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Document 52014TA1210(30)
Report on the annual accounts of the European Training Foundation for the financial year 2013, together with the Foundation’s reply
Report on the annual accounts of the European Training Foundation for the financial year 2013, together with the Foundation’s reply
Report on the annual accounts of the European Training Foundation for the financial year 2013, together with the Foundation’s reply
OJ C 442, 10.12.2014, p. 260–266
(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 442/260 |
REPORT
on the annual accounts of the European Training Foundation for the financial year 2013, together with the Foundation’s reply
(2014/C 442/30)
INTRODUCTION
1. |
The European Training Foundation (hereinafter ‘the Foundation’, aka ‘ETF’), which is located in Turin, was established by Council Regulation (EEC) No 1360/90 (1) (recast Regulation (EC) No 1339/2008 of the European Parliament and of the Council (2)). The Foundation’s task is to support the reform of vocational training in the European Union’s partner countries. To do this, it assists the Commission in the implementation of various programmes (e.g. IPA, FRAME, GEMM) (3). |
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 Foundation’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
|
10. |
The comments which follow do not call the Court’s opinions into question. |
OTHER COMMENTS
11. |
At the end of 2013, the Foundation had 7,5 million euro in accounts at a single bank with a low credit rating (F3, BBB). |
FOLLOW-UP OF PREVIOUS YEAR’S COMMENTS
12. |
An overview of the corrective actions taken in response to the Court's comments from the previous year 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 8 July 2014.
For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
President
(1) OJ L 131, 23.5.1990, p. 1.
(2) OJ L 354, 31.12.2008, p. 82.
(3) Annex II summarises the Foundation’s competences and activities. It is presented for information proposes.
(4) 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.
(5) These comprise the budgetary outturn account and the annex to the budgetary outturn account.
(6) Articles 39 and 50 of Commission Delegated Regulation (EU) No 1271/2013 (OJ L 328, 7.12.2013, p. 42).
(7) 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.
(8) Article 107 of Regulation (EU) No 1271/2013.
ANNEX I
Follow-up of previous year’s comments
Year |
Court’s comment |
Status of corrective action (Completed/Ongoing/Outstanding/N/A) |
2012 |
In 2012 the overall level of committed appropriations was 99,9 %, indicating that commitments were made in a timely manner. The level of committed appropriations carried over to 2013 however was high for title II (administrative expenditure) at 0,6 million euro (36,8 %). The main reasons were the late receipt of invoices for building-related services delivered in 2012 (0,3 million euro) and a number of IT hardware and software purchases ordered as planned during the last months of 2012 (0,3 million euro) but not delivered until 2013. |
N/A |
ANNEX II
European Training Foundation (Turin)
Competences and activities
Areas of Union competence deriving from the Treaty (Article 166(3) of the Treaty on the Functioning of the European Union) |
‘The Union and the Member States shall foster cooperation with third countries and the competent international organisations in the sphere of vocational training.’ |
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Competences of the Foundation (Council Regulation (EEC) No 1360/90) |
Objective
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, has the following functions:
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Governance |
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. Director Appointed by the Governing Board on a proposal from the Commission. 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 Foundation in 2013 (2012) |
Budget 22,0(20,1) million euro for commitments and 22,0(20,1) million euro for payments, of which 19,9 million euro was funded by a Commission subsidy. Staff at 31 December 2013 96 (96) temporary posts in the establishment plan, of which 92 (1) (93) posts occupied. 40 (37) other staff (local staff, contract staff, seconded national experts) Total staff: 132 (130), assigned to the following duties: operational tasks: 76,5(73) administrative tasks: 28 (28) + two replacement pool in the ETF according to need corporate coordination and communication tasks: 25,5(29) |
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Products and services supplied during the financial year 2013 (2012) |
Activities The Foundation contributes, in the context of EU external relations policies, to improving human capital development (HCD) in 30 partner countries designated by its establishing Regulation and the Governing Board. Its main activities involve supporting EU policies and projects, providing policy analyses, disseminating and exchanging information and experience and supporting partner-country capacity building. The Foundation’s added value comes from its neutral, non-commercial and unique established knowledge base consisting of expertise in human capital development and its links to employers. This includes expertise in adapting the approaches to human capital development in the EU and its Member States to the context of the partner countries. In 2013, the Torino Process, implemented in 27 ETF partner countries as a participatory, evidence-based analysis of vocational education and training (VET) policies and systems, was validated in a corporate conference organised in May with a title ‘Torino Process: Moving Skills Forward’. The Foundation worked on its main functions, as defined in the Council Regulation, as follows:
Outputs measure the accomplishment of the results of a project, and put the budget in relation to the Foundation’s functions and results. In addition to these functions carried out in the context of its work programme, the Foundation also responded to direct requests from the European Commission throughout the year.
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(1) Including 1 job offer accepted, starting 1.3.2014.
Source: Annex supplied by the Foundation.
THE FOUNDATION’S REPLY
11. |
ETF agrees with the Court's finding and confirms its intention to participate in 2014 in a joint procurement procedure for banking services launched by the Commission. In the event of this procurement procedure failing, ETF will launch its own procurement in order to have a contract with a bank with a higher credit rating. The high bank balance at 31 December 2013 is due to the first instalment of the 2014 subvention being paid in advance and funds received for the new GEMM and FRAME projects. |