Final Annual Accounts 2013 of the European Centre for Disease Prevention and Control

Transcription

1 of the European Centre for Disease Prevention and Control Ninth Financial Year 2013 Stockholm, June 10 th 2014 European Centre for Disease Prevention and Control, Stockholm, Sweden

2 Table of Contents Page 1. Annual Accounts Certification 1 2. Annual Accounts Presentation 2 3. Accounting Principles, Rules and Methods 3 4. Financial Statements Balance Sheet Economic Outturn Account Cash Flow Statement Statement of Changes in Capital Notes to the Financial Statements Report on the Budget Implementation Budget Execution Explanatory notes to the Budget Annexes Annex 1 Budget Execution /Fund source C1 Current year appropriations Budget Execution /Fund source C4 & C5 Current year appropriations 30 Annex 2 Budget Execution /Fund source C8 s carried over Annex 3 Budget Execution/Fund source R0 External Assigned Revenue 35 Report on budget and financial Management I

3 1. Final Annual Accounts Certification The annual accounts of the European Centre for Disease Prevention and Control for the year 2013 have been prepared in accordance with the Financial Regulation applicable to the general budget of the European Union and 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 European Centre for Disease Prevention and Control in accordance with article 50 of ECDC s 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 European Centre for Disease Prevention and Control'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 a true and fair view of the financial position of the European Centre for Disease Prevention and Control in all material aspects. Stockholm, June 10 th 2014 Van Brabant Anja Accounting Officer of ECDC 1

4 2. Annual Accounts Presentation The annual accounts of the European Centre for Disease Prevention and Control include the financial statements and the report on implementation of the budget. They are accompanied by the report on budget and financial management during the year. The financial statements comprise the balance sheet and the economic outturn account at 31 December, the cash-flow table and the statement of changes in capital. The objectives of financial statements are 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 European Centre for Disease Prevention and Control, 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. If they are to present a true and fair view, financial statements must not only supply relevant information to describe the nature and range of the activities, explain how it is financed and supply definitive information on its operations, but also do so in a clear and comprehensible manner which allows comparisons between financial years. It is with these goals in mind that the present document has been drawn up. The accounting system of the European Centre for Disease Prevention and Control comprises budget accounts and general 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. 1 The general accounts allow for the preparation of the financial statements as they show all revenues and expenses for the financial year and are designed to establish the financial position in the form of a balance sheet at 31 December. The annual accounts are drawn up in accordance with Article 92 of the Financial Regulation of the European Centre for Disease Prevention and Control adopted by the Management Board on 19th December According to Article 98 of this Financial Regulation, the Centre s accounting officer shall send to the Commission s accounting officer by no later than 1 March of the following year its Provisional Annual Accounts, together with the report on budgetary and financial management during the year, referred to in Article 92 of this regulation. The Accounting Officer shall send the final accounts, together with the opinion of the management board, to the accounting officer of the Commission, the Court of Auditors, the European Parliament and the Council, by 1 July of the following financial year. The final accounts of ECDC will be published in the Official Journal of the European Communities together with the statement of assurance given by the Court of Auditors by 15 th of November of the following year in accordance with Article 99 of ECDC s Financial Regulation. 1 This differs from cash-based accounting because of elements such as carryovers. 2

5 3. Accounting principles, rules and methods The Annual Accounts of the Centre have been prepared according to Article 94 of the Financial Regulation which stipulates that, the rules adopted by the Accounting Officer of the European Commission based on internationally accepted accounting standards for public sector, shall apply. The financial statements referred to in Article 92 shall present information, including information on accounting policies, in a manner that ensures it is relevant, reliable, comparable and understandable. Reporting Currency The Centre s reporting currency is the Euro s and balances Foreign currency transactions are converted into Euro using the exchange rates prevailing at the dates of the transactions. Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into Euro on the basis of the exchange rates applying on 31 December. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the economic outturn account. Intangible fixed assets & Internally Developed Intangible fixed assets Intangible fixed assets are valued at their acquisition price converted into Euro at the rate applying when they were purchased, less depreciation and impairment. The exception is assets acquired free of charge that are valued at their market value. See amortisation rates below. The Accounting Officer of the European Commission had granted a temporary exception with respect to the introduction of the International Public Sector Accounting Standards (IPSAS) based EC rules. One of these exceptions related to Accounting Rule n 6 and the non-capitalisation of internally developed intangible assets, normally software. From 2010 onwards, the exception has been lifted and as a consequence, the annual accounts have to reflect the capitalization of internally developed intangible fixed assets in accordance with the rules laid down. From an accounting perspective there are only three phases to an IT Project: a Research phase, a Development phase and an Operational phase. Under the accounting rule, only the development phase can be capitalized and recorded as Assets under construction. Once the project goes live, the resulting asset (the development cost) will be amortised over its useful life which means the costs will be spread over several years. The depreciation rates should range between 3 and 8 years. The depreciation follows the same principle as applied to the Centre s fixed assets i.e. if a project goes live in the first half of a month then the depreciation is applicable for that same month, if a project goes live on or following the 16 th of a month then the depreciation applies starting from the following month. The amount of research expenses incurred on IT projects and development costs not capitalized are disclosed in these annual accounts 2013 as required. In addition to the criteria which an intangible asset should meet, also a threshold had to be set for the total estimated development cost of an IT project. The threshold at ECDC was set at

6 The application of accounting rule n 6 in the annual accounts of 2013 increases the transparency regarding the Centre s internally developed intangible fixed assets in particular its internally developed IT projects (for example GIS, EPIS, VBORNET, E3, Tessy, CRM, DMS and others) In 2013, the following projects have gone live: VBORNET, DMS, CRM and GIS EMMA. As a consequence, their development costs, booked in previous years as Intangible assets under construction are now depreciated, starting 2013, over the next four years. Tangible fixed assets Tangible fixed assets are stated at historical cost. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Centre and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the economic outturn account during the financial period in which they are incurred. Depreciation is calculated using the straight line method to allocate depreciation cost to the assets residual values over their estimated useful lives, as follows: Type of Asset Depreciation Rate Intangible assets 25 Plant, machinery and equipment 10 to 25 Furniture & Vehicles 10 to 25 Fixtures and fittings 10 to 33 Computer hardware 25 The fixed asset s depreciation commences in the month if the asset s delivery date is before or on the 15 th of the month, while if the delivery date of the asset is on the 16 th or after that date, the monthly depreciation will only commence the following month. The assets residual values and useful lives are reviewed, and adjusted if appropriate, on a regular basis. An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the economic outturn account. In addition, improvements to the building are capitalized and depreciated over the lease period which runs according to the contract signed in 2007 between ECDC and the landlord Akademiska Hus AB until 31/1/

7 Impairment of assets Assets that have an indefinite useful life are not subject to amortization and are tested regularly for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized as the amount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset s fair value less costs to sell and value in use. Inventories The inventories shown in the accounts reflect the stock of publications of the Centre at year-end. These inventories are assets held for distribution in the ordinary course of its operations. The Centre s inventories are goods purchased which are for distribution to other parties free of charge. These parties are mainly our stakeholders: Management Board, Advisory Forum, Member States, and Competent Bodies etc. These publications are also distributed at conferences and events. As the Centre controls the rights to create and issue various assets, these publications are recognized as inventories and reported at their printing cost. The cost of these inventories is assigned by using the first-in, first-out method (FIFO). Publications which are, at year-end, older then N-1, are written down as these hold no longer a service potential expected to be realized from their distribution. Receivables Receivables are carried at original invoice amount less write-down for impairment. A write-down for impairment of receivables is established when there is objective evidence that the Centre will not be able to collect all amounts due according to the original terms of receivables. Cash & cash equivalents Cash and cash equivalents include bank accounts and one imprest account. Use of estimates In accordance with generally accepted accounting principles, the financial statements necessarily include amounts based on estimates and assumptions by management. Significant estimates include, but are not limited to, accrued income and charges, contingent assets and liabilities, and degree of impairment of fixed assets. Actual results could differ from those estimates. Changes in estimates are reflected in the period in which they become known. 5

8 4. Financial Statements 4.1. Balance Sheet Notes As at Dec. 31, As at Dec. 31, Balance Sheet (All amounts in ) Assets A. Non Current Assets Intangible Assets , ,07 Intangible fixed assets under , ,02 construction Tangible Fixed Assets , ,65 Total Assets , ,74 Total Non Current Assets , ,74 B. Current Assets Prefinancing , ,97 Stocks , ,68 Short Term Receivables , ,78 Accrued Income , ,38 Deferred Charges , ,09 Cash and Cash equivalents , ,09 Total Current Assets , ,99 Total Assets , ,73 Liabilities A. Capital Accumulated surplus , ,91 Economic result of the year , ,41 Total Capital , ,32 B. Non Current Liabilities Long term Provisions , ,00 C. Current Liabilities Short-term provisions , ,46 Accounts Payable , ,49 Pre-financing to be returned to ,08 0,00 the Commission Open Pre-financing from Grants , ,00 Accrued charges , ,46 Deferred Income ,91 0, , ,41 Total Liabilities , ,73 6

9 4.2. Economic Outturn Account (All amounts in ) Operating Revenue , ,18 Administrative Expenses ( ,72) ( ,65) Staff related expenses ( ,73) ( ,52) Depreciation/Amortisation/Write-off ( ,27) ( ,27) Other Administrative Expenses ( ,72) ( ,86) Operational Expenses ( ,97) ( ,54) Surplus from Administrative & Operating Activities , ,99 Financial revenues ,00 0,00 Financial Expenses (7.260,31) (7.131,99) Currency Exchange Gains/(Losses) ( ,98) ( ,59) Economic Result for the Year , ,41 7

10 4.3. Cash Flow Statement Cash Flows from ordinary activities Surplus/(deficit) from ordinary activities , ,41 Operating activities Adjustments Amortization (intangible fixed assets) , ,19 Depreciation (tangible fixed assets) , ,99 Increase/(decrease) in Provisions for risks and liabilities (60.508,43) ,70 Increase/(decrease) in Value reduction for doubtful debts 0,00 0,00 (Increase)/decrease in Stock , ,12 (Increase)/decrease in Long term Pre-financing 0,00 0,00 (Increase)/decrease in Short term Pre-financing 1.061,97 (172,57) (Increase)/decrease in Short term Receivables ( ,73) ,50 (Increase)/decrease in Receivables related to consolidated EU entities (619,15) 855,78 Increase/(decrease) in Accounts payable ,83 ( ,22) Increase/(decrease) in Liabilities related to consolidated EU entities ,95 ( ,46) Other non-cash movements 3.583, ,09 Net cash Flow from operating activities , ,53 Cash Flows from investing activities Increase of tangible and intangible fixed assets ( ,85) ( ,57) Net cash flow from investing activities ( ,85) ( ,57) Net increase/(decrease) in cash and cash equivalents , ,96 Cash and cash equivalents at the beginning of the period , ,13 Cash and cash equivalents at the end of the period , ,09 8

11 4.4. Statement of Changes in Capital Capital (All amounts in ) Fair value reserve Reserves Other reserves Accumulated Surplus / Deficit Economic result of the year Total Capital Balance as of 1 January ,00 0, , , ,32 Other revaluations 0,00 0,00 0,00 0,00 0,00 Reclassifications 0,00 0,00 0,00 0,00 0,00 Allocation of the Economic Result of Previous Year 0,00 0, ,41 ( ,41) 0,00 Economic result of the year 0,00 0,00 0, , ,80 Balance as of 31 December ,00 0, , , ,12 9

12 4.5. Notes to the Financial Statements Intangible Assets All amounts in Internally generated Computer Software Other Computer Software Total Computer Software Other Intangible assets (1) Intangible fixed assets under construction Gross carrying amounts , , ,47 00, , ,49 Additions , , , ,87 Disposals ( ,02) ( ,02) ( ,02) Transfer between headings , ,49 ( ,49) 0,00 Other changes Gross carrying amounts Total , , ,34 0,00 0, ,34 Accumulated amortization and impairment ( ,40) ( ,40) 0,00 ( ,40) Amortization ( ,73) ( ,81) ( ,54) 0,00 ( ,54) Write-back of amortization Disposals , ,32 0, ,32 Accumulated amortization Net carrying amounts ( ,73) ( ,89) ( ,62) 0,00 ( ,62) , , ,72 0,00 0, ,72 Not capitalised cost Research cost Not capitalised development cost * Cost of the year , ,99 10

13 Fixed Assets Buildings Plant and Equipment Computer hardware Furniture and vehicles Tangible Fixed Assets under Construction All amounts in Gross carrying amounts , , , , ,07 Additions , , , , ,98 Disposals ( ,40) ( ,40) Transfer between headings 0,00 Other changes 0,00 Gross carrying amounts , , , ,32 0, ,65 Total Accumulated depreciation ( ,25) ( ,67) ( ,73) ( ,77) 0,00 ( ,42) Depreciation ( ,24) (56.846,98) ( ,91) (87.993,87) ( ,00) Write-back of depreciation 0,00 Disposals , ,37 Impairment 0,00 Write-back of impairment 0,00 Transfer between headings 0,00 Other changes 0,00 Accumulated depreciation ( ,49) ( ,65) ( ,27) ( ,64) 0,00 ( ,05) Net carrying amounts , , , ,68 0, ,60 11

14 Pre-financing The Centre has signed grant agreements with several Health Institutions and Universities of EU member states in relation to its activities. Pre-financing payments in relation to those grants are reported as receivables and cleared after the agreed deliverables and corresponding costs statements are submitted by the beneficiaries to ECDC. The total amounts of Pre-financing paid (but not cleared), accrued and remaining open as, at 31/12/2013 is reported bellow: All amounts in Non cleared pre-financing at 31/12/ ,36 Accrued Charges on Pre-financing ( ,36) Open pre-financing at 31/12/ , Stocks All amounts in 01/01/2013 Additions Disposals Write down at year end 31/12/2013 ECDC Publications , ,96 (18.217,84) (79.898,52) ,29 Other 0,00 0,00 0,00 0,00 0,00 Total , ,96 (18.217,84) (79.898,52) ,29 The additions reflect the amount of publications purchased at printing cost in The amount disposed shows the amount of publications distributed free of charge in The amount written down equals the value of publications in stock which are older than N-1, as these hold no longer a service potential, expected to be realized from their distribution Short term Receivables Short term receivables relate to the following: All amounts in 31/12/ /12/2012 VAT Receivable from Member States , ,39 Receivable from other EU institutions and bodies 2.828,18 0,00 Receivable regarding Staff , ,39 Other ,32 0,00 Total , ,78 Short term receivables comprises mainly of VAT Receivable from the Swedish Authorities. According to the Memorandum of Understanding signed between the Government of Sweden and the Centre, the later has to file an application of Reimbursement of VAT paid on purchases greater than SEK (approx. 169 at EC year-end rate 2013). The VAT receivable appearing in the accounts relates to invoices paid in the last quarter of Previous claims regarding 2013 were already paid back in full. The increase in Receivable regarding Staff includes an amount of ,32, which is a 12

15 receivable against the European Commission. This, due to the fact, that at year-end, it has been decided to reduce the pension contribution rate from 11.6, applied to the salaries since 2012, to 10.6 retroactively till 1 st of July The surplus retained on salaries was paid to staff in December 2013 by the Centre. Therefore leaving this amount at year-end for the Centre to be recovered from the European Commission. An amount of ,81 included under Other is to be received by the Centre following a positive Court ruling Deferred Charges & Accrued Income Deferred Charges relate mainly to warranties and maintenance costs in relations to ICT equipment that are paid in advance upon reception of goods but are valid for a period longer than 12 months (usually 3 years). The part not related to 2013 is reported here. Accrued income relates to the cut-off procedure at year-end regarding the IPA Grant and the MEDIPIET contract received for implementation from the European Commission Cash in Bank and imprest account The Centre keeps its accounts to SEB bank in Euro and in SEK. The balances as at December 31, 2013 are as follows: All amounts in 31/12/ /12/2012 Acc No (EUR) , ,58 Acc No (EUR) ,37 12,08 Acc No (EUR) , ,59 Acc No (EUR) ,05 0,00 Acc No (EUR) ,11 0,00 Acc No (SEK) , ,49 Acc No (SEK) 885,92 457,97 Acc No (SEK) 994,88 0,00 Acc No (SEK) 0,00 0,00 Acc No (SEK) 0,00 0,00 Acc No (SEK) 747,33 734,38 Cash in Hand 0,00 0,00 Total , ,09 The Centre mainly uses the account No to execute its local transactions in SEK while the Euro account No is used for cross border payments and the reception of the Commission subsidy. All other accounts, stated above are used to receive funds and execute payments related to the grants and other contracts received from the European Commission and Joint Undertaking IMI and implemented by ECDC. Account No is the imprest account of the Centre. No cash has been handled by the Centre in

16 Long Term Provisions In accordance with the lease contract with the landlord, the Centre has the obligation to restore the building in its original state when vacating the premises at the end of the lease, this obligation is still reflected in the accounts. Based on a study carried out in 2012, the dilapidation cost of this obligation has been estimated at SEK, which equals (converted at the official EC 2013 year-end exchange rate applicable for SEK) Short Term Provisions In 2013, additional provisions were booked due to the following. A legal action with the Court of Justice was introduced in previous years by the European Commission against the decision from the Council, not to adopt the European Commission s proposals related to the annual salary adjustment for 2011 and 2012 of the remuneration and pension of the officials and other servants of the European Union and the corrections coefficients applied thereto. In November 2013, a negative ruling was pronounced by the Court of Justice on the given proposal, but also with the instruction for the European Commission to provide the Council with a new proposal. Following this new proposal, provisions have been recalculated, taking also into account the aspect of exchange rate differences involved and provisioned for in the accounts An amount of ,27 has been booked regarding the 2011 salary adjustments and ,65 for the salary adjustments of Another provision related to a court case from previous years remains in the accounts of 2013, as the decision from the Court has been appealed Accounts Payable The breakdown of accounts payable at the end of the year is as follows: All amounts in 31/12/ /12/2012 Vendors , ,83 Interest Income payable to the Commission (1) 6.403, ,70 Other payables to the Commission ,81 300,36 Payables to other EU agencies ,81 300,36 Other payables to Member States 0, ,60 Social Security Contributions & income taxes payable 0,00 0,00 Sundry Payables ,05 0,00 Total , ,49 (1) see also Note

17 Pre-financing Pre-financing to be returned to the EC In general, the amount represents the positive outturn of the budgetary accounts which, according to the financial regulation, has to be paid back to the Commission. In 2013, ECDC has a positive budget outturn (see also 5.1), when added to the negative outturn from previous years, the overall balance of the outturn is positive. As a result, ,08 has to be paid back to the Commission in 2014 regarding the 2013 budget. Open pre-financing An amount of 674 thousand was received by ECDC from the European Commission, which covers expenditure related to the implementation of a service contract for the establishment of a Mediterranean Programme for Intervention Epidemiology Training (MediPIET) and of grant agreements for actions with the candidate and potential candidate countries implemented throughout Accrued Expenses & Deferred Income Accrued expenses are estimates provided by the authorising officers on the cost of services and deliveries of goods incurred during 2013 but not yet invoiced or processed. In addition, the cost of the untaken leave of staff during 2013 is reported here All amounts in Untaken annual leave , ,28 Accrued charges , ,18 Total , ,46 Deferred income has been booked in 2013 for an amount of , Revenue The Centre is almost exclusively financed by the Community Budget together with the EFTA Member States contributing to its budget by approximately 2,8. In 2013, the Centre booked ,92 as revenue from its subsidy of received from the European Commission. An amount of 16 thousand has been booked as miscellaneous income and consists of recovery of taxes and recovery of costs from staff regarding current and previous years. The full amount has been included in the budget tables of 2013 in order to be returned to the European Commission. The Centre is also reporting as revenue an amount of 207 thousand, which is the result of the yearend cut-off made regarding three grants which have been further implemented throughout

18 Here the posting versus accrued revenue or open pre-financing is equal to the expenditures made under the grants during Below is the breakdown of the revenue for the year: All amounts in Community Subsidy (including EEA contribution) , ,00 Revenue from Grant implementation , ,76 Other revenue , ,42 Total , , Administrative Expenses Administrative expenses relate mainly to costs incurred by the daily operations of the Centre and include Staff related costs. The breakdown of the main areas is provided below: All amounts in Staff related expenses , ,52 Costs related to Seconded National Experts & Trainees , ,74 Mission Expenses , ,36 Management Board, Advisory Forum & Administrative Meetings , ,76 Rent and Building Costs , ,03 Depreciation/Amortisation/Write-off , ,27 Recruitment Related Costs , ,84 IT costs Research , ,54 IT costs Development , ,88 IT costs Operational , ,18 Other , ,53 Administrative Expenses Total , , Operational Expenses Operational Expenses relate to the activities of the Operational Units and the Director s cabinet and also include the developments in the area of information and communication technology in relation to the operations. All amounts in Operational Expenses Total , ,54 16

19 Finance Income / Expense This heading covers expenses mainly relating to bank fees, interest expenses on late payment of charges and interest expenses on leasing. In addition, the Centre received 6 thousand of interest income earned on the Community Subsidy that is reported under Note Accounts Payable, as according to the Financial Regulation it has to be returned to the Commission Exchange rate gains/ losses The Seat of the Centre is outside of the Euro-zone. As a result a substantial part of its activities is carried out in Swedish crowns while the Centre s income as well as its reporting Currency is Euro. The exchange rate differences encountered in 2013 consist of the revaluation of the Swedish Crown in relation to at year-end, together with the adjustment of the weighting factor applied to the remuneration of staff employed in Sweden and differences related to the payments made in Swedish Crown as the exchange rate used in our financial system differs from the daily rate used by the bank when the payments are actually made. These three components resulted in exchange rate losses of 657 thousand (versus losses of 547 thousand in 2012) Contingent Assets & Liabilities Contingent Liabilities As at 31 December 2013, the Centre had agreements with several contractors and suppliers for the amount of thousand. These agreements relate mainly to operational projects and are covered by budgetary commitments against 2013 appropriations. In accordance with the lease contract, the Centre has the obligation to restore the building in its original state when vacating the premises at the end of the lease. This obligation is reflected in the accounts. Based on a study which was carried out in 2012 the cost of this obligation has been estimated at (converted at the official EC 2013 year-end exchange rate applicable for SEK) The residual amount of this contingent liability for 2014 till 2018 equals

20 Operational Leases The Centre has a lease agreement with Akademiska Hus AB in order to cover its housing needs. Rental costs for the remaining period to 31/1/2018 amount to 7.7 million. In addition the centre had lease agreements in place for printing and copying equipment that ran until end of April The payment schedule for the following years is presented below: Charges paid during the year Charges still to be paid <1yr 1-5 yrs >5 yrs All amounts in Total charges to be paid Printers/ Copiers ,06 0,00 0,00 Buildings , , ,00 0, ,00 Total , , ,00 0, , Related party disclosures The Centre is managed by the Senior Management Team (SMT) consisting of the Director (Authorising Officer) and the heads of Unit (Authorising Officers by Delegation). All members are temporary agents of the European Communities in the following grades: Grade No of Persons in the Grade AD14 2 AD13 1 AD12 2 AD11 1 Total 6 and as such their remuneration, allowances and other entitlements are covered by the Conditions of Employment of Other Servants of the European Communities 18

21 Pension Obligations ECDC staff are members of the European Communities Pension Scheme which is a defined benefit pension plan. A defined benefit plan is a pension plan that generally defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age and years of service. In 2013, throughout the whole year, ECDC staff initially contributed 11,6 of their basic salary to the pension scheme. On the 10 th of December 2013, the Council adopted a regulation reducing the 2012 pension contribution rate from 11.6 to 10.6 retroactively from the 1 st of July The surplus retained on salaries was paid out to staff in December 2013 by the Centre. Following another Regulation adopted by the Council on 17 December 2013, the 2013 pension contribution rate was further reduced from 10.6 to 10.3 of the basic salary, with retroactive effect from 1 July This retained surplus has been paid back to staff through their February 2014 salary. The cost undertaken by the European Commission is not presented on the ECDC s accounts. Future benefits payable to ECDC staff under the EC Pension Scheme are accounted for in the accounts of the European Commission and no such provisions are entered in the Centre s accounts. 19

22 5. Report to the Budget Implementation 5.1. Budget Execution All amounts in REVENUE EXPENDITURE Commission subsidy , ,00 Grant funds from Commission ,16 0,00 Other revenue , ,61 TOTAL REVENUE (a) , ,61 Title I:Staff Payments , ,39 s carried over , ,78 Title II: Administrative Expenses Payments , ,39 s carried over , ,92 Title III: Operating Expenditure Payments , ,46 s carried over , ,20 TOTAL EXPENDITURE (b) , ,14 OUTTURN FOR THE FINANCIAL YEAR (a-b) , ,47 Cancellation of unused payment appropriations carried over from previous year , ,54 Adjustment for carry-over from the previous year of appropriations available at arising from assigned revenue , ,21 Exchange differences for the year (gain+/loss-) , ,54 BALANCE OF THE OUTTURN ACCOUNT FOR THE FINANCIAL YEAR , ,65 Balance , ,91 Positive balance from 2012 reimbursed in year 2013 to the Commission 0,00 0,00 Result used for determining amounts in general accounting , ,26 Commission subsidy (2013 Revenue) ,92 Pre-financing remaining open to be reimbursed to EC in ,08 NOT INCLUDED IN THE BUDGET OUTTURN: Interest generated by 31/12/2013 on the Commission subsidy funds and to be reimbursed to the Commission (liability) 6.403, ,70 20

23 5.2. Explanatory notes to the Budget Income The initial Budget appropriations for 2013 as voted by the Management board meeting in November 2012 amounted to During the year the following adjustments were made: 2000 IC IC4 Budget Line Initial Available Budget Adjustments Final Available Budget European Community Contribution - Current Year s ,00 (0,00) ,00 European Community Contribution - Earmarked funds (Reuse previous years) 0,00 (0,00) 0, European Community contribution ,00 (0,00) , IC1 Subsidy from EEA/EFTA member states ( of EU contribution) ,00 (0,00) , Subsidy from the EEA/EFTA ,00 (0,00) ,00 R0 External assigned revenue Total Revenue ,00 (0,00) ,00 European Community Contribution - Earmarked funds ,16 (0,00) ,16 No adjustment to the budget, as shown in the table above, was made in 2013, neither to the European Community Contribution 2013 nor to the EEA/EFTA Member States contribution. In 2013, an amount of ,16 was received to the budget 2013 as external assigned revenue. The amounts collected refer to the following contracts: IPA grant, MediPIET, Joint Undertaking IMI grant and ENPI grant 21

24 Expenditure An overview of the budget implementation (execution on commitments and payments) by fund source is provided below: Fund Source (CA)/ Payment (PA) s 2013 s 2013 Commit -ted Payments in 2013 Paid Carried forward to 2014 Cance lled C1 - Current Year s ,00 (CA/PA) ,50 92, ,58 74, , ,50 C5 Assigned revenue appropriations C8 Carryforward of 2012 appropriations R0 - Assigned Revenue DG ELARG Grant 3 (*) R0 - Assigned Revenue MediPIET R0 - Assigned Revenue -Advance IMI grant (ᵒ) R0 - Assigned Revenue ENPI Grant (ᵒ) 3.000, , , ,00 0, ,47 (PA) ,43 (CA/PA) ,00 (CA/PA) ,05 (CA/PA) ,32 88,87 0, , ,80 40, ,63 0, ,00 96, ,54 41, ,46 0, ,05 0, ,11 (CA/PA) ,11 0,00 * Grant 3 -Actions with Candidate & Potential Candidate Countries º funds received in Q to be implemented in 2014 For a detailed analysis of the budget execution by Budget article please refer to Annexes 1-3 An overview of the impact of the budget transfers in fund source C1 Current Year s is provided below: Budget 2013 Fund Source C1 Current Year s Initial Budget EFTA/EC Subsidy Increase MB Amendments Director Adjustments FINAL BUDGET Title 1 Staff related Expenditure ,00 0,00 0,00 0, ,00 Title 2 Administrative ,00 0, , ,00 Expenditure Title 3 - Operations ,00 0,00 0, , ,00 Total Budget ,00 0,00 0,00 0, ,00 22

25 Reconciliation between the Budget Outturn Account (see 5.1) and the Economic Outturn Account (see 4.2) All amounts in Economic Outturn Account ,80 Adjustment for accrual items (items not in the budgetary result but included in the economic result) Adjustments for Accrual Cut-off (reversal ) ( ,76) Adjustments for Accrual Cut-off (cut- off ) ,46 Unpaid invoices at year end but booked in charges 0,00 Depreciation of intangible and tangible fixed assets ,27 Provisions ,00 Value reductions 0,00 Pre-financing given in previous year and cleared in the year ,39 Pre-financing received in previous year and cleared in the year 0,00 Payments made from carry-forward of payment appropriations ,33 Other (deferred charges, stock decrease, exchange rate diff rappel 2011) ( ,01) Adjustment for budgetary items (item included in the budgetary result but not in the economic result) Asset acquisitions (less unpaid amounts) ( ,22) New pre-financing paid in the year 2013 and remaining open as at (64.534,00) New pre-financing received in the year 2013 and remaining open as at ,90 Budgetary recovery orders issued in 2013 on balance sheet accounts (not 7 or 6 accounts) and cashed 0,00 Payment appropriations carried over to 2014 ( ,08) Cancellation of unused carried over payment appropriations from previous year ,15 Adjustment for carry-over from the previous year of appropriations available at arising from assigned revenue ,51 Other (deferred income) ,87 Budgetary Outturn Account ,60 23

26 Budgetary Principles The establishment and implementation of the budget of the European Centre for Disease Prevention and Control are governed by the following basic principles: (a) (b) (c) (d) (e) (f) (g) (h) unity and budget accuracy; all expenditure and revenue must be incorporated in a single budget document, must be booked on a budget line and expenditure must not exceed authorised appropriations; universality: this principle comprises two rules: o the rule of non-assignment, meaning that budget revenue must not be earmarked for specific items of expenditure (total revenue must cover total expenditure); o the gross budget rule, meaning that revenue and expenditure are entered in full in the budget without any adjustment against each other; annuality: the appropriations entered are authorised for a single year and must therefore be used during that year; equilibrium: the revenue and expenditure shown in the budget must be in balance (estimated revenue must equal payment appropriations); specification: each appropriation is assigned to a specific purpose and a specific objective; unit of account: the budget is drawn up and implemented in euro and the accounts are presented in euro; sound financial management: budget appropriations are used in accordance with the principle of sound financial management, namely in accordance with the principles of economy, efficiency and effectiveness; transparency: the budget is established and implemented and the accounts presented in compliance with the principle of transparency - the budget and amending budgets are published in the Official Journal of the European Communities. 24

27 Budget Line Position Annex 1 Budget Execution /Fund source C1 Current year appropriations Budget Line Description Committed Payment Payment Paid RAL Cancelled A-1100 Basic salaries 12,495, ,055, ,495, ,055, , A-1101 Familly Allowances 2,000, ,847, ,000, ,847, , A-1102 Expatriation Allowances 1,900, ,803, ,900, ,803, , Total Article ,395, ,706, ,395, ,706, , A-1111 Contract Agents - Basic Salaries 3,540, ,513, ,540, ,513, , A-1112 Contract Agents - Allowances 1,150, ,093, ,150, ,093, , Total Article 111 4,690, ,606, ,690, ,606, , A-1140 Birth & Death grants 5, , , , , A-1141 Travel expenses from place of employment to place of origin 700, , , , , A-1142 Overtime 63, , , , , A-1149 Learning & Development 559, , , , , , A-1170 Total Article 114 1,327, ,199, ,327, ,031, , , Freelance and joint interpreting and conference service interpreters 60, , , , , , A-1173 Translations 40, , , , , , A-1174 Payment for administrative assistance from the Community institutions 175, , , , , A-1175 Interim services 1,500, ,500, ,500, ,147, , A-1176 Relocation Services 50, , , , , Total Article 117 1,825, ,759, ,825, ,357, , , A-1180 Miscellaneous expenditure on recruitment 150, , , , , , A-1181 Travel expenses 20, , , , , A-1182 Installation, resettlement & transfer allowances 200, , , , , A-1183 Removal Expenses 175, , , , , , A-1184 Temporary daily subsistence allowance 100, , , , , Total Article , , , , , ,

28 Budget Line Position Budget Line Description Committed Payment Payment Paid RAL Cancelled A-1190 Weightings applied to remunerations 3,650, ,402, ,650, ,402, , A-1191 Provisional (rappel) 465, , , Total Article 119 4,115, ,402, ,115, ,402, , Total Chapter 11 28,997, ,042, ,997, ,420, , ,955, A-1300 Mission expenses, travel expenses and incidental expenditure 1,000, , ,000, , , , Total Article 130 1,000, , ,000, , , , Total Chapter 13 1,000, , ,000, , , , A-1410 Medical Service 150, , , , , , Total Article , , , , , , Total Chapter , , , , , , A-1520 Staff Exchanges 450, , , , , , Total Article , , , , , , Total Chapter , , , , , , A-1700 Entertainment & Representation Expenses 9, , , , , Total Article 170 9, , , , , Total Chapter 17 9, , , , , A-1801 Social Contact Between Staff 63, , , , , , A-1802 Sickness Insurance 550, , , , , A-1803 Accident and Occupational Diseases 105, , , , , A-1804 Unemployment for temporary staff 210, , , , , Total Article , , , , , , Total Chapter , , , , , , Total Title 1 31,535, ,223, ,535, ,282, , ,311,

29 Budget Line Position Budget Line Description Committed Payment Payment Paid RAL Cancelled A-2000 RENT & RELATED EXPENDITURE 1,984, ,928, ,984, ,928, , A-2001 Insurance 13, , , , , A-2002 Water, Gas, Electricity etc 215, , , , , , A-2003 Maintenance, cleaning 173, , , , , , A-2004 Fitting-out 70, , , , , , A-2005 Security of Building 262, , , , , , A-2006 Restauration & Canteen costs 100, , , , , , A-2009 Other expenditure on buildings 93, , , , , , Total Article 200 2,911, ,768, ,911, ,649, , , A-2110 A-2111 A-2112 A-2114 Total Chapter 20 2,911, ,768, ,911, ,649, , , Purchases of new hardware for operation the centre Purchase of new software for the operation at the centre Purchase and Maintenance of printing and reproduction equipment Developments to support administrative and management applications 898, , , , , , , , , , , , , , , , , ,107, ,016, ,107, , , , Total Article 211 2,979, ,868, ,979, ,781, ,086, , Total Chapter 21 2,979, ,868, ,979, ,781, ,086, , A-2200 Technical equipment and AV installations 54, , , , , , A-2201 Furniture 40, , , , , , A-2202 Purchase and maintenance of vehicles 10, , , , , Total Article , , , , , , Total Chapter , , , , , ,

30 Budget Line Position Budget Line Description Committed Payment Payment Paid RAL Cancelled A-2300 Stationery and office supplies 110, , , , , , A-2301 Financial and other charges, exchange losses 10, , , , , A-2302 Library expenses, purchase of books and info subscriptions 15, , , , , A-2306 Miscellaneous insurance 10, , , , , A-2307 Legal Expenses 100, , , , , , A-2308 Business Continuity 20, , , A-2309 Other operating expenditure 70, , , , , , Total Article , , , , , , Total Chapter , , , , , , A-2400 Postal and delivery charges 30, , , , , , Total Article , , , , , , A-2410 Telecommunication and internet charges 198, , , , , Total Article , , , , , Total Chapter , , , , , , A-2500 Governance and administrative meetings 255, , , , , , A-2501 Evaluation and Strategic Management Consulting 275, , , , , Total Article , , , , , , Total Chapter , , , , , , Total Title 2 7,087, ,590, ,087, ,875, ,714, ,

31 Budget Line Position B3-000 B3-001 Budget Line Description Networking, surveillance and data collection on Communicable diseases Preparedness, response and emerging health threats Committed Payment Payment Paid RAL Cancelled 2,602, ,536, ,602, ,497, ,038, , , , , , , , B3-002 Scientific opinions and studies 3,838, ,651, ,838, ,047, ,603, , B3-003 Technical assistance and training 3,822, ,631, ,822, ,652, ,978, , B3-004 Publications and Communications 1,089, ,036, ,089, , , , B3-005 ICT to support projects 5,042, ,847, ,042, ,885, ,962, , B3-006 Build up and maintenance of the Crisis Centre 93, , , , B3-007 Translations of scientific and technical reports and documents 50, , , , , B3-008 Meetings to implement the work programme 2,235, ,580, ,235, , , , B3-009 Country cooperation and partnership 452, , , , , , B3-010 Scientific Library and Knowledge Services 266, , , , , , Total Chapter 30 19,692, ,986, ,692, ,079, ,907, ,706, Total Title 3 19,692, ,986, ,692, ,079, ,907, ,706, GRAND TOTAL 58,315, ,800, ,315, ,237, ,562, ,514,

32 Budget Execution /Fund source C4 Current year appropriations Budget Line Position Budget Line Description Committed Payment Payment Paid RAL A-2111 Purchase of new software for the operation at the centre 9, , , Total Chapter 21 9, , , Total Title 2 9, , , B3-000 Networking, surveillance and data collection on Communicable diseases 133, , , B3-002 Scientific opinions and studies 21, , , Total Chapter , , , Total Title 3 155, , , GRAND TOTAL 164, , , Budget Execution /Fund source C5 Current year appropriations Budget Line Position Budget Line Description Committed Payment Payment A-2202 Purchase and maintenance of vehicles 3, , , , Total Chapter 22 3, , , , Total Title 2 3, , , , GRAND TOTAL 3, , , , Paid RAL 30

33 Budget Line Position Annex 2 Budget Execution /Fund source C8 s carried over Budget Line Description Committed Payment Payment A-1149 Learning & Development 243, , , , , Paid Cancelled Total Article , , , , , A-1173 Translations 5, , , , A-1174 Payment for Administrative Assistance 13, , , , , A-1175 Interim services 116, , , , , Total Article , , , , , A-1180 Miscellaneous expenditure on recruitment 64, , , , , A-1183 Removal Expenses 43, , , , Total Article , , , , , A-1300 Total Chapter , , , , , Mission expenses, travel expenses and incidental expenditure 219, , , , , Total Article , , , , , Total Chapter , , , , , A-1410 Medical Service 32, , , , , Total Article , , , , , Total Chapter 14 32, , , , , A-1520 Staff Exchanges 2, , , Total Article 152 2, , , Total Chapter 15 2, , , A-1700 Entertainment & Representation Expenses 1, , , , Total Article 170 1, , , , Total Chapter 17 1, , , , A-1801 Social Contact Between Staff 39, , , , , Total Article , , , , , Total Chapter 18 39, , , , , Total Title 1 781, , , , ,

34 Budget Line Position Budget Line Description Committed Payment Payment A-2002 Water, Gas, Electricity Expenses 21, , , , , A-2003 Maintenance, cleaning 29, , , , A-2004 Fitting-out 40, , , , , A-2005 Security of BuildingSecurity of Building 17, , , , A-2006 Restauration & Canteen costs 8, , , , A-2009 Other expenditure on buildings 13, , , , Paid Cancelled Total Article , , , , , Total Chapter , , , , , A-2110 Purchases of new hardware for operation the centre 347, , , , A-2111 A-2112 A-2114 Purchase of new software for the operation at the centre Purchase and Maintenance of printing and reproduction equipment Developments to support administrative and management applications 158, , , , , , , , , , , , , , , Total Article , , , , , Total Chapter , , , , , A-2200 Technical equipment and AV installations 13, , , , , A-2201 Furniture 21, , , , A-2202 Purchase and maintenance of vehicles Total Article , , , , , Total Chapter 22 35, , , , ,

35 Budget Line Position Budget Line Description Committed Payment Payment A-2300 Stationery and office supplies 64, , , , , A-2301 Financial and other charges, exchange losses A-2302 Library expenses, purchase of books and info subscriptions Paid Cancelled 9, , , , , A-2309 Other operating expenditure Total Article , , , , , Total Chapter 23 74, , , , , A-2400 Postal and delivery charges 6, , , , , Total Article 240 6, , , , , A-2410 Telecommunication and internet charges 34, , , , , Total Article , , , , , Total Chapter 24 41, , , , , A-2500 Governance and administrative meetings 95, , , , , A-2501 Evaluation and Strategic Management Consulting 55, , , Total Article , , , , , Total Chapter , , , , , Total Title 2 1,169, , ,169, , ,

36 Budget Line Position B3-000 Budget Line Description Networking, surveillance and data collection on Communicable diseases Committed Payment Payment Paid Cancelled 1,197, ,174, ,197, ,174, , B3-001 Preparedness, response and emerging health threats 55, , , , , B3-002 Scientific opinions and studies 1,428, ,369, ,428, ,369, , B3-003 Technical assistance and training 1,905, ,725, ,905, ,725, , B3-004 Publications and Communications 440, , , , , B3-005 ICT to support projects 2,342, ,266, ,342, ,266, , B3-006 Build up and maintenance of the Crisis Centre 63, , , , , B3-007 Translations of scientific and technical reports and documents 39, , , , , B3-008 Meetings to implement the work programme 776, , , , , B3-009 Country cooperation and partnership 28, , , , , B3-010 Scientific Library and Knowledge Services 46, , , , Total Chapter 30 8,323, ,483, ,323, ,483, , Total Title 3 8,323, ,483, ,323, ,483, , GRAND TOTAL 10,273, ,130, ,273, ,130, ,142,

37 Annex 3 Budget Execution/Fund source R0 External Assigned Revenue Budget Line Position Budget Line Description Committed Payment Payment Paid RAL B3-011 MediPIET 264, , , , , B3-012 DG ELARG GRANT 3 - ACTIONS WITH CANDIDATE AND POTE 246, , , , , B3-013 ADVANCE PROJECT - IMI 100, , , B3-014 DG DEVCO - ENPI GRANT 207, , , Total Article , , , , , Total Chapter , , , , ,