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Document 52017TA1206(14)
Report on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2016, together with the Centre’s reply
Report on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2016, together with the Centre’s reply
Report on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2016, together with the Centre’s reply
IO C 417, 6.12.2017, p. 92–97
(BG, ES, CS, DA, DE, ET, EL, EN, FR, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
6.12.2017 |
EN |
Official Journal of the European Union |
C 417/92 |
REPORT
on the annual accounts of the European Centre for Disease Prevention and Control for the financial year 2016, together with the Centre’s reply
(2017/C 417/14)
INTRODUCTION
1. |
The European Centre for Disease Prevention and Control (ECDC — hereinafter ‘the Centre’), which is located in Stockholm, was established by Regulation (EC) No 851/2004 of the European Parliament and of the Council (1). The Centre’s 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. |
The Table presents key figures for the Centre (2). Table Key figures for the centre
|
INFORMATION IN SUPPORT OF THE STATEMENT OF ASSURANCE
3. |
The audit approach taken by the Court comprises analytical audit procedures, direct testing of transactions and an assessment of key controls of the Centre’s supervisory and control systems. This is supplemented by evidence provided by the work of other auditors and an analysis of management representations. |
OPINION
Reliability of the accounts Opinion on the reliability of the accounts
Legality and regularity of the transactions underlying the accounts Revenue Opinion on the legality and regularity of revenue underlying the accounts
Payments Opinion on the legality and regularity of payments underlying the accounts
Responsibilities of management and those charged with governance
Auditor’s responsibilities for the audit of the accounts and underlying transactions
|
16. |
The comments which follow do not call the Court’s opinion into question. |
COMMENTS ON THE LEGALITY AND REGULARITY OF TRANSACTIONS
17. |
In May 2015, the Centre’s Director ad interim was appointed by a Management Board decision. As of 31 December 2016, this posting exceeded the one year maximum period stipulated in the Staff Regulations by eight months. This has also resulted in 15 additional ad interim arrangements for other staff. |
COMMENTS ON INTERNAL CONTROLS
18. |
In its audit report dated October 2016, the Commission’s Internal Audit Service (IAS) highlighted that, while acknowledging the Centre’s ongoing efforts to strengthen its internal procurement controls, there are still significant weaknesses in the procurement process. The IAS concluded that the planning and the monitoring of procurements are weak and that procurements are not always covered by the Annual Work Programme or financing decision. Reference is also made to the Court’s Report on the annual accounts of the Centre for the financial year 2015 and the reported weaknesses affecting the transparency of procurement procedures. The Centre and IAS agreed on a plan to take corrective action. |
COMMENTS ON BUDGETARY MANAGEMENT
19. |
As in previous years carry-overs of committed appropriations were high for Title III (operating expenditure) at 7,9 million euro, i.e. 41 % (2015: 7,5 million euro, i.e. 42 %). The carry-overs mainly relate to multiannual projects in the areas of scientific advice (2,4 million euro), surveillance (1,3 million euro), public health training (1,4 million euro) and public health IT (2,1 million euro). The Centre may consider introducing differentiated budget appropriations to better reflect the multi annual nature of operations and unavoidable delays between the signature of contracts, deliveries and payments. |
FOLLOW-UP OF PREVIOUS YEARS’ COMMENTS
20. |
An overview of the corrective action taken in response to the Court’s comments from previous years is provided in the Annex. |
This Report was adopted by Chamber IV, headed by Mr Baudilio TOMÉ MUGURUZA, Member of the Court of Auditors, in Luxembourg at its meeting of 19 September 2017.
For the Court of Auditors
Klaus-Heiner LEHNE
President
(1) OJ L 142, 30.4.2004, p. 1.
(2) More information on the Centre’s competences and activities is available on its website: www.ecdc.europa.eu
(3) Staff includes officials, temporary and contract staff and seconded national experts.
Source: data provided by the Centre.
(4) The financial statements comprise the balance sheet, the statement of financial performance, the cashflow statement, the statement of changes in net assets and a summary of significant accounting policies and other explanatory notes.
(5) The reports on implementation of the budget comprise the reports which aggregate all budgetary operations and the explanatory notes.
(6) Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (OJ L 298, 26.10.2012, p. 1).
ANNEX
Follow-up of previous years’ comments
Year |
Court’s comments |
Status of corrective action (Completed/Ongoing/Outstanding/N/A) |
2015 |
The Court found various weaknesses affecting the transparency of the audited procurement procedures, such as lack of a clear link with the Centre’s annual work programme, insufficient substantiation of the estimated contract value or absence of a financial benchmark (threshold) to assess the tenderer’s financial capacity. |
Ongoing (1) |
2015 |
The overall budget execution rate was at 94 % (99 % in 2014). The decrease is related to the lower weighting factor applied to remunerations in Sweden as of 1 June 2014 and to delays in recruitments which resulted in lower than anticipated staff costs. |
N/A |
2015 |
Carry-overs of committed appropriations were high for Title II (administrative expenditure) at 1,6 million euro, i.e. 23 % (2014: 1,5 million euro, i.e. 25 %). These carry-overs mainly relate to the procurement of IT hard- and software (0,8 million euro), as well as, for real estate consultancy services for new premises (0,3 million euro) for which payments are only due in 2016. |
N/A |
2015 |
Carry-overs of committed appropriations were high for Title III (operational expenditure) at 7,5 million euro, i.e. 42 % (2014: 8,1 million euro, i.e. 49 %). The carry-overs mainly relate to multi-annual projects (5 million euro) and IT support for operational activities (1,7 million euro) which were provided and paid as planned. |
N/A |
(1) In 2016 two specific contracts for a total amount of 79 000 euro were signed without a supporting financing decision.
THE CENTRE’S REPLY
18. |
The Centre wishes to clarify that the Director’s acting appointment was done in accordance with the Staff Regulations as well as the Centre’s Founding Regulation. The initial recruitment for the post of Director was unsuccessful and, for operational continuity purposes, the acting arrangement was extended beyond the 12 months limit. During this extension, at the request of the Management Board the staff member accepted to forego the financial compensation foreseen in the Staff Regulations while temporarily occupying a post with a higher grade. |
19. |
ECDC has reworked the format of its Financing Decision for procurement in its Work Programme 2017. A standardized procedure has been put in place for internal approval of new procurements, ensuring that any updates to the Financing Decision are approved by ECDC’s Management Board prior to the launch of the procedure. ECDC is also following up on the general recommendations of the IAS by reviewing its internal procedures and guidance materials. |
20. |
The Centre will carefully analyse the advantages/disadvantages, in liaison with the Court of Auditors, of introducing differentiated budget appropriations, including the risks of added complexity and additional resources needed. |