the time, the mentioned services had to be committed at the latest in December 2006. However, from 2007 onwards they will be committed against the appropriations of the following year. |
9. |
Since March 2007, all vacancy notices include a clear indication of whether success in tests is a precondition for success in the competition. |