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Document 52015TA1217(04)
Report on the annual accounts of the ENIAC Joint Undertaking for the period 1 January to 26 June 2014, together with the Joint Undertaking’s reply
Report on the annual accounts of the ENIAC Joint Undertaking for the period 1 January to 26 June 2014, together with the Joint Undertaking’s reply
Report on the annual accounts of the ENIAC Joint Undertaking for the period 1 January to 26 June 2014, together with the Joint Undertaking’s reply
OJ C 422, 17.12.2015, p. 25–32
(BG, ES, CS, DA, DE, ET, EL, EN, FR, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
17.12.2015 |
EN |
Official Journal of the European Union |
C 422/25 |
REPORT
on the annual accounts of the ENIAC Joint Undertaking for the period 1 January to 26 June 2014, together with the Joint Undertaking’s reply
(2015/C 422/04)
CONTENTS
|
Paragraph |
Page |
Introduction |
1-4 |
26 |
Information in support of the statement of assurance |
5 |
26 |
Statement of assurance |
6-16 |
26 |
Opinion on the reliability of the accounts |
11 |
27 |
Basis for a qualified opinion on the legality and regularity of the underlying transactions |
12-14 |
28 |
Qualified opinion on the legality and regularity of the transactions underlying the accounts |
15 |
28 |
Comments on budgetary and financial management |
17-18 |
28 |
Implementation of the budget |
17 |
28 |
Calls for proposals |
18 |
28 |
Other matters |
19 |
29 |
Legal framework |
19 |
29 |
INTRODUCTION
1. |
The European Joint Undertaking for the implementation of the Joint Technology Initiative on Nanoelectronics (ENIAC Joint Undertaking), located in Brussels, was set up in December 2007 (1) for a period of 10 years and has worked autonomously since 2010. On 27 June 2014 ENIAC was merged with ARTEMIS Joint Undertaking (2) to create the Electronic Components and Systems for European Leadership Joint Undertaking (ECSEL JU) (3). ECSEL JU started its activities on 27 June 2014 and will run for 10 years. As a consequence of the merger, this report covers the financial period of the ENIAC Joint Undertaking from 1 January to 26 June 2014. |
2. |
The main objective of the Joint Undertaking was to define and implement a ‘research agenda’ for the development of key competences for nanoelectronics across different application areas in order to strengthen European competitiveness and sustainability and allow the emergence of new markets and societal applications (4). |
3. |
The founding members of the Joint Undertaking were the European Union, represented by the Commission, certain EU Member States (Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, the Netherlands, Poland, Portugal, Sweden and the United Kingdom) and the Association for European Nanoelectronics Activities (AENEAS). Other Member States and associated countries, as well as any other country or legal entity capable of making a substantial financial contribution to the achievement of the Joint Undertaking’s objectives, could become member of the ENIAC Joint Undertaking. |
4. |
The maximum EU contribution to the ENIAC Joint Undertaking, to cover running costs and research activities, was 450 million euro to be paid from the budget of the Seventh Framework Programme (5). AENEAS was to make a maximum contribution of 30 million euro to the running costs of the Joint Undertaking. ENIAC Member States were to make in-kind contributions to the running costs (by facilitating the implementation of projects), and to provide financial contributions of at least 1,8 times the EU contribution. Research organisations participating in projects were also to provide in-kind contributions, which had to be at least equal to the combined contributions of the Commission and the Member States. |
INFORMATION IN SUPPORT OF THE STATEMENT OF ASSURANCE
5. |
The audit approach taken by the Court comprises analytical audit procedures, testing of transactions at the level of the Joint Undertaking and an assessment of key controls of the 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
Basis for a qualified opinion on the legality and regularity of the underlying transactions
Qualified opinion on the legality and regularity of the transactions underlying the accounts
|
16. |
The comments which follow do not call the Court’s opinions into question. |
COMMENTS ON BUDGETARY AND FINANCIAL MANAGEMENT
Implementation of the budget
17. |
The initial 2014 budget only included commitment appropriations for running costs amounting to 2,3 million euro. The budget does not include commitment appropriations for operational activities as a consequence of the plans to merge ENIAC and ARTEMIS during 2014 to create ECSEL which will be in charge of the 2014 call. The utilisation rate for administrative commitment appropriations was 43 %. The reason for the low budget implementation is mainly that the merger took place in June while the budget was adopted for the whole year. |
Calls for proposals
18. |
At the time of the merger, the total amount foreseen for the calls for proposals had been committed. |
OTHER MATTERS
Legal framework
19. |
The new Financial Regulation applicable to the general budget of the Union (14) was adopted on 25 October 2012 and took effect from 1 January 2013 (15). However, the model financial regulation for public-private partnership bodies referred to in Article 209 of the new Financial Regulation (16) did not enter into force until 8 February 2014. Because of the merger into ECSEL Joint Undertaking, the financial rules of the Joint Undertaking have not been amended. |
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 20 October 2015.
For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
President
(1) Council Regulation (EC) No 72/2008 of 20 December 2007 setting up the ENIAC Joint Undertaking (OJ L 30, 4.2.2008, p. 21).
(2) ARTEMIS Joint Undertaking was set up by Council Regulation (EC) No 74/2008 of 20 December 2007 (OJ L 30, 4.2.2008, p. 52) to define and implement a ‘research agenda’ for the development of key technologies for embedded computing systems.
(3) The ECSEL Joint Undertaking was set up by Council Regulation (EU) No 561/2014 of 6 May 2014 (OJ L 169, 7.6.2014, p. 152).
(4) The Annex summarises the Joint Undertaking’s competences, activities and available resources. It is presented for information purposes.
(5) The Seventh Framework Programme, adopted by Decision No 1982/2006/EC of the European Parliament and of the Council (OJ L 412, 30.12.2006, p. 1), brings all the research-related EU initiatives together under one roof and plays a crucial role in achieving the goals of growth, competitiveness and employment. It is also a key pillar for the European Research Area.
(6) These include the balance sheet and the statement of financial performance, the cash-flow table, the statement of changes in net assets, a summary of the significant accounting policies and other explanatory notes.
(7) These comprise the reports on implementation of the budget, a summary of budgetary principles and other explanatory notes.
(9) 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.
(10) Article 47 of Delegated Regulation (EU) No 110/2014.
(11) The ex-post audit strategy states that the Joint Undertaking ‘shall seek sufficient information with respect to the ex-post audit procedure applied in the ENIAC Member States to perform an assessment of the national procedures with respect to their suitability to provide sufficient assurance with respect to the regularity and the legality of the transactions related to the ENIAC Joint Undertaking projects’.
(12) Article 12 of Regulation (EC) No 72/2008 states that it ‘shall ensure that the financial interests of its members are adequately protected by carrying out or commissioning appropriate internal and external controls’ and that it ‘shall carry out on-the-spot checks and financial audits among the recipients of the ENIAC Joint Undertaking’s public funding. These checks and audits shall be performed either directly by the ENIAC Joint Undertaking or by ENIAC Member States on its behalf.’
(13) According to the ex-post audit strategy adopted by the ENIAC Governing Board, the Joint Undertaking must assess at least once a year whether the information received from the ENIAC Member States provides sufficient assurance as to the regularity and legality of the executed transactions.
(14) Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).
(15) Article 214 of Regulation (EU, Euratom) No 966/2012 with the exemptions referred to.
(16) Commission Delegated Regulation (EU) No 110/2014.
ANNEX
ENIAC Joint Undertaking (Brussels)
Competences and activities
Areas of Union competence deriving from the Treaty (Articles 187 and 188 of the Treaty on the Functioning of the European Union) |
Decision No 1982/2006/EC of the European Parliament and of the Council of 18 December 2006 concerning the Seventh Framework Programme provides for a Community contribution to the establishment of long-term public-private partnerships in the form of Joint Technology Initiatives which could be implemented through Joint Undertakings within the meaning of Article 187 of the Treaty. Council Regulation (EC) No 72/2008 of 20 December 2007 setting up the ENIAC Joint Undertaking. |
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Competences of the Joint Undertaking (Council Regulation (EC) No 72/2008) |
Objectives The ENIAC Joint Undertaking contributes to the implementation of the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007-13) and the theme ‘Information and Communication Technologies’ of the specific ‘Cooperation’ programme implementing the Seventh Framework Programme (2007-13) of the European Community for research, technological development and demonstration activities. It shall, in particular:
|
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Governance |
The JU’s governing body is the Governing Board. The executive team is led by an Executive Director. Industry is represented in the Industry and Research Committee and by the association AENEAS as founding member. The Commission, representing the Union, the Member States and associated countries make up the Public Authorities Board. |
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Resources available to the Joint Undertaking in 2014 |
Budget 2 3 56 000,00 euro for commitments 7 6 5 00 250,00 euro for payments Staff at 26 June 2014 15 posts provided for in the establishment plan (7 temporary staff and 8 contract staff), of which 15 posts were occupied; these were allocated to: operational activities (6); administrative tasks (5); mixed tasks (4). |
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Activities and services provided in 2014 |
See the ENIAC Joint Undertaking annual activity report for 2014 at www.ecsel.eu |
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Source: Information supplied by the ENIAC Joint Undertaking. |
THE JOINT UNDERTAKING’S REPLY
13. |
The ENIAC JU made arrangements with the national funding authorities (NFAs) within the boundaries established by Council Regulation (EC) 72/2008 (1) that entrusts the task to define the total costs to the NFAs, based on their grant agreements ‘in accordance with their national rules, in particular as regards eligibility criteria and other necessary financial and legal requirements.’ This Regulation does not establish a competence for the JU to define rules for the NFAs, and does not empower it to perform on-the-spot checks and audits among the NFAs. These shortcomings have been recognised and alleviated in Council Regulation (EU) No 561/2014 establishing ECSEL Joint Undertaking that empowers the Joint Undertaking to award the EU grants in strict compliance with the Horizon 2020 procedures. |
14. |
The ECSEL JU confirms that its extensive assessments of the national assurance systems concluded that they can provide a reasonable protection of the financial interests of the JU members; however, as indicated by the ECA, the national methodologies do not allow the calculation of a weighted error rate nor a residual error rate for the projects launched under ARTEMIS and ENIAC Joint Undertakings. This technical difficulty does not result, however, in a negative opinion of the ECA, but understandably prevents it from confirming the legality and regularity of the transactions without formulating a reservation. |
(1) Council regulation (EC) No 72/2008 from 20th December 2007 establishing the ENIAC Joint Undertaking