Final Accounts Financial year 2016 - European Commission€¦ · Commission. The accounting rules...

EuropeanCommission

Final Accounts Financial year 2016

¡Research Executive Âgemcy

[Financial Statements Reports on the Implementation uff the budget

9 П ' W л n * *»The opinion of the Steering Committee was given onThe accounts were sent to the Commission's Accounting Officer, the Court of Auditors, the European Parliament and the Council. They will also be published on the REA website: http://ec.eurooa.eu/research/rea/

http://ec.eurooa.eu/research/rea/

Table of contents

CERTIFICATION OF THE ACCOUNTS............................................................................3

1. INTRODUCTION............................................................................................ 4

2. FINANCIAL STATEMENTS 2016............................................................................... 62.1. REA balance sheet as of 31.12.2016 (in euros).................................................. 62.2. REA Statement of financial performance (in euros)........................................... 72.3. REA cash flow table for 2016 (Indirect Method - in euros)...............................82.4. REA statement of changes in net assets (in euros)........................................... 92.5. Notes to the financial statements.........................................................................10

2.5.1. Accounting policies............................................................................................. 102.5.2. Notes to the Balance sheet..............................................................................112.5.3. Notes to the Statement of financial performance....................................... 142.5.4. Post balance sheet events................................................................................ 162.5.5. Related Party disclosure....................................................................................17

3. REPORTS ON BUDGETARY AND FINANCIAL MANAGEMENT 2016.......... 183.1. The REA's initial administrative budget.............................................................. 183.2. Amending budget and transfers.............................................................................193.3. Implementation of appropriations of 2016..........................................................223.4. Liquidation of appropriations carried forward from 2015................................253.5. REA staffing................................................................................................................283.6. Administrative budget outturn account for 2016.................................................293.7. Reconciliation of the 2016 administrative budget outturn with the 2016economic outturn................................................................................................................... 303.8. Additional notes to the administrative budget implementation report......... 31

3.8.1. Legislative framework........................................................................................ 313.8.2. The Agency's administrative budget structure............................................ 313.8.3. The agency's budgetary and financial accounting systems...................... 32

of 32

CERTIFICATION OF THE ACCOUNTS

Certification

The annual accounts of the Research Executive Agency (hereafter "the Agency") for the year 2016, have been prepared in accordance with Title VI of the Financial regulation of the Agency (Commission Regulation (EC) No 1653/2004) as well as the accounting rules adopted by the Commission’s Accounting Officer, as are to be applied by all the Institutions, agencies and joint undertakings.I acknowledge my responsibility for the preparation and presentation of the annual accounts of the Agency in accordance with Article 68 of the Financial Regulation.

I have obtained from the Authorising Officer, who certified its reliability, all the information necessary for the production of the accounts that show the Agency's assets and liabilities and the budgetary implementation.I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the accounts, I have a reasonable assurance that the accounts present fairly, in all material aspects, the financial position, the results of the operations and the cash flow of the Agency.

Statement of the Director

I, the undersigned, Director of theResearch Executive Agency, in my capacityas authorising officer,- Declare that the information contained

in this report gives a true and fair view.- State that I have reasonable assurance

that the resources assigned to the activities described in this report have been used for their intended purpose and in accordance with the principles of sound financial management, and that the control procedures put in place give the necessary guarantees concerning the legality and regularity of the underlying transactions.This reasonable assurance is based on my own judgement and on the information at my disposal, such as the results of the work of ex-ante controls and the internal audits as well as the observations of the Internal Audit Service.

- Confirm that I am not aware of anything not reported here which could harm the interests of the Agency or the Commission.

Brussels,

of 32

1. INTRODUCTION

The Research Executive Agency (REA) was set up in December 2007 by a Decision of the European Commission The agency assumed its its operational and administrative autonomy in June 2009. It is located in Brussels at the following address: Place Rogier 16, COV2, BE- 1049 Brussels.In 2008, Commission Decision delegated to the REA the implementation of parts of the specific programmes implementing FP7 (namely, the People, Capacities and Cooperation programmes) and for implementation of appropriations entered in the European Union's budget (C(2008) 3980 final).

In December 2013, the Commission extended the lifetime of the REA to 2024 and delegated to it also parts of Horizon 2020 the new Framework Programme for Research and Innovation

The REA's new Delegation Act and its Annexes, adopted on 20 December 2013, state which parts of Horizon 2020 are delegated to the REA, which tasks are managed for each project and how REA interacts with the parent DGs. It also details the future mandate regarding the Support Services.

Under the new mandate, the REA :

continues to manage the legacy of all the FP7 actions from the previous mandate (Marie Skłodowska-Curie Actions, Space and Security Research, FP7 SME actions); manages the successor programmes in the field of Marie Skłodowska-Curie Actions, Space and Security Research (the Horizon 2020 SME instrument is managed by the Executive Agency for Small and Medium-Sized Enterprises);manages a large share of the following Horizon 2020 activities which were newly delegated to the REA:(1) Food security, sustainable agriculture, marine & maritime research, and bio

economy (DG RTD, DG AGRI);(2) Innovative, inclusive and reflective societies (DG RTD, DG CNECT);

(3) Secure Societies (DG HOME, DG CNECT);(4) Future Emerging Technologies - FET Open (DG CNECT);

(5) Spreading Excellence and Widening Participation, Science with and for Society (DG RTD).

All new actions were effectively taken over by ther REA between September 2014 and January 2015.

- Regarding support services, the REA new mandate is larger than before, serving new clients and providing more services:

o For expert management, the REA contracts and pays Horizon 2020 expert evaluators for all of Horizon 2020 except the European Research Council Executive Agency and certain Joint Undertakings (expert monitors / "reviewers" remain to be managed by each service);

o For validation services, the REA provides validation services to all Horizon 2020 services and to a number of other programmes (Erasmus+, Creative Europe, Europe for Citizenship, COSME, programmes in the fields of health and consumers, justice and home affairs as well as agricultural promotion).

The 2016 financial statements of the REA and its report on budget implementation for 2016 were prepared in conformity with:

of 32

Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002;

Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union;

Commission Regulation (EC) No 1653/2004, of 21 September, on a standard financial regulation for the executive agencies pursuant to Council Regulation (EC) No 58/2003 laying down the Statute for executive agencies to be entrusted with certain tasks In the management of Community programmes, as last amended by Commission Regulation (EC) No 651/2008;

The 18 accounting rules on accrual accounting adopted by the Accounting Officer of the Commission.

of 32

2. FINANCIAL STATEMENTS 2016

2.1. REA balance sheet as of 31.12.2016 (in euros)

ASSETS Notes 31.12.2016 31.12.2015section

2,273,249 4,024,098NON CURRENT ASSETS 2.5.2)Intangible fixed aseets (1) 241,201 1,099,849Tangible fixed assets (2) 2,032,048 2,924,249

Plant and equipment - -Furniture and vehicles 25,821 61,736

Computer hardw are 341,765 220,591

Others fixtures and fittings 1,664,462 2,641,922

CURRENT ASSETS 11,801,323 10,998,357EXCHANGE RECEVABLES 6,536,881 6,461,479

Amounts receivable from customers r (3) 2,500Deferred charges r (4) 2,704,045 2,635,180Deferred charges w ith consolidated entities F (5) 3,755,334 3,663,658

OTHER EXCHANGE RECEIVABLESSundry receivables r (6) 67,279 152,387CĦ Consolidated entities r (7) 2,358

OTHER ACTIVE ACCRUALS & DEFERRALSBank interest to receive r (8) 1,873 9,536Accrued income Non exchange 136

OTHER Non exchange RECEIVABLES ř (9) 3,493 581

CASH AND CASH EQUIVALBfTS ř (10) 5,264,442 4,536,676TOTAL ASSETS 14,074,572 15,022,455

LIABILITIESCAPITAL 9,158,664 11,352,369

lieservesAccumulated surplus/deficit 11,352,369 13,191,901Economic result of the yeur · profit+4oss- (2,193,706) (1,839,531)

CURRENT LIABILITIES 4,915,90B 3,670,085

Current payables ' (11) 163,226 118,238Sundry payables ” (12) 20,528 20,084Accounts payable consolidated entities r (13) 2,121,410 1,216,513

Refinancing from consolidated entities 2,121,410 1,218,513Other accounts payable consolidated entities

Accrued charges and deferred income ř (14) 2,610,745 2,313,250Accrued charges 1,695,523 1,254,156Deferred incomeAccrued charges w ith consolidated entities r (15) 915,222 1,059,094

TOTAL LIABILITIES 14,074,572 15,022,455

of 32

2.2. REA Statement of financial performance (in euros)

Statement of Ħnancial PerformanceNotes

(section2.5.3)

2016 2015

ECONOMIC RESULT OPTHE YEAR (2.193.706) (1.839.531)

REVENUES 58.958.922 53.413.130Non-exchange revenues 58.793.898 53.237.549Subsidy of he Commission (1) 58.793.898 53.237.549

Exchange revenues 165.024 175.581Financial Income (2) 11.809 45.245

Other Administrative operations (3) 60.466 -

Exchange rate differences gains ” (4) 1.777 84

Other Operating revenue - miscellaneous r (5) 90.971 130.252

EXPENSES (61.152.627) (55.252.661)Staff expenses (6) (39.481.483) (34.691.102)

Finance costs (7) (16) (45)

Other expenses (8) (9.220.965) (8.111.351)Assets related expenses (9) (2.069.738) (2.022.704)Land and building (10) (10.380.167) (10.426.969)Exchange rate differences losses (11) (258) (491)

of 32

2.3. REA cash flow table for 2016 (Indirect Method - in euros)

CASHFLOW STATEMENT

31.12.2016Economic result of the year -2,193,706Operating activities

Amortization (intangible fixed assets) (+)

Depreciation (tangible fixed assets) (+) lncrease/(decrease) in Provisions for risks and liabilities

858,648771,040

(lncrease)/decrease In Shortterm Receivables

(lncrease)/decrease in Receivables related to21,543

consolidated EU ent. -96,945

lncrease/(decrease) In Accounts payables486,798

lncrease/(decrease) in Liabilities related to consolidated EU entities 759,025

Total Operating activities net cash Flow 606,403

Investing activitiesAmounts written off tangible fixed assets

Increase of tangible and Intangible fixed assets(-)

440,050-318,889

Total Investing activities net cash Flow 121,161

NET CASHFLOW 727,564

Net Increase/ (decrease) in cash and cash equivalentsCash and cash equivalents at the beginning of the period

727,5644,536,878

Cash and cash equivalents at the end of the period 5,264,442

of 32

2.4. REA statement of changes in net assets (in euros)

Net assetsReserves

Accumulated Surplus (+) / Deficit (-)

Economic result of the year

Net assets (total)Fair valuereserve

Otherreserves

Balance as of 31 December 2015 13,191,901 -1,839,531 11,352,370

Changes in accounting policies 0 0 0

Balance as of 31 December 2015 0.00 0.00 13,191,901 -1,839,531 11,352,370Fair value movements

Allocation of the Economic Result of Previous Year

Economic Result of the year

0

-1,839,531 1,839,531 0

-2,193,706 -2,193,706

Balance as of 31 December 2016 0.00 0.00 11,352,370 -2,193,706 9,158,664

of 32

2.5. Notes to the financial statements

These financial statements cover the period from 1 January 2016 until 31 December 2016.

2.5.1. Accounting policies

Legal basis and the financial regulation

The accounts are kept in accordance with Commission Regulation (EC) No 1653/2004 of 21 September 2004 on a standard financial regulation for the executive agencies.

The REA being fully consolidated in the Commission accounts, the 2016 REA financial statements have been established in accordance with the legislation listed in the introduction to the annual accounts and with the consolidation package provided by the European Commission. The accounting rules and regulations used in this report are adopted by the European Commission, are on an accrual basis and are compliant with the International Public Sector Accounting Standards (IPSAS) or, by default, with the International Financial Reporting Standards (IFRS).

In compliance with Accounting Rule 6, in application since 1 January 2010, internally developed intangible assets are capitalised. On the basis of the administrative budget size of REA the threshold amount for capitalisation has been set at € 100,000.

Accounting principles

The objective of the financial statements is to provide information about the financial position, performance and cash flows of an entity that is useful to a wide range of users. For a public sector entity such as the REA, the objectives are more specifically to provide information useful for decision making, and to demonstrate the accountability of the entity for the resources entrusted to it.The accounting system of the REA comprises general accounts and budget accounts. These accounts are kept in Euro on the basis of the calendar year. The budget accounts give a detailed picture of the implementation of the budget. They are based on the modified cash accounting principle. The general accounts allow for the preparation of the financial statements as they show all charges and income for the financial year based on accrual accounting rules and are designed to establish the financial position in the form of a balance sheet at 31 December.

Article 53 of the standard financial regulation for executive agencies sets out the accounting principles to be applied in drawing up the financial statements:

- going concern basis;

- prudence;

- consistent accounting methods;

- comparability of information;

- materiality;

- no netting;

- reality over appearance;

- accrual-based accounting.

of 32

2.5.2. Notes to the Balance sheet

(1) Non-current assets - Intangible fixed assets

Intangible fixed assets are identifiable non-monetary assets without physical substance. To be entered in the financial inventory on the assets side of the balance sheet, they must be controlled by the Agency and generate future economic benefits for the Agency. Additionally, they should have a purchase price above € 420.

For internally developed intangible fixed assets, the threshold is set at € 100,000.

Intangible fixed assets are depreciated monthly with an annual depreciation rate of 25%.

The variation of the intangible fixed assets in 2016 is detailed as follows (in euros):

Intangible assets 2016 (euros)

InternallygeneratedComputerSoftware

Other Computer Software

Intangible fixed assets under construction

TOTAL

Gross carrying amounts 1.1.2016 1.003.585 4.260.913 0 5.264.498Additions 0Disposals 0Transfer between headings 0Other changes 0Gross carrying amounts 31.12.2016 1.003.585 4.260.913 0 5.264.498

Accumulated depreciation and impairment 1.1.2016

•820.392 -3.344.257 0 -4.164.649

Depreciation -174.231 -684.417 -858.648Write-back of depreciationDisposals 0ImpairmentWrite-back of impairmentTransfer between headingsOther changesAccumulated amortization and impairment 31.12.2016

-994.623 -4.028.674 -5.023.297

Net carrying amounts 31.12.2016 8.962 232.239 0 241.201

In order to implement the Horizon 2020 framework programme, DG Research and Innovation and DIGIT are developing several IT tools (COMPASS, SYGMA, ...). DG Research and Innovation is the owner of these tools.

In addition, the REA uses internally generated tools for the management of the FP7 actions (for functionalities that are not covered by the centrally provided tools).

(2) Non-current assets - Tangible fixed assets

Tangible fixed assets are identifiable non-monetary assets with physical substance. To be entered in the financial inventory on the assets side of the balance sheet, they must be controlled by the Agency and generate future economic benefits for the Agency. Additionally, they should have a purchase price above € 420. Items with lower value are treated as expenses of the year; however they are registered in the physical inventory.Tangible fixed assets have an annual depreciation rate of 25%. The investment for the fitting out of the building is depreciated at an annual rate of 10%. All tangible fixed assets are depreciated monthly.

of 32

2016 Plant and Equipment Computer hardware Furniture and vehicles Other Fixtures and Fittings Total

Gross carrying amounts 01.01.2016 5,226 1,225,463 67,949 6,318,985 7,617,624

Additions 0 257,694 15,858 45,337 зТа,вв9Disposals 0 -53,124 -608,992 -662,116

Transfer between headings

Other changes

Gross carrying amounts 31.12.2016 5,226 1,483,157 30,683 5,755,330 7,274,397Accumulated depreciation and impairment 01.01.2016

-5,226 -1,004,872 •6,213 -3,677,063 -4,693,375

Depreciation 136,520 -4,668 -629,852 -771,040

Write-back of depreciation 6,019 216,047 222,066

Disposals 0

Impairment

Write-back of impairment

Transfer between headings

Other changes

Accumulated depreciation and impairment 31.12.2016 -5,226 -1,141,392 -4,862 -4,090,868 -5,242,349

Net carrying amounts 31.12.2016 0 341,765 25,821 1,664,462 2,032,046

D r* rtr% Ί O r\f QO

(3) Amounts receivable from customers (€2,500)

This amount is related to a reimbursement to the REA of lawyers' fees following a judgment of the Court against a grant beneficiary.

(4) Deferred charges (€ 2,704,045)

The deferred charges include part of the usufruct fee for REA's premises (offices in COV2) paid in 2016 and corresponding to 2017 (€ 2,611,615) and other prepaid charges (€ 92,430).

(5) Deferred charges consolidated entities (€ 3,755,334)

The usufruct fee for REA's premises (evaluation facility in COVE) was paid in 2016. This charge covers the period from 1 January to 31 December 2017 (€ 3,721,624), an additional amount (€ 33,500) is related to prepaid charges to OIB.

(6) Sundry Ħeceivables (€ 67,279)

The current receivables and sundry receivables are mostly related to régularisations in salary payments.

(7) Amounts receivable from Consolidated entities (€2,358)

This amount represents three recoveries related to salary régularisations sent to the European Parlement, EFSA and EASME.

(8) Bank interest to receive (€ 1,873)

This amount correspond to 2016 fourth quarter but not yet paid on 31.12.2016.

(9) Other non exchange receivables (€3,493 )

(10) Cash and cash equivalents (€ 5,264,442)

This balance corresponds exclusively to the cash held on the REA's bank account on 31 December 2016. The bank accounts are held with ING. The REA does not hold any petty cash or other cash equivalents.

(11) Current payables (€ 163,226 )

The current payables consist of the amounts due to suppliers of goods and services and to staff.

(12) Sundry payables (€20,528 )

The sundry payables relate to staff expenses to be paid at the European Commission.(13) Accounts payable to consolidated entities (€ 2,121,410)

The amount corresponds to the positive budgetary outturn to be reimbursed at DG Research and Innovation for 2016 (€ 902,897) and for 2015 (€ 1,218,513).(14) Accrued charges (€ 1,695,523)

This relates to goods and services received in 2016 but not invoiced at year-end (€ 969,361), charges relating to untaken annual leave by staff (€ 699,838) and other staff cost (€26,324).

of 32

(15) Accruals consolidated entities (€915,222)

This balance relates to accrued charges for consolidated entities for the goods and services received in 2016 but not yet invoiced to the REA as of 31.12.2016. These accruals are based on the Service-Level Agreements signed with the Commission services :

DG HR : €355,273OIB €515,854PMO : € 33,003Other DGs: € 11,092

2.5.3. Notes to the Statement of financial performance

From non-exchange revenues

(1) Subsidy of the Commission (€ 58,793,898)

This revenue relates to the operating subsidy received by REA from the European Commission.

From exchange revenues

(2) Financial income (€ 11,809)

This revenue holds bank account interest.

(3) Other administrative operations (€ 60,466)

This amount has been reimbursed by the Commission (OIB) after a régularisation.

(4) Exchange rate differences gains. (€ 1,777)

Profit on exchange rate from payments on foreign currency.

(5) Other operating revenue - miscellaneous (€ 90,971)

€ 45,534 has been recovered from the municipality of St Josse, as reimbursement of taxes, the other amounts are reimbursement of expenses recovered from suppliers and staff members.

Expenses

(6) Staff expenditure (€ 39,481,483)

This includes total gross salaries, allowances, social contributions, employee pension contributions, an accrual for untaken holidays and accrued charges for the staff.

(7) Finance Costs (€ 16)

This correspond to a late interest cost paid.(8) Other expenses (€ 9,220,965)

These expenses relate to:

of 32

Third Parties ConsolidatedEntities Total

Contribution to the cost of the H2020 evaluation platform 138,137 138,137ГГexpenses, services and supplies 1,003,675 1,474,162 2,477,837Office Supplies and material 278,488 187,494 465,983Other external service provider (non-it services) 1,451,567 1,711,025 3,162,592Audits 1,043,066 1,043,066Training 385,354 234,478 619,832Mss ions 469,206 469,206

Communications 94,415 94,415

CPE - day care 697,225 697,225Other expenditure 48,421 4,251 52,672

TOTAL 4,912,330 4,308,635 9,220,965

(9) Assets related expenses (€2,069,738)

These expenses relate to depreciation charges of the Agency's tangible and intangible fixed assets respectively € 858,648 and € 771,040. The written off amount, € 440,050, represent the residual value of the assets transferred to OIB (total disposals € 662,116 less write-back of depreciations ( € 222,066).

(10) Land and Building. (€ 10,380,167)

This amount enclose building rent of REA's premises (offices in COV2 and evaluation facility in COVE), insurance, maintenance and security. The part related to the consolidated entities covered by SLA is : € 6,797,353.

(11) Exchange rate differences losses. (€ 258)

Loss of exchange rate from payments on foreign currency.

Contingent assets and commitment for future expenditure

A contingent liability is:

- a possible obligation that arises from past events and of which the existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Agency; or

- a present obligation that arises from past events but is not recognised because:o it is not probable that an outflow of resources embodying economic benefits or

service potential will be required to settle the obligation; or o the amount of the obligation cannot be measured with sufficient reliability.

The agency has no contingent liabilities to report as of 31.12.2016 (in euros).

31.12.2016Contingent Liabilities

Guarantees given 0.00Amounts relating to legal cases pm

Commitments for future expenditureCommitments made in 2016 and not yet consumed (paid) as of 31.12.2016 Future charges resulting from usufruct contract for the REA building

1,173,19639,879,714

Total

Commitments made in 2016 and not yet consumed (paid) as of 31.12.2016 relate to the difference between the unpaid balance of commitments made and to be carried over to 2017 (€ 3,196,237) and accruals made as of 31.12.2016 (€2,023,041).

of 32

The total future charges for the buildings (COV 2 and COVE) sum up : € 39,879,714, detailed as follow :

Amounts to be paid in2017 2018-2022 Total

COV 2 3,673,198 19,725,756 23,398,953COVE 3,781,173 12,699,587 16,480,761Total 7,454,371 32,425,343 39,879,714

the period covered run respectively until 23.09.2023 for COV 2 and 31.12.2022 for COVE.

Financial instruments

Financial instruments comprise cash, current receivable and recoverables, current payables, amounts due to and from consolidated entities.

2016Financial Assets €Current receivables 2,500Other receivables 75,003Cash and deposits 5,264,442

Total financial assets 5,341,945

Financial Liabilities €Current payables 163,226Other payables 20,528Payables consolidated ent. 2,121,410Total financial liabilities 2,305,164

REA holds a bank account in ING Belgium, risk has been assed as follow by the principal rating agencies:

Standard & Poors Moody's FitchShort-term rating A-l PI FI

Long-term rating A Al A

2.5.4. Post balance sheet events

Subsequent events are defined as events which occur between the year-end and the date on which the accounts are issues. Two types of events can be identified:

- subsequent events relating to an existing situation at year-end. The financial effectneed to be reflected in the annual accounts,

- subsequent events not relating to an already existing situation at 31 December of the financial year. No accounting entry is necessary, but the nature of the event, estimate of the financial effect or indication of impossibility of carrying out the estimate should be mentioned in the notes to the financial statements if the amount is significant.

of 32

No significant post balance sheet events occurred between 31.12.2016 and the finalisation of the financial statements.

2.5.5. Related Party disclosure

Key management personnel hold positions of responsibility within the Agency. They are responsible for the strategic direction and operational management of the entity and are entrusted with significant authority to execute their mandate.

Highest grade description Grade Number of persons of this grade

Director AD15 1Head of Department AD14 2Head of Department AD13 1

The balance position of the Agency with the key management personnel for its activity period as autonomous entity during the financial year 2016 is composed of the salary and allowances as determined for the relevant grade by the Staff Regulations of the Officials of the European Communities.

of 32

3. REPORTS ON BUDGETARY AND FINANCIAL MANAGEMENT 2016

3.1. The REA's initial administrative budget

The administrative budget of the REA covers the whole of 2016The administrative budget was adopted by the REA's Steering Committee on 15 December 2015 as detailed below (in euros):

Budget title Initial budget (€)

2000 Operating grant from EL) Budget 62,910,490

Total Revenue 62,910,490

Title 1 Staff expenditure 45,001,575

Title 2 Infrastructure and Operating Expenditure 9,468,020

Title 3 Technical and Administrative Support Expenditure

8,440,895

Total Expenditures 62,910,490

of 32

3.2. Amending budget and transfers

Overview of the 2016 Administrative Budget Transfers as of 16 December 2016

Expenditure Titles, Chsptera, Artides snd Items Official Name of the Expenditure Budget Unes

The inltlnal 2016 Budget

Tha 1st Amended 2016 Administrative Budget All transferts

BUDGET 2016 following the

Amendmend and Transfers

TOTAL EXPENDITURE 62.910.490 00 59.795.845,00 0,00 59.795.845,00

Title 1 STAFF EXPENDITURE 45.001.575,00 42.448.320,00 145.440,00 42.593.760,00

Chapter 11 Remunerations, Allowances and Charges 42.680.575,00 40.118.530,00 217.000,00 40.335.530,00Article 111 Staff occupying an employment in the establishment plan 17.360.000,00 16.081.405,00 9.000,00 16.090.405,00Item 1111 Temporary Agents - Remuneration, Alow anees and Charges 17.360.000.00 16.081.405,00 9.000,00 16.090.405,00

Article 112 Contract Agents 23.302.575,00 22.512.840,00 178.000,00 22.690.940,00Item 1121 Contract Agents - Remuneration. Allow anees and Charges 23.302.575,00 22.512.640,00 176.000,00 22.690.840,00

Article 113 Other Staff Remunerations, Allowances and Charges 2.010.000,00 1.524.285,00 30.000,00 1.554.285,00Item 1131 Seconded National Experts - Allowances and Charges 0,00 0,00 0,00 0,00

tern 1132 interim supportive agents and Trainees 2.018.000,00 1.524.285,00 30.000,00 1.554.285,00

Chapter 12 Professional Development and Social expenditure 2.321.000,001 2.329.790,00 -71.560,00 2.258.230,00

Article 121 Specific Staff-related Charges, Support Services for the management of Staff Rights and Payroll, Charges relating to Recruitment and Change of Personnel 1.465.000,00 1.439.060.00 -13.450,00 1.425.580,00

Kern 1211Specific Staff-related Charges, Support Services tor the management of Stall Rightsand F&yroK, Charges relating lo Recruitment and Change of Personnel

1.485.000,00 1.439.060,00 -13.480,00 1.425.580,00

Article 122 Professional and Personal Development and Social expenses for Staff 516.000,00 880.730,00 •58.060,00 822.650,00Item 4221 Training Courses tor the Professional and Personal Development of Staff 550.000,00 613.560,00 -38.280,00 575.280,00

Item 1222 Mssions related to the Professional and Personal Development of Staff 15.000.00 11.650.00 0,00 11.650,00

Kern 1223 Medical Service 131.000,00 126.000,00 0.00 126.000,00

Item 1224 Mobility and Other Social expenses 120.000,00 129.520,00 -19.800,00 109.720,00

Article 123 Representation expenses, Events and Internal meetings 20.000,00 10.000,00 0,00 10.000,00Item 1231 Representation expenses, Events and Internal meetings 20.000.00 10.000,00 0,00 10.000,00

Expenditure Title*, Ctieptera, Artldeo and item* Officiel Name of the Expenditure Budget Linea The Inttlnai 2016

Budget

The 1st Amended 2016 Administrative Budget AU transferts

BUDGET 2016 following the

Amendmend and Transfers

Title 2 INFRASTRUCTURE AND OPERATING EXPENDITURE 9.468.020,00 9.207.130,00 -51.040,00 9.156.090,00Chapter 21 Building expenditure 6.373.000,00 6.147.885,00 19.210,00 6.167.095,00Article 211 Rent/Usufruct instalments and Building Charges 6.373.000,00 6.147.885,00 19.210,00 6.167.095,00Hem 2111 Rent / Usulruct instalments. Buiding Charges and associated expenses 6.373.000,00 6.147.885,00 19.210,00 6.167.095,00

Chapter 22 ICT expenditure 2.570.260,00 2.600.065,00 30.410,00 2.630.475,00Article 221 ICT Environment 2.099.260,00 2.147.600,00 30.410,00 2.178.010,00tern 2211 ICT Environment (Infrastructure, Systems and Services) 2.099.260,00 2.147.600,00 30.410,00 2.178.010,00Article 222 Oata Processing and application development 471.000,00 452.465,00 0,00 452.465,00tem 2221 Data Recessing and application development and associated expenditure 471.000,00 452.465,00 0,00 452.465,00

Chapter 23 Movable property and Current Operating expenditure 524.760,00 459.180,00 '100.660,00 358.520,00Article 231 Furniture, Meteríais and Technical Installations 278.000,00 208.975,00 -60.500,00 148.475,00tem 2311 Furniture, Materials and Technical instalaljons and associated expenditure 278.000,00 208.975.00 -60.500,00 148.475,00Article 232 Current Operating expenditure 246.760,00 250.205,00 -40.160,00 210.045,00tem 2321 Office Supplies and Other Current Operating expenditure 246.760,00 250.205.00 -40.160,00 210.045,00

3 PROGRAMME SUPPORT EXPENDITURE 8.440.895,00 8.140.395,00 -94.400,00 8.045.995,00

Chapter 31 Programme Management expenditure 2.167.885,00 2.004.560,00 -52.400,00 1.952.160,00

Article 311Communication, Information and ICT expenditure related to the Management ol Delegated Programmes

602.000,00 574.115,00 -52.400,00 521.715,00

lem 3111 Commjnication, Information, Rjbllcalions, Linguistic Services and Training Courses for the Management ol Rogrammes and associated expenses

300.000,00 294.325,00 -52.400,00 241.925,00

tem 3112CT hfraslruclure. Environment and Systems related to the Rogramme Management and associated expenses

302.000,00 279.790,00 0,00 279.790,00

Article 312External Audits, Missions and Other expenses related to the Management of Delegated Programmes

1.565.885,00 1.430.445,00 0,00 1.430.445,00

tem 3121 External Audits 1.015.885,00 933.410,00 0,00 933.410,00

tern 3122 Mssions and Other expenses related to the Admnistrative Management ot Rogrammes 550.000,00 497.035,00 0,00 497.035,00

Chapter 32 Common Support Services expenditure 6.273.010,00 6.135.835,00 -42.000,00 6.093.835,00Article 321 Common Support Services and Evaluation Platform - Building expenditure 5.442.000,00 5.337.620,00 34.000,00 5.371.620,00

tem 3211Building Rent / Usulruct instalments, Building charges and associated expenses lor theCommon Support Services and Evaluation Ratform

5.442.000,00f

5.337.620,00 34.000,00 5.371.620,00

Article 322Common Support Services and Evaluation Platform - ICT, Logistics,Information and Current Operating expenditure

600.010,00 610.215,00 -42.100,00 568.115,00

tem 3221ICT, Logistics. Acquisition and Rovision ot Information, Current Operating expenditureand associated costs

600.010,00 610.215,00 -42.100,00 568.115,00

Article 323 Meetings of Experts 231.000,00 188.000,00 -33.900,00 154.100,00tem 3231 Meetings ol Experts and associated costs 231.000,00 188.000,00 -33.900,00 154.100,00

D ОЛ QO

In September 2016, the REA amended its budget and reduced it by € 3,114,645. As a result, the budget line in the EU general budget covering the subsidy to the REA was reduced accordingly by transferring this balance to operational budget lines for programmes managed by the REA on behalf of the Commission.The reduction in budget resulted mostly from a re-assessment of needs identifying surpluses on remunerations, allowances and staff charges, interim support staff.In addition, three transfers of appropriations between articles and chapters were authorised.

of 32

3.3. Implementation of appropriations of 2016

99.9% of the Agency’s administrative budget appropriations were committed of which 94.6% were paid by 31 December 2016. Details of budget implementation of the 2016 appropriations are provided in the following table:

BtpendHure Ttttes, Chapters, Articles and

ItemsOfficial Name of the Expenditure Budget Lines

TOTAL EXPENDITURE

STAFF EXPENDITURE

Budget 2016 (after

amendment and transfers)

Chapter 11 Remunerations, Allowances and Charges

Aritele 111 Staff occupying an employment in the establishment plan

Hem 1111 Tenporary Agents - Remuneration, Allowances and Charges

Article 112 Contract AgentsHem 1121 Contract Agents - Ftemineration, Allow arces and Charges

Article 113 Other Staff Remunerations, Allowances and ChargesHem 1131 Seconded National Experts - Alow anees and Charges

Hem 1132 Interim supportive agents and Trainees

Chapter 12 Professional Development and Social expenditure

Article 121Specific Staff-related Charges, Support Services far themanagement of Staff Rights and Payroll, Charges relating to Recruitment and Change of Personnel

lem 1211Specific Staff-related Charges, Support Services tor the management of Statt Rxjhts and Ffeyrol. Charges relating to Recruitment and Change of Fters önnel

Article 122 Professional and Personal Development and Socialexpenses for Staff

lem 1221Training Courses tor the Professional and RersonalDevelopment of Staff

lem 1222 hissons related to the Professional and Personal Developmentof Staff

lem 1223 Medical Service

Hem 1224 Mobüty and Other Social expenses

Article 123 Representation expenses, Events and Internal meetings

lem 1231 Representation expenses, Events and hiemal meelings

59,795,845.00

42,593,760,00

40,335,530.00

16,090,405.00

16,090,405.00

22,690,840.00

22,690,840.00

1,554,285.00

p.m

1,554,285.00

2,258,230.00

1,425,580.00

1,425,580.00

822,650.00

575,280,00

11,650.00

126,000.00

109,720.00

10,000.00

10,000.00

EXECUTION Commitmentappropriations

value *

B C=B/A

59,739,166.31 99.9°i

42,585,339.61

40,328,506.03 100.0%

16,087,059.87 100.0%

16,087,059.87 100.0%

22,687,161.16 100.0%

22,687.161.16 100.0%

1,554,285.00 100.0%

p.m -

1,554,285.00 100.0%

2,256,683.58 99.9%

1,425,575.53 100.0%

1,425,575.53 100.0%

821,308.05 99.8%

575,188.05 100.0%

10,400.00 89.3%

126.000.00 100.0%

109,720.00 100.0%

10,000.00 100.0%

10,000.00 100.0%

AVAILABLECommitment

Appropriations

value %

D=A-B E=D/A

8,370.39

7,023.97 0.0%

3,345.13 0.0%

’ 3,345.13 0.0%

3,678.84 0.0%

3.678.B4 0.0%

0.00 0.0%

p.m -0.00 00%

1,346.42 0.1%

4.47 0.0%

4.47 0.0%

1,341.95 0.2%

91.95 0.0%

1.250.00 10.7%

0.00 0.0%

0.00 0.0%Ψ

o.oo 0.0%

0.00 00%

EXECUTION Paymentappropriations

value %

F G=F/B56,542,929.37 94,6°o

B2016 RALOutstading for Payments

39,886,187.89 98.9%16,087,059.87 100.0%

16.087,059.87 100.0%

22,687,161.16 100.0%

22,687,161.16 100.0%

1,111,966.86 71.5%

p.m -1,111,966.86 71.5%

1,934,847.82 85.7%

1,396,339.09 97.9%

1,396.339.09 97.9%

530,876.71 64.6%

340,694.42 59.2%

6.67B.62 64.2%

80,867.30 64.2%

102,636.37 93.5%

7,632.02 76.3%

7.632.02 76.3%

value

H=B-F3,196,236.94

764,353.90

ł=H/B

442,318.14 1.1%0.00 0.0%

0.00 0.0%

0.00 0.0%

0.00 0.0%

442,318.14 28.5%

p.m -442,318.14 28.5%

322,035.76 14.3%

29,236.44 2.1%

29,236.44 2,1%

290,431.34 35.4%

234,493.63 40.8%

3.721.38 35.8%

45.132.70 35.8%

7.083.63 6.5%

2,367.98 23.7%

2,367.98 23.7%

nn r-sł on

Expenditure Titles, Chapter·, Articto· and

Kam«Official Nama of the Expenditure Budget Linas

Budget 2016 (after

EXECUTION Commitment appropriations

AVAILABLECommitment

Appropriations

EXECUTION Payment appropriations

B2016RALOutstading for Payments

amendment and transfers) value % value % value % value %

A B C=B/A D=A-B E=D/A F G=F/B H=B-F l=H/B

7,949,204.91 86.8%

5,612,938.85 91.0%5,612,938.85 91.0%

5,612,938.85 91.0%

2,036,118.42 77.4%1,926,976.42 88.5%1,926,976.42 88.5%

109,142.00 24.1%

109,142.00 24.1%

300,147.64 83.8%

117,453.75 79.1%

117,453.75 79.1%

182,693.89 87.1%182,693.89 87.1%

1,206,581.12 13.2%

554,156.15 9.0%554,156.15 9.0%

554,156.15 9.0%

594,295.58 22.6%2S0,973.18 11.5%250,973.18 11.5%

343,322.40 75.9%

343,322.40 75.9%

58,129.39 16.2%

31.017.02 20.9%

31.017.02 20.9%

27,112.37 12.9%27.112.37 12.9%

9,155,786.03 100.0%

6,167,095.00 100.0%6.167,095.00 100.0%

6,167,095.00 100.0%

2,630,414.00 100.0%2,177.949.60 100.0%2,177,949.60 100.0%

452,464.40 100.0%

452,464.40 100.0%

358,277.03 99.9%

149,470.77 100.0%

148,470.77 100.0%

209,806.26 99.9%209,806.26 99.9%

Title 2INFRASTRUCTURE AND OPERATING EXPENDITURE

Chapter 21 Building expenditureArticle 211 Rant/Usufruct instalments and Building Charges

lem 2111Rent / Usufruct instalments, Buiding Charges and associatedexpenses

Chapter 22 ICT expenditureArttole 221 ЮТ Environment

lem 2211 CT Environment (Infrastructure, Systems and Services)

Article 222 Oata Processing and application development

lem 2221Data ĦOcesskig and appication development and associatedexpendture

Chapter 23Movable property and Current Operating expenditure

Article 231 Furniture, Materials and Technical Installations

lem 2311Furniture, Materials and Technical Installations and associatedexpencfture

Article 232 Current Operating expenditurelem 2321 Office Supples and Other Current Operating expenditure

303.97 0.0%

0.00 0.0%0.00 0.0%

0.00 0.0%

61.00 0.0%60.40 0.0%60.40 0.0%

0.60 0.0%

0.60 0.0%

242.97 0.1%

4.23 0.0%

4.23 0.0%

r 236.74 0.1%238.74 0.1%

9,156,090.00

6,167,095.006,167.095.00

6,167,095.00

2,630,475.002,170,010.002,178,01000

452,465.00

452,465.00

358,520.00

148,475.00

148,475.00

210,045.00210,045.00

BcpendHure Titles, Chapters, Art tetes and

ItemsOff telai Name of the BcpendHure Budget Lines

Budget 2016 (after

EXECUTION Commitment appropriations

AVAILABLECommitment

Appropriations

EXECUTION Payment appropriations

B2016RALOutstading for Payments

amendment and transfers) value % value % value % value %

A B C=B/A D=A-B E=DfA F G=F/B H=B-F l=H/B

48,004.33 0.6% 6,772,688.75 84.7% 1,225,301.92 15.3%

1,911,215.84 97.9% 40,944.16 2.1% 987,631.94 51.7% 923,563.90 48.3%510,601.74 97.9% 11,113.26 2.1% 138,585.62 27.1% 372,016.12 72.9%

230,615.94 95.4% 11,109.06 4.6% 72,346.99 31.3% 158,460.95 68.7%

279,785.80 100.0% 4.20 0.0% 66,238.63 23.7% 213,547.17 76.3%

1,400,614.10 97.9% 29,630.90 2.1% 649,046.32 60.6% 551,567.78 39.4%

914,794.10 98.0% 18,615.90 2.0% 460,097.60 50.3% 454,696.50 49.7%

485,820.00 97.7% 11,215.00 2.3% 386,948.72 80.1% 96,671.28 19.9%

6,088,774.83 99.9% 7,060.17 0.1% 5,785,066.61 95.0%! 301,718.02 5.0%

5,371,615.66 юо.0% 4.34 0.0% 5,178,995.34 96.4% 192,620.32 3.6%

5,371,615.66 100.0%

f4.34 0.0% 5,178,995.34 96.4% 192,620.32 3.6%

561,059.17 9β.8% 7,055.83 1.2% 489,499.52 87.2% 71,559.65 12.8%

561,059.17 98.8%f

7,055.83 1.2% 469,499.52 87.2%r

71,559.65 12.8%

154,100.00 100.0% 0.00 0.0% 116,561.95 75.6% 37,538.05 24.4%

154,100.00 юо.0% o.oo 0.0% 116,561.95 75.6% 37,538.05 24.4%

3 PROGRAMME SUPPORT EXPENDITURE

Chapter 31 Programme Management expenditure

Article 311Communication, Inlormatlon and ЮТ expenditure related to the Management ol Delegated Programmes

Rem 3111Communication, Information, Publications. Linguistic Services and Training Courses lor lhe Management ol R-ogrammes and associated expenses

Hem 3112 ICT Infrastructure, Environment and Systems related to the Rogramme Management and associated expenses

Article 312Betérnél Audits, Misstens and Other expenses related to the Management ol Delegated Programmes

tern 3121 External Audits

Hem 3122Mssions and Other expenses related to the Administrative Management o( Programmes

Chapter 32 Common Support Services expenditure

Article 321Common Support Services and Evaluation Platform - Building expenditure

Hem 3211Buüding Rent / Usufruct instalments. Building charges and associated expenses lor the Corrnnn Support Services and Evaluation Ratform

Aritele 322Common Support Services and Evaluation Platform - ICT, Logistics, Information and Current Operating expenditure

Dem 3221ICT, Logistics, Acquisition and Revision ol tnlormation, Current Operating expenditure and associated costs

Aritele 323 Meetings of Expertstem 3231 Meetings of Experts and associated costs

8,045,995.00

1,952,160.00521,715.00

241,925.00

279.790 00r

1,430,445.00

933,41000

497,035.00

6,093,835.00

5,371,620.00

5,371,620.00

568,115.00

568.115.00

154,100.00154,100.00

η λ oo

3.4. Liquidation of appropriations carried forward from 2015

The implementation of appropriations carried forward from 2015 to 2016 is detailed in the following table:

Expenditure Tittes, Chapters,

Articles and Official Name of the Expenditure Budget Lines

Items

Title 1

TOTAL EXPENDITURE

STAFF EXPENDITURE

Chapter 11 Remunerations, Allowances and ChargesArticle 111 Staff occupying an employment in the establishment plan

lem 1111 Temporary Agents - Remuneration, Allowances and Charges

Article 112 Contract Agents

tem 1121 Contract Agents - Remuneration, Allow anees and Charges

Article 113 Other Staff Remunerations, Allowances and Charges

lem 1131 Seconded National Experts - Alow anees and Charges

lem 1132 Interim supportive agents and Trainees

Chapter 12 Professional Development and Social expenditure

Article 121Specific Staff-related Charges, Support Services for the management of Staff Rights and Payroll, Charges relating to Recruitment and Change of Personnel

lem 1211Specific Staff-related Charges, Support Services for the management ol Staff Rights and Payroll, Charges relating to Recruitment and Change of Personnel

Article 122 Professional and Personal Development and Social expenses for Staff

lem 1221 Training Courses lor the Rofessional and Personal Development of Staff

lem 1222 Missions related to the Rofessional and Personal Development of Staff

lem 1223 Medical Service

lem 1224 Mobility and Other Social expenses

Artte le 123 Representation expenses, Events and Internal meetings

lem 1231 Representation expenses, Brents and Internal meetings

B2015 RAL

3.424.126,64

616.855,85

223.016,380,00

0,00

0,00

0,00

223.016,38p.m

223.016,38

393.839,47

114.607,50

114.607,50

276.521,59

166.301,40

3.952,31

63.198,40

43.069,48

2.710,38

2.710,38

EXECUTIONPayment

Appropriationsvalue %

Б2.682.270.55

447.001,27

C=B/A78.3%

72,5%

200.154,00 89,7%0,00 -

0,00 -

0,00 -

0,00 -

200.154,00 89,7%p.m. -

200.154,00 89,7%

246.847,27 62,7%

43.959,65 38,4%

43.959,65 38,4%

202.757,88 73,3%

152.397,02 91,6%

2.459,50 62,2%

36.792,53 58,2%

11.108,83 25,8%

129,74 4,8%

129,74 4,8%

RAL Left Unused

value %D=A-B E=D/A

741.856,09 21,7%

169.854,58

22.862,38 10,3%0,00 -

0,00 -

0,00 -

0,00 -

22.862,38 10,3%p.m. -

22.862.38 10,3%

146.992,20 37,3%

70.647,85 61,6%

70.647,85 61,6%

73.763,71 26,7%

13.904,38 8,4%

1.492,81 37,8%

26.405,87 41,8%

31.960,65 74,2%

2.580,64 95,2%

2.5B0.64 95,2%

Expenditure Titles, Chapters,

Artfeles and Items

Official Name of the Expenditure Budget Lines B2015 RAL

EXECUTIONPayment


B C=B/A

INFRASTRUCTURE AND OPERATING EXPENDITURE 1.329.338,76

Chapter 21 Building expenditureArticle 211 Rent / Usufruct instalments and Building Charges

tem 2111 Rent / Usufruct Instalments, Buiding Charges and associated expenses

546.143,04546.143,04546.143,04

424.243,14 77,7%424.243,14 77,7%424.243,14 77,7%

Chapter 22 ICT expenditureArticle 221 ICT Environment

lem 2211 ICT Environment infrastructure, Systems and Services)

Article 222 Data Processing and application development

lem 2221 Data FVocessing and application development and associated expenditure

640.660,00467.309,49467.309,49

173.350,51173.350,51

547.816,15 85,5%406.886,14 87,1%406.886,14 87,1%

140.930,01 81,3%140.930,01 81,3%

Chapter 23 Movable property and Current Operating expenditureArticle 231 Furniture, Materials and Technical Installations

lem 2311 Furniture, Materials and Technical installations and associated expenditure

Article 232 Current Operating expenditure

lem 2321 Office Supplies and Other Current Operating expenditure

83.892,98 58,9%58.346,46 76,6%58.346,46 76,8%

25.546,52 38,4%25.546,52 38,4%

RAL Left Unused

value %

D=A-B E-D/A

273.386,49 20,6%

121.899,90 22,3%121.899,90 22,3%121.899,90 22,3%

92.843,85 14,5%60.423,35 12,9%60.423,35 12,9%

32.420,50 18,7%32.420,50 18,7%

58.642,74 41,1%17.614,29 23,2%17.614,29 23,2%

41.028,45 61,6%41.028,45 61,6%

OC r>ł QO

Expenditure Titles, Chapters,

Articles and items

Official Name of the Expenditure Budget Lines B2015RAL

EXECUTIONPayment


B C=B/A

PROGRAMME SUPPORT EXPENDITURE 1.477.932,03· 1.179.317,01 79,8%

Chapter 31 Programme Management expenditure

Article 311 Communication, Information and ICT expenditure related to the Management of Delegated Programmes

Item 3111Communication, Information, Publications, Linguistic Services and Training Courses for the Management of Programmes and associated expenses

Item 3112ICT Infrastructure, Environment and Systems related to the ProgrammeManagement and associated expenses

Article 312 External Audits, Missions and Other expenses related to the Management of Delegated Programmes

Item 3121 External Audits

Item 3122 Mes ions and Other expenses related to the Administrative Management of Programmes

1.132.224,28

359.166,30

181.914,07

177.252,23

773.057,98

631.236,40

141.821,58

904.352,72 79,9%

338.507,21 94,2%

161.254,98 88,6%

177.252,23 100,0%

565.845,51 73,2%

463.808,18 73,5%

102.037,33 71.9%

Chapter 32 Common Support Services expenditure

Article 321 Common Support Services and Evaluation Platform - Building expenditure

Item 3211Building Fient / Usufruct instalments. Building charges and associated expenses for the Common Support Services and Evaluation Ratform

Art rete 322 Common Support Services and Evaluation Platform - ICT, Logistics, Information and Current Operating expenditure

Item 3221ICT, Logistics, Acquisition and ROvision of Information, Current Operatingexpenditure and associated costs

Article 323 Meetings of Experte

Item 3231 Meetings of Experts and associated costs

345.707,^

259.267,12

259.287,12

74.049,34

74.049,34

12.371,29

12.371,29

274.964,29 79,5%

259.287,12 100,0%

259.287.12 100,0%

12.724,37 17,2%

12.724.37 17,2%

2.952,80 23,9%

2.952,80 23,9%

RAL Left Unused

value %D=A-B E=D/A

227.871,56 20,1%

20.659,09 5,8%

20.659,09 11,4%

0,00 0,0%r

207.212,47 26,8%

167.428,22 26,5%

39.784,25 28,1%

70.743,46 20,5%

0,00 0,0%Ψ

0,00 0.0%

61.324,97 82,8%r

61.324,97 82,8%

9.418,49 76,1%9.418,49 76,1%

A total balance of € 741,856.09 (accounting for 21.7 % of the total balance carried forward from 2015 to 2016) did not lead to final expenditure and these appropriations were cancelled.

3.5. REA Staffing

During 2016, 70 new staff have been recruited of which 66 contract staff and 4 temporary staff and seconded officials. 38 staff members have resigned - 33 contract staff and 5 seconded officials. 22 staff members are in CCP at 31/12/2016.

Function Group and Category 2016Adopted by the

Steering Committee Filled on 31/12/2016

TEMPORARY AGENTS (SEC + TA)

15 114 5 413 11 1012 6 311 7 510 9 7

9 15 168 23 207 31 286 31 305 15 12

Total AD 153 1369 1 08 2 27 0 06 4 25 2 54 1 1

Total AST 10 10Grand Total (AD+AST) 163 146

CONTRACTUAL AGENTS

FGIV 163 154FGIII 196 169FGII 150 152FGI 5 7

Total CA 514 482

REA's Tota I Staff 677 628

of 32

3.6. Administrative budget outturn account for 2016The budget outturn presented below details the budget revenue and the budget expenditure for 2016 and presents a calculation of the amount of the unused subsidy received for 2016 which will be reimbursed to the European Commission.(figures in €)

2016 2015REV BAJE

Balancing Commission subsidy + 59,696,794.46 54,456,061.80Other subsidy from Commission (Piare, PA, Delegation agreement,...) +Fee income +Other income + 201,893.09 180,268.03

59,898,687.55 54,636,329.83EXPENDITURE

Title ItStaffPayments - 41,821,035.71 36,967,392.16Appropriations carried over - 764,353.90 616,855.85Title II: Administrative ExpensesPayments - 7,949,204.91 7,471,362.40Appropriations carried over - 1,206,581.12 1,329,338.76Title III: Operating ExpenditurePayments - 6,772,688.75 6,325,559.31Appropriations carried over - 1,225,301.92 1,477,932.03

59,739,166.31 54,188,440.51159,521.24 447,889.32

Cancellation of unused payment appropriations carried over from previous year + 741,856.09 771,031.50Exchange differences for the year (gain +/loss -) +/- 1,518.99 -407.09

902,896.32 1,218,513.73

Balance year N-1 +/- 1,21B, 513.73 669,328.82Positive balance from year N-1 to be reimbursed in year N to the Commission - -1,218,513.73 -669,328.82

Result used for determining amounts in general accounting 902,896.32 1,218,513.73

Commission subsidy - agency registers accrued revenue and Commission accrued expense 58,793,898.14

Pre-financing remaining open to be reimbursed by agency to Commission in year №-1 902,896.32

ΓΊ ПЛ . X ЛЛ

3.7. Reconciliation of the 2016 administrative budget outturn with the 2016 economic outturn

Economic result (+ for surplus and - for deficit)amount(2,193,706)

Adjustment for accrual itemsAdjustments for Accrual Cut-off (reversal 31.12.N-1) (2,422,865)

Adjustments for Accrual Cut-off (cut- off 31.12.N ) 2,749,202

Unpaid invoices at year end but booked in charges (class 6) 24,198

Depreciation of intangible and tangible assets 2,069,738

Recovery Orders Issued in 2016 in class 7 and not yet cashed (2,500)

Payments made from carry over of payment appropriations 2,682,271

Déférais and accrued income 2016 (6,461,251)

Reversal déférais and accrued income 2015 6,308,511

Adjustment for budgetary itemsAsset acquisitions (less unpaid amounts) (318,889)

Budgetary recovery orders Issued before 2016 and cashed in the year 30,020

Budgetary recovery orders issued in 2016 on balance sheet accounts (not 7 or 6 accounts) and cashed 902,896

Payment appropriations carried over to 2017 (3,196,237)

Cancellation of unused carried over payment appropriations from previous year 741,856

Invoices booked in charges in 2015 but paid in 2016 (8,623)

Other (206)

Amount of exchange rate differences included in the budgetary result (1,519)

total 902,896Budgetary result (+ for surplus) including amount of exchange rate differences 902,896

of 32

3.8. Additional notes to the administrative budget implementation report

3.8.1. Legislative framework

The establishment and implementation of the Agency's administrative budget complies with the principles of unity and budget accuracy, annuality, equilibrium, unit of account, universality, specification, sound financial management and transparency as provided for in the standard financial regulation for the executive agencies'.

The assurance statement related to the accounts 2016 has been transmitted to the Accountant of the Commission in a separate note. It includes no reservation to any of the listed points.

According to the Delegation Act of the Agency, the Commission’s 16 internal control standards apply for budgetary and financial management.

Since the Agency’s autonomy in 2009, the Director is the authorising officer for the administrative budget. The budget is financed by a subsidy awarded by the EU budget. The Director submits the provisional accounts to the Steering Committee which forwards these to the Commission's accounting officer and to the European Court of Auditors by 1 March 2017. The final accounts are sent to the Commission's accounting officer and the European Court of Auditors by 1 July 2017. The European Parliament, acting on a recommendation from the Council and after having examined the report by the European Court of Auditors, shall grant a discharge to the executive agency for the implementation of its budget.

3.8.2. The Agency's administrative budget structure

The Agency makes use of non-differentiated appropriations for its administrative expenditures.The Agency's expenditure covers staff, infrastucrure and support (i.e. administrative) expenses. Title 1 budget lines are related to staff expenditure:

- Chapter 11 : remuneration, allowances and charges for the statutory Staff of the Agency paid directly to the staff member and Included in the salary pay slip as well as expenses for interim supportive staff and trainees.

- Chapter 12: specific Staff related charges, costs for missions, training courses, medical service, staff perquisites (e.g. public transport reimbursements) and internal meetings expenses are incorporated under this chapter. The costs of recruitments and of any change of personnel incurred by the Agency are also included.

Title 2 budget lines relate to infrastructure and operating expenditure:

- Chapter 21 : Building expenditure. The rent is fixed through a usufruct contract signed by the Agency following a tender procedure launched to the benefit to the European Commission and its consolidated entities. Charges for the maintenance, cleaning, security, heating, etc. of the building, and costs of the fitting out of premises are also included under this chapter.

- Chapter 22: ICT expenditure. This includes the purchase of equipment, licences, support for maintenance, specific IT developments and IT services.

- Chapter 23: Movable property and Current Operating expenditure. This chapter covers the costs of furniture and office supplies for the Agency and its staff and other current operating expenditure.

1 SFREA: Commission Regulation (EC) No 1653/2004 of 21 September 2004 on a standard financial regulation for the executive agencies pursuant to Council Regulation (EC) No 58/2003, as amended by Commission Regulation (EC) No 651/2008 of 9 July 2008.

of 32

Title 3 budget lines relate to programme support expenditure:- Chapter 31: Programme Management expenditure such as external communication,

information and ICT expenses as well as external audits and missions. This budget chapter concerns administrative expenditure directly related to the management of operational activities delegated to the Agency.

- Chapter 32: Common Support Services expenditure, such as building and ICT expenses for the Common Evaluation Platform and Common Support Services as well as meetings of experts.

3.8.3. The agency's budgetary and financial accounting systems

From the first day of its autonomy, the Agency has an accounting officer who is appointed by the Steering Committee. The Agency's bank account was opened in June 2009 under the same conditions as those of the Commission. As of REA's administrative autonomy, all payments have been made through the Commission’s SWIFT system. The Agency has no petty cash.

The Agency uses the accounting system SAP which is managed and hosted by the Commission.

For its budgetary management (i.e. commitment and payment transactions) the Agency uses the ABAC system managed and hosted by the Commission. From this system, reports on financial management and budget execution are assembled.

In collaboration with DG DIGIT and DG BUDG, the Agency uses the ABAC Assets system to manage and account for its fixed assets.

of 32

Final Accounts Financial year 2016 - European Commission€¦ · Commission. The accounting rules...

Documents

Transcript of Final Accounts Financial year 2016 - European Commission€¦ · Commission. The accounting rules...