15.12.2012 |
EN |
Official Journal of the European Union |
C 388/46 |
REPORT
on the annual accounts of the Executive Agency for Health and Consumers for the financial year 2011, together with the Agency’s replies
2012/C 388/09
INTRODUCTION
1. |
The Executive Agency for Health and Consumers (hereinafter “the Agency”), located in Luxembourg, was set up by Commission Decision 2004/858/EC (1) and amended by Commission Decision 2008/544/EC (2). The Agency was established for a period beginning 1 January 2005 and ending in 2015 for the management of Union actions in the field of health and consumer policy (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 Agency’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
3. |
Pursuant to the provisions of Article 287(1), second subparagraph, of the Treaty on the Functioning of the European Union, the Court has audited the annual accounts (4) of the Agency, which comprise the “financial statements” (5) and the “reports on the implementation of the budget” (6) for the financial year ended 31 December 2011 and the legality and regularity of the transactions underlying those accounts. |
The Management’s responsibility
4. |
As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up the final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
The Auditor’s responsibility
5. |
The Court’s responsibility is to provide, on the basis of its audit, the European Parliament and the Council (10) with a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
6. |
The Court conducted its audit in accordance with the IFAC International Standards on Auditing and Codes of Ethics and the INTOSAI International Standards of Supreme Audit Institutions. These standards require that the Court plans and performs the audit to obtain reasonable assurance as to whether the annual accounts of the Agency are free of material misstatement and the transactions underlying them are legal and regular. |
7. |
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and the legality and regularity of the transactions underlying them. The procedures are selected based on the auditor’s judgment, including an assessment of the risks of material misstatement of the accounts and of material non-compliance of the underlying transactions with the requirement of the legal framework of the European Union, whether due to fraud or error. In assessing those risks, the auditor considers internal controls relevant to the preparation and fair presentation of the accounts and supervisory and control systems implemented to ensure legality and regularity of underlying transactions, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of accounting estimates made, as well as evaluating the overall presentation of the accounts. |
8. |
The Court considers that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
Opinion on the reliability of the accounts
9. |
In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2011 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation and the accounting rules adopted by the Commission’s accounting officer (12). |
Opinion on the legality and the regularity of the transactions underlying the accounts
10. |
In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2011 are legal and regular in all material respects. |
11. |
The comment which follows does not call the Court’s opinions into question. |
COMMENT ON THE BUDGETARY AND FINANCIAL MANAGEMENT
12. |
For Title III – Expenditure related to operational expenditure, an amount of 0,8 million euro, or 46 % of commitments made, was carried forward to 2012. The high level of carry-over is at odds with the budgetary principle of annuality. |
This Report was adopted by Chamber I, headed by Mr Ioannis SARMAS, Member of the Court of Auditors, in Luxembourg at its meeting of 25 July 2012.
For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
President
(1) OJ L 369, 15.12.2004, p. 73.
(2) OJ L 173, 3.7.2008, p. 27.
(3) The Annex summarises the Agency’s competences and activities. It is presented for information purposes.
(4) These accounts are accompanied by a report on the budgetary and financial management of the year which gives inter alia an account of the rate of implementation of the appropriations, with summary information on the transfers of appropriations among the various budget items.
(5) The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements, which includes a description of the main accounting policies and other explanatory information.
(6) The budget implementation reports comprise the budget outturn account and its annex.
(7) Article 25 of Commission Regulation (EC) No 1653/2004 (OJ L 297, 22.9.2004, p. 6).
(8) Article 29 of Regulation (EC) No 1653/2004.
(9) The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VI of Regulation (EC) No 1653/2004 as last amended by Commission Regulation (EC) No 651/2008 (OJ L 181, 10.7.2008, p. 15).
(10) Article 14 of Council Regulation (EC) No 58/2003 (OJ L 11, 16.1.2003, p. 1).
(11) The Final Annual Accounts were drawn up on 12.6.2012 and received by the Court on 29.6.2012. The Final Annual Accounts, consolidated with those of the Commission, are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://ec.europa.eu/eahc/about/about.html.
(12) The accounting rules adopted by the Commission’s accounting officer are derived from International Public Sector Accounting Standards (IPSAS) issued by the International Federation of Accountants or, in their absence, International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board.
ANNEX
Executive Agency for Health and Consumers (Luxembourg)
Competences and activities
Areas of Union competence deriving from the Treaty (Article 168 and 169 of the Treaty on the Functioning of the European Union) |
A high level of human health protection shall be ensured in the definition and implementation of all Union policies and activities. Union action, which shall complement national policies, shall be directed towards improving public health, preventing human illness and diseases, and obviating sources of danger to human health. Such action shall cover the fight against the major health scourges, by promoting research into their causes, their transmission and their prevention, as well as health information and education. The Union shall complement the Member States’ action in reducing drugs-related health damage, including information and prevention. In order to promote the interests of consumers and to ensure a high level of consumer protection, the Union shall contribute to protecting the health, safety and economic interests of consumers, as well as to promoting their right to information, education and to organise themselves in order to safeguard their interests. |
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Competences of the Agency |
Objectives
Tasks Under the Union programmes mentioned below, the Agency is responsible for implementing the following tasks as defined in the delegation act adopted on 9th September 2008 (1):
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Governance |
Steering Committee Comprises five members appointed by the European Commission. The members of the Steering Committee are appointed for two years. It adopts the Agency’s annual work programme after approval by the European Commission. In addition, it adopts the administrative budget of the Agency and its annual activity report. Director Appointed by the European Commission for four years. External audit The European Court of Auditors. Discharge Authority The European Parliament following a recommendation from the Council. |
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Resources made available to the Agency in 2011 (2010) |
Final Budget The Agency’s administrative budget for 2011 amounted to 7,04 million euro. Staff at 31 December 2011 On 31 December 2011, the Agency employed 49 statutory staff members, including 11 temporary staff and 38 contract staff. |
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Products and services 2011 (2010) |
1. Monitoring of the 2005, 2006, 2007, 2008 and 2009 grants provided under the Public Health programme (PHP) 2003-2008, successfully finalized negotiations for grants under the 2009 Calls for proposals, including projects, Conferences, Operating Grants, Joint Actions and managed Call for proposals 2011. Calls and grants and contracts awarded under the 2008 calls for proposals and for tenders of the 2007 – 2013 Consumer Programme (CP) and projects awarded under the 2007, 2008 and 2009 calls for tender under Food Safety Training Measures. 2.1. PHP work programme
2.2. CP work programme
2.3. BTSF work programme
3. Generation and dissemination of information on the Public Health programme, Consumer Programme, projects financed by BTSF programme and the Executive Agency’s activities in 2011. |
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Source: Information supplied by the Agency. |
(1) Commission Decision of 9 September 2008 - delegating powers to the Agency.
Source: Information supplied by the Agency.
THE AGENCY'S REPLIES
12. |
EAHC takes note of the Court's observations, on the level of commitment appropriations carried forward in Title III, operational expenditure of the Agency's operating budget. Over the years, efforts have been made by the Agency, in order to reduce the level of these appropriations carried forward, thereby improving the annuality of the budget implementation. For instance, appropriations carried forward in the budget's Title III (expressed in % of commitments made) decreased from 73 % in 2007 (first year of operation of the Agency) to 59 % in 2010 and 46 % in 2011. This positive trend will be maintained in the future. Actions planned in the Agency's Work Programme, particularly in Title III of its operating budget, will continue - as much as possible - to be implemented earlier in the year. |