PURPOSE: to
present the Court of Auditor’s 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 2007.
CONTENT: the
report notes that the appropriations entered in the Agency’s budget for the
financial year in question amount to EUR 14.191 million, of which
EUR 13.947 million was committed and EUR 6.516 million was paid.
EUR 7.454 million was carried over to 2008 and EUR 221 000 was
cancelled.
The Court
notes that the accounts for the financial year are reliable in all material aspects
and that the underlying transactions of the Agency’s accounts are, on the
whole, legal and regular.
- The
Court’s analysis of the accounts: the Court
notes that the Agency’s final budget for 2007 amounted to EUR 14.2
million as compared with EUR 9.3 million allocated to the EUMC the
previous year. Almost all the budget was committed (EUR 13.9
million) but EUR 7.5 million was carried over. The high level of
carry-overs was due to the extension of the mandate of the Agency in
March 2007. This extension delayed the adoption of the Agency’s new work
programme and the nomination of a new director and consequently the
implementation of the activities planned for 2007. Due to the extension
of its mandate the Agency, through amendments to its budget and various
transfers, decreased by EUR 798 000 the staff expenditure budget
lines, avoiding cancellations of unused appropriations for staff
expenditure at the year end. With regard to procurement
procedures, in one case, the published financial evaluation method indirectly
decreased the relative importance of the price criterion. This may have
deterred some potential bidders and was not in line with the principle
of sound financial management.
- The
Agency’s replies: the Agency considers the
criticisms point by point and notes that it has taken all the necessary
measures to make up the delays highlighted by the Court in order to
minimise cancellations of carried-over appropriations. The objective to
cancel less than 10% of carry-overs shall be closely monitored during
2008. The Agency also states that the transfers and the amending budgets
were necessary because of the difficulties linked to the extension of
the Agency’s mandate which impaired the implementation of the initially
foreseen activities. In the future, the Agency will continue to improve
the programming of its activities. Finally, the Agency notes that the
financial evaluation method used was fully compliant with the Financial
Regulation. However, to ensure that the best value for money is
obtained, the Agency will introduce the evaluation method now proposed
by the Commission services.