19.12.2007

Official Journal of the European Union

C 309/1

REPORT

on the annual accounts of the European Network and Information Security Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/01)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-9	OBSERVATIONS

Tables 1 to 4

The Agency's replies

INTRODUCTION

The European Network and Information Security Agency (hereinafter ‘the Agency’) was created by Regulation (EC) No 460/2004 of the European Parliament and of the Council of 10 March 2004 (1). The Agency's main task is to enhance the capability of the Community to prevent and respond to network and information security problems by building on national and Community efforts.

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

STATEMENT OF ASSURANCE

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 of 25 June 2002 (2); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 17 of Regulation (EC) No 460/2004, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

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.

The Court has thus obtained a reasonable basis for the Statement set out below:

Reliability of the accountsThe Agency'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 Agency'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

The implementation of the Agency's budget for the financial year 2006 shows a utilisation rate of 90 % of commitment appropriations and 76 % of payment appropriations. There was a concentration of transactions in the last quarter of the year. Furthermore, the weaknesses of the procedures for establishing the budget, led to a high number of transfers (4). Thus, the budgetary principles of annuality and specification were not strictly observed.

8.	The general accounting software used by the Agency makes it possible to amend entries without leaving an audit trail. Furthermore, a system for recording invoices that ensures the accuracy of the financial information in the final accounts, has not been established.

The internal control procedures required by the Financial Regulation to ensure transparency and sound financial management have not yet all been documented. The Management Board did not formally adopt standards for internal control and the code of professional ethics. Written instructions for archiving supporting documentation of transactions were missing. A financial irregularities panel was not established.

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 77, 13.3.2004, p. 1.

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 1st July 2007 and received by the Court on 5th July 2007.

(4) During 2006, more than 45 transfers were made.

Table 1

European Network and Information Security Agency (Heraklion)

Areas of Community competence

Competences of the Agency

(Council Regulation (EC) No 460/2004 of 10 March 2004)

Governance

Resources made available to the Agency

Products and services supplied

The representatives of the Member State governments have, by common agreement, adopted a statement on the creation of a European Network and Information Security Agency. The Agency should operate as a point of reference and establish confidence by virtue of its independence, the quality of the advice it delivers and the information it disseminates, the transparency of its procedures and methods of operating, and its diligence in performing the tasks assigned to it.

(Council Decision of 19 February 2004, taken on the basis of Article 251 of the Treaty).

Objectives

1.	The Agency enhances the capability of the Community, the Member States and the business community to prevent, address and respond to network and information security problems.

2.	The Agency provides assistance and delivers advice to the Commission and the Member States on issues related to network and information security falling within its competencies.

3.	The Agency develops a high level of expertise and uses this expertise to stimulate broad cooperation between actors from the public and private sectors.

4.	The Agency assists the Commission, when called upon, in developing Community legislation in the field of network and information security.

Tasks

The Agency:

(a)	collects information on current and emerging risks that could produce an impact on electronic communications networks;

(b)	provides the European Parliament, the Commission and European bodies or competent national bodies with advice and assistance;

(c)	enhances cooperation between actors in its field;

(d)	facilitates cooperation on common methodologies to address network and information security issues;

(e)	contributes to awareness raising on network and information security issues for all users;

(f)	assists the Commission and the Member States in relations with industry;

(g)	tracks standards;

(h)	advises the Commission on research in the area of network and information;

(i)	promotes risk assessment activities, on prevention solutions;

(j)	contributes to cooperation with third countries.

1. Management Board

It is composed of one representative of each Member State, three representatives appointed by the Commission, and three representatives, without the right to vote, each of whom represents one of the following groups:

(a)	information and communication technologies industry;

(b)	consumer groups;

(c)	academic experts.

2.	Board members may be replaced by alternates.

2. Executive Director

1.	The Agency is managed by its Executive Director, who is independent in the performance of his duties.

2.	The Executive Director is appointed for a term of office of up to five years.

3. External audit

Court of Auditors.

4. Internal audit

The Commission's Internal Auditor.

5. Discharge authority

Parliament on a recommendation from the Council.

2006 final budget:

6,9 (6,3) million euro (100 % Community subsidy).

Staff figures on 31 December 2006:

44 (38) posts according to the establishment plan

posts occupied: 38 (35)

8 (15) other staff

Total staff: 46 (50)

assigned to the following duties:

operational: 24 (22)

administrative: 22 (28)

Working groups

Three Working Groups on (a) Risk management/Risk Assessment, (b) CERTS and (c) Regulatory Aspects of Network & Information Security (RANIS).

Publications

Annual report,

ENISA Quarterly (four Issues)

—	Who's Who on NIS database.

—	1 CD-ROM ‘ENISA inventory of CERT activities in Europe’

—	1 CD-ROM ‘Raising Awareness in Information Security, Insight and Guidance for Member States’

—	Six Fact Sheets on ENISA and its activities

—	30 press releases

—	The Permanent Stakeholders Group's (PSG) ‘Vision for ENISA’ –document

—	The Draft ENISA Strategy 2008-2011 processed by the PSG and Management Board

—	A Guide on how to set up a CERT

—	A report on CERT co-operation

—	‘A Users' Guide: How to Raise Information Security Awareness’

—	Package ‘Information Security Awareness Programmes in the EU — Insight and Guidance for Member States’

—	Collection of Best Practices — the ‘ENISA Knowledgebase’

—	Study on security and anti-spam measures of providers

Cooperation with Member States and other institutions

—	15 joint events with Member States

—	eight responses to requests by Member States and Institutions

Source: Information supplied by the Agency.

Source: Data supplied by the Agency — These tables summarise the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis.

Table 2

European Network and Information Security Agency (Heraklion) — 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	Final budget appropriations					Appropriations carried over from previous financial year(s)
Source of revenue	Revenue entered in the final budget for the financial year	Revenue collected	Allocation of expenditure	entered	committed	paid	carried over	cancelled	entered	committed	paid	cancelled
Community subsidies	6 940	6 600	Title I Staff	4 249	3 989	3 728	253	268	257	257	178	79
Other revenue	12	12	Title II Administration	859	779	653	126	80	1 065	1 065	863	202
			Title III Operating activities	1 844	1 542	989	538	317	790	790	271	519
Total	6 952	6 612	Total	6 952	6 310	5 370	917	665	2 112	2 112	1 312	800
Source: Data supplied by the Agency — These tables summarise the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

European Network and Information Security Agency (Heraklion) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Community subsidies	5 476	4 251
Other revenues	12	—
Total (a)	5 488	4 251
Operating expenditure
Staff expenditure	3 100	1 040
Fixed asset related expenditure	103	31
Other administrative expenditure	1 515	1 563
Operational expenditure	1 236	518
Total (b)	5 954	3 152
Surplus /(deficit) from operating activities (c = a – b)	– 466	1 099
Financial operations revenue (e)	—	—
Financial operations expenditure (f)	–2	–1
Surplus /(deficit) from non-operating activities (g = e – f)	–2	–1
Economic result for the year (h = c + g)	– 468	1 098

Table 4

European Network and Information Security Agency (Heraklion) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	33	12
Tangible fixed assets	312	332
Current assets
Short-term receivables	56	13
Cash and cash equivalents	2 519	2 510
Total assets	2 920	2 867
Current liabilities
Provisions for risks and charges	66	45
Accounts payable	2 224	1 724
Total liabilities	2 290	1 769
Net assets
Accumulated surplus/deficit	1 098	—
Economic result for the year	– 468	1 098
Total net assets	630	1 098
Total liabilities and net assets	2 920	2 867

THE AGENCY'S REPLIES

Being in its first full year of operation, the Agency intensified its activity in the second half of the year resulting in having many transactions in the last quarter. Also, in 2006, the position of budget officer remained vacant for more than five months which affected the ability of the Agency to optimise planning and minimize the transfers for the year.

8.	ENISA has already applied for ABAC, the Commission's accounting software since 2005. Based on the schedule of the Commission the project will be launched early in 2008. The system for recording invoices was revised before the preparation of the final accounts and is being applied since.

9.	ENISA will present to its Management Board for adoption standards for internal control as well as a code of ethics. The executive director will put in place the organisational structure and all the procedures and controls necessary to their implementation.

19.12.2007

Official Journal of the European Union

C 309/6

REPORT

on the annual accounts of the European Union Fundamental Rights Agency (formerly the European Monitoring Centre on Racism and Xenophobia) for the financial year 2006 together with the Agency's replies

(2007/C 309/02)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-10	OBSERVATIONS

Tables 1 to 4

The Agency's replies

INTRODUCTION

The European Union Fundamental Rights Agency (formerly the European Monitoring Centre on Racism and Xenophobia hereinafter ‘the Agency’) was established by Council Regulation (EC) No 1035/97 of 2 June 1997 (1) and modified by Council Regulation (EC) No 168/2007 of 15 February 2007 (2), which extended its competencies. The Agency's primary tasks are to provide the Union and the Member States with reliable information on racism, xenophobia and anti-semitism in the Union and to cooperate with the Council of Europe in these areas.

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

STATEMENT OF ASSURANCE

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 (3); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

The Agency's accounts for the financial year ended 31 December 2006 (4) were drawn up by its Director, pursuant to Article 12 of Regulation (EC) No 1035/97, and sent to the Court, which is required to provide a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the Statement set out below.

OBSERVATIONS

7.	The Agency transferred 235 000 euro from the operational reserve (Title III) to Title I (staff expenditure) to cover increased costs for temporary staff. The justification for this transfer was not documented as required by article 23(3) of the Agency's Financial Regulation.

In 2006, the Agency decided to bear in their entirety the costs of providing schooling for its staff's children without applying Article 3 of Annex VII to the Staff Regulations. Payments were made in 2006 although the decision had not been adopted by the Management Board and no formal agreements had been signed with suitable local schools (5).

In May 2006, the Director approved procedures governing the recruitment of staff for the Agency. On several points, these procedures were not in line with the rules and objectives of the Staff Regulations: non respect of the principle of parity in the composition of the selection board; establishment of the reserve list in alphabetical order; no effective possibility to appeal given to rejected candidates during the preliminary evaluation phase.

10.

In one procurement procedure for a framework contract (6), the Agency received two tenders. One was rejected by the opening committee on the basis that its reception was late whereas it was not. The contract was awarded to the second tender received, even though it obtained a very low score for the quality evaluation.

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 151, 10.6.1997, p. 6.

(2) OJ L 53, 22.2.2007, p. 1.

(3) OJ L 248, 16.9.2002, p. 1.

(4) These accounts were drawn up on 11 May 2007 and received by the Court on 1 July 2007.

(5) Amount of school fees (school year 2006/2007) accepted for reimbursement in 2006: 31 340 euro.

(6) Estimated value for 4 years: 400 000 euro.

Table 1

European Union Fundamental Rights Agency (Vienna)

Areas of Community competence deriving from the Treaty

Competences of the Agency as specified in Council Regulation (EC) No 1035/97 of 2 June 1997

Gouvernance

Resources made available to the Centre in 2006

(2005)

Products and services supplied during the financial year 2006

Collection of information

The Commission may, within the limits and under conditions laid down by the Council in accordance with the provisions of this Treaty, collect any information and carry out any checks required for the performance of the tasks entrusted to it.

(Article 284)

Objectives

—	To provide the Community and its Member States with objective, reliable and comparable data at European level on the phenomena of racism, xenophobia and anti-Semitism.

—	Close cooperation with the Council of Europe in order to avoid duplication and obtain added value.

Tasks

—	To study the extent and development of the phenomena of racism and xenophobia;

—	To collect and analyse information, via the European Racism and Xenophobia Information Network (RAXEN);

—	To carry out scientific surveys;

—	To encourage widespread dissemination of such information;

—	To formulate opinions for the Community and its Member States;

—	To develop indicators and criteria to improve the comparability of data;

—	To publish an annual report on the situation regarding racism and xenophobia.

1. Management Board

Composition

One independent person appointed by each Member State, one independent person appointed by the European Parliament, one independent person appointed by the Council of Europe and a representative of the Commission.

Duties

To adopt the work programme and the general annual report. To adopt the final budget and the establishment plan. To give an opinion on the final accounts.

2. Executive Board

Composition

—	Chairman of the Management Board

—	One representative of the uncil of Europe

—	One representative of the Commission

—	Two other members of the Management Board

3. Director

Appointed by the Management Board on a proposal from the Commission.

4. External audit

Court of Auditors

5. Internal control

The Commission's Internal Audit Service

6. Discharge authority

Parliament on a recommendation from the Council.

Final budget:

9,5 million euro (8,3 million euro) including Community contribution: 100 % (100%):

Staff numbers at 31 December 2006:

37 (37) posts in the establishment plan,

posts occupied: 35 (35)

+10 (4) other staff (auxiliary contracts, seconded national experts, local and employment-agency staff)

Total staff: 47 (41)

assigned to the following duties

—	operational: 28 (24)

—	administrative: 15 (13)

—	mixed: 4 (4)

Raxen:

Number of contributions through the 25 national focal points: 375

Number of meetings: 2

Research reports:

Number of reports: 9

Number of meetings: 5

Annual reports: 2

EUMC Bulletin: 6

Equal Voices: 3

Cooperation with the Member States and the other institutions

(number of events organised jointly):

—	Member States: 15

—	Commission: 29

—	European Parliament: 7

—

COR: 2

—

EESC: 1

—	Council of Europe: 10

—

OSCE: 4

—

UN: 1

—	Inter-agency: 4

—

NRT: 4

—

ERT: 1

Source: Information supplied by the Agency.

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

Table 2

European Union Fundamental Rights Agency (Vienna) — 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 received	Allocation of expenditure	Final budget appropriations					Appropriations carried over from previous financial year(s)
Source of revenue	Revenue entered in the final budget for the financial year	Revenue received	Allocation of expenditure	entered	committed	paid	carried over	cancelled	entered	committed	paid	to be carried over	cancelled
Own revenue	0	0	Title I Staff	3 923	3 743	3 693	50	180	70	70	53	0	17
Community subsidies	8 800	8 800	Title II Administration	969	923	640	283	46	581	581	570	0	11
Allocated revenue (Phare) (1)	484	484	Title III Operating activities	3 908	3 695	2 753	942	213	667	667	647	0	20
Other revenue	0	132	Allocated revenue (Phare and others) (1)	484	325	239	245	0	90	90	90	0	0
Total	9 284	9 416	Total	9 284	8 686	7 325	1 520	439	1 408	1 408	1 360	0	48
Source: Data supplied by the Agency. This table summarise the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

European Union Fundamental Rights Agency (Vienna) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Community subsidies	8 609	7 466
Other revenues	8	14
Total (a)	8 618	7 480
Operating expenses
Staff expenses	3 051	2 729
Fixed asset related expenses	52	52
Other administrative expenses	1 403	977
Operational expenses	3 556	3 304
Total (b)	8 061	7 062
Economic result for the year (c = a – b)	556	418

Table 4

European Union Fundamental Rights Agency (Vienna) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	84	25
Tangible fixed assets	388	128
Current assets
Short-term pre-financing	70
Short-term receivables	453	360
Cash and cash equivalents	2 288	2 832
Total assets	3 282	3 345
Current liabilities
Provisions for risks and charges	48	56
Accounts payable	1 535	2 146
Total liabilities	1 582	2 202
Net assets
Accumulated surplus/deficit	1 143	725
Economic result for the year	556	418
Total net assets	1 700	1 143
Total liabilities and net assets	3 282	3 345

(1) The amount initially entered in the budget was 648 000 euro, of which the Commission did not pay 164 000 euro. For the sake of clarity and accuracy, the corrected amount of 484 000 euro is shown.

Source: Data supplied by the Agency. This table summarise the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

THE AGENCY'S REPLIES

The reserve was included in Title III and intended to have a general purpose. The Agency specified the allocation of the reserve between the various budgetary Titles in its 2007 budget. The Agency will, however, devote particular efforts to provide more complete justification and documentation of transfers made.

8.	The Agency will proceed with the signature of agreements with suitable local schools. The decision shall be submitted to the Management Board, in October 2007, for adoption.

Although Annex III of the Staff Regulation is not applicable to other servants of the European Communities, the Agency will propose, if the consultation with the Commission's services is finished in due time, to its Management Board to adopt, during its October 2007 meeting, new implementing rules of the Staff Regulations which will take into account the Court's observations to the maximum possible extent.

10.	The Agency will take measures to avoid the repetition of the situation described by the Court.

19.12.2007

Official Journal of the European Union

C 309/13

REPORT

on the annual accounts of the Education, Audiovisual and Culture Executive Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/03)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7	OBSERVATION

Tables 1 to 4

The Agency's replies

INTRODUCTION

The Education, Audiovisual and Culture Executive Agency (hereinafter referred to as ‘the Agency’) was set up by Commission Decision 2005/56/EC of 14 January 2005 (1). The Agency was established for a period beginning on 1 January 2005 and ending on 31 December 2008. The Agency's aim is to manage programmes to be decided by the Commission in the fields of education, audiovisual and culture, involving implementation of technical projects. The Agency became fully autonomous in 2006.

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

STATEMENT OF ASSURANCE

This Statement is addressed to the European Parliament and the Council in accordance with Article 14 of Council Regulation (EC) No 58 of 19 December 2002 (2); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 14 of Regulation (EC) No 58/2003, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the Statement set out below:

Reliability of the accountsThe Agency'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 Agency's annual accounts, taken as a whole, are legal and regular.The observation which follows does not call the Court's Statement into question.

OBSERVATION

7.	The main feature of the budgetary implementation was the cancellation of nearly 10 % of the appropriations for the year. Carryovers for administrative expenditure exceed 50 %.

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 24, 27.1.2005, p. 35.

(2) OJ L 11, 16.1.2003, p. 5.

(3) These accounts were drawn up on 29 June 2007 and received by the Court on 17 July 2007.

Table 1

Education, Audiovisual and Culture Executive Agency (EACEA), Brussels

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Commission Decision (2005/56/EC) of 14 January 2005 (1)

Governance

Resources made available to the Agency in 2006

Products and services supplied in 2006

The Community shall contribute to the development of quality education.

[Article 149(1)]

The Community shall implement a vocational training policy.

[Article 150(1)]

The Community shall contribute to the flowering of the cultures of the Member States.

[Article 151(1)]

The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community's industry exist.

[Article 157(1)]

Objectives

In the framework of the education, culture and industry policies, numerous measures have been taken to promote education, vocational training, audiovisual, culture, youth and active citizenship in the European Union. The main objectives of these measures are to reinforce social cohesion and to contribute to competitiveness, economic growth and a closer union amongst the people of Europe.

These measures include a variety of Community programmes.

The Agency is responsible for managing certain strands of these programmes (‘Socrates’, ‘e-Learning’, ‘Leonardo da Vinci’, ‘Jean Monnet, Study and research centres’, ‘Erasmus Mundus’, ‘Culture’, ‘Youth’, ‘Citizenship’, ‘Media Training’ and ‘Media Plus’).

Tasks

To manage the specific projects entrusted to the Agency;

To adopt the instruments of budget implementation for revenue and expenditure and to carry out, where the Commission has empowered it to do so, the operations necessary for the management of the Community programmes and, in particular, those linked to the award of grants and contracts;

To gather, analyse and pass on to the Commission all the information needed to guide the implementation of the Community programmes.

1. Steering Committee

Comprises five members appointed by the European Commission.

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.

2. Director

Appointed by the European Commission.

3. External audit

The European Court of Auditors.

4. Discharge Authority

The European Parliament following a recommendation from the Council.

Final budget:

(1)	310,2 million euro for the management of Community programmes and projects delegated to the Agency and implemented by the Agency on the Commission's responsibility wholly funded by the General Budget of the EU).

(2)	29,2 million euro for operating the Agency as an independent body (100 % subsidy entered in the General Budget of the European Communities).

Staff numbers at 31 December 2006

75 posts for temporary staff in the establishment plan

Posts occupied: 64

Other posts:

Local staff: 164 (170) posts Posts occupied: 157 (162)

Contract staff: 29 (28) posts Posts occupied: 26 (26)

Total staff: 273 (276)

Responsible for

Operational tasks: 171 (169)

Administrative tasks: 102 (107)

By operational centre (main developments):

KOSOVO: a) Start-up grants, loans, training and business advice to small businesses of minorities and returnees; b) Support to privatisation; c) Rehabilitation of district heating (in north) and waste and water utility buildings in (south) Mitrovica; d) Improving border/boundary management; e) Setting up a new system for public investment programming; f) Expert advice and training to the Kosovo Assembly; g) Support to Justice and Internal Affairs ministries and Statistical Office; h) Environmental upgrades, including construction of Pristina regional landfill; i) Support to drafting of Kosovo Rural Development Plan.

SERBIA: a) Draft laws in public administration reform; b) Supply of equipment to border police; c) Completion of state-of-the-art DNA laboratory; d) Rehabilitation and supply of equipment to courts; e) Rehabilitation programme for hospitals; f) New jobs created due to loans from the Revolving Credit Fund; g) Training support to enterprises; h) Regional training centres for adults; i) Economic development programmes for poorest municipalities; j) Handover of new border crossings with Hungary and Croatia; k) Renovation of municipal infrastructure; l) Reform of the statistics office; m) Support to Foreign Direct Investment management; n) Support to vulnerable groups including refugees and displaced persons; o) Completion of power plant rehabilitation projects; p) Air filter installed at Kostolac power plant.

MONTENEGRO: a) Construction of Podgorica international airport and refurbishment of Tivat airport; b) Central IT database of the Ministry of the Interior; c) Support for Human Resources Management Agency; d) New Roads Directorate and transport laws; e) Electricity utility unbundling/restructuring, energy efficiency strategy; f) Establishing an Environmental Protection Agency; g) Providing management expertise to companies; h) Supporting Judicial Training Centre; i) Prison reform; j) Support to drafting of strategy for agriculture and rural development

FORMER YUGOSLAV REPUBLIC OF MACEDONIA: a) Assistance in strengthening and creating new institutions in the public administration (e.g. State Statistical Office, Civil Society Unit in the General Secretariat; Public Procurement Bureau); b) Support to development of electronic communications market; c) Support to police reform including refurbishment of Police Academy; d) Support to money laundering prevention and refurbishment of Skopje Basic Court; e) Opening of new state phytosanitary laboratory; f) Construction of National Border Management Coordination Centre; g) Assistance to municipalities in decentralisation; h) Upgrading of municipal infrastructure; i) Training of civil servants from non-majority communities; k) Management training for SMEs.

Source: Information submitted by the Agency.

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

Table 2

European Agency for Reconstruction (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 received	Allocation of expenditure	Final budget appropriations					Appropriations carried over from the previous financial years					Appropriations available (from financial year plus previous years)
Source of revenue	Revenue entered in the final budget for the financial year	Revenue received	Allocation of expenditure	entered	committed	paid	carried over	cancelled	available	committed	paid	carried over	cancelled	entered	committed	paid	carried over	cancelled
Community subsidies	24 795	20 200	Title I Staff	18 540	17 304	17 117	187	1 236	495		385		109	19 035	17 304	17 502	187	1 345
Other revenue	p.m.	877	Title II Administration	6 255	4 705	4 198	507	1 550	500		453		47	6 755	4 705	4 651	507	1 597
Earmarked revenue	244 000	256 008	Title III Operating activities	244 000	32 760	4 007	239 992	0	701 681	153 923	249 952	438 814	12 915	945 681	186 683	253 959	678 806	12 915
Total	268 795	277 085	Total	268 795	54 769	25 322	240 686	2 786	702 676	153 923	250 790	438 814	13 071	971 471	208 692	276 112	679 500	15 857
NB: The amount available for commitment at the end of the year is 746 922 euro (of which 211 240 euro from 2006 appropriations and 535 682 euro from previous years). Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

European Agency for Reconstruction (Thessaloniki) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Community subsidies	273 192	261 009
Other revenue	239	1 832
Total (a)	273 432	262 841
Operating expenses
Staff expenses	16 164	15 727
Fixed asset related expenses	581	703
Other administrative expenses	5 510	6 509
Operational expenses	247 509	243 442
Total (b)	269 764	266 381
Surplus/(deficit) from operating activities (c = a – b)	3 668	3 540
Financial operations revenue (e)	—	—
Financial operations expenses (f)	25	—
Surplus/(deficit) from non-operating activities (g = e – f)	–25	—
Economic result for the year (h = c + g)	3 643	–3 540

Table 4

European Agency for Reconstruction (Thessaloniki) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	70	84
Tangible fixed assets	743	1 192
Long-term receivables	10 175	40 002
Current assets
Short-term pre-financing	166 885	135 285
Short-term receivables	24 562	29 574
Cash and cash equivalents	51 991	57 917
Total assets	254 425	264 055
Current liabilities
Provisions for risks and charges	1 986	2 100
Accounts payable	85 496	98 655
Total liabilities	87 482	100 755
Net assets
Accumulated surplus/deficit	163 300	166 840
Economic result for the year	3 643	–3 540
Total net assets	166 943	163 300
Total liabilities and net assets	254 425	264 055

THE EUROPEAN AGENCY FOR RECONSTRUCTION REPLIES

The Agency has a very fast track implementing assistance programmes. The last allocation to the Agency for assistance amounted to €250 million in 2006 to be contracted over three years, hence until 2009. In the first six months of 2007 the Agency contracted € 185 million which represents 74 % of an annual allocation. Therefore, at the end of its mandate, the residual amount to be contracted is likely to be small.

8.	The Agency acknowledges the Court's comments.

19.12.2007

Official Journal of the European Union

C 309/47

REPORT

on the annual accounts of the European Aviation Safety Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/09)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-10	OBSERVATIONS

Tables 1 to 4

The Agency's replies

INTRODUCTION

The European Aviation Safety Agency (hereinafter called ‘the Agency’) was established by Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002 (1). The Agency's tasks are to maintain a high level of civil aviation safety, to ensure the proper development of civil aviation safety, to establish certification specifications and to provide certification of aeronautical products.

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

STATEMENT OF ASSURANCE

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 49 of Regulation (EC) No 1592/2002, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the Statement set out below.

OBSERVATIONS

At the end of 2006, the appropriations carried over for title II (administrative expenditure) were about 40 % of the commitments and for title III (non-differentiated operational expenditure) were about 50 %. For the same titles, more than 15 % of the appropriations were cancelled. Contrary to its financial regulation, the Agency used its differentiated payment appropriations carried over from 2005 despite the fact that it had enough payment appropriations for 2006. Thus, the budgetary principle of annuality was not strictly observed.

For its 2006 certification activities, the Agency's cost analysis system showed costs of about 48 million euro versus revenue of about 35 million euro. The Agency, in cooperation with the Commission (4), must review the current fees scheme in order to ensure that the Agency's costs for the certification activities are justified and covered by its fees.

9.	In the Agency's balance sheet, short-term receivables amounted to approximately 14 million euro, of which 20 % were more than three months old. The Agency has not yet implemented an effective claim management system, possibly including interest on late payment.

10.

For a contract with an external consultant (221 000 euro) and for the renewal of an agreement for travel services signed in 2004 (annual market value of approximately 1,5 million euro), the Agency had recourse to the negotiated procedure for reasons of urgency (5) which were not justified and rather reflected insufficient programming.

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 240, 7.9.2002, p. 1.

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 29 June 2007 and received by the Court on 11 July 2007.

(4) Fees and charges are fixed by an ad-hoc Commission Regulation.

(5) Article 126 (1) (c) of the implementing rules of the Financial Regulation applicable to the general budget.

Table 1

European Aviation Safety Agency (Cologne)

Areas of Community competence deriving from the Treaty

The Agency's powers as defined in Regulation (EC) No 1592/2002

Governance

Resources made available to the Agency in 2006

(2005)

Products and services

Common transport policy:

‘The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport.’

(Article 80 of the Treaty)

Objectives:

To maintain a high uniform level of civil aviation safety in Europe and to ensure the proper functioning and development of civil aviation safety.

Measures to be adopted by the Agency:

(1)	To issue opinions to the Commission;

(2)	To issue certification specifications, including airworthiness codes and acceptable means of compliance, and any guidance material for the application of Community policy;

(3)	To take decisions regarding airworthiness and environmental certification;

(4)	To conduct standardisation inspections at the competent authorities of the Member States;

(5)	To conduct the necessary investigations on company premises.

(1)	The Management Board, consisting of one representative of each Member State and one representative of the Commission, sets up an advisory body of interested parties.

(2)	The Executive Director manages the Agency and is appointed by the Management Board on a proposal from the Commission.

(3)	The Board of Appeal rules on the Agency's decisions concerning certification, fees, charges and checks at undertakings.

(4)	Financial control Court of Auditors.

(5)	Discharge given by the Parliament on a recommendation from the Council.

Final budget:

Total budget: 66,8 (31,5) million euro, including:

Revenue from fees and charges: 33,2 (8,6) million euro (50 %)

Community subsidy: 31,4 (18,9) million euro (47 %),

Contribution from the Federal Republic of Germany (Ministry of Transport): 1,2 million euro (2 %)

Staff at 31.12.2006;

328 (200) temporary staff in the establishment plan

posts occupied: 276 (132)

Other satff: 33 (21) contract and auxiliary staff

Total staff:

309 (153) assigned to the following tasks:

—	operational: 227 (86)

—	administrative: 57 (38)

—	mixed: 25 (29)

Opinions:

—	5 opinions concerning amendments to Regulations (EC) Nos 1592/2002, 1702/2003 and 2042/2003.

Rulemaking decisions:

—	3 amendments of CS 25, CS-P and CS-ETSO certification specifications;

—	6 amendments of Acceptable Means of Compliance and Guidance Material for Regulations (EC) Nos 1702/2003 and 2042/2003;

—	1 decision on the organisation of approval numbers.

International cooperation:

—	1 agreement protocol concluded with China on the final production line of the Airbus A320 in China and 1 cooperation agreement signed with China on Airbus products in general;

—	1 cooperation agreement concluded with Japan for the export of European products;

—	13 cooperation agreements concluded with every non-EU ECAC country within the context of the continuation of the SAFA programme;

—	Extension of the cooperation agreement with the Aeronautical Committee of the Commonwealth of Independent States on Beriev products.

Certification decisions:

Type certificates: 70

Supplementary type certificates: 803

Airworthiness directives: 382

European Technical Specifications: 178

Acceptable means of compliance: 97

Major changes: 1 125

Minor changes: 1 830

Major repairs: 1 009

Minor repairs: 372

AFM/RFM (= Flight Manual Revisions): 430

Approval of design organisations (1): 377

Approval of maintenance organisations (bilateral) (1): 1 293

Approval of maintenance organisations (foreign) (1): 201

Approval of maintenance training organisations (1): 16

Approval of manufacturing organisations (1): 6

Standardisation inspections (number of countries by type):

Approval of manufacturing organisations: 12 countries

Approval of maintenance organisations: 26 countries

Source: Information supplied by the Agency.

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

Table 2

European Aviation Safety Agency (Cologne) — 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

paid

cancelled

Own revenue

30 700

33 236

Title I

Staff (NDA)

25 211

23 881

23 595

286

1 330

214

160

Community subsidy

32 899

31 454

Title II

Administration (NDA)

6 812

6 222

3 637

2 585

590

782

690

Other subsidies

635

453

Title III

Operating activities (NDA)

7 380

5 625

2 763

2 862

1 756

1 276

1 130

146

Title III

Operating activities (DA)

Other revenue

156

308

— CA

25 680

23 219

2 461

— PA

24 880

11 362

13 518

4 334

Assigned revenue

1 273

1 380

Assigned revenue

1 380

1 365

1 357

Total

65 663

66 831

Total CA

66 463

60 312

5 733

6 159

2 272

292

Total PA

65 663

42 714

19 251

3 698

6 606

6 314

292

NDA	:	non-differentiated appropriations (commitment appropriations are equal to 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 Agency. This table summarises the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

European Aviation Safety Agency (Cologne) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	Note	2006	2005
Operating revenue
Fees and charges	(2)	35 173	10 888
Community subsidies		26 401	17 417
Other subsidies		2 021	2 138
Other revenue		340	26
Total (a)		63 935	30 469
Operating expenditure
Staff expenditure	(3)	23 778	13 636
Fixed asset related expenditure		573	341
Other administrative expenditure	(4)	6 436	3 675
Operational expenditure		27 798	11 660
Total (b)		58 586	29 312
Surplus/(deficit) from operating activities (c = a – b)		5 349	1 157
Financial operations revenue (e)		263	41
Financial operations expenditure (f)		19	14
Surplus/(deficit) from non-operating activities (g = e – f)		243	27
Economic result for the year (h = c + g)		5 593	1 184

Table 4

European Aviation Safety Agency (Cologne) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	Note	2006	2005
Non-current assets
Intangible assets		268	182
Tangible fixed assets		1 719	1 348
Current assets
Short-term receivables	(5)	13 881	8 816
Cash and cash equivalents	(6)	24 056	11 746
Total assets		39 924	22 094
Current liabilities
Provisions for risks and charges	(7)	639	—
Accounts payable	(8)	30 663	19 065
Total liabilities		31 302	19 065
Net assets
Accumulated surplus/deficit		3 029	1 845
Economic result of the year		5 593	1 184
Total net assets		8 622	3 029
Total liabilities and net assets		39 924	22 094

(1) Total initial and surveillance approvals at 31.12.2006.

Source: Information supplied by the Agency.

(2) The strong increase in revenue reflects the first full year of implementation of Commission Regulation (EC) No 488/2005 on fees and charges levied for certification activities.

(3) 126 people were recruited in 2006.

(4) Building cost of the new space needed.

(5) Short-term receivables reflect the growth in fees and charges revenue.

(6) The increase in cash reflects both improved collection of revenue and a high unpaid amount of accrued charges as a a result of late invoicing by main suppliers.

(7) 2006 provisions for risks and charges represent staff expenditure related to annual leave accrual. The corresponding expenses in 2005, an amount of 237 180 euro, were reported under accounts payable.

(8) The increase in accounts payable is related to the certification suppliers accrual, reflecting both higher activity and late invoicing from external providers.

THE AGENCY'S REPLIES

The carried over differentiated payment appropriations were related to activities to be paid by the fee income.

The Agency had to use differentiated payment appropriations carried over from 2005 because the 2006 fee income was insufficient to cover the cost of its certification activities and to offset the impact of the change from differentiated to non-differentiated appropriations from 1 January 2007 (The Financial Regulation does not provide a procedure for making such a change).

The new fees and charges regulation (EC) No 593/2007 which has entered into force on 1 June 2007 should generate revenue sufficient to cover the cost of the certification activities. The Agency has decided to implement during 2007 and 2008 an integrated management system that will further increase the level of detail in monitoring the cost of its activities.

During 2006, the follow up of receivables has been impacted by the burden of old 2005 recoverable amounts for which sufficient information was not always available. The Agency continues its efforts to make this information more reliable and to reduce the delays in the collection of receivables. Moreover, since December 2006, the Agency has been sending out systematically reminders and is charging interest in case of late payment.

10.

The Agency takes note of the Court's observation. In the first case, a prior study has been ordered in urgency, as it appeared during the last quarter of 2005 that a fast review of the Fees and charges Regulation was crucial to guarantee sufficient revenue to the Agency. In the second case, the contract has been prolonged, looking forward to the results of an external analysis ordered to enable the decision upon internalisation or externalisation of travel related services. The Agency is currently drafting the Terms of Reference in view of launching a comprehensive call for tenders.

19.12.2007

Official Journal of the European Union

C 309/55

REPORT

on the annual accounts of the European Maritime Safety Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/10)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-10	OBSERVATIONS

Tables 1 to 4

The Agency's replies

INTRODUCTION

The European Maritime Safety Agency (hereinafter called ‘the Agency’) was set up by Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 (1). The Agency's tasks are to ensure a high level of maritime safety and prevention of pollution by ships, to provide the Commission and the Member States with technical assistance, to monitor the implementation of Community legislation and to evaluate its effectiveness.

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

STATEMENT OF ASSURANCE

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 18 of Regulation (EC) No 1406/2002, and sent to the Court, which is required to give a Statement of Assurance as to their reliability and the legality and regularity of the underlying transactions.

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.

The Court has thus obtained a reasonable basis for the Statement set out below:

OBSERVATIONS

7.	More than 43 % of the payment appropriations had to be cancelled at the end of the year 2006. In addition, there was a concentration of transactions during the last quarter of the year. Thus, the budgetary principle of accuracy was not strictly observed.

8.	The procedures for establishing the budget and the establishment plan were not sufficiently rigorous. This led to a high number of budgetary transfers (4), inadequate planning of staff recruitment (5) and incorrect budget presentation (6).

9.	Legal commitments were entered into before the corresponding budgetary commitments (7). Some contracts allowed for 100 % prefinancing: this practice is not in line with the principles of sound financial management (8).

10.	The inventory system is weak. The records do not allow all goods to be physically traced. Computer equipment is not recorded in the system.

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 208, 5.8.2002, p. 1.

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 13 June 2007 and received by the Court 27 June 2007.

(4) More than 35 transfers of appropriations in 2006.

(5) Failure to meet recruitment objectives resulted in a transfer which decreased budget line 1 100 (salaries) by 1,2 million euro.

(6) The budget is supposed to show a summary statement of the schedule of payments due in subsequent financial years to meet budget commitments entered into in earlier financial years (article 31, 2(c) of the Agency's financial regulation).

(7) Four cases of a total approximate value of 345 000 euro.

(8) Article 67 of Financial Regulation, (Regulation (EC, Euratom) no 2343/2002 of the Commission of 23 December 2002).

Table 1

European Maritime Safety Agency (Lisbon)

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 as amended by Regulations (EC) No. 1644/2003 of 22 July 2003 and No. 724/2004 of 31 March 2004

Governance

Resources made available to the Agency 2006

(Data for 2005)

Products and services supplied 2006

Common transport policy

‘The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport.’

(Article 80 of the Treaty)

Objectives

—	To ensure a high, uniform and effective level of maritime safety and prevention of pollution by ships.

—	To provide the Member States and the Commission with technical and scientific assistance.

—	To monitor the implementation of Community legislation in this field and to evaluate the effectiveness of the measures in place.

—	To introduce operational methods for combating pollution in European waters.

Tasks

—	To assist the Commission in drawing up Community legislation and in its implementation;

—	To monitor the overall functioning of the Community port State control regime, which may include visits to the Member States.

—	To provide the Commission with technical assistance for the port State control of ships.

—	To work with the Member States on developing technical solutions and to provide technical assistance related to the implementation of Community legislation.

—	To promote cooperation between riparian States in the shipping areas concerned.

—	To develop and operate any information system necessary.

—	To facilitate cooperation between the Member States and the Commission in the development of a common methodology for investigating maritime accidents.

—	To provide the Commission and the Member States with reliable information on maritime safety and on pollution by ships.

—	To assist the Commission and the Member States in the identification and pursuit of ships making unlawful discharges.

—	To monitor the classification societies recognised by the EU and to issue the corresponding reports to the Commission.

—	To assist the Commission with the input for and implementation of tasks relating to the Directive on marine equipment.

—	To provide the Commission with data on the introduction of the Directive on ship waste reception facilities in European ports.

1. Administrative Board

Composition

One representative per Member State, four representatives of the Commission, four representatives, without the right to vote, from the professional sectors concerned.

Tasks

—	To adopt the budget and the work programme.

—	To examine requests from Member State for assistance.

2. Executive Director

Appointed by the Administrative Board on a proposal from the Commission.

3. External audit

Court of Auditors.

4. Discharge Authority

Parliament on a recommendation from the Council.

Final Budget for 2006:

44,7 million euro (35,3) Community contribution: 100 % (100%)

Total Staff at 31 December 2006:

132 (95) posts in the establishment plan

Number of posts occupied:

111 (80)

20 (20) other posts (auxiliary contracts, seconded national experts, local staff, employment-agency staff)

Total staff numbers: 131 (100)

assigned to the following duties:

—	operational tasks: 83 (65)

—	administrative and support tasks: 41 (27)

—	mixed tasks: 7 (8)

Number of specifications and guideline documents: 49 (includes reports and/or studies)

Inspections/Audits: 47 (over 600 mission-man days)

Exercises at sea (Operational Activities): 7

Seminars, trainings & workshops: 59 (102 days and 1 440 participants)

Source: Information supplied by the Agency

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

Table 2

European Maritime Safety Agency (Lisbon) — Implementation of the budget for the financial year 2006

(1000 euro)

Revenue

Expenditure

Origin of revenue

Revenue entered in the final budget for the financial year

Revenue received

Allocation of expenditure

Final budget appropriations for the financial year

Appropriations carried over from the previous Financial Year

entered

committed

paid

carried over

cancelled

entered

paid

cancelled

Community subsidies

44 738

32 030

Title I

Staff (NDA)

13 459

12 705

10 387

664

2 408

161

Title II

Administration (NDA)

2 972

2 550

1 944

606

422

333

248

Other income

362

Title III

Operating activities (DA)

— CA

28 308

19 033

9 275

— PA

28 308

11 638

16 669

Total

44 738

32 392

Total CA

44 738

34 287

1 270

12 105

Total PA

44 738

23 969

1 270

19 499

494

310

184

NDA	:	non differentiated appropriations (commitment appropriations equal payment appropriations).
DA	:	differentiated appropriations (commitment and payment appropriations may differ).
CA	:	commitment appropriations in a system of differentiated appropriations.
CP	:	payment appropriations in a system of differentiated appropriations.

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

Table 3

European Maritime Safety Agency (Lisbon) — Economic outturnn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Community subsidies	24 716	15 666
Other subsidies	678	0
Total (a)	25 394	15 666
Operating expenditure
Staff expenditure	9 616	6 099
Fixed asset related expenditure	236	151
Other administrative expenditure	3 548	2 042
Operational expenditure (1)	14 151	2 925
Total (b)	27 551	11 217
Surplus/(deficit) from operating activities (c = a – b)	–2 157	4 439
Financial operations revenue (e)	0	0
Financial operations expenditure (f)	0	3
Surplus/(deficit) from non-operating activities (g = e – f)	0	–3
Economic result for the year (h = c + g)	–2 157	4 435

Table 4

European Maritime Safety Agency (Lisbon) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	55	69
Tangible fixed assets	523	455
Current assets
Short-term pre-financing	4 849	5 351
Short-term receivables	270	105
Cash and cash equivalents	11 633	8 866
Total assets	17 330	14 847
Current liabilities
Provisions for risks and charges	191	107
Accounts payable	12 111	7 555
Total liabilities	12 301	7 661
Net assets
Accumulated surplus/deficit	7 185	2 750
Economic result for the year	–2 157	4 435
Total net assets	5 028	7 185
Total liabilities and net assets	17 330	14 847

(1) Signature of new contracts for tankers.

THE AGENCY'S REPLIES

The budget in of the Agency was over 50 % devoted to ‘antipollution measures’. In this area the Agency launched calls for tender to conclude four contracts for pollution response vessels. Towards the end of this process two companies decided at the last moment to withdraw their bids so that only two contracts were awarded. This resulted in a cancellation of substantial payment appropriations at the end of the year.

8.	The re-location of the Agency in 2006 from Brussels to Lisbon has had budgetary implications difficult to predict, including the departure of almost 20 percent of staff under contract.

9.	The procedures to avoid a posteriori commitments are being strengthened. The conditions of prefinancing are revised following the comment of the Court.

10.	The replacement from June 2007 of the old inventory system by ABAC Assets will eliminate the problems mentioned by the Court.

19.12.2007

Official Journal of the European Union

C 309/62

REPORT

on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2006 together with the Agency's replies

(2007/C 309/11)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7	OBSERVATION

Tables 1 to 4

The Agency's replies

INTRODUCTION

The European Agency for Safety and Health at Work (hereinafter referred to as ‘the Agency’) was established by Council Regulation (EC)No 2062/94 of 18 July 1994 (1). The Agency's task is to collect and disseminate information on national and Community priorities in the field of safety and health at work, to support national and Community organisations involved in the formulation and implementation of policy and to provide information on preventive measures.

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

STATEMENT OF ASSURANCE

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 14 of Regulation (EC) No 2062/94, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the statement set out below.

Reliability of the accountsThe Agency'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 Agency's annual accounts, taken as a whole, are legal and regular.The observation which follows does not call the Court's Statement into question.

OBSERVATION

In 2006, the Director signed 19 decisions for approximately 880 000 euro authorising budgetary transfers from article to article within chapters. Contrary to the Financial Regulation, the Governing Board did not receive the required information (4). Thus, the budgetary principle of specification was not strictly observed.

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 216, 20.8.1994, p. 1. The Regulation was last amended by Council Regulation (EC) No 1112/2005 of 24 June 2005 (OJ L 184, 15.7.2005, p. 5).

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 4 June 2007 and received by the Court on 2 July 2007.

(4) Article 23 of the Financial Regulation.

Table 1

European Agency for Safety and Health at Work (Bilbao)

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in the Council Regulation (EC) No 2062/94 as amended by Council Regulation (EC) No 1112/2005

Governance

Resources made available to the Agency in 2006

(Data for 2005)

Products and services provided during 2006

Social provisions

The Community and the Member States (…) shall have as their objectives (…) improved living and working conditions, so as to make possible their harmonisation while the improvement is being maintained (…).

With a view to achieving the objectives of Article 136, the Community shall support and complement the activities of the Member States in the following fields: (a) improvement in particular of the working environment to protect workers' health and safety; (b) working conditions; (…)

(Extracts from Article 136 and 137 of the Treaty)

Objectives

—

In order to improve the working environment, as regards the protection of the safety and health of workers as provided for in the Treaty and successive Community strategies and action programmes concerning health and safety at the workplace, the aim of the Agency shall be to provide the Community bodies, the Member States, the social partners and those involved in the field with technical, scientific and economic information of use in the field of safety and health at work.

Tasks

—	To collect, analyse and disseminate information on national and Community priorities and on research.

—	To promote cooperation and the exchange of information, including information on training programmes.

—	To supply the Community bodies and the Member States with information they require to formulate and implement policies, in particular as regards the impact on small and medium-sized enterprises.

—	To make available information on preventive activities.

—	To contribute to the development of strategies and Community action programmes

—	To set up a network comprising national focal points and topic centres.

1. Governing Board

Composition

—	1 representative of the Government of each Member State.

—	1 representative of the employers' organisations of each Member State.

—	1 representative of the employees' organisations of each Member State.

—	3 representatives of the Commission.

Task

To adopt the Agency's work programme, budget and annual general report.

2. Bureau

Composition

—	Chairman and 3 vice-chairmen of the Board

—	Coordinators from each of the three interest groups

—	1 additional member from each of the groups and the Commission

Task:

Overseeing the preparation and follow-up of the Board's decisions

3. The Director

Appointed by the Governing Board on a proposal from the Commission.

4. Committees

Obligatory consultation of the Commission and the Advisory Committee on Safety and Health at Work in respect of the work programme and budget.

5. External audit

European Court of Auditors.

6. Discharge authority

Parliament on a recommendation by the Council.

Final budget:

—	14,1 million euro (13,7 million euro)

Including:

—	Community subsidy, DG Employment: 93,5 % (96%)

—	Community subsidy, DG Enlargement: 4,5 % (3%)

—	Miscellaneous revenue: 2 % (1%)

Staff at 31 December 2006:

40 (40) posts in the establishment plan,

of which, posts filled: 33 (32)

posts vacant: 7 (8)

26 (20) other posts (auxiliary contracts, seconded national experts and local staff).

Total staff: 59 (52)

assigned to

—	operational tasks: 42 (35)

—	administrative tasks: 9 (9)

—	mixed tasks: 8 (8)

Building the links — Networking:

—	Strengthening of tri-partism in the Agency networks

—	Institutional capacity building in Accession and Candidate Countries (Phare programmess)

Communicating Information:

—	Safe Start! — European Week 2006 campaign on young workers.

—	Healthy Workplace Initiative — SME-targeted campaign in EU 10, Romania and Bulgaria.

—	Multilingual web-based and printed information services on occupational safety and health.

Developing knowledge:

—	Information products for national and European Week campaign 2006 (on Young People) and 2007 (MSDs)

—	Information products on Ageing Workers, OSH & Economic Performance, and the HORECA Sector

—

Risk Observatory information products including reports on OSH research priorities, biological agents and ultraviolet radiation; data collection on stress, vibration and skin problems, and on young workers and musculoskeletal disorders for the European Weeks 2006 and 2007, feasibility study for a company survey

Source: Information supplied by the Agency.

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

Table 2

European Agency for Safety and Health at Work (Bilbao) — 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	Final budget appropriations					Appropriations carried over from the previous financial year
Source of revenue	Revenue entered in the final budget for the financial year	Revenue collected	Allocation of expenditure	final	committed	paid	carried over	cancelled	available	paid	cancelled
Community subsidies	13 200	11 900	Title I Staff	4 556	4 080	3 831	125	600	75	28	47
Other revenue	247	248	Title II Administration	1 524	1 481	1 083	381	61	331	313	17
			Title III Operating activities	7 367	7 025	5 060	1 963	344	2 213	1 814	400
Assigned revenue (1)	518	312	Assigned revenue (1)	518	407	324	194	0	206	0	206
Total	13 965	12 460	Total	13 965	12 993	10 298	2 663	1 005	2 825	2 155	670
Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

European Agency for Safety and Health at Work (Bilbao) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Community subsidy	11 730	11 021
Other subsidies	238	284
Other incomes	1 580	2 460
Total (a)	13 548	13 765
Operating expenditure
Staff expenditure	3 640	3 312
Fixed asset-related expenditure (2)	139	–14
Other administrative expenditure	1 825	1 692
Other operational expenditure	8 028	8 584
Total (b)	13 632	13 575
Surplus/(deficit) from operating activities (c = a – b)	–84	190
Financial expenditure (d)	6	7
Surplus/(deficit) from non operating activities (e = d)	–6	–7
Economic result for the year (f = c + e)	–90	183

Table 4

European Agency for Safety and Health at Work (Bilbao) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible assets	71	88
Tangible assets	247	247
Long-term receivables	4	4
Current assets
Short-term pre-financing	435	454
Short-term receivables	27	142
Cash and cash equivalents	2 990	3 392
Total assets	3 774	4 327
Current liabilities
Provisions for risks and charges	63	58
Accounts payable	1 981	2 448
Total liabilities	2 044	2 507
Net assets
Accumulated surplus/deficit	1 820	1 637
Economic result for the year	–90	183
Total net assets	1 730	1 820
Total liabilities and net assets	3 774	4 327

(1) The amount entered in the budget for assigned revenue is 661 000 euro, of which only 518 000 euro have been received.

In order to present a correct image, the correct amount of 518 000 euro is given here.

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

(2) The negative amount presented for 2005 is the result of corrections.

THE AGENCY'S REPLIES

1.	The Agency accepts the observation. As from July 2007, the Board is notified of any transfer decisions made by the Director via the Agency's extranet.

19.12.2007

Official Journal of the European Union

C 309/67

REPORT

on the annual accounts of the European Railway Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/12)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-10	OBSERVATIONS

Tables 1 to 4

The Agency's replies

INTRODUCTION

The European Railway Agency (hereinafter referred to as ‘the Agency’) was created by Regulation (EC) No 881/2004 of the European Parliament and of the Council of 29 April 2004 (1). It became autonomous on 1 January 2006. The Agency's aim is to enhance the level of interoperability of railway systems and to develop a common approach to safety in order to contribute to creating a more competitive European railway sector with a high level of safety.

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

STATEMENT OF ASSURANCE

The Agency's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 39 of Regulation (EC) No 881/2004, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the Statement set out below.

Reliability of the accountsThe Agency'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 cases referred in paragraph 10, the transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.

OBSERVATIONS

In its first year of financial autonomy the Agency implemented 72 % of its commitment appropriations. The levels of carryover for administrative expenditure (Title II) and operating expenditure (Title III) were of 37,5 % and 85 % respectively. Thus, the budgetary principle of annuality was not strictly observed.

8.	The Agency is located in two cities: its administrative seat is in Valenciennes whereas its meetings have to be held in Lille. The Agency has not yet found ways of offsetting the costs resulting from its obligation to be located on two sites.

9.	The internal control system showed weaknesses. Subdelegations were not granted according to the rules. There were inconsistencies between delegation decisions and access rights to the budgetary management system SI2. The Agency did not adopt implementing rules for its financial regulation.

10.

An examination of the tendering procedures showed various anomalies: use of expired contracts (4) and irregular extensions of existing contracts (5). Thus the Agency must launch procurement procedures for those areas currently covered by contracts which had not been the subject of regular 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 220, 21.6.2004, p. 3.

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 19 June 2007 and received by the Court on 2 July 2007.

(4) One case identified: 49 000 euro.

(5) Two cases identified: 630 000 euro.

Table 1

European Railway Agency (Lille/Valenciennes)

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 881/2004

Governance

Resources available to the Agency in 2006

Products and services provided in 2006

Common Transport Policy

For the purpose of implementing Article 70, and taking into account the distinctive features of transport, the Council shall, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee and the Committee of the Regions, lay down:

(a)	common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States;

(b)	the conditions under which non-resident carriers may operate transport services within a Member State;

(c)	measures to improve transport safety;

(d)	any other appropriate provisions.

(Article 71)

Objectives

To contribute, on technical matters, to the implementation of the Community legislation aimed at:

1.	improving the competitive position of the railway sector

2.	developing a common approach to safety on the European railway system,

in order to contribute to creating a European railway area without frontiers and guaranteeing a high level of safety.

Tasks:

Address recommendations to the Commission on:

—	the common safety methods (CSMs) and common safety targets (CSTs) provided for in the Railway Safety Directive (2004/49/EC);

—	safety certificates and measures in the field of safety;

—	the development, implementation and monitoring of rail interoperability;

—	monitoring interoperability;

—	the certification of maintenance workshops;

—	vocational competences;

—	the registration of rolling stock.

Issue opinions on:

—	national safety rules;

—	monitoring the quality of the work of notified bodies;

—	the interoperability of the trans-European network.

Coordination of national bodies:

—	coordination of national safety authorities and national investigation bodies (as described in Directive 2004/49/EC, Articles 17 and 21).

Publications and databases:

—	report on safety performance (every two years);

—	report on progress with interoperability (every two years);

—	public database of safety documents;

—	public register of documents on interoperability.

1. Administrative Board

Comprises one representative from each Member State, four representatives from the Commission and six representatives, without the right to vote, from the professional sectors concerned.

2. Executive Director

Appointed by the Administrative Board on a proposal from the Commission.

3. External audit

Court of Auditors.

4. Discharge Authority

The Parliament following a recommendation from the Council.

Final Budget:

14,4 million euro

Staff at 31 December 2006:

posts listed in the establishment plan: 95

posts occupied: 80

Other staff: 5 p.

Total staff: 85

Responsible for:

—	operational tasks: 58,5

—	administrative tasks: 26,5

Safety:

Recommendation to the Commission on harmonised formats for safety certificates and harmonised application forms to be used by railway undertakings and national safety authorities.

Recommendation to the Commission on notification of national safety rules following a request from the Commission related to other measures in the field of safety.

Annual progress reports to the Commission for:

Interoperability:

Recommendation on registration of rolling stock and report on specifications on the National Vehicle Register.

ERTMS (European Rail Traffic Management System):

Recommendation to the Commission to update Annex A of the technical specifications for interoperability, Control Command and Signalling for high speed and conventional rail systems.

Economic Evaluation:

Methodology Guidelines for impact assessment, applicable to all Agency Recommendations, have been supplied to the Commission. Applied guidelines have been derived for various draft recommendations. Impact assessments are being prepared in parallel with recommendations.

At the request of the Commission, an impact assessment for improved cross-acceptance of rolling stock (locomotives) has been provided.

Source: Information supplied by the Agency.

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

Table 2

European Railway Agency (Lille/Valenciennes) — Implementation of the budget for the financial year 2006

(1000 euro)
Revenue			Expenditure
Origin of revenue	Revenue entered in the final budget for the financial year	Revenue collected	Allocation of expenditure	Final budget appropriations					Appropriations carried over from previous year(s)
Origin of revenue	Revenue entered in the final budget for the financial year	Revenue collected	Allocation of expenditure	entered	committed	paid	carried over	cancelled	entered	committed	paid	cancelled
Community subsidies	14 398	12 385	Title I Staff	9 649	6 816	6 688	129	2 833	12	4	4	8
Other revenue		20	Title II Administration	1 349	1 062	664	398	287	1 048	347	337	711
			Title III Operating activities	3 400	2 543	390	2 153	857	2 245	1 389	1 157	1 089
Total	14 398	12 406	Total	14 398	10 422	7 742	2 680	3 976	3 305	1 741	1 498	1 807
Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

European Railway Agency (Lille/Valenciennes) — Economic outturn account for the financial year 2006

(1000 euro)
	2006
Operating revenue
Community subsidies	11 920
Other subsidies	364
Total (a)	12 284
Operating expenses
Staff expenses	6 694
Fixed asset related expenses	168
Other administrative expenses	1 322
Operational expenses	1 330
Total (b)	9 514
Surplus/(deficit) from operating activities (c = a – b)	2 770
Financial operations revenue (e)	3
Financial operations expenses (f)	2
Surplus/(deficit) from non-operating activities (g = e – f)	1
Economic result for the year (h = c + g)	2 771

Table 4

European Railway Agency (Lille/Valenciennes) — Balance sheet at 31 December 2006

(1000 euro)
	2006
Non-current assets
Intangible fixed assets	506
Tangible fixed assets	378
Current assets
Short-term pre-financing	18
Short-term receivables	188
Cash and cash equivalents	3 299
Total assets	4 389
Current liabilities
Accounts payable	1 618
Total liabilities	1 618
Net assets
Economic result for the year	2 771
Total net assets	2 771
Total liabilities and net assets	4 389

THE AGENCY'S REPLIES

During 2006 the programmed activities were not fully implemented as the Agency was still in its start-up phase. In 2007, the Agency shall proceed to an in-depth analysis of the programming of its activities, the resources required and the budget to be allocated together with a plan for calls for tenders.

The Agency is at the moment negotiating with the host state authorities the possibility of entering into a Seat Agreement. In this context the host state has agreed to make a substantial contribution to the rent of the future new building in Valenciennes. This will partly offset the annual costs (estimated at 450 000 euros) that result from the Agency's double location.

At the beginning of 2007, the Agency has put a security function in place to check the consistency between delegations and sub-delegations contained in the budgetary management system and the corresponding signed acts. The Agency plans to submit its implementing rules for adoption by the Administrative Board before the end of 2007.

10.	The situations described by the Court were as a result of a shortage of personnel during the Agency's start-up phase. In order to prevent this happening in future a procurement function has been created in June 2007. Its task is to coordinate and supervise the procurement procedures.

19.12.2007

Official Journal of the European Union

C 309/72

REPORT

on the annual accounts of the European GNSS Supervisory Authority for the financial year 2006 together with the Authority's replies

(2007/C 309/13)

CONTENTS

1-5	INTRODUCTION

6-9	STATEMENT OF ASSURANCE

10-11

OBSERVATIONS

Tables 1 to 4

The Authority's replies

INTRODUCTION

The European GNSS (Global Navigation Satellite System) Supervisory Authority (hereinafter ‘the Authority’) was set up as a Community Agency by Council Regulation (EC) No 1321/2004 (1) of 12 July 2004 to manage the public interests relating to the European GNSS programmes and to act as the regulatory authority for the programme during the deployment and operational phases of the Galileo Programme. Table 1 summarises the Authority's objectives and activities.

2.	Council Regulation (EC) No 1942/2006 (2) of 12 December 2006 extended the mandate of the Authority to cover the activities of the development phase (first phase of the Galileo Programme (3)) which the Galileo Joint Undertaking was not able to finalise before its winding-up on 31 December 2006.

The Authority began operations in 2006. Initially, all the financial transactions of the Authority were carried out on its behalf by the Directorate-General for Energy and Transport. Following the installation of the necessary financial systems, the Authority took over responsibility for its financial operations in September 2006 (4).

The handover of activities from the Galileo Joint Undertaking to the Authority started in December 2006 with the transfer of 70 million euro and the rights and obligations related to FP6 (5), MEDA (6), EGNOS (7) and other contracts. Therefore, although the Community subsidy and other revenue for the Authority in 2006 was just over 7 million euro, the total assets of the Authority amounted to 76,6 million euro at the end of 2006.

5.	Key information from the financial statements drawn up by the Authority for the financial year 2006 is presented in Tables 2, 3 and 4.

STATEMENT OF ASSURANCE

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 (8); it was drawn up following an examination of the Authority's accounts, as required by Article 248 of the Treaty establishing the European Community.

The Authority's accounts for the financial year ended 31 December 2006 were drawn up by its Executive Director, pursuant to Article 12 of Council Regulation (EC) No 1321/2004, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions. The financial statements cover the period from 18 September (the starting date for independent financial operations) to 31 December 2006.

The Court has thus obtained a reasonable basis for the statement expressed below.

Reliability of the accountsThe Authority'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 Authority's annual accounts for the financial year ended 31 December 2006 are, taken as a whole, legal and regular.The observations which follow do not call the Court's statement into question.

OBSERVATIONS

10.

The Court's testing of a representative sample of 80 transactions identified weaknesses in the operation of the management and control systems. In 12 cases, the initiating official for the transaction did not have the delegated authority and the appropriate financial circuit was not followed. In two cases the Authority's authorising officer did not approve a budgetary commitment before entering into a legal commitment, contrary to the requirements of the Financial Regulation.

11.

According to the Regulation, as of 1 January 2007, the Authority is the owner of all tangible and intangible assets created or developed during the development phase of the Galileo Programme (9). A part of the assets were transferred from the Galileo Joint Undertaking in December 2006 (paragraph 4 above). Due to the absence of agreement between three of the members of the Joint Undertaking (10) and the Authority, the transfer of the further identified assets of 65 million euro (11) was delayed until mid 2007.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 20 September 2007.

For the Court of Auditors

Hubert WEBER

President

(1) OJ L 246, 20.7.2004, p. 1.

(2) OJ L 367, 22.12.2006, p. 18.

(3) The Galileo programme is divided into three phases: development and validation (2001-2005); deployment (2006-2007); and commercial operation (2008 onwards).

In its communication to the European Parliament and to the Council ‘Taking stock of the Galileo programme’ (COM(2006) 272 final of 7.6.2006), the Commission amended the schedule of the Galileo programme. Development and validation will continue until the beginning of 2009; deployment will take place in 2009 and 2010; the commercial operating phase will commence at the end of 2010.

(4) Agreement on the transfer modalities between the Directorate-General for Energy and Transport and the Authority, 15 September 2006.

(5) FP6 is the Sixth framework programme of the European Community for research, technological development and demonstration activities, contributing to the creation of the European Research Area and to innovation (2002 to 2006) — (Decision No 1513/2002/EC of the European Parliament and of the Council of 27 June 2002 — OJ L 232, 29.8.2002).

(6) The MEDA programme is the principal instrument of economic and financial cooperation under the Euro-Mediterranean partnership (Council Regulation (EC) No 1488/96 of 23 July 1996 — OJ L 189, 30.7.1996).

(7) The EGNOS (European Geostationary Navigation Overlay Service) programme, the European satellite navigation system which aims at correcting and improving GPS data, has been integrated into the Galileo programme following the Council Conclusions of 5 June 2003.

(8) OJ L 248, 16.9.2002, p. 1.

(9) Article 3(1) of Council Regulation (EC) No 1321/2004 as amended by Article 1(2) of Regulation (EC) No 1942/2006.

(10) The European Space Agency, the National Remote Sensing Centre of China and the MATIMOP-Israeli Industry Centre for Research and Development.

(11) This amount does not include the balance of funds resulting from the winding-up of the Galileo Joint Undertaking, which will only be transferred to the Authority at the end of the winding-up procedure.

Table 1

European GNSS Supervisory Authority (Brussels)

Areas of Community competence deriving from the Treaty

Competences of the Authority as defined in Council Regulation (EC) No 1321/2004 and amended by Council Regulation (EC) No 1942/2006

Governance

Resources made available to the Authority

Main products and services supplied in 2006

Competitivity for growth and employment

Objectives

—	To manage the public interests relating to the European GNSS programmes

—	To be the regulatory authority for the European GNSS programmes

Tasks

—	To conclude the concession contract with the private concession holder responsible for implementing and managing the Galileo deployment and operating phases;

—	To ensure that the concession holder complies with the concession contract and the specifications annexed thereto;

—	To take all appropriate measures to ensure the continuity of services in case of default of the concession holder;

—	To manage the funds specifically allocated to it for the European GNSS programmes;

—	To monitor the overall financial management in order to advise on the public sector contributions;

—	To take over the management of the agreement with the economic operator charged with operating Egnos;

—	To present a framework on the future policy options concerning Egnos;

—	To coordinate Member States' actions in respect of the frequencies neccessary to ensure the operation of the system;

—	To prepare drafts in order to assist the Commission in preparing proposals for the European GNSS programmes to be presented to the European Parliament and to the Council and in adopting the corresponding implementing rules;

—	To modernise the system and develop new generations thereof;

—	To accomplish such budgetary implementation tasks as are entrusted to it by the Commission and that are linked to the European GNSS programmes;

—	To ensure that the components of the system are duly certified and to empower the appropriate authorised certification bodies for issuing the relevant certificates and monitoring the respect of related standards and technical specifications;

1. Administrative Board

Composition

—	One representative per Member State

—	One representative from the Commission

Tasks

—	Appoints the Executive Director;

—	Adopts the annual work programme;

—	Produces a statement of estimates of revenue and expenditure for the Authority for the following financial year and sends it to the Commission which forwards it to the Budgetary Authority;

—	Adopts the budget;

—	Delivers an opinion on the annual accounts of the Authority;

—	Takes decisions on all aspects relating to the system's safety and security;

—	Exercises disciplinary authority over the Executive Director;

—	Adopts the special provisions necessary for the implementation of the right of access to the documents of the Authority;

—	Adopts the annual report on the activities and prospects of the Authority and forwards it, by 15 June, to the Member States, the European Parliament, the Council, the Commission, the European Economic and Social Committee and the Court of Auditors;

—	Adopts its rules of procedure.

Final budget

7,0 million euro including a Community subsidy: 100 %

Staff numbers at 31 December 2006

39 posts in the establishment plan

Posts occupied: 18

+5 other posts (auxiliary contracts, seconded national experts, local and employment-agency staff)

Total staff numbers: 23

assigned to the following tasks:

—	operational: 9

—	administrative: 9

—

mixed: 5

Setting-up of the GSA

—	Financial autonomy in September 2006

—	18 posts filled and 13 others recruited at 31.12.2006

—	Move to new premises was planned and prepared

—	Plan for establishing the System Safety and Security Committee approved on 30.11.2006 and call for nominations issued on 13.12.2006

—	Preparation of the documentation and signing of the transfer of the activities of the GJU (except for the In-Orbit-Validation phase and international activities)

—	Introduction of the basic elements of communication (logo, graphics)

Galileo and EGNOS systems

—	Draft certification plan for EGNOS

—	Preparation and approval of an ESA/GSA agreement by the Administrative Board

—	Contribution to defining a policy for managing the GNSS intellectual property rights

Concession

—	Support given to the GJU negotiating team for the concession contract

—	Start-up of consultations on introducing the accounting rules for recording tangible and intangible assets.

—	To enforce and verify compliance by the concession holder with instructions issued pursuant to Joint Action 2004/552/CFSP;

—	To manage all aspects relating to the system's safety and security;

—	To take over, with a view to the completion of the development phase of the Galileo programme, the tasks assigned to the latter by Articles 2, 3 and 4 of the Annex to Regulation (EC) No 876/2002;

—	To carry out all research of benefit to the development and promotion of the European GNSS programmes.

2. Executive Director

Appointed by the Administrative Board.

3. Scientific and Technical Committee

Composed of acknowledged experts from Member States and the Commission.

4. System Safety and Security Committee

Composed of one representative per Member State and one representative from the Commission.

5. External audit

European Court of Auditors.

6. Discharge authority

European Parliament on a recommendation from the Council.

Source: Information submitted by the Authority.

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

Table 2

European GNSS Supervisory Authority (Brussels) — Implementation of the budget for the financial year 2006

(1000 euro)
Revenue			Expenditure
Origin of Revenue	Revenue entered in the final budget for the financial year	Revenue collected	Allocation of expenditure	Appropriations under the final budget					Appropriations carried over from the previous financial year
Origin of Revenue	Revenue entered in the final budget for the financial year	Revenue collected	Allocation of expenditure	entered	committed	paid	carried over	cancelled	available	paid	cancelled
Community subsidies	7 026	7 026	Title I Staff	2 510	921	522	398	1 589	37	0	37
Other subsidies			Title II Administration	1 353	1 060	182	878	293	27	0	27
Other revenue	3	0	Title III Operating activities	3 100	1 127	0	1 127	1 973	0	0	0
			Earmarked revenue	0	0	0	0	0	0	0	0
Total	7 029	7 026	Total	6 963	3 108	704	2 403	3 855	64	0	64
NB: Any discrepancies in totals are due to the effects of rounding. Source: Data supplied by the Authority — This table summarises the data provided by the Authority in its annual accounts. Revenue collected and paymets are estimated on a cash basis.

Table 3

European GNSS Supervisory Authority (Brussels) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Own resources	0,00	0,00
Community subsidies	1 981,00	0,00
Other subsidies	0,00	0,00
Other revenues	60,00	0,00
Total (a)	2 041,00	0,00
Operating expenses
Staff expenses	564,00	0,00
Fixed asset related expenses	4,00	0,00
Other administrative expenses	595,00	0,00
Operational expenses	53,00	0,00
Total (b)	1 216,00	0,00
Surplus/(deficit) from operating activities (c = a – b)	825,00	0,00
Financial operations revenues (e)	0,00	0,00
Financial operations expenses (f)	0,00	0,00
Surplus /(deficit) from non-operating activities (g = e – f)	0,00	0,00
Economic result for the year (h = c + g)	825,00	0,00

Table 4

European GNSS Supervisory Authority (Brussels) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	0,00	0,00
Tangible fixed assets	65,00	0,00
Current assets
Short-term pre-financing	0,00	0,00
Short-term receivables	59,00	0,00
Cash and cash equivalents	76 485,00	0,00
Total assets	76 609,00	0,00
Non-current liabilities
Provisions for risks and charges	0,00	0,00
Other long-term liabilities	0,00	0,00
Current liabilities
Provisions for risks and charges	29,00	0,00
Accounts payable (1)	75 755,00	0,00
Total liabilities	75 784,00	0,00
Net assets
Reserves	0,00	0,00
Accumulated surplus/deficit	0,00	0,00
Economic result of the year	825,00	0,00
Total net assets	825,00	0,00
Total liabilities and net assets	76 609,00	0,00

(1) Including an amount of 70 069 962,04 euro from the Galileo Joint Undertaking for the activities transferred with effect from 1 January 2007. This amount will be reclassified in the 2007 Accounts.

THE AUTHORITY'S REPLIES

10.

These preliminary observations have been the subject of all my attention. With regards to your observation No 10, please consider that the transactions took place during a period of start-up where the Authority's staff was limited in number and was gathering experience while at the same time dealing with a heavy workload. The Authority's situation has much improved since and specific attention has been and is being paid to the training of staff and the improvement and documentation of procedures.

11.

The Court also observes that a part of the Galileo Joint Undertaking's assets for an amount of 65 million euro had not been transferred as of 1 January 2007. I am pleased to confirm that, to date, 97 % of this amount has been received by the Authority and that the issues having slowed down the transfer are resolved.

19.12.2007

Official Journal of the European Union

C 309/80

REPORT

on the annual accounts of the European Food Safety Authority for the financial year 2006 together with the Authority's replies

(2007/C 309/14)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-11	OBSERVATIONS

Tables 1 to 4

The Authority's replies

INTRODUCTION

The European Food Safety Authority (hereinafter referred to as ‘the Authority’) was established by Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 (1). Its main tasks are to supply the scientific information needed for Community legislation to be drawn up, to collect and analyse data that allow risks to be identified and monitored and to provide independent information on these risks.

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

STATEMENT OF ASSURANCE

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

The Authority's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 44 of Regulation (EC) No 178/2002, and sent to the Court, which is required to give a Statement of Assurance on their reliability and on the legality and regularity of the underlying transactions.

The Court conducted its audit in accordance with the IFAC ad 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.

The Court has thus obtained a reasonable basis for the Statement set out below:

Reliability of the accountsThe Authority'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 Authority'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

In 2006, payment rates were of 56 % of appropriations for administrative expenditure (Title II) and of 50 % of those for operational activities (Title III). 20 % of appropriations carried over from 2005 were cancelled at the end of 2006. A large number of transfers were made with a high concentration of them at the year-end (4). Thus, the budgetary principles of annuality and specification were not strictly observed.

The Authority did neither make a comprehensive risk assessment and define appropriate performance indicators, nor documented the systems and internal control procedures governing its activities. This situation precluded the implementation of an effective risk-management policy, which is essential to activity-based budget management.

9.	Final payments (5) were made in spite of insufficient supporting documentation. Moreover, it was difficult to assess the adequacy of the checks carried out to verify the correctness and completeness of the financial information submitted by the supplier.

10.	The Authority did neither set realistic recruitment objectives, nor define priorities with regard to vacancies nor fix deadlines for each recruitment procedure. Only two-thirds of the 250 posts available under the Authority's 2006 establishment plan had been filled by the end of the year.

11.

With regard to procurement procedures, the following irregularities were observed (6): the selection criteria not stated, or not applied; the price-evaluation method not defined until the evaluation procedure was under way; too vague description of the quality criteria. The composition of the evaluation committee did not comply with the principle of hierarchical independence of its members. This situation resulted mainly from the fact that the Authority did not apply clear procurement 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 31, 1.2.2002, p. 1.

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 19 June 2007 and received by the Court on 27 June 2007.

(4) 31 of the 49 transfers effected by the Authority were made during the last quarter.

(5) Value of the cases detected: approximately 500 000 euro.

(6) Seven cases of an approximate total value of: 670 000 euro.

Table 1

European Food Safety Authority (Parma)

Areas of Community competence deriving from the Treaty

Competences of the Authority

(Regulation (EC) No 178/2002 of the European Parliament and of the Council)

Governance

Resources made available to the Authority in 2006

(2005)

Products and services supplied

Free movement of goods

(Article 37 of the Treaty)

Contribution to a high level of protection of health, safety and protection of the environment and of consumers, taking account of any new development based on scientific facts

(Article 95 of the Treaty)

Common trade policy

(Article 133 of the Treaty)

Public health

(Article 152(4)(b) of the Treaty)

Objectives

—	To provide scientific opinions and scientific and technical support for the Community's legislation and policies which have a direct or indirect impact on food and feed safety

—	To provide independent information on risks relating to food safety

—	To contribute to the achievement of a high level of protection of human life and health

—	To collect and analyse data needed to allow characterisation and monitoring of risks

Tasks

—	To issue scientific opinions and studies

—	To promote uniform risk-assessment methodologies

—	To assist the Commission

—	To search for, analyse and summarise the requisite scientific and technical data

—	To identify and characterise emerging risks

—	To establish a network of organisations operating in similar fields

—	To provide scientific and technical assistance in crisis management

—	To improve international cooperation

—	To provide the public and interested parties with reliable, objective and easily comprehensible information

—	To take part in the Commission's rapid alert system

1. Management Board

Composition

14 members appointed by the Council (in cooperation with the European Parliament and the Commission) and one representative of the Commission

Duties

To adopt the work programme and the budget and ensure that they are implemented

2. Executive Director

Appointed by the Management Board on the basis of a list of candidates proposed by the Commission, following a hearing before the European Parliament

3. Advisory Forum

Composition

One representative per Member State

Duties

To advise the Executive Director

4. Scientific Committee and scientific panels:

To draw up the Authority's scientific opinions

5. External audit

Court of Auditors

6. Discharge authority

Parliament, on the Council's recommendation

Final budget

40,2 million euro (36,9 million euro); Community contribution: 100 % (100%)

Staff numbers as at 31 December 2006

Number of posts in establishment plan: 250 (194)

Posts occupied: 173 (124)

+57 (36) other posts (auxiliary contracts, seconded national experts, local staff)

Total staff: 230 (160)

Assigned to the following duties:

—	operational: 150 (104)

—	administrative: 80 (56)

Following the 323 requests for scientific opinions made to the EFSA in 2006, 132 opinions and four reports were adopted and published. They covered many areas dealt with by the nine scientific panels, including aromatic plants, genetically modified organisms (with the WHO), bovine spongiform encephalopathy (BSE) or transmissible spongiform encephalopathy (TSE).

EFSA's communication of risks to the public and its activities in general have been broadly acknowledged as a result of 4 600 articles covering the Authority's scientific work. Consultation of EFSA's website also increased, with 1,33 million hits, and there were 12 200 subscribers to EFSA Highlights. The coordination of the communication of risks was stepped up through the Advisory Forum and the workshops organised.

EFSA's networking with interested parties, national authorities and institutional counterparts intensified through the activities of, inter alia, a forum for interested parties and programmes aimed at the new Member States or candidate countries. The Advisory Forum met five times with a view to networking with national authorities on specific topics, such as coordination in the event of a crisis scenario and increasing the use of the extranet linking national authorities, the Commission and EFSA.

With regard to the assessment of EFSA in 2005, the Management Board submitted its recommendations in the summer of 2006 and their implementation has been ongoing since then.

Source: Information supplied by the Authority.

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

Table 2

European Food Safety Authority (Parma) — 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	Final budget appropriations					Appropriations carried over from previous financial year(s)
Source of revenue	Revenue entered in the final budget for the financial year	Revenue collected	Allocation of expenditure	entered	committed	paid	carried over	cancelled	entered	committed	paid	cancelled
Community subsidies	40 249	37 520	Title I Staff	18 505	17 722	17 238	483	783	546	546	480	66
Other revenue	0	23	Title II Administration	7 375	7 037	4 144	2 894	338	2 285	2 285	2 100	185
			Title III Operating activities	14 369	11 649	7 137	4 512	2 720	3 476	3 476	2 464	1 012
Total	40 249	37 543	Total	40 249	36 408	28 519	7 889	3 841	6 308	6 308	5 044	1 264
NB: Variations in totals are due to the effects of rounding. Source: Data supplied by the Authority. This table summarises the data provided by the Authority in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

European Food Safety Authority (Parma) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Own resources
Community subsidies	35 117	27 405
Other subsidies
Other revenue	23	0
Total (a)	35 140	27 405
Operating expenditure
Staff expenditure	16 014	13 012
Fixed asset related expenditure	771	603
Other administrative expenditure	8 303	5 833
Operational expenditure	8 950	8 718
Total (b)	34 038	28 166
Surplus/(deficit) from operating activities (c = a – b)	1 102	– 761
Financial operations revenue (e)	3	0
Financial operations expenditure (f)	4	7
Surplus/(deficit) from non-operating activities (g = e – f)	–1	–7
Economic result for the year (h = c + g)	1 101	– 768

Table 4

European Food Safety Authority (Parma) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	687	615
Tangible fixed assets	950	972
Current assets
Short-term pre-financing	224	171
Short-term receivables	43	100
Other receivables	112	28
Cash and cash equivalents	10 607	10 879
Total assets	12 624	12 766
Current liabilities
Provision for risks and charges	388	0
Accounts payable	7 451	9 082
Total liabilities	7 839	9 082
Net assets
Accumulated surplus/deficit	3 684	4 452
Economic result for the year	1 101	– 768
Total net assets	4 785	3 684
Total liabilities and net assets	12 624	12 766

THE AUTHORITY'S REPLIES

The payment rate in 2006, mainly under Title Ill reflects the increased multi-annual nature of the operations. In 2007 the Authority will improve its budget forecasting and monitoring to reduce transfers in number nd volume. Increased control on carry over will be implemented for the 2007 closing of accounts.

8.	To increase awareness for internal control within the Authority, an internal control action plan was implemented. Moreover internal control self assessment as well as high level corporate risk assessment are part of the 2007 work plan.

The final payments audited were processed during the first part of 2006, nevertheless, in order to assess the correctness and completeness of the financial information submitted by the supplier, the Authority reinforced the financial verification team by two additional staff members during the first quarter of 2007 and implemented check-lists during the second quarter of 2007.

10.	In November 2006 a precise recruitment plan 2007 has been adopted by the Authority's management in order to enable the Authority to recruit the number of staff members as foreseen in its establishment plan.

11.

Procurement procedures in question are not recent some were launched as early as 2004, for others contracts were awarded in 2005 and 2006. The Authority continues to improve compliance with applicable procurement rules, in particular through a reinforced central support unit, update of guidance documents and, since 2007, by the recruitment of a new staff member devoted to the support of tendering procedures. Moreover, the Authority made an important effort to train its staff in procurement matters (various general and topical training sessions were organised in 2006 and 2007 — over 100 staff members participated).

19.12.2007

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

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

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.

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.

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.

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

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

173

Community subsidy

16 700

14 589

Title II

Administration (NDA)

1 419

1 281

738

559

123

334

297

Other revenue

140

Title III

Operating activities (DA)

— CA

5 978

5 722

256

— PA

5 978

4 527

1 451

Assigned revenue

723

649

Assigned revenue

723

387

584

511

337

179

333

Total

17 563

15 313

Total CA

17 563

15 872

1 480

1 413

1 058

884

333

Total PA

17 563

13 475

1 480

2 607

1 058

649

333

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.

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.

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.

19.12.2007

Official Journal of the European Union

C 309/94

REPORT

on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2006 together with the Centre's replies

(2007/C 309/16)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-9	OBSERVATIONS

Tables 1 to 4

The Centre's replies

INTRODUCTION

The Translation Centre for the Bodies of the European Union (hereinafter ‘the Centre’) was established by Council Regulation (EC) No 2965/94 (1). The Centre's role is to provide the EU bodies, and any other EU Institutions and Bodies which call upon its services, with the translation services necessary for their activities.

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

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.

The Centre's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 14 of Regulation (EC) No 2965/94, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the 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 transactionsThe transactions underlying the Centre'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

The accumulated budget surplus (4) for 2006 was 16,9 million euro. In 2005 it was 10,5 million euro and in 2004 it was 3,5 million euro. In 2007, the Centre will refund 9,3 million euro to its clients. Such an accumulation of surpluses showed that the method for pricing its translations is not precise enough.

8.	In one case (5), a legal commitment was made prior to the budget commitment, in breach of the Financial Regulation.

9.	Written guidelines necessary for the assessment of candidates did not exist. In a recruitment procedure for translators, the Centre failed to provide written evidence of the rules applied for the evaluation of the candidates files.

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 314, 7.12.1994, p. 1.

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 1 July 2007 and received by the Court on 3 July 2007.

(4) The budgetary result is calculated on the basis of a modified cash method and not on the basis of the accruals principle used for the economic result (see table 3).

(5) Value: 320 000 euro.

Table 1

Translation Centre for the Bodies of the European Union (Luxembourg)

Areas of Community competence

Competences of the Centre

Council Regulation (EC) No 2965/94 of 28 November 1994

Governance

Resources made available to the Centre in 2006

(2005 data)

Products and services provided during the financial year 2006

(2005 data)

The representatives of the Member States' governments adopted by mutual agreement a declaration concerning the creation, under the aegis of the Commission's translation departments in Luxembourg, of a Translation Centre for the bodies of the Union, which would provide the necessary translation services for the operation of the bodies and services whose seats were established by the Decision of 29 October 1993

(Council Decision taken on the basis of Article 235 of the Treaty).

Objectives

To provide the necessary translation services for the operation of the following bodies:

—	the European Environment Agency,

—	the European Training Foundation,

—	the European Monitoring Centre for Drugs and Drug Addiction,

—	the European Medicines Agency,

—	the European Agency for Health and Safety at Work,

—	the Office for Harmonisation in the Internal Market (Trademarks and Designs),

—	the European Police Office (Europol) and the Europol Drugs Unit.

Bodies set up by the Council other than the above may use the Centre's services. The institutions and bodies of the European Union which already have their own Translation Services may, if need be, call upon the Centre's services on a voluntary basis.

The Centre plays a full part in the work of the Interinstitutional Translation Committee.

Tasks

—	To make arrangements for cooperation with the bodies and institutions

—	To participate in the work of the Interinstitutional Translation Committee.

1. Management Board

Composition

—	one representative per Member State;

—	two representatives from the Commission;

—	one representative from each body or institution calling upon the Centre's services.

Task

Adopts the Centre's annual work programme and annual report.

2. Director

Appointed by the Management Board on a proposal from the Commission.

3. External control

Court of Auditors.

4. Internal audit

Commission's internal auditor.

5. Discharge authority

Parliament on a recommendation from the Council.

Final budget

40,88 (27,9) million euro

Staff as at 31 December 2006

189 (181) posts listed in the establishment plan

posts occupied: 169 (163)

Assigned to:

—	operational duties: 80 (114);

—	administrative duties: 89 (57);

—	mixed duties: 0 (4).

Number of pages translated

546 735 (505 438).

Number of pages by language

—	official languages: 537 797 (501 475);

—	other languages: 8 938 (3 963).

Number of pages per client

—	bodies: 531 454 (496 665);

—	institutions 15 281 (8 773).

Number of pages translated freelance

260 301 (226 822)

Source: Information forwarded 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

Translation Centre for the Bodies of the European Union (Luxembourg) — 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 received	Allocation of expenditure	Final budget appropriations					Appropriations carried over from the previous financial year
Source of revenue	Revenue entered in the final budget for the financial year	Revenue received	Allocation of expenditure	entered	committed	paid	carried over	cancelled	available	paid	cancelled
Own revenue	29 731	32 359	Title I Staff	15 464	13 989	13 793	196	1 475	106	99	7
Other revenue	0	93	Title II Administration	4 421	3 949	2 734	1 215	472	755	673	82
Interest	600	844	Title III Operating activities	10 739	8 909	7 434	1 475	1 830	1 291	1 288	3
Balance for the previous financial year	10 545	10 545	Title X Reserve	10 252	0	0	0	10 252	0	0	0
Total	40 876	43 841	Total	40 876	26 847	23 961	2 886	14 029	2 151	2 060	92
Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

Translation Centre for the Bodies of the European Union (Luxembourg) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Own resources	32 817	30 408
Other revenue (1)	126	372
Total (a)	32 943	30 780
Operating expenditure
Staff expenditure	13 713	13 200
Fixed asset-related expenditure	4 195	3 547
Other administrative expenditure	2 021	1 849
Operational expenditure	8 757	7 397
Total (b)	28 686	25 993
Surplus/(deficit) from operating activities (c = a – b)	4 258	4 787
Revenue from financial operations (e) (2)	844	429
Expenditure on financial operations (f)	3	4
Surplus/(deficit) from non-operating activities (g = e – f)	841	425
Economic result for the year (h = c + g)	5 099	5 212

Table 4

Translation Centre for the Bodies of the European Union (Luxembourg) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	267	343
Tangible fixed assets	391	356
Current assets
Stock	313	279
Short-term receivables	5 907	6 184
Cash and cash equivalents	34 618	27 392
Total assets	41 496	34 554
Current liabilities
Provisions for risks and charges	10 600	9 330
Accounts payable (3)	11 286	1 418
Total liabilities	21 886	10 748
Net assets
Reserves	466	9 761
Accumulated surplus/deficit	14 045	8 833
Economic result for the year	5 099	5 212
Total net assets	19 610	23 806
Total liabilities and net assets	41 496	34 554

(1) In 2005, the Centre included translation work in progress (279 452 euro) in its Balance Sheet for the first time. In 2006, by contrast, only the variation in the volume of this work in progress (33 215 euro) is recorded in the economic outturn account.

(2) In 2006, there was an increase in the available financial assets, resulting in an increase in interest received.

(3) This amounts includes 9 292 000 euro to be repaid to the Centre's clients and disclosed as a reserve in the Centre's Financial Statements (see Centre's reply to point 7).

THE CENTRE'S REPLIES

The Centre is aware of the increase of its budget surpluses and has decided to refund EUR 9,3 million to its clients in 2007. To prevent this situation from arising in the future, the Centre will do its utmost to improve the method for calculating prices. Moreover, as this method requires an estimate of the foreseen demand for translation, the Centre will encourage its clients to improve their forecasts.

8.	The Centre has adapted its procedure to prevent the repetition of the situation described by the Court.

9.	The Centre will study ways to improve its recruitment procedure to take into account the Court's remark.

19.12.2007

Official Journal of the European Union

C 309/99

REPORT

on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2006 together with the Centre's replies

(2007/C 309/17)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-11	OBSERVATIONS

Tables 1 to 4

The Centre's replies

INTRODUCTION

The European Centre for Disease Prevention and Control (hereinafter referred to as ‘the Centre’) was set up by Regulation (EC) No 851/2004 of the European Parliament and of the Council of 21 April 2004 (1). Its main tasks are to collect and disseminate data on the prevention and control of human diseases and to provide scientific opinions on this subject. It is also required to coordinate the European network of bodies operating in this field.

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

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.

The Centre's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 23 of Regulation (EC) No 851/2004, and sent to the Court, which is required to give a Statement of Assurance on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the 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 transactionsThe transactions underlying the Centre'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

Nearly 45 % of the commitments entered into during the year were carried over. Moreover, during the second half of 2006, numerous transfers were made, due mainly to imprecise estimates of staffing needs (4). These transfers were made without the Centre's Governing Board having been informed in due time. Thus, the budgetary principles of annuality and specification were not strictly observed.

8.	Legal commitments (5) were entered into in the absence of prior budgetary commitments, in breach of the financial regulation.

During the year, pre-financing items were booked as budget expenditure, and not as advance payments. No procedure existed to highlight these items. At the year-end, during the closure-of-accounts procedure, the accounting officer searched manually for any outstanding pre-financing items. This led to an increased risk of errors (6) in the derivation of the amount.

10.	Rights of access to the computerised budget management system were not always consistent with the authorisations granted by the Director. The accounting officer has not yet validated the main commitment and payment procedures.

11.	The rules on procurement procedures are not strictly enforced. The following anomalies (7) were observed: lack of clear selection criteria, incorrect choice of the procedure, non respect of the procedure described in the tender notice and insufficient documentation of the procedure.

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 142, 30.4.2004, p. 1.

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 12 June 2007 and received by the Court on 2 July 2007.

(4) Appropriations under Title I reduced by 1,6 million euro.

(5) Three cases of an approximate total value 320 000 euro.

(6) One 40 000 euro error was detected and corrected during the audit.

(7) Three cases of an approximate total value of 230 000 euro.

Table 1

European Centre for Disease Prevention and Control (Stockholm)

Area of Community competence deriving from the Treaty

Competences of the Centre as specified in Council Regulation (EC) No 851/2004

Governance

Resources available to the Centre

Products and services supplied in 2006

A high level of human health protection shall be ensured in the definition and implementation of all Community policies and activities. Community 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.

(Article 152 of the Treaty)

Objectives

Strengthen Europe's defences against infectious diseases; specifically, to identify, assess and communicate current and emerging threats to human health from communicable diseases.

Therefore the Centre shall operate dedicated surveillance networks, provide scientific opinions, operate the early warning and response system (EWRS) and provide scientific and technical assistance and training.

Tasks

—	Operate dedicated disease surveillance networks and enhance networking activities. The Centre has a specific role in data collection, validation, analysis and dissemination.

—	Provide authoritative expert advice and scientific opinions and studies on communicable diseases.

—	Operate the EWRS. Develop procedures for identifying emerging health threats.

—	Strengthen Member States' capacity in preparedness planning and in training.

—	Inform the general public and interested parties of its work.

1. Management Board

One member designated by each Member State, two members designated by the European Parliament and three representatives of the Commission.

The Board adopts the Centre's annual programme and budget and monitors their implementation.

2. Director

Appointed by the Management Board on the basis of a list of candidates proposed by the Commission.

3. Advisory Forum

A representative of each Member State and three non-voting representatives of the Commission.

The Forum is to assure the scientific excellence of the work and the independence of the activities and opinions of the Centre.

4. External Audit

Court of Auditors.

5. Discharge authority

Parliament on a recommendation from the Council.

2006 final budget

17,146 million euro, including a Community subsidy of 98 %

Staff numbers

Posts in the establishment plan: 50

posts occupied: 48

+36 other posts

Total staff: 84

assigned to the following duties:

—	operational: 49

—	administrative: 35

—	Several guidelines, recommendations and risk assessments were produced, many focusing on influenza.

—	Evaluation and assessment of some surveillance networks.

—	Development of the database for routine surveillance with a core set of variables for all diseases set out for surveillance at European level (Commission Decisions 2002/253/EC and 2003/534/EC).

—	Epidemiological information from ECDC published in weekly electronic journal.

—	In application of EC Regulation No 851/2004 and following an agreement between the ECDC and DG SANCO, the takeover of the EWRS by ECDC was organised.

—	The EPIET field epidemiological training programme, initiated by the Commission, has been taken over by ECDC.

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 Disease Prevention and Control (Stockholm) — 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 received	Allocation of expenditure	Final budget appropriations					Appropriations carried over from previous financial year(s)
Source of revenue	Revenue entered in the final budget for the financial year	Revenue received	Allocation of expenditure	entered	committed	paid	carried over	cancelled	entered	committed	paid	cancelled
Community subsidies (1)	17 146	17 018	Title I Staff	6 084	6 068	5 664	404	16	362	362	312	50
			Title II Administration	3 731	3 588	1 968	1 620	143	535	535	402	133
			Title III Operating activities	7 331	7 216	2 143	5 073	115	541	541	408	133
Total	17 146	17 018	Total	17 146	16 872	9 775	7 097	274	1 438	1 438	1 122	316
NB: Variations in totals are due to the effects of rounding. Source: Data supplied by the Centre. This table summarises the data supplied by the Centre in its own financial statements. Revenue collected and payments are estimated on a cash basis.

Table 3

European centre for disease prevention and control (Stockholm) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Community subsidies	15 806	2 646
Total (a)	15 806	2 646
Operating expenditure
Staff expenditure	4 536	170
Fixed asset-related expenditure	305	107
Other administrative expenditure	2 893	1 079
Operational expenditure	2 623	326
Total (b)	10 357	1 682
Surplus/(deficit) from operating activities (c = a – b)	5 449	964
Financial operations revenue (e)		0
Financial operations expenditure (f)	64	11
Surplus/(deficit) from non-operating activities (g = e – f)	–64	–11
Economic result for the year (h = c + g)	5 385	954

Table 4

European centre for disease prevention and control (Stockholm) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible assets	111	37
Tangible fixed assets	936	207
Current assets
Short-term prefinancing	400
Stocks	7
Short-term receivables	387	320
Cash and cash equivalents	7 223	2 059
Total assets	9 064	2 624
Current liabilities
Provision for risks and charges	70
Accounts payable	2 655	1 671
Total liabilities	2 725	1 671
Net assets
Accumulated surplus/deficit	954
Economic result for the year	5 385	954
Total net assets	6 339	954
Total liabilities and net assets	9 064	2 624

(1) Including the appropriations managed by the Commission.

NB: Variations in totals are due to the effects of rounding.

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

THE CENTRE'S REPLIES

The year 2006 was the first full year of operation of the Centre. The unpredictability of certain developments, especially in recruitment, resulted in required budget transfers. Planning and monitoring of workplans and budgets is getting strong management attention in 2007 to limit the appropriations that are carried over.

The Management Board was informed on the transfers executed by the Director at its meeting of 12-13 December 2006. It will be kept up to date on a continuous basis through an extranet.

8.	Internal capacities have been established and measures were taken as to address the identified weaknesses as well as to improve the internal control systems (e.g. internal procedures, new workflows, training of staff).

9.	The Centre agrees with the observation of the Court and that the manual detection of prefinancing increases the possibility of errors. Since the beginning of 2007, all prefinancing are directly booked as advance payment.

10.

The Centre has appointed a financial systems (SI2) security officer. In early 2007 the Centre has reassessed its financial circuits and new workflows were approved by the Director in May 2007. Following this consolidation phase the accountant will proceed with the evaluation and subsequent validation of the systems as required by the Financial Regulation.

11.

The referred anomalies relate to the first full year of operation and since then substantial progress has been made in strengthening the financial/procurement area (e.g. financial officers in the operational units, internal audit capability being set up, financial circuits reassessed, financial procedures adopted, training of staff, review contracts).

19.12.2007

Official Journal of the European Union

C 309/105

REPORT

on the annual accounts of the European Police College for the financial year 2006 together with the College's replies

(2007/C 309/18)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-11	OBSERVATIONS

Tables 1 to 3

The College's replies

INTRODUCTION

The European Police College (hereinafter called ‘the College’) was established by Council Decision 2000/820/JHA, as repealed in 2005 and replaced by Council Decision 2005/681/JHA (1). The College's task is to function as a network and bring together the national training institutes in the Member States to provide training sessions, based on common standards, for senior police officers. The College became fully autonomous in 2006.

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

STATEMENT OF ASSURANCE

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 of 25 June 2002 (2); it was drawn up following an examination of the College's accounts, as required by Article 248 of the Treaty establishing the European Community.

The College's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 11 of Council Decision 2005/681/JHA, and sent to the Court, which is required to give Statement of Assurance on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the Statement set out below.

Reliability of the accountsThe College's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable. Nevertheless, the Court draws attention to the observations in paragraph 9.Legality and regularity of the underlying transactionsExcept for the situation described in paragraph 11, the transactions underlying the College's annual accounts, taken as a whole, are legal and regular.

OBSERVATIONS

7.	In 2006 the College did not establish the necessary systems and procedures to enable it to prepare a financial report in compliance with the requirements of the framework Financial Regulation applicable to the Agencies.

8.	The College's Financial Regulation refers to the need for detailed rules for its implementation (4). The College did not yet adopt any detailed implementing rules, including those ensuring the transparency of the College's procurement procedures.

The College did neither implement its budget using differentiated appropriations as provided for by its Financial Regulation (5)nor draw up budgetary implementation statements. The introduction of commitment appropriations would improve control over the College's budgetary implementation and ensure that any appropriations which were unused at the close of the financial year could be carried over under strictly defined conditions in accordance with the Financial Regulation.

10.

As regards the courses and seminars (1 296 636 euro in 2006), although information relating to the events was made available, there was no formal submission and approval of cost estimates prior to the events taking place. Budget appropriations were not used in accordance with the principle of sound financial management (6).

11.

The system of procurement did not comply with the provisions of the Financial Regulation. There was no documentation available to justify the need to purchase particular items and to explain the recourse to a particular supplier. A similar issue arose with removal costs for staff, which were not dealt with following standard procurement procedures for the acquisition of goods and services.

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 256, 1.10.2005, p. 63.

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 28 March 2007 and received by the Court on 6 July 2007.

(4) For example, in Article 10(3), Article 34 and Article 74.

(5) Article 8 of the College's Financial Regulation.

(6) Article 25 of the College's Financial Regulation.

Table 1

European Police College (Bramshill)

Areas of Community Competence deriving from the Treaty

Competences of the College as defined in Council Decision 2005/681/JHA

Governance

Resources made available to the College in 2006

Main products and services supplied in 2006

Approximation of laws

Treaty on European Union, in particular Article 30(1) and Article 34(2) thereof.

Objectives

The aim of CEPOL shall be to help train the senior police officers of the Member States by optimising cooperation between CEPOL's various components. It shall support and develop a European approach to the main problems facing Member States in the fight against crime, crime prevention and the maintenance of law and order and public security, in particular the cross-border dimensions of those problems.

Tasks

(1)	To increase knowledge of the national police systems and structures of other Member States and of cross-border police cooperation within the European Union;

(2)

To improve knowledge of international and Union instruments, particularly in the following sectors:

(a)	the institutions of the European Union, their functioning and role, as well as the decision-making mechanisms and legal instruments of the European Union, in particular as regards their implications for law-enforcement cooperation;

(b)	Europol's objectives, structure and functioning, as well as ways to maximise cooperation between Europol and relevant law-enforcement services in the Member States in the fight against organised crime;

(c)	Eurojust's objectives, structure and functioning;

(3)	to provide appropriate training with regard to respect for democratic safeguards, with particular reference to the rights of defence.

1. Governing Board

Composed of:

—	one delegation from each Member State. Each delegation shall have one vote. Representatives of the European Commission and of the General Secretariat of the Council of the European Union and Europol shall be invited to attend meetings as non-voting observers.

2. Director

Manages the Agency, is appointed and removed by the Governing Board.

3. External Audit

European Court of Auditors.

4. Internal Auditors

Internal Audit services of the Commission.

5. Discharge

European Parliament following a recommendation from the Council.

Final budget

5 million euro

(100 % Community subsidy)

Staff at 31 December 2006

Number of posts in the establishment plan: 22,5

Posts occupied: 7

Other posts: (contract staff, seconded national experts, etc.): 8

Total staff: 15.

No information provided.

Source: Information supplied by the College.

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

Table 2

European Police College (Bramshill) — Economic outturn account for the financial year 2006

(1000 euro)
	2006
Operating revenue
Community subsidies	4 352
Total (a)	4 352
Operating expenditure
Staff expenditure	1 460
Other administrative expenditure	358
Operational expenditure	2 454
Total (b)	4 272
Surplus/(deficit) from operating activities (c = a – b)	80
Financial operations revenues (e)	0
Financial operations expenditure (f)	12
Surplus/(deficit) from non-operating activities (g = e – f)	–12
Economic result for the year (h = c + g)	68

Table 3

European Police College (Bramshill) — Balance sheet at 31 December 2006

(1000 euro)
	2006
Non-current assets
Tangible fixed assets	37
Current assets
Short-term receivables	298
Cash and cash equivalents	3 682
Total assets	4 017
Current liabilities
Accounts payable	3 949
Total liabilities	3 949
Net assets
Economic result for the year	68
Total net assets	68
Total liabilities and net assets	4 017

THE COLLEGE'S REPLIES

The College is in the process of implementing the new budget management system ABAC during 2007 and of becoming compliant with the requirements of its Financial Regulation. For 2006, the College was able to transmit to the Commission the information necessary for the consolidation of the Community accounts.

8.	The implementing Rules to the Financial Regulation of the College shall be presented for adoption to the Governing Board in its meeting of November 2007.

The College is in the process of implementing ABAC. This system shall provide the basis for achieving a rapid progress during the financial year 2007 on the implementation of procedures that shall allow for full compliance in the management of the College's budget, as defined in the Financial Regulation.

10.

The Governing Board of the College, in its meeting of May 2007, has adopted a legal commitment system to be implemented from the second half of 2007 onwards. The College shall pay due attention to the principle of sound financial management when deciding on, approving and managing the activities under its work programme.

11.	The College has improved its procurement procedures and aims at fully respecting EC public procurement directives, rules and regulations, for instance, on the launching of large open calls for tenders such as the e-Platform Network.

19.12.2007

Official Journal of the European Union

C 309/111

REPORT

on the annual accounts of Eurojust for the financial year 2006 together with the Eurojust's replies

(2007/C 309/19)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-9	OBSERVATIONS

Tables 1 to 4

The Eurojust's replies

INTRODUCTION

Eurojust was set up by Council Decision No 2002/187/JHA (1) with a view to stepping up the fight against serious organised crime. Its objective is to improve the coordination of investigations and prosecutions covering the territories of several Member States of the European Union, as well as that of non-member States.

2.	Table 1 summarises Eurojust's competences and activities. Key data summarised from the financial statements drawn up by Eurojust 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 pursuant to Article 36 of Council Decision 2002/187/JHA.

Eurojust's accounts for the financial year ended 31 December 2006 (2) were drawn up by its Administrative Director, pursuant to Article 36 of Council Decision No 2002/187/JHA, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the Statement set out below.

Reliability of the accountsEurojust'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 Eurojust'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

The commitment rate for appropriations entered in the budget for the financial year 2006 was 96 %. The carryover rate was 33 % for administrative expenditure (Title II), and 30 % for operational expenditure (Title III). The management of the budget showed a high number of transfers of appropriations between budget lines and in many cases the supporting documentation was insufficiently detailed. Thus, the budgetary principles of annuality and specification were not strictly observed.

The rules for procurement were not strictly implemented. Four framework contracts were concluded for a maximum duration of more than four years. For the procurement of courier services (3) no appropriate procedure had been launched at the time of the audit (November 2006). For translation services, a bureau was instructed to use translators chosen by Eurojust instead of its own staff. This situation was not in line with the competition principle and it resulted in a price increase of 45 000 euro as compared to contractual tariffs.

9.	The data concerning fixed assets were compiled using a spreadsheet and other software tools. This did not guarantee the integrity of the data recorded. A fixed assets register which includes all assets and their values was not established and used to monitor the Eurojust's property.

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) Decision of 28 February 2002 setting up Eurojust (OJ L 63, 6.3.2002, p. 1).

(2) These accounts were drawn up on 27 June 2007 and received by the Court on 4 July 2007.

(3) Value of the contracts: more than 100 000 euro.

Table 1

Eurojust (The Hague) — 2006

Areas of competence deriving from the Treaty on European Union

Competences of Eurojust as defined in the Council Decision 2002/187/JAI

Governance

Resources made available to Eurojust in 2006

(2005)

Products and services supplied in 2006

(2005)

Third pillar body created by Council Decision.

The Union's objective is to provide citizens with a high level of safety within an area of freedom, security and justice.

The Council encourages cooperation through Eurojust by enabling it to facilitate proper coordination between the Member States' national prosecuting authorities.

(extracts from Articles 29 and 31)

Eurojust's main areas of responsibility are the same as Europol's, that is, the fight against terrorism, organised crime, in particular drug-trafficking, illegal immigration, illicit vehicle trafficking, trafficking in human beings, the counterfeiting of money, trafficking in radioactive substances, computer crime, acts detrimental to the Union's financial interests and money-laundering.

Objectives

Article 3

Eurojust Decision

—	To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions.

—	To improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests.

—	To support the competent authorities of the Member States in order to render their investigations and prosecutions more effective.

—	To provide support with procedures involving a Member State and a non-member State.

—	To provide support with procedures involving a Member State and the Community.

Tasks

Articles 5, 6 and 7

Eurojust Decision

To organise cooperation between the various national legal systems, Eurojust acts:

—	through its national members; or

—	as a College.

If the competent authorities of the Member State concerned decide not to respond to the requests which Eurojust has issued as a College, they shall inform Eurojust of the reasons for their decision.

1.	The College is responsible for the organisation and operation of Eurojust.

2.	The College is composed of national members who are seconded by each Member State in accordance with its legal system and who are prosecutors, judges or police officers of equivalent competence.

3.	The College elects its President from among the national members.

4.	The Joint Supervisory Body checks the processing of personal data

5.	The Administrative Director is unanimously appointed by the College.

6.	External audit: the European Court of Auditors.

7.	Discharge is given by the Parliament on the Council's recommendation.

Final budget

14,7 million euro (13 million euro)

Community subsidy: 100 % (100 %)

Staff numbers at 31 December 2006

Number of posts in the establishment plan: 112 (87)

Posts occupied: 93 (70)

+21 (15) other posts:

(2 contract staff, 5 seconded national experts, local staff, 14 employment agency staff)

Total staff numbers: 114 (85)

assigned to the following tasks:

operational: 56 (31)

administrative: 49 (41)

mixed: 9 (13)

Number of meetings: 89 (73)

Standard cases (*): 270 out of 361

Complex cases: 91 out of 361

Total number of cases: 771 (588)

Fraud: 175 (120)

Drug trafficking: 170 (135)

Terrorism: 44 (25)

Murder: 59 (43)

Trafficking in persons: 32 (33)

(*) New type of classification as of 1 July 2006, valid for the 361 cases opened between this date and 31 December 2006.

Source: Information supplied by Eurojust.

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

Table 2

EUROJUST (The Hague) — 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 received	Allocation of expenditure	Appropriations under the final budget					Appropriations carried over from the previous financial year(s)
Source of revenue	Revenue entered in the final budget for the financial year	Revenue received	Allocation of expenditure	entered	committed	paid	carried over	cancelled	entered	paid	cancelled
Community subsidies	14 700	14 700	Title I Staff	6 844	6 601	6 412	189	243	112	96	16
Other revenue	—	1 004	Title II Administration	3 384	3 295	2 214	1 082	89	722	571	151
			Title III Operating activities	4 472	4 189	2 940	1 320	211	1 280	1 153	127
Total	14 700	15 704	Total	14 700	14 086	11 566	2 591	543	2 114	1 819	295
NB: Variations in totals are due to the effects of rounding. Source: Data supplied by Eurojust. This table summarises the data supplied by Eurojust in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

EUROJUST (The Hague) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Community subsidies	12 858	11 991
Other revenues	973	59
Total (a)	13 831	12 050
Operating expenditure
Staff expenditure	6 581	5 149
Fixed-asset related expenditure	674	508
Other administrative expenditure	2 202	2 800
Operational expenditure	3 297	2 054
Total (b)	12 754	10 511
Surplus/(deficit) from operating activities (c = a – b)	1 077	1 539
Other charges (d)	—	3
Surplus /(deficit) from non-operating activities (e = – d)	0	–3
Economic result for the year (f = c + e)	1 077	1 536

Table 4

EUROJUST (The Hague) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	556	167
Tangible fixed assets	1 674	1 606
Current assets
Short-term receivables	372	159
Cash and cash equivalents	4 749	3 130
Total assets	7 351	5 062
Current liabilities
Provisions for risks and charges	134	85
Accounts payables	2 762	1 599
Total liabilities	2 896	1 684
Net assets
Accumulated surplus/deficit	3 378	1 842
Economic result for the year	1 077	1 536
Total net assets	4 455	3 378
Total liabilities and net assets	7 351	5 062

THE EUROJUST'S REPLIES

For Title II, the level of carry over is mostly due to a project managed by the host State and started very late in the year.

For Title III, Eurojust has reduced the rate since 2005 (from 33 % to 30 %). Eurojust has reviewed its Budget transfer policy in view to lower the number and volume of transfers and improve their documentation.

Eurojust has adopted appropriate measures to replace framework contracts within their fourth year of duration at the latest. An open procurement procedure for courier services has been launched and is ongoing.

The translation of the Annual Report of Eurojust entails very strict constraints as regards both timetable and quality requirements. Unfortunately, no supplier with whom Eurojust has a contract was able to provide the quality of service required within the timeframe necessary which led to the situation described by the Court. Nevertheless, Eurojust has taken into account the comment of the Court and is preparing a new procurement procedure to be launched before the end of 2007.

9.	Eurojust is working to resolve this situation by the end of 2007 by which time ABAC Assets will be in place and a link to the current software used for physical inventory will have the capacity to provide the information requested by the financial regulation.

19.12.2007

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

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

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.

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.

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.

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:

—	man at work,

—	organisation of work and particularly job design,

—	problems peculiar to certain categories of workers,

—	long-term aspects of the improvement of the environment,

—	the distribution of human activities in space and in time.

Tasks

—	to foster the exchange of information and experience in these fields,

—	to facilitate contact between universities, study and research institutes, economic and social administrations and organisations,

—	to carry out studies or to conclude study contracts and to provide assistance for pilot projects,

—	to cooperate as closely as possible with existing specialised institutes in the Member States and at international level.

The Governing Board (GB)

—	from each Member State: 1 government representative, 1 representative from employers' organisations and 1 workers' representative,

—	3 representatives from the Commission.

The Bureau of the GB

—	consists of 11 members; 3 members from each of the social partners and the governments, 2 from the Commission,

—	it monitors the implementation of decisions of the GB and takes measures to ensure proper management between GB meetings.

3.	The Director is appointed by the Commission from a list of candidates submitted by the GB, he implements the decisions of the GB and the Bureau of the GB and manages the Foundation.

4.	The Advisory Committees are composed of up to 3 members from the Commission, governments and the social partners, with the aim of advising on the implementation of major projects and the assessment of results.

5.	External audit The Court of Auditors.

6.	Discharge given by the Parliament on a recommendation by the Council.

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:

—	operational: 58 (54)

—	administrative: 32 (32)

—	mixed: 4 (5)

Monitoring and surveys

—	Establishment of one Network of European Observatories (NEO) covering the former three networks attached to the European Industrial Relations Observatory (EIRO), the European Working Conditions Observatory (EWCO) and the European Restructuring Monitor (ERM),

—	Fourth Working Conditions Survey: first results,

—	First Company Survey: first results.

Employment and restructuring

—	Studies on the Food & Beverage sector and Knowledge Intensive Businesses Services,

—	Geographical and Labour Market Mobility in Europe: report,

—	Attractive Workplaces for All: a contribution to the Lisbon Strategy at company level,

—	Labour Supply in Care Services: report.

Work-life balance and Working Conditions

—	Fourth Working Conditions Survey,

—	15 years of European working surveys: trend report,

—	Measuring Job Satisfaction in surveys,

—	Working-time reports based on the Company survey.

Industrial Relations (IR) and Partnership

—	Working Time and Pay Developments,

—	European Works Councils: reports and case studies,

—	IR Country Profiles,

—	Capacity Building for Social Dialogue: reports on New Member States and Turkey.

Social Cohesion and Quality of Life

—	EurLIFE database updates,

—	Ageing Workforce and Age Management: reports and case studies,

—	Employment guidance services for people with disabilities.

Communication and sharing ideas and experience

—	332 publications, 53 press releases, 40 % increase in web use, 16 % increase of press cuttings

—	Promotion campaigns ‘Your work, your life; balance company needs with worker satisfaction’ and ‘Fourth Working Conditions survey: what workers say’,

—	Foundation Forum 2006 ‘Competitive Europe, Social Europe — Partners or Rivals?’

—	Company Network Seminars

—	Foundation Seminar Series ‘Flexicurity and Employability’

—	National Outreach Centres covering AU, BE, ES, FI, FR, HU, IT, LUX, SP, UK,

—	Exhibitions at Employment week in Brussels and at the PES conference in Oporto.

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
Source of revenue	Revenue entered in the final budget for the financial year	Revenue collected	Allocation of expenditure	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.

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.

19.12.2007

Official Journal of the European Union

C 309/122

REPORT

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

(2007/C 309/21)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-8	OBSERVATIONS

Tables 1 to 4

The Foundation's replies

INTRODUCTION

The European Training Foundation (hereinafter called ‘the Foundation’) was created by Council Regulation (EEC) No 1360/90 of 7 May 1990 (1). The Foundation's purpose is to support the reform of vocational training in the European Union's partner countries. As such, it assists the Commission in the implementation of various programmes (Phare, Tacis, CARDS and MEDA).

2.	Table 1 summarises the competences and activities of the Foundation. 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

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.

The Foundation's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Executive Director, pursuant to Article 11 of Regulation (EEC) No 1360/90, and sent to the Court, which is required to deliver a Statement of Assurance on the reliability and on the legality and regularity of the underlying transactions.

The Court has obtained a reasonable basis for the Statement set out below:

OBSERVATIONS

Title III appropriations are differentiated. Article 31 of the Framework Financial Regulation requires that the budget published in the Official Journal shows both commitment and payment appropriations with a payment schedule when appropriations are differentiated. The Foundation only published the commitment appropriations for its 2006 budget. This did not respect the rules for budget presentation.

In 2006, the Foundation had two ongoing MEDA and TEMPUS multi-annual contracts with the Commission, both entered into in 2004. Funds provided by these contracts are considered to be assigned revenue. The Foundation entered the total contractual amount of these revenues in its budget instead of the amounts to be received each year.

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 131, 23.5.1990, p. 1.

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 26 June 2007 and received by the Court on 3 July 2007.

Table 1

European Training Foundation (Turin)

Areas of Community competence deriving from the Treaty

Competences of the Foundation

Council Regulation (EEC) No 1360/90 of 7 May 1990

Governance

Resources made available to the Foundation in 2006

(2005 data)

Products and services supplied during the financial year 2006

‘The Community shall carry out, within its spheres of competence, economic, financial and technical cooperation measures with third countries. Such measures shall be complementary to those carried out by the Member States and consistent with the development policy of the Community’.

(Article 181 A)

Objectives

—

To contribute to the development of the professional training systems of Central and Eastern Europe and the independent States of the former Soviet Union benefiting from the programme to assist economic reform and recovery of the territories and non- Member Mediterranean countries benefiting from financial and technical accompanying measures for the reform of their economic and social structures.

—	To promote the coordination of the assistance given to eligible countries.

Tasks

In accordance with the general guidelines laid down by the Community, the ETF operates in the field of training, covering, professional, initial and lifelong training and the retraining of young people and adults via the following tasks:

—	assistance in defining training needs and priorities via the implementation of technical assistance measures in the training field and via cooperation with the appropriate designated bodies in the eligible countries;

—	acts as a clearing house to provide the Community, its Member States and the non-Member States concerned information on current initiatives and future needs in the training field and provides a framework for channelling offers of assistance.

Governing Board

—	One representative of each Member State

—	Three representatives of the Commission

—	Chaired by the Commission

Director

—	Appointed by the Governing Board on a proposal from the Commission

Advisory Forum

—	Appointed by the Governing Board

—	Two experts from each Member State

—	Two experts from each eligible country

—	Two experts from the social partners at European level

External audit

European Court of Auditors

Internal audit

Commission's internal audit department

Discharge

European Parliament on a recommendation from the Council

Budget

26,5 (26,3) million euro divided up into 19,5 (18,5) million euro funded by a Commission subsidy and 7,0 (7,8) million euro funded by other bodies as assigned revenue.

This sum of 7,0 million euro divides up as follows:

0,98 million euro from the Italian Ministry of foreign affairs;

4,37 million euro from DG AIDCO (Meda-ETE);

1,69 million euro from DG EAC (Tempus)

Staff numbers as at 31 December 2006

105 (104) temporary posts in the establishment plan of which 94 (97) posts occupied.

32 (22) other staff (auxiliaries, local agents, contract staff

Total staff: 126 (119), assigned to the following duties:

—	operational tasks: 73 (68)

—	administrative tasks: 34 (33)

—	mixed tasks: 19 (18).

Activities

The assistance supplied by the Foundation covers a large range of technical fields including: initial vocational training, lifelong learning, continuing (adult) education, human resource development in companies, employment policies, training of unemployed people, poverty alleviation and social inclusion and training to encourage local development.

Support for the Commission

In 2006, 97 new requests for support were received from the Commission. The majority came from the delegations (38 %), AIDCO (21 %), DG EAC (16 %) followed by DG ELARG and EAR (7 %), DG RELEX (5 %). DG EMPL (4 %). This included 24 analyses of the situation in the ENPI countries. The Commission's rate of satisfaction with the ETF's response was 97 %. The most frequent applications were those in the field of programming, followed by policies and contributions in the preparation of European Neighbourhood Instruments, the identification of projects and follow-up.

Information and analysis

Country sector studies, statistics on education, policy advice to countries.

Innovation and development support projects.

As a centre of expertise, the ETF contributes towards the setting up of development projects in order to test innovatory approaches allowing partner countries to carry out reforms of their education and vocational training systems.

Technical assistance to DG EAC for the implementation of the Tempus programme

Assistance Conventions with CARDS, MEDA and Tacis for the Tempus programme:

This assistance covers the whole cycle of the project. It includes the selection, management and follow-up of contracts and information and communication, including general administrative support. IT tools such as online applications and report forms have greatly facilitated the administrative management of the various project cycles.

Source: Information provided 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 Training Foundation (Turin) — Budgetary implementation for the financial year 2006

(1000 euro)

Revenue

Expenditure

Origin 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

paid

cancelled

Community subsidies

19 450

Title I

Staff (NDA)

12 239

11 990

11 427

562

249

478

409

Other revenue

Title II

Administration (NDA)

1 719

1 595

1 158

437

124

326

287

Title III

Operating activites (DA)

— CA

5 495

4 970

1 918

525

— PA

5 495

3 052

2 443

1 925

1 474

451

Earmarked revenue: Italian government

980

314

Earmarked revenue: Italian government

980

544

500

480

356

Earmarked revenue: ETE-MEDA

4 365 (1)

2 000

Earmarked revenue: ETE-MEDA

4 365 (1)

3 114

1 234

3 131

2 365

Earmarked revenue: TEMPUS

1 686

624

Earmarked revenue: TEMPUS

1 686

1 616

822

864

1 062

Total

26 484

22 452

Total CA

26 484

23 829

18 193

7 392

897

4 587

696

3 890

Total PA

26 484

18 859

18 193

5 474

2 816

6 512

2 170

4 342

NDA	:	non-differentiated appropriations (commitment appropriations are equal to payment appropriations).
DA	:	differentiated appropriations (commitment appropriations may differ from payment appropriations).
CA	:	commitment appropriations in a system of differentiated appropriations.
PA	:	payment appropriations in a system of differentiated appropriations.

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

Table 3

European Training Foundation (Turin) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Community subsidies	16 052	18 484
Other subsidies	314	479
Other MEDA ETE	—	5 000
Other Tempus TA 2004/05	—	2 363
Awaiting clearance EC — ETE MED and TEMPUS TA	2 868	—
Total (a)	19 234	26 326
Operating expenditure
Staff expenditure	11 539	11 785
Fixed asset-related expenditure	359	362
Other administrative expenditure	2 580	1 729
Operational expenditure	7 204	12 237
Total (b)	21 682	26 113
Surplus/(deficit) from operating activities (c = a – b)	–2 448	214
Financial operations revenue (e)	—	—
Financial operations expenditure (f)	1	1
Surplus /(deficit) from non-operating activities (g = e – f)	–1	–1
Economic result for the year (h = c + g)	–2 449	213

Table 4

European Training Foundation (Turin) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	3 053	3 214
Tangible fixed assets	311	213
Current assets
Stocks	34	37
Short-term pre-financing	1 169	1 266
Short-term receivables	339	174
Cash and cash equivalents (2)	12 157	23 665
Total assets	17 063	28 569
Non-current liabilities
Provisions for risks and charges	550	205
Current liabilities
Provisions for risks and charges	157	132
Accounts payable	15 133	24 560
Total liabilities	15 840	24 897
Net assets
Accumulated surplus/deficit	3 670	3 458
Economic result for the year	–2 448	213
Total net assets	1 222	3 671
Total liabilities and net assets	17 062	28 568

(1) The initial amount entered in the budget was 4 865 000 euro, of which 500 000 euro was not paid by the Commission. For clarity and accuracy the amended amount (4 365 000 euro) is shown.

NDA	:	non-differentiated appropriations (commitment appropriations are equal to payment appropriations).
DA	:	differentiated appropriations (commitment appropriations may differ from payment appropriations).
CA	:	commitment appropriations in a system of differentiated appropriations.
PA	:	payment appropriations in a system of differentiated appropriations.

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

(2) Reimbursement of unused funds related to Tempus grants.

THE FOUNDATION'S REPLIES

7.	ETF accepts the Court's remark and undertakes to present distinct commitment and payment appropriation budgets. This has already been prepared for the 2007 amended budget.

8.	ETF takes good note of the Court's remark and will adopt the approach proposed for all conventions in the future.

19.12.2007

Official Journal of the European Union

C 309/128

REPORT

on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2006 together with the Centre's replies

(2007/C 309/22)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-9	OBSERVATIONS

Tables 1 to 4

The Centre's replies

INTRODUCTION

The European Monitoring Centre for Drugs and Drug Addiction (hereinafter ‘the Centre’) was established by Council Regulation (EEC) No 302/93 of 8 February 1993 (1). Its main task is to collect data on drugs and drug addiction in order to prepare and publish information that is objective, reliable and comparable at European level. The information is intended to provide a basis for analysing the demand for drugs and ways of reducing both it and, in general, phenomena associated with the drug market.

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 inTables 2, 3 and 4 for information purposes.

STATEMENT OF ASSURANCE

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

The Centre's accounts for the financial year ended 31 December 2006 (3) were drawn up by its Director, pursuant to Article 11 of Regulation (EEC) No 302/93, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the Statement 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 underlying transactionsThe transactions underlying the Centre'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 utilisation rate of commitment appropriations (including assigned revenue) was 95 % (94 % in 2005) and the corresponding rate for payment appropriations improved to 87 % (85 % in 2005). The Centre reduced the level of carry-overs to 25 % in 2006 (40 % in 2005).

8.	In nine cases out of 13 examined contrary to the provisions of the contracts, there were delays in making the payments to the national focal points of Reitox (European Information Network on Drugs and Drug Addiction) under the grant agreements.

In the report on the annual accounts of the Centre for the financial year 2005 (4), the Court made an observation in respect of a member of staff who had been sent on a long-term mission to Brussels and who after the end of the mission, had been seconded to the Commission. However, since the end of the secondment, this staff member continued to be paid by the Centre without having resumed work in Lisbon. The situation remained unchanged in 2006. In 2007, this agent was declared able to work anywhere except specifically in Lisbon.

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 36, 12.2.1993This Regulation was amended by Regulations (EC) No 3294/94 of 22 December 1994 (OJ L 341, 30.12.1994, p. 7) and (EC) No 1651/2003 of 18 June 2003 (OJ L 245, 29.9.2003, p. 30).

(2) OJ L 248, 16.9.2002, p. 1.

(3) These accounts were drawn up on 15 June 2007 and received by the Court on 13 July 2007.

(4) OJ C 312 of 19.12.2006 (paragraph 12, p. 68).

Table 1

European Monitoring Centre for Drugs and Drug Addiction (Lisbon)

Areas of Community competence deriving from the Treaty

Competences of the Centre as defined in Council Regulation (EEC) No 302/93

Governance

Resources available to the Centre in 2006

(2005)

Products and services supplied in 2006

(2005 data)

The Community complements the Member States' action in reducing drugs-related health damage, including information and prevention.

(Article 152 of the Treaty)

Objectives

To provide the Union and its Member States with reliable information at European level concerning drugs and drug addiction and their consequences.

The Monitoring Centre should give priority to analysing:

1)	the demand and reduction of the demand for drugs;

2)	national and Community strategies and policies;

3)	international cooperation and the geopolitics of supply;

4)	control of the trade in narcotics, psychotropic substances and drug precursors;

5)	the implications of drug use for producer, consumer and transit countries, including money laundering.

Tasks

—	To collect and analyse data.

—	To make enquiries and carry out preparatory actions.

—	To ensure that European-level data are more reliable.

—	To publish reliable information.

—	To improve coordination between national and Community actions.

—	To promote the incorporation of drug-related data into international programmes.

1.	The Management Board Comprises one representative from each Member State, two representatives of the Commission and two qualified scientists appointed by the European Parliament. It approves the work programme and general annual report and adopts the budget.

2.	Director: Appointed by the Management Board at the Commission's proposal.

3.	Scientific Committee: Delivers opinions. It is made up of one representative from each Member State. The Management Board may also appoint a maximum of six other members on the basis of their specific qualifications.

4.	External control: Court of Auditors

5.	Discharge authority: European Parliament on the Council's recommendation.

Final budget

13,12 million euro (12,8 million euro).

Community contribution: 92 % (96 %).

Staff numbers as at 31 December 2006

Number of posts in establishment plan: 77 (77)

Posts occupied: 68 (58)

+23 (25) other staff (auxiliary contracts, contract staff and temporary replacements)

Total staff: 91(83)

Assigned to the following duties:

operational: 53,5 (50,5)

administrative and IT support: 30 (25)

mixed: 7,5 (7,5)

Network

The Centre runs a computerised network for the collection and exchange of information called the ‘European Information Network on Drugs and Drug Addiction’ (Reitox); this network connects national drug information networks, specialist centres in the Member States and the information systems of international organisations working with the Centre.

Publications

—	Annual report on the state of the drug problem in Europe (23 (22) language versions, publication and interactive website)

—	Annual report on selected issues (EN, publication and interactive website)

—	Statistical bulletin and interactive website containing over 250 (200) tables, 150 (100) graphs and PDF files

—	General activity report (annual, EN)

—	Drugnet Europe newsletter (4 issues, EN (two in five languages and two EN))

—	Technical and scientific studies and articles (21) (28)

—	articles and scientific summaries (16)

Other websites:

Set-up/updating/content development:

—	Country situation summaries

—	Country data profiles

—	Drug treatment overviews

—	European legal database on drugs

—	Evaluation instruments bank

—	Exchange on drug demand reduction action

Promotional brochures (4 (3) products)

Media products (174 (110) miscellaneous products)

Participation in international conferences/meetings (162 (75))

Organisation of technical and scientific meetings (27 (24))

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 Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Budget implementation for the financial year 2006

(1000 euro)

Revenue

Expenditure

Source of revenue

Revenue entered in the final budget for the financial year

Revenue received

Allocation of expenditure

Final budget appropriations for the financial year

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

committed

cancelled

Community subsidies

12 100

Title I

Staff (NDA)

6 500

6 468

6 373

154

134

Own revenue

521

Title II

Administrations (NDA)

1 590

1 482

1 077

405

108

650

611

Other revenue

Title III

Operational activities (DA)

— CA

4 531

4 486

— PA

4 531

4 163

368

Assigned revenue (Phare)

500

381

Assigned revenue (Phare)

500

224

472

284

171

Total

13 121

13 095

Total CA

13 121

12 660

972

Total PA

13 121

12 660

11 641

972

508

1 088

916

NDA	:	non-differentiated appropriations (commitment appropriations equal payment appropriations).
DA	:	differentiated appropriations (commitment appropriations and payment appropriations may differ).
CA	:	commitment appropriations in a system of differentiated appropriations.
PA	:	payment appropriations in a system of differentiated appropriations.

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

Table 3

European Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Community subsidies	13 394	10 592
Other revenues	93	312
Total (a)	13 488	10 904
Operating expenditure
Staff expenditure	6 566	5 843
Fixed asset-related expenditure	292
Other administrative expenditure	2 369	2 269
Operating activities	4 629	4 181
Total (b)	13 857	12 293
Surplus/(deficit) from operating activities (c = a – b)	– 370	–1 389
Revenue from financial operations (e)
Expenditure on financial operations (f)	16	35
Surplus/(deficit) from non-operating activities (g = e – f)	–16	–35
Economic result for the year (h = c + g)	– 385	–1 424

Table 4

European Monitoring Centre for Drugs and Drug Addiction (Lisbon) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	374	56
Tangible fixed assets	2 809	2 933
Current assets
Short-term receivables	416	224
Cash and cash equivalents	1 881	3 005
Total assets	5 480	6 218
Current liabilities
Provisions for risks and charges	149	115
Accounts payable	2 843	3 231
Total liabilities	2 992	3 346
Net assets
Accumulated surplus/deficit	2 872	4 296
Economic result for the year	– 385	–1 424
Total net assets	2 488	2 872
Total liabilities and net assets	5 480	6 218

THE CENTRE'S REPLIES

7.	The Centre will continue its efforts to maintain the high rate of execution of its budget and if possible to improve it.

8.	In order to improve the referred payment process the EMCDDA has taken various measures:

—	improvement of the relevant communication/notification process to the National Focal Points (NFP);

—	provision of guidelines and specific training for NFPs on financial procedures;

—	reinforcement of the operating capacity for the financial and administrative management of the grants;

—	streamlining of the relevant internal control processes.

The secondment of the concerned staff member ended on 30 September 2006. As from 1 October 2006 the staff member was reinstated in the EMCDDA services. However, the concerned person took sick leave, providing evidence (by means of regular medical certificates) of being unable to carry out duties because of illness.

The EMCDDA requested twice the medical service of the European Commission to carry out a medical examination to verify the grounds for the referred sick leave and the examinations have confirmed the existence of reasons justifying the absence for sickness.

The EMCDDA will continue to use all instruments provided by the relevant regulations to manage the referred case.

19.12.2007

Official Journal of the European Union

C 309/135

REPORT

on the annual accounts of the Community Plant Variety Office for the financial year 2006 together with the Office's replies

(2007/C 309/23)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

Tables 1 to 4

The Office's replies

INTRODUCTION

The Community Plant Variety Office (hereinafter ‘the Office’) was created by Council Regulation (EC) No 2100/94 of 27 July 1994 (1). Its main task is to register and examine applications for the grant of Community industrial property rights for plant varieties and to ensure that the necessary technical examinations are carried out by the competent offices in the Member States.

2.	Table 1 summarises the Office's competences and activities. Key data summarised from the financial statements drawn up by the Office 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 Administrative Council of the Office in accordance with Article 111 of Council Regulation (EC) No 2100/94.

The Office's accounts for the financial year ended 31 December 2006 (2) were drawn up by its President, pursuant to Article 112 of Regulation (EC) No 2100/94, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

The Court has thus obtained a reasonable basis for the Statement set out below.

Reliability of the accountsThe Office'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 Office's annual accounts, taken as a whole, are legal and regular.

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 227, 1.9.1994, p. 27.

(2) These accounts were drawn up on 21 June 2007 and received by the Court on 3 July 2007.

Table 1

Community Plant Variety Office (Angers)

Areas of Community competence deriving from the Treaty

Competences of the Office as defined in Council Regulation (EC) No 2100/94

Governance

Resources made available to the Office in 2006

(2005)

Products and services supplied in 2006

Free movement of goods

Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property shall not constitute a means of arbitrary discrimination or a disguised restriction on trade between the Member States.

(Extract from Article 30 of the Treaty)

Objectives

To apply the system of Community plant variety rights as the sole and exclusive form of Community industrial property rights for plant varieties.

Tasks

—	To decide whether to refuse or grant applications for Community plant variety rights.

—	To decide on objections.

—	To decide on appeals.

—	To decide on the revocation or cancellation of a Community plant variety right.

1.	The President directs the Office. He is appointed by the Council from a list of candidates proposed by the Commission after obtaining the opinion of the Administrative Council.

2.	The Administrative Council oversees the Office's work programme and draws up rules governing the Office's working methods. It is composed of one representative of each Member State and one representative of the Commission, plus their alternates.

3.	Decisions regarding the grant of Community plant variety rights are adopted by committees composed of three members of staff of the Office and by the Board of Appeal in appeal proceedings.

4.	External control: review of the legality of acts by the President for which Community legislation provides no judicial review by any other body, as well as the legality of acts by the Administrative Council in respect of the Office's budget.

5.	Financial control: Court of Auditors.

6.	Discharge Authority: Administrative Council.

Final budget

13,0 (13,4) million euro

Staff numbers as at 31 December 2006:

Number of posts in establishment plan: 41 (40)

Posts occupied: 41(40)

+4 (5) other posts (auxiliary contracts, national experts on secondment, local staff, employment agency staff)

Total staff: 45 (45)

Assigned to the following duties:

Applications heard: 2 751 (2 734)

Rights granted: 2 289 (2 178)

Community rights in force at 31 December 2006: 12 933 (11 231)

operational:

administrative:

mixed:

Source: Information supplied by the Office

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

Table 2

Community Plant Variety Office (Angers) — Budget implementation 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

Final budget appropriations

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Own revenue

8 395

8 478

Title I

Staff (NDA)

4 451

4 404

4 351

Accumulated surplus

2 130

Community subsidies

328

Title II

Administration (NDA)

2 071

1 555

702

852

516

630

371

259

Other revenue

325

524

Title III

Operating activities (DA)

— CA

6 496

5 397

1 099

— PA

4 656

4 358

298

Total

11 178

9 330

Total CE

13 018

11 356

1 664

677

418

259

Total CP

11 178

9 411

903

863

677

418

259

NDA	:	non-differentiated appropriations (commitment appropriations equal payment appropriations).
DA	:	differentiated appropriations (commitment appropriations may differ from payment appropriations).
CA	:	commitment appropriations in a system of differentiated appropriations.
PA	:	payment appropriations in a system of differentiated appropriations.

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

Table 3

Community Plant Variety Office (Angers) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Fees collected	8 844	7 649
Other revenues	29	235
Total (a)	8 873	7 884
Operating expenditure
Staff expenditure	4 398	4 226
Fixed asset related expenditure	191	189
Other administrative expenditure	1 031	1 296
Operating expenditure	4 535	3 971
Total (b)	10 155	9 682
Surplus/(deficit) from operating activities (c = a – b)	–1 282	–1 798
Revenue from financial operations (e)	495	367
Expenditure on financial operations (f)	0	0
Surplus/(deficit) from non-operating activities (g = e – f)	495	367
Extraordinary income	7	—
Extraordinary expenditure	38	—
Surplus/(deficit) from extraordinary activities	–31	—
Economic result for the year	– 818	–1 431

Table 4

Community Plant Variety Office (Angers) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	43	81
Tangible fixed assets	3 319	3 432
Current assets
Short-term receivables	943	897
Cash and cash equivalents	18 487	19 111
Total assets	22 792	23 521
Current liabilities
Accounts payable	7 419	7 331
Total liabilities	7 419	7 331
Net assets
Accumulated surplus/deficit	16 191	17 621
Economic result for the year	– 818	–1 431
Total net assets	15 373	16 190
Total liabilities and net assets	22 792	23 521

THE OFFICE'S REPLIES

The Office has taken note of the Court's report.

19.12.2007

Official Journal of the European Union

C 309/141

REPORT

on the annual accounts of the Office for Harmonisation in the Internal Market for the financial year 2006 together with the Office's replies

(2007/C 309/24)

CONTENTS

1-2	INTRODUCTION

3-6	STATEMENT OF ASSURANCE

7-9	OBSERVATIONS

Tables 1 to 4

The Office's replies

INTRODUCTION

The Office for Harmonisation in the Internal Market (hereinafter ‘the Office’) was set up by Council Regulation (EC) No 40/94 (1) of 20 December 1993. Its mandate is to implement the Community legislation on trade marks and designs, which gives undertakings uniform protection throughout the entire area of the European Union.

2.	Table 1 summarises the Office's competences and activities. Key data summarised from the financial statements drawn up by the Office 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 Office Budget Committee in accordance with Article 137 of Council Regulation (EC) No 40/94.

The Office's accounts for the financial year ended 31 December 2006 (2) were drawn up by its President, pursuant to Article 119 of Council Regulation (EC) No 40/94, 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.

The Court has thus obtained a reasonable basis for the Statement set out below.

OBSERVATIONS

Implementation of the budget was characterised by a significant increase in revenue (27 % higher than the initial budget) and a lower overall level of expenditure resulting in a budgetary surplus of 69 million euro. The implementation rates for the commitment and payment appropriations were 92,7 % and 72,6 % respectively. Around 15 % of the appropriations for administrative expenditure (Title II) for the year and those carried over from the previous financial year were cancelled. More than one third of the commitments for the 2006 financial year were carried over. A high number of budgetary transfers were made (3). All transfers initiated in one day or within defined short periods are not processed for approval together. Thus, the budgetary principles of annuality and specification were not strictly observed.

8.	The accumulated surplus in 2006 reached 200 million euro, the equivalent of the annual budget. On the basis of the recent analysis made, there was a need for the Office to propose to the Commission a level of fees which more accurately reflects its real costs (4).

The examination of procedures for recruiting staff showed the following shortcomings: a lack of formal decisions in appointing selection boards, selection board incomplete once having been set up, parity of members of the selection board not assured and no minutes of the selection board meetings. Written procedures and guidelines for the recruitment of temporary staff have not yet been adopted and implemented (5).

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 11, 14.1.1994

(2) These accounts were drawn up on 1 July 2007 and received by the Court on 2 July 2007.

(3) During 2006 there were more than 30 transfers.

(4) Article 134(2) of the Council Regulation (EC) No 40/94 of 20 December 1993.

(5) Article 12(5) of the Conditions of Employment of other servants of the EC.

Table 1

Office for Harmonisation in the Internal Market (Alicante)

Area of Community competence deriving from the Treaty

Competences of the Office as specified in Council Regulation (EC) No 40/94 of 20 December 1993

Gouvernance

Resources made available to the Office in 2006

(2005)

Products and services supplied in the 2006 financial year

Free movement of goods

Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property must not constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States.

(From Article 30 of the Treaty)

Restrictions on freedom to provide services within the Community are prohibited in respect of nationals of Member States who are established in a State of the Community other than that of the person for whom the services are intended.

(From Article 49 of the Treaty)

Objectives

To implement the Community legislation on trade marks and designs, which gives undertakings the right to uniform protection throughout the entire area of the European Union.

Tasks

—	To receive and enter applications for registration.

—	To examine the conditions for entry in the Register and compatibility with Community legislation.

—	To search at the industrial property offices of the Member States for any pre-existing national trade marks.

—	To publish applications.

—	To examine any opposition by third parties.

—	To register or reject applications.

—	To examine applications for revocation or invalidity.

—	To handle appeals against decisions.

1. Administrative Board

Composition

—	One representative of each Member State

—	One representative of the Commission and their alternates

Task

—	To advise the President on matters for which the Office is responsible

—	To prepare lists of candidates (Article 120) for President, Vice-Presidents and chairmen and members of the Boards of Appeal

2. President of the Office

—	Appointed by the Council from a list of at most three candidates which has been prepared by the Administrative Board

3. Budget Committee

Composition

One representative of each Member State and one representative of the Commission and their alternates

Task

—	To adopt the budget and the financial regulation, grant discharge to the President and determine the cost of search reports

4. Decisions in connection with procedures

Decisions are taken by:

(a)	the Examiners;

(b)	the Opposition Divisions;

(c)	the Administration of Trade Marks and Legal Division;

(d)	the Cancellation Divisions;

(e)	the Boards of Appeal

5. External audit

The Court of Auditors

6. Discharge authority

The Office's Budget Committee

Final budget

212 million euro (218 million euro) including a Community subsidy: 0 % (0%)

Staff numbers as at 31 December 2006

675 (675) posts in the establishment plan,

posts occupied: 603 (611)

+72 (78) other staff (auxiliary contracts, seconded national experts, local and employment agency staff)

Total staff: 675 (689)

assigned to the following duties:

—	production: 480 (548)

—	support: 195 (141)

Trade marks

Number of applications: 77 461

Number of registrations: 66 954

Number of cases of opposition: 13 995

of which cases settled: 13 979

Appeals to the Boards of Appeal: 1 659

Average time for registration (excluding opposition or appeal):

—	before publication: 8 months

—	between publication and registration: 6 months

Designs

Designs received: 68 500

Designs registered: 69 555

Source: Information supplied by the Office.

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

Table 2

Office for Harmonisation in the Internal Market (Alicante) — 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 received	Allocation of expenditure	Final budget appropriations					Appropriations carried over from the previous financial year
Source of revenue	Revenue entered in the final budget for the financial year	Revenue received	Allocation of expenditure	entered	committed	paid	carried over	cancelled	available	paid	cancelled
Own revenue	146 723	184 020	Title I Staff	60 431	59 348	56 758	1 390	2 283	995	835	160
Other revenue	709	553	Title II Administration	37 772	31 337	20 639	10 691	6 442	9 685	8 866	819
Interest	4 500	7 692	Title III Operating activities	36 541	35 371	20 963	14 407	1 170	14 226	13 015	1 212
Balance of the previous financial year	59 797	59 296	Title X Reserve	76 985	0	0	0	76 985	0	0	0
Total	211 729	251 561	Total	211 729	126 056	98 360	26 488	86 880	24 906	22 716	2 191
Source: Data supplied by the Office. This table summarises the data provided by the Office in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

Office for Harmonization in the Internal Market (Alicante) — Economic outturn account for the financial years 2006 and 2005

(1000 euro)
	2006	2005
Operating revenue
Revenue from fees	184 066	156 945
Revenue from the sale of publications	285	512
Other revenue	172	310
Total (a)	184 523	157 767
Operating expenses
Staff expenses	58 055	56 278
Fixed asset related expenses	3 586	3 386
Other administrative expenses	26 833	25 224
Operational expenses	34 720	35 850
Total (b)	123 194	120 738
Surplus/(deficit) from operating activities (c = a – b)	61 329	37 029
Financial operations revenues (e)	8 149	4 451
Financial operations expenses (f)	63	38
Surplus/(deficit) from non-operating activities (g = e – f)	8 086	4 413
Economic result for the year (h = c + g)	69 415	41 442

Table 4

Office for Harmonization in the Internal Market (Alicante) — Balance sheet at 31 December 2006 and 2005

(1000 euro)
	2006	2005
Non-current assets
Intangible fixed assets	1 023	829
Tangible fixed assets	25 948	26 627
Current assets
Short-term pre-financing	190	185
Short-term receivables	2 453	2 011
Cash and cash equivalents	281 510	208 020
Total assets	311 125	237 672
Non-current liabilities
Provisions for risks and charges	727	597
Other long-term liabilities	20	16
Current liabilities
Provisions for risks and charges	12 266	10 499
Accounts payable	54 681	52 544
Total liabilities	67 693	63 656
Net assets
Reserves	72 353	—
Accumulated surplus/deficit	101 663	132 575
Economic result of the year	69 415	41 442
Total net assets	243 431	174 017
Total liabilities and net assets	311 125	237 672

THE OFFICE'S REPLIES

7.	The Office is continuing its efforts to improve its forecasts of its revenue and expenditure. The significant amount of carried over appropriations form 2006 to 2007 is mainly due to delays of some IT projects. The Office has put in April 2007 an improved procedure for handling transfers.

8.	The Office takes good note of the observations of the Court of Auditors. In December 2006, the Commission made proposals for a new fee mechanism. The Council, in May 2007, asked the Commission to make a proposal for a substantial reduction.

9.	In 2006, the Office has already improved the formalising of its procedures regarding human resources management and in particular recruitment. In 2007, this effort will be pursued to take account of the Court's remarks.

		ISSN 1725-2423
Official Journal of the European Union		C 309

English edition	Information and Notices	Volume 50 19 December 2007

	Corrigenda
2007/C 309/25	Corrigendum to the Annual Report of the Court of Auditors on the implementation of the budget concerning the financial year 2006, together with the institutions' replies (OJ C 273, 15.11.2007)	147

(1000 euro)
	2006	2005 (1)
Operating revenue
Fees and other revenue	119 039	72 979
Community subsidies	31 503	28 957
Total (a)	150 542	101 936
Operating expenses
Staff expenses	45 150	40 057
Other administrative expenses	26 607	22 459
Operational expenses	63 437	37 849
Total (b)	135 194	100 365
Surplus/(deficit) from operating activities (c = a – b)	15 348	1 571
Financial operations revenue (e)	1 433	2 257
Surplus/(deficit) from non-operating activities (f = e)	1 433	2 257
Economic result for the year (g = c + f)	16 781	3 828

(1000 euro)
	2006	2005 (1)
Non-current assets
Intangible fixed assets	14 889	10 492
Tangible fixed assets	6 695	6 945
Current assets
Short-term receivables	26 045	14 490
Cash and cash equivalents	37 508	29 934
Total assets	85 138	61 861
Current liabilities
Provisions for risks and charges	2 699	1 214
Accounts payable	38 550	33 539
Total liabilities	41 249	34 753
Net assets
Accumulated surplus/deficit	27 108	23 280
Economic result for the year	16 781	3 828
Total net assets	43 889	27 108
Total liabilities and net assets	85 138	61 861

Notice No	Contents	page
	IV Notices
	NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES
	Court of Auditors
2007/C 309/01	Report on the annual accounts of the European Network and Information Security Agency for the financial year 2006 together with the Agency's replies	1

2007/C 309/02	Report on the annual accounts of the European Union Fundamental Rights Agency (formerly the European Monitoring Centre on Racism and Xenophobia) for the financial year 2006 together with the Agency's replies	6

2007/C 309/03	Report on the annual accounts of the Education, Audiovisual and Culture Executive Agency for the financial year 2006 together with the Agency's replies	13

2007/C 309/04	Report on the annual accounts of the Intelligent Energy Executive Agency for the financial year 2006 together with the Agency's replies	18

2007/C 309/05	Report on the annual accounts of the European Environment Agency for the financial year 2006 together with the Agency's replies	24

2007/C 309/06	Report on the annual accounts of the European Agency for the Management of Operational Cooperation at the External Borders of the Member States for the financial year 2006 together with the Agency's replies	29

2007/C 309/07	Report on the annual accounts of the European Medicines Agency for the financial year 2006 together with the Agency's replies	34

2007/C 309/08	Report on the annual accounts of the European Agency for Reconstruction for the financial year 2006 together with the Agency's replies	40

2007/C 309/09	Report on the annual accounts of the European Aviation Safety Agency for the financial year 2006 together with the Agency's replies	47

2007/C 309/10	Report on the annual accounts of the European Maritime Safety Agency for the financial year 2006 together with the Agency's replies	55

2007/C 309/11	Report on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2006 together with the Agency's replies	62

2007/C 309/12	Report on the annual accounts of the European Railway Agency for the financial year 2006 together with the Agency's replies	67

2007/C 309/13	Report on the annual accounts of the European GNSS Supervisory Authority for the financial year 2006 together with the Authority's replies	72

2007/C 309/14	Report on the annual accounts of the European Food Safety Authority for the financial year 2006 together with the Authority's replies	80

2007/C 309/15	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	86

2007/C 309/16	Report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2006 together with the Centre's replies	94

2007/C 309/17	Report on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2006 together with the Centre's replies	99

2007/C 309/18	Report on the annual accounts of the European Police College for the financial year 2006 together with the College's replies	105

2007/C 309/19	Report on the annual accounts of Eurojust for the financial year 2006 together with the Eurojust's replies	111

2007/C 309/20	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	116

2007/C 309/21	Report on the annual accounts of the the European Training Foundation for the financial year 2006 together with the Foundation's replies	122

2007/C 309/22	Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addiction for the financial year 2006 together with the Centre's replies	128

2007/C 309/23	Report on the annual accounts of the Community Plant Variety Office for the financial year 2006 together with the Office's replies	135

2007/C 309/24	Report on the annual accounts of the Office for Harmonisation in the Internal Market for the financial year 2006 together with the Office's replies	141

(1000 euro)
Revenue			Expenditure (1)
Source of revenue	Revenue entered in the final budget for the financial year	Revenue collected	Allocation of expenditure	Final budget appropriations
Source of revenue	Revenue entered in the final budget for the financial year	Revenue collected	Allocation of expenditure	entered	committed	paid	carried over	cancelled
Community subsidies	18 940	19 504	Title I Staff	2 685	2 173	1 017	1 065	603
Other subsidies	226	226	Title II Administration	1 275	363	69	931	275
			Title III Operating activities	13 135	11 687	1 856	9 936	831
Total	19 166	19 730	Total	17 095	14 223	2 942	11 932	1 709
Source: Data supplied by the Agency. This table summarise the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Correctness of reimbursement	Fund				Total
Correctness of reimbursement	ERDF	ESF	EAGGF	Cohesion Fund	Total
Eligibility error	15 cases	9 cases	3 cases	2 cases	29 cases
Eligibility error	19 %	15 %	10 %	20 %	16 %
Occurrence error	5 cases	7 cases	0 cases	1 cases	13 cases
Occurrence error	6 %	12 %	0 %	10 %	7 %
Accuracy error	2 cases	7 cases	1 cases	0 cases	10 cases
Accuracy error	3 %	12 %	3 %	0 %	6 %
Multiple error	13 cases	12 cases	0 cases	0 cases	25 cases
Multiple error	17 %	20 %	0 %	0 %	14 %
Correct reimbursement	42 cases	25 cases	26 cases	7 cases	100 cases
Correct reimbursement	55 %	42 %	87 %	70 %	56 %
Total	77 cases	60 cases	30 cases	10 cases	177 cases
Total	100 %	100 %	100 %	100 %	100 % (2)