19.12.2007   

EN

Official Journal of the European Union

C 309/86

REPORT

on the annual accounts of the European Centre for the Development of Vocational Training for the financial year 2006 together with the Centre's replies

(2007/C 309/15)

CONTENTS

1-2

 INTRODUCTION

3-6

 STATEMENT OF ASSURANCE

7-13

 OBSERVATIONS

Tables 1 to 4

The Centre's replies

INTRODUCTION

1.

The European Centre for the Development of Vocational Training (hereinafter ‘the Centre’) was established by Council Regulation (EEC) No 337/75 (1). Its core mandate is to serve the development of vocational training at Community level. In order to achieve this objective, it has the task of compiling and disseminating documentation on vocational training systems.

2.

Table 1. summarises the Centre's competences and activities. Key data summarised from the financial statements drawn up by the Centre for the financial year 2006 is presented in Tables 2, 3 and 4 for information purposes.

STATEMENT OF ASSURANCE

3.

This statement 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 Centre's accounts, as required by Article 248 of the Treaty establishing the European Community.

4.

The Centre's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 12 (a) of Regulation (EEC) No 337/75, and sent to the Court, which is required to provide a statement as to their reliability and 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 following Statement set out below:

Reliability of the accountsThe Centre's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsExcept for the situation described in paragraph 13, the transactions underlying the Centre's annual accounts, taken as a whole, are legal and regular.

OBSERVATIONS

7.

For the 2006 administrative expenditure budget (Title II), more than 43 % of the commitments made were carried over to the following financial year. For operating activities (differentiated appropriations under Title III), more than 20 % of the payment appropriations were cancelled. The Court observed a high number of budget transfers, a large amount transferred from Title I (staff expenditure) to Title III (operating activities) as well as a concentration of transfers at the year end. The budgetary principle of specification was not strictly observed.

8.

The Centre has neither defined nor documented an inventory procedure for identifying, registering and capitalising assets in a correct and exhaustive manner.

9.

Despite the progress made in 2006, the documentation of the main procedures including the internal control processes was not complete.

10.

The Centre reimbursed in their entirety all school fees paid for the children of some agents. There was no legal basis for these refunds.

11.

In two cases, the Centre did not check correctly the necessary professional experience required by the vacancy notice during the pre-selection phase and thus had to reject the successful candidates after the formal job proposal. There was a lack of effective control on whether the documents submitted by candidates in support of their professional experience offer genuine proof in order to avoid unnecessary costs and legal risks.

12.

In one procurement procedure (4), the complexity of the system of evaluation of the bids and the absence of clear and complete information on the award criteria and their respective weights led to a situation of non-transparency for the bidders. For a framework contract (5), the Centre did not publish in either the contract notice or the tender documents sufficient information about the estimated global market value. An IT maintenance service contract (6) signed in December 2003 by an unauthorised person remained in force until the end of 2006 despite its imprecisions about the quantity and price of the services to be provided.

13.

In its 2005 Statement of Assurance (7) the Court emphasised the absence of a legal basis for a decision of the Centre's Appeal Committee by granting to an agent a compensation for non-pecuniary harm not provided for in the Staff Regulations. Despite the Court's observation, that compensation (8) was paid in 2006.

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 39, 13.2.1975, p. 1.

(2)  OJ L 248, 16.9.2002, p. 1.

(3)  These accounts were drawn up on 17 March 2007 and received by the Court 14 June 2007.

(4)  Approximate annual value: 125 000 euro.

(5)  Approximate annual value: 80 000 euro.

(6)  Approximate annual value: 15 000 euro.

(7)  OJ C 312, 19.12.2006, p. 61.

(8)  Amount: 3 000 euro.

 

Table 1

European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki

Area of Community competence deriving from the Treaty

Competence of the Centre as specified in Articles 2 and 3 of Council Regulation (EEC) No 337/75 of 10 February 1975 as last amended by Council Regulation (EC) No 2051/2004 of 25 October 2004

Governance

Council Regulation (EEC) No 337/75 of 10 February 1975 as last amended by Council Regulation (EC) No 2051/2004 of 25 October 2004

Resources made available to the Centre in 2006

(2005)

Products and services supplied in 2006

(2005)

The Community implements a vocational training policy to support and supplement the action of the Member States as regards the content and organisation of vocational training.

Action aims to:

—

facilitate adaptation to industrial changes, in particular through vocational training and retraining;

—

improve initial and continuing vocational training in order to facilitate vocational integration and reintegration into the labour market;

—

facilitate access to vocational training and encourage mobility of instructors and trainees and particularly young people;

—

stimulate cooperation on training between educational or training establishments and firms;

—

develop exchanges of information and experience on issues common to the training systems of the Member States.

(From Article 150 of the Treaty)

The Centre's mandate

In its capacity as a European Union reference centre for vocational training and education, Cedefop provides political decision-makers, researchers and professionals with information aimed at developing a clearer understanding of current trends that will thus enable them to reach more soundly based decisions with a view to future action.

Cedefop assists the European Commission in promoting and developing vocational training and education at Community level.

Tasks

—

To compile selected documentation and produce data analysis;

—

To contribute to research development and coordination;

—

To utilise and disseminate relevant information;

—

To encourage and support a concerted approach to matters relating to the development of vocational training;

—

To provide a forum for a broad and diverse public.

Governing Board (GB), consisting of:

For each Member State:

—

one member representing the Government;

—

one member representing the employers' organisations;

—

one member representing the employees' organisations and three members representing the European Commission.

Bureau, made up of:

The chairman and the three vice-chairmen of the GB (one from each of the groups), one coordinator per group and one representative of the Commission.

Director

Appointed by the Commission from a list of candidates submitted by the Governing Board; is responsible for the management of the Centre and implements the decisions of the Governing Board and the Bureau.

Internal control

Commission's Internal Audit Service.

Internal Auditor of the Centre (as of 16 December 2006).

External audit

European Court of Auditors.

Discharge

Parliament, on the Council's recommendation.

Budget

17,6 (17,1) million euro

Community contribution: 95 % (96 %)

Staff numbers at 31 December 2006

Number of posts in establishment plan: 95 (91)

Posts occupied: 81 (85)

Other staff: (contract staff and seconded national experts): 42 (38).

Total staff: 123 (123)

assigned to the following duties:

operational: 84 (85)

administrative: 34 (33)

mixed: 5 (5)

Cedefop's report to the ministerial conference in Helsinki, assessing progress in achieving the Copenhagen-Maastricht objectives for the enhancement of European cooperation in vocational education and training (VET). Cedefop prepared the background document for the Helsinki communiqué.

The 4th research report, focussing on modernisation of VET, was prepared. It comprises research findings on reform, innovation of VET, social cohesion, and skill demand.

An Agora conference and publication on older workers and lifelong learning provided a comprehensive view on an increasingly important issue.

In regard to the identification of skill needs Cedefop concentrated 2006 on methods for the forecasting of skill needs in preparation of a medium term skill needs forecast for all Member States. The European Journal of vocational education (3 issues were published, as in 2005) improved in scientific quality and contributes to the quality of research in VET.

Contribution to clusters and working groups of the EC under the Education and Training 2010 program on learning outcomes and validation of non-formal learning, quality assurance, lifelong guidance, teachers and trainers, the European qualifications framework and the European Credit transfer system. Like Europass, these are examples of European approaches and instruments to create a European area of VET. Europass (Cedefop provides major input and cooperates with EC) is a successful initiative which is used and accepted by a rapidly increasing number of European citizens. By the end of 2006 over a million CV templates had been downloaded and almost one million CVs have been generated on line.

The Leonardo Da Vinci study visits programme, the cooperation with social partners and sectoral approaches to VET are other examples of Cedefop's contribution to the development of VET in the EU.

Besides continuation of close co-operation with the European Training Foundation in the familiarisation of acceding/candidate countries and beyond, Cedefop has entered into a formal co-operation with the Foundation on living and working conditions to strengthen synergies.

A revamped website, increased work with the press and continued activities of documentation (ISO certified) and publication — online and in hard copy — have helped to raise the visibility of Cedefop and awareness of VET issues.

Some data: 24 conferences and seminars, 24 work shops, and 21 presentations/visits to Cedefop were organised in 2006; 43 (60) publications were published, the number of registered users of the electronic training village (ETV) increased to 64 828 (60 440) and work proceeded on 36 projects (29 projects). Study visits: 844 (762) participants.

Source: Information supplied by the Centre.

Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts: these accounts are drawn up on an accrual basis.

Table 2

European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki — 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 the previous financial year

entered

committed

paid

carried over

cancelled

available

committed

paid

carried over

cancelled

Own revenue

 

 

Title I

Staff (NDA)

9 443

8 483

8 145

338

960

213

213

173

0

40

Community subsidy

16 700

14 589

Title II

Administration (NDA)

1 419

1 281

738

559

123

334

334

297

0

38

Other revenue

140

75

Title III

Operating activities (DA)

 

 

 

 

 

 

 

 

 

 

— CA

5 978

5 722

0

0

256

0

0

0

0

0

— PA

5 978

0

4 527

0

1 451

0

0

0

0

0

Assigned revenue

723

649

Assigned revenue

723

387

65

584

74

511

337

179

333

0

Total

17 563

15 313

Total CA

17 563

15 872

0

1 480

1 413

1 058

884

0

333

77

Total PA

17 563

0

13 475

1 480

2 607

1 058

0

649

333

77

NDA

:

non-differentiated appropriations (commitment appropriations equal payment appropriations).

DA

:

differentiated appropriations (commitment appropriations may differ from payment appropriations).

CA

:

commitment appropriations in the context of differentiated appropriations.

PA

:

payment appropriations in the context of differentiated appropriations.

Source: Data supplied by the Centre. This table summarises data provided by the Centre in its Annual Accounts. Revenue collected and payments are estimated on a cash basis.


Table 3

European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki — Economic outturn account for the financial years 2006 and 2005

(1000 euro)

 

2006

2005

Operating revenue

Community subsidies

14 146

14 620

Other subsidies

457

399

Other revenues

279

291

Total (a)

14 882

15 309

Operating expenditure

Staff expenditure

8 166

9 091

Fixed asset related expenditure

480

502

Other administrative expenditure

1 181

1 460

Operational expenditure

4 340

5 021

Total (b)

14 167

16 074

Surplus/(deficit) from operating activities (c = a – b)

715

– 765

Financial operations revenue (e)

0

1

Financial operations expenditure (f)

4

4

Surplus/(deficit) from non-operating activities (g = e – f)

–4

–3

Economic result for the year (h = c + g)

711

– 768


Table 4

European Centre for the Development of Vocational Training (Cedefop) — Thessaloniki — Balance sheet at 31 December 2006 and 2005

(1000 euro)

 

2006

2005

Non-current assets

Intangible fixed assets

92

136

Tangible fixed assets

4 887

5 218

Current assets

Short-term pre-financing

552

80

Short-term receivables

443

294

Cash and cash equivalents

3 919

3 344

Total assets

9 893

9 072

Current liabilities

Provisions for risks and charges

317

204

Accounts payable

3 777

3 780

Total liabilities

4 094

3 984

Net assets

Accumulated surplus/deficit

5 088

5 856

Economic result of the year

711

– 768

Total net assets

5 799

5 088

Total liabilities and net assets

9 893

9 072

THE CENTRE'S REPLIES

7.

Further attempts to improve the planning and monitoring of the Centre's budget implementation and budgeting have been undertaken and will be reinforced. This will allow for fewer transfers and increase the specificity of the budget.

8.

Although the situation as described by the Court did not affect the reliability of the Centre's financial statements, the Centre has started to further develop and document a reliable inventory management system with clearly defined responsibilities. This will be implemented by the end of 2007 and specific training is foreseen in December 2007 for all agents involved.

9.

In 2006, the Centre made major progress in the most sensitive areas. However, despite its considerable efforts, the Centre could not complete the documentation of its procedures, partly because the recruitment of an internal auditor could only be concluded in December 2006. The Centre continues with its efforts to have complete documentation by the first half of 2008.

10.

The reimbursement, even though based on a 1997 decision which had not been prolonged, has been motivated by the high fees of English speaking schools and the absence of a European school in Thessaloniki. The measure resulted in extra costs of 2 900 euro per child and year (for the school year 2006/2007 two employees with altogether four children benefited from this measure.) The Centre has realised the mistake and published in July 2007 an administrative note to all staff confirming the relevant provisions of the Staff Regulation.

Moreover, the Centre promotes the establishment of a European schooling facility in Thessaloniki to be organised by the competent Greek authorities.

11.

On 29 January 2007 an internal guide for selection boards was published. It provides, amongst others, clear guidelines for the calculation of professional experience. Moreover checks at the pre-selection stage and before issuing the formal job offers have been reinforced.

12.

 

(1)

Since July 2007 and in reaction to the Courts finding the Centre has made an effort to assure that weightings of sub-criteria are published in the tender documents.

(2)

The procedure for the framework contract was launched in October 2005 (and the contract was signed in March 2006). Since January 2007 the Centre provides for each acquisition systematically information on its market volume in the tender documents.

(3)

The current directorate had not been aware of the issue. In consequence, the IT contract mentioned has not been renewed in 2007. A new open procurement had been launched and concluded in February 2007.

13.

The decision of which the legality is contested by the Court, is conform to the rules adopted by the Governing Board of the Centre. The Centre has asked for an opinion of the Legal Service of the Commission in response to the 2005 statement of the Court. The opinion of the Legal Service of the Commission fully confirmed the legality of the decision of the Appeals Committee and has been transmitted to the Court. Following the renewed observation of the Court, the Centre will consult the College of the Heads of Administration.