Final Annual Accounts for the Financial Year 2013, Period January 1-December 31

Transcription

1 /I Annuo Accounts for2ol,3 ARTE MiS Final Annual Accounts for the Financial Year 2013, Period January 1-December 31 Brussels April 2014 Financial Statements and Report on the implementation of the budget Accompanied by Report on budgetary and financial management during the year ARTEMIS - JU T Brussels T: +32 (0) F: +32 (0)

2 Final Annual Accounts tor2ol3 Table of Contents Pag. 1 Introduction Creation, Location and Main Goals of ARTEMIS 3 2 Financial Management Financial Regulation Currency Management Information Systems 4 3 The Annual Accounts for the year The Accounting Officer s Certification General Balance Sheet at Economic Outturn Account (EOA) in EUR Cash Flow Statement in EUR Statement of changes in net assets/liabilities in EUR Notes to the Financial Statements Accounting principles, rules and methods 14 4 Report on implementation of the budget Statement of revenue Statement of expenditure Commitments to be settled 2013 EUR Budgetary principles 20 5 Report on budgetary and financial management Accounting and Finance functions Budget Budgetary Outturn Account Reconciliation between budgetary and accrual based accounts (EUR) Human Resources Establishment Plan Organisational Chart 27 ARTEMIS - JU T056 5/23 B1049 Brussels T: +32 (0) F: +32 (0)

3 Final Annual Accounts fc,r Introduction 1.1 Creation, Location and Main Goals of ARTEMIS The ARTEMIS JU was created by Council Regulation (EC) No 74/2008 of 20 December 2007 under Article 171 of the Treaty (Article 187 of The Treaty of Lisbon) as a legal entity responsible for the implementation of a Joint Technology Initiative on Embedded Computing Systems. Its date of establishment is 7 February 2008, following the publication of the Council Reulation and of the Statutes annexed to it in the Official Journal of the European Union on 4t February. The ARTEMIS Joint Undertaking was created for a period up to 31 December 2017 and its seat is in Brussels. Joint Technology Initiatives (JTIs) are long term public-private partnerships which can be implemented through Joint Undertakings within the meaning of Article 171 of the Treaty (Article 187 of The Treaty of Lisbon). These partnerships combine private sector investment and national and European public funding, including grant funding from the Research Framework Programme, in order to speed up the development of major technologies. JTIs were foreseen in the Seventh Framework Programme 2 for research, technological development and demonstration activities, as well as in the Council Decision for the Cooperation Programme 3. They contribute to the Lisbon Growth and Jobs Agenda 4 by developing favourable conditions for investment in knowledge and innovation in the Union to boost competitiveness, growth and jobs. The Union supports the ARTEMIS JU from the budget of the ICT priority of the Cooperation Programme. According to the Council Regulation, two clear different aspects are to be considered: A) The operational expenditures or R&D activities. The Commission, in accord with the decision of the Governing Board transfers funds to finance grant agreements in favour of the beneficiaries. These funds complement the National Grant Agreements. In total, these funds are dedicated to give grants (subsidies) to the R&D activities and compose the EC contribution to these projects. B) The running costs: incurred when preparing and launching the calls, undertaking evaluation of projects, signing the JU Grant Agreements, monitoring and evaluating the projects from the technical point of view. These activities can be considered as a kind of Technical Assistance or administrative support and are co-funded by the EC and ARTEMISIA. 2 OJ L 30 of Decision No 1982/2006/EC of the European Parliament and of the Council of 18 December 2006 concerning the Seventh Framework Programme of the European Community for research, technological development and demonstration activities ( ). Council Decision 2006/971/EC of 19 December 2006 concerning the specific programme Cooperation implementing the Seventh Framework Programme of the European Community for research, technological development and demonstration activities ( ). OJ L 400, ,p. 86. Corrected by OJ L 54, , p. 30 ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0> F: +32 (0)

4 2 Financial Management 2.1 Financial Regulation The Financial Rules of ARTEMIS were adopted by its Governing Board on 30/05/2008 and amended on 18/12/2008. The JU has applied its Financial Regulation since its adoption. This FR is an adaptation from the Framework Financial Regulation for bodies referred to in Article 185 of the Council regulation 1605/2002. In 2013 the new General Financial Regulation 966/2012 enters into force. The new Framework Financial Regulation for bodies referred in Article 209 still to be approved at the end Currency ARTEMIS keeps its accounts in Euros. 2.3 Management Information Systems For Management Information purposes, ARTEMIS JU uses ABAC Workflow for budgetary accounting and SAP for General Ledger accounting. Both systems are managed and maintained by the European Commission. On November 24, 2010 the ARTEMIS JU Accounting Officer validated the accounting system. The underlying systems have been validated only for the part that is under the direct Joint Undertaking control. ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

5 Final Annual Accounts for2ol3 3 The Annual Accounts for the year The Accounting Officer s Certification The annual accounts of ARTEMIS Joint Undertaking have been prepared in accordance with Title VII of the ARTEMIS Financial Rules as well as the accounting rules as described in articles 43 and 118 of the Financial Rules Thereby certify that based on the information provided by the Authorising Officer, I have reasonable assurance that the accounts present a true and fair view of the financial position of the ARTEMIS Joint Undertaking in all material aspects. / 5. Officer These accounts are drafted following the Accounting Rule 1 (establishing the equity method) that presents different interpretation in view of the legal basis of Artemis Joint Undertaking and in particular with the Council Regulation, the Financial Rules and the General Financial Agreement. In order to provide a full understanding of the Artemis JU transactions a detailed explanation is given in the notes. ARTEMIS - JU T056 5/23 B-i 049 Brussels T: +32 (0) F: +32 (0)

6 3.2 General The annual accounts of the ARTEMIS Joint Undertaking include the Financial Statements and the Budget Implementation Report. The Report on Budgetary and Financial Management is a separate set of information, which accompanies the annual accounts, but it does not form part of them. The Financial Statements comprise the Balance Sheet, the Economic Outturn Account, the Cash-Flow table and the Statement of Changes in Capital for the financial year The objective of Financial Statements is to provide relevant information about the financial position, the performance and the cash flows of the entity to the users. For a public sector entity such as the ARTEMIS JU, there are also other, more specific objectives such as to provide information for decision making and to demonstrate the accountability of the Joint Undertaking for the resources entrusted to it. In order to present a true and fair view, the Financial Statements must supply relevant information to describe the nature and range of the activities; they must explain how it is financed and supply definitive information on its operations. In addition, the Financial Statements must do so in a clear and comprehensible manner, which allows comparisons between financial years. It is with these goals in mind that the Annual Accounts have been drawn up. The accounting system of the ARTEMIS Joint Undertaking comprises budget accounts and general accounts. The budget accounts give a detailed picture of the implementation of the budget. The general accounts allow for the preparation of the Financial Statements as they show all revenues and expenses for the financial year irrespective of the time they are cashed. They are designed to establish the financial position of ARTEMIS in the form of a balance sheet and an Economic Outturn Account on 31 December of each year. The Joint Undertaking applies the accrual-based accounting; therefore, the Financial Statements show all the charges and income for the financial year, regardless of the date of payment or collection. ARTEMS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

7 Fnoi 4nnual Accounts tor2oi3 3.3 Balance Sheet at Notes I. Non-Current Assets 1 78, , Intangible fixed assets 2, , Tangible fixed assets 76, , II. Current Assets 20,485, ,622, Short-term pre-financing 2 3,735, ,338, Short-term receivables 3 30, , Cash and cash equivalents 4 16,718, ,230, Total Assets 20,563, ,710, III. Non-Current Liabilities IV. Current Liabilities 5 29,274, ,353, Accounts payable 28,859, ,838, Accrual expenses Administrative , Accrual expenses Operational 28,455, ,353, Other debts 256, , Provisions for risks and charges 14, , Deferred Incomes 400, , Total Liabilities 29,274, ,353, V. Net Assets (Total Asset less Total Liabilities) 6-8,710, ,643, Contribution from Members 88,367, ,669, EU Contribution 83, 567, ,469, Artemisia Contribution 4,800, ,200, Accumulated contribution from members used previous , years , Contribution from members used during the year (EOA) 8-25,765, ,551, Total Net Assets + Liabilities 20,563, ,710, ARTEMIS - JIJ T056 5/ Brussels T: +32 (0) F: +32 (0)

8 3.4 Economic Outturn Account (EOA) in EUR Notes Administrative Expenses Staff Expenses 9-1,149, ,373, Fixed assets related expenses 10-23, , Building cost , , Other Administrative expenses , , Total Administrative: -1, ,224, Operational expenses 13-23,863, ,450, Total Operating Expenses -25,845, ,674, Financial operations revenues 14 80, , Contribution from members used during the year -25,765, ,551, ARTEMIS-JUTO56 5/ Brussels T: +32 (0) F: +32 (0)

9 3.5 Cash Flow Statement in EUR Operating Activities Surilus/(Deficit) from ordinar activities (25,765,562.98) (25,551,934.69) Depreciation Increase/(Decrease) in Payables Increase/(Decrease) in Provision for Liabilities Increase (Decrease) in Accrued charges operational Increase/(Decrease) in deferred revenues (Increase)/Decrease in Short term Receivables and pre-financing Joint Undertaking contribution from members 23, , (80,461.47) 373, (125,517.07) 130, (12,898,541.76) 10,109, , ,626, (3,973,657.39) 21,698, ,679, Net Cash Flow from operating activities Investment Activities: (496,727.71) 4,790, Purchase of tangible fixed assets Purchase of intangible fixed assets (14,412.24) (4,280.85) (2,182.99) Net Cash Flow from Investment activities (14,412.24) (6,463.84) Cash at the beginning of the period 17,230, ,445, Cash at the end of the period 16,718, ,230, ARTEMIS - JU T056 5/23 B-1049 Brussels T: 32 (0) F: +32 (0)

10 3.6 Statement of changes in net assets/liabilities in EUR The following table shows the Member s contribution after the adjustments foreseen in article 11.5.b) of the Artemis JU statutes (Council Regulation 74/2008) Balance at beginning of accounting period -4,643, ,770, Contribution from members 21,698, ,679, European Commission Operational 19,549, ,454, European Commission Running Costs 573, ,024, Anticipated Budget yearn 375, , Anticipated Budget year n+1-400, , ARTEMIS-IA Running Costs 1,600, ,200, Contribution from members used during the year -25,765, ,551, Balance at the end of accounting period -8,710, ,643, Notes to the Financial Statements 1. Fixed assets Net fixed assets ( ) are composed by the IT equipment (laptops, desktops, printers, servers etc.), the necessary software and the furniture. Part of the assets is shared with the other four Joint Undertakings in the common IT infrastructure and furniture for common spaces. The assets were registered at acquisition value (138, ) and the accumulated depreciation reaches 60, Short-Term pre-financing Following a recent recommendation of the Court of Auditors, this amount represents the accrual pre-financing paid to beneficiaries of projects that still open at the end of year. The calculation follows the same model as the accrual expenditures in operational expenditures as follows: (see note 5) Call PF Open Model To deduct Accrual PF (accrual) open ,068, % 3,068, ,044, % 8,044, ,368, % 5,254, ,114, ,201, % 2,579, ,621, % 0 0 Total: 22,683, ,947, ,735, ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

11 3. Short-Term receivables These 30, include 16, of interest from the bank account that were cashed on January Cash and cash equivalent This figure shows the balance on the bank accounts at the end of the year. In comparison with 2012 the cash balance in bank was decreased with 0.5M. The balance at the end of the year should be considered in the perspective of how the Member States disburse their national budgets and the financial cycle of the Joint Undertaking. This cash at the end of the year is needed to honour the payments for Artemis projects that have significant delays due to administrative delays in the Member States. The year 2013 was the second experience of Artemis and for the Member States in closing projects. The requirement to provide, were applicable, ex-post audit reports in some cases create substantial delays in the financial closing of the projects. 5. Current Liabilities. On this account with 29,274,192.65, the most important part are the accrual expenses for operational activities involving invoices that Artemis Joint Undertaking should receive in view of the progress of the different Calls. It s important to underline that in 2013 five calls (2008, 2009, 2010, 2011 and 2012) are overlapped and that the projects from Calls 2008 and 2009 are in process to be closed from the financial point of view. The calculations of these accruals are based on the experience of the Programme Manager who supervises all the review meetings and reports of ARTEMIS projects. The model used in the calculation of these accruals is the following: Year of Yc+1 Yc+2 Yc+3 Yc+4 Total the call Effort spent 0% 14.6% 35% 32.9% 17.5% 100% Following this model, the calls 2008, 2009, 2010, 2011 and 2012 have a percentage of effort of 100%, 100%, 82.5%, 49.6 and 14.6% respectively at end The calculation has been done based only on beneficiaries who sent the accession form to participate in Artemis Joint Undertaking Grant Agreement. ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

12 Final nnuai Accounts for 2013 The amounts for the accrual administrative expenditures (147, ) are detailed below: Office supplies & maintenance 3, Communication & publication 2, Publicity & legal expenses 59, Training Cost 1, Missions Experts & related expenditure 25, IT cost development external cost 9, Other external services (non IT) 2, Staff Costs 26, Other personnel charges 1, Other financial expenses Fixed Asset to be regularised 13, Other external services (non IT) Total 147, Deferred revenues correspond to the anticipated budget 2014 ( ) for some administrative expenditure and are in line with article 13 of ARTEMIS FR. 6. Net Assets: Net Assets of ARTEMIS JU for 2013 are equal to (8,710, ). The negative Net Assets is a temporal accounting consequence with no impact in the solvency of the Joint Undertaking. (Please see the point dedicated to Net Assets in point 3.8) 7. Accumulated Contribution from Members used in previous years: Following the Accounting Rule 1 the members contributions are recorded as pseudoequities instead of revenues. Therefore the EOA is always negative and should match the Members contributions at the end of the Joint Undertaking. 8. Contribution from members used during the year (EOA) See Economic Outturn Account table 3.4 for details. ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

13 ARTEMIS JOiNT UNDERTAKING 9. Staff expenses The breakdown of the Staff expenses is: Year2Ol3 Year2Ol2 Basic Salary 762, , School and Family Allowances 92, , Pension Fund 94, , Sickness 25, , Unemployment 10, , Taxes 81, , Insurances and others 3, , Expat 59, , Sub-Total 1,130, ,184, Special Advisor 14, Training 2, , Staff expenses with other 2, , Staff perquisites and social activities 12, , Missions 37, , Provisions/reversals and others (51,246.02) 130, Sub-total 18, , Grand Total 1,149, ,373, Fixed asset related expenses Fixed asset related expenses refer to the depreciation charges for the year and the rent of the office space, parking, etc. 11. Other administrative expenses: The most important part of this group are composed by the IT costs 65k that includes the EC SEA ABAC 25k including the hosting with DIGIT, experts evaluators and reviewers 230k and communication costs ARTEMIS-IA SEA for 205k. 12. Operational expenses According to the appraisal of the Programme manager after several reviews this figure shows the accrual operating expenditures where Artemis either received a Cost Certificate or will receive in the near future. ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

14 The situation for all the Calls at end 2013 is the following: A JU contribution for beneficiaries with Accession Forms: M 92,5M B Accrual expenditures following the effort model (see note 5): 89,2M 65,3M C Cost Claims received up to date: 41,9M 24,5M D Cost Claims to be received up to date: (B-C) 47,3M 40,8M F Costs allocated in previous years: 65,3M 41,9M F Costs allocated in the current year: (B-E) 23,9M 23,4M The JU contribution in Call 2008 has been reduced in 2013 with 0.46M as a result of the rejected/unused amounts declared in the End of Project Certificates received. 13. Financial revenues It includes the 80, of bank interest. 3.8 Accounting principles, rules and methods Based on Article 111 of the Financial Rules of ARTEMIS adopted by the Governing Board on 3 0/05/2008 and amended on 18/12/2008, the financial statements are drawn up in accordance with the generally accepted accounting principles specified in the detailed rules for implementing the general Financial Regulation, namely: a) on-going concern basis; b) prudence; c) consistent accounting methods; d) comparability of information; e) materiality; f) no netting; g) reality over appearance; h) accrual-based accounting Fixed assets 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 JU and the cost of the item can be measured reliably. All other repair and maintenance costs are charged to the economic outturn account during the financial period in which they are incurred. Items recognised in the accounts with a value lower that EUR 420 are considered as expenses and they are included in the Economic Outturn Account. Depreciation charge is calculated using the straight line method in order to allocate depreciation cost to the assets residual values over their estimated useful life, as follows: ARTEMIS - JU T056 5/ Brussels T: +32 (0) F: +32 (0)

15 Type of asset Depreciation rate Intangible assets 25% Plant, machinery and equipment 25% Furniture 10% Fixtures and fittings 25% Computer hardware 25% Vehicles 25% Cash & cash equivalents Cash and cash equivalents include only cash in bank. 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, provisions and impairment of fixed assets. Actual results could differ from those estimates. Changes in estimates are reflected in the period in which they become known. Net Assets The way in which the Arternis JU operates, with the focus on budgetary rules and principles, has a major impact on the presentation of the financial statements and analysis of them. Indeed as a result of the application of the European Commission Accounting Rule N 1 point 4.8, that is mandatory as stated in ARTEMIS JU Financial Rules Article 43.1.d, the so called pseudo-equity approach has been implemented. With particular regard to the Net Assets, there is no initial capital, primarily because the Artemis JU Regulation does not contain provisions obliging the Founding Members and the other Members to endow the Arternis JU with capital, as would be the case for a private enterprise. Similarly, the outturn cannot be measured by the same performance criteria as for a private enterprise. The Artemis JUs objective is not to have profit. These examples show that interpreting the financial statements calls for a certain measure of prudence, especially with solvency analysis. Off balance sheet commitments No off balance sheet commitments are reported Contingent Liabilities and Assets No contingency liabilities and assets are reported ARTEMIS - JU T056 5/ Brussels T: +32 (0) F: +32 (0)

16 Final Annra Accounts for Report on implementation of the budget 4.1 Statement of revenue: The table 7 of annex3 in the Annual Activity Report shows: TABLE 7 : SITUATION ON REVENUE AND INCOME IN 2013 Revenue and Year of Revenue and Outstanding Title Description Income Origin Income cashed Balance recognized REVENUES AND A , ,929, , CONTRIBUTIONS TOTAL ARTEMIS 21,933, ,929, , a) For the Running Costs: The amount received was 2,173, including 400,000 for the anticipated budget 2014 according to article 13 of ARTEMIS Financial Rules were reimbursed from administrative expenditures. 1,600,000 correspond to ARTEMIS-IA participation. The total administrative payments were 2,039,104 in b) For the Operational Expenditures: ARTEMIS JU received 19,549, based on cash-flow forecast submitted. The total operational payments were 20,529, c) 209, came from 17 recovery orders against beneficiaries of Arternis Projects and only one recovery order issued in November for a value of 3, remains outstanding at the end of the year and was cashed on 09/01/ In 2013 only one beneficiary pay with 4 days delay while the rest of the recoveries were cashed before the due date. For revenues from members, no outstanding amount exists at the end of ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

17 4.2 Statement of expenditure Commitment appropriations TABLE I: OUTTURN ON COMMITMENT APPROPRIATIONS IN 2013 (in ) Chapter Title A-I STAFF Commitment.. Commitments appropriations made authorised * 1 2 3=2/1 A-li STAFF SALARIES 1302, ,302, % A-12 STAFF RECRUITMENT 20, , % A-14 SOCIAL INFRASTRUCTURE AND TRAINING 15, , % A-17 MISSIONS AND REPRESENTA11ON 85, , % Total Title A-I 1,422, I00.00 h Title A-2 BUILDINGS EQUIPMENT & OPERATING EXPENDITURE A-20 BUILDINGS AND ASSOCIATED COSTS 280, , % A-21 INFORMATION TECHNOLOGY 90, , % A-22 MOVABLE PROPERTY AND ASSOCIATED COSTS 5, , % A-23 CURRENT ADM INISTRTATIVE EXPENDITURE 12, , % A-24 TELECOMMUNICATIONS 10, , % A-26 R&D SUPPORT 250, , % A-27 INNOVATION 10, , % A-28 COMMUNICATION 210, , % A-29 AUDITS 10, , % Total Title A-2 877, % Title 803 OPERATIONAL EXPENDITURE B3-l SELECTED PROJECTS R&D EC CONTRIBUTION 30,549, ,347, % Total Title B0-3 30,549, ,347, % TOTAL ARTEMIS 32,849, ,647, h Source: ABAC DWH ( i ) This table shows the budget adopted by the Governing Board with its amendments and the amounts committed (reserved) to be used. ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

18 4.2.2 Payment appropriations: TABLE 2: OUTTURN ON PAYMENT APPROPRIATIONS IN 2013 (in C) Chapter Payment. appropriations. authorised % Payments made 1 2 3=211 Title A-I STAFF A-li STAFF SALARIES , % A-12 STAFF RECRUITMENT 22, A-14 SOCIAL INFRASTRUCTURE AND TRAINING 18, , % A-17 MISSIONS AND REPRESENTATION 98, , % Total A-I 1,442, ,270, % Title A-2 BUILDINGS EQUIPMENT & OPERATING EXPENDITURE A-20 BUILDINGS AND ASSOCIATED COSTS 283, , % A-21 INFORMATION TECHNOLOGY 106, , % A-22 MOVABLE PROPERTY AND ASSOCIATED COSTS 5, % A-23 CURRENTADMINISTRTATIVE EXPENDITURE 15, , % A-24 TELECOMMUNICATIONS 11, , % A-26 R&D SUPPORT 311, , % A-27 INNOVATION 30, % A-28 COMMUNICATION 288, , % A-29 AUDITS 10, Total A-2 1,062, , % B3-i Total Title B0-3 OPERATIONAL EXPENDITURE SELECTED PROJECTS R&D EC CONTRIBUTION 30,218, ,529, % B0-3 30,218, ,529, %. I Source: ABAC DWH TOTAL ARTEMIS 32,723, ,568, %1 * Payment appropriations authorised include, in addition to the budget voted by the legislative authority, appropriations carried over from the previous exercise, budget amendments as well as miscellaneous payment appropriations for the period (e.g. internal and external assigned revenue). ARTEMIS - JU T056 5/23 B-i049 Brussels T: +32 (0) F: +32 (0)

19 4.3 Commitments to be settled 2013 EUR TABLE 3: BREAKDOWN OF COMMITMENTS TO BE SETTLED AT 31/ (in () 2013 Commitments to be settled Chapter Commitments Payments %tobe R.L settled 1 2 3=1-2 4=1-2/Il Title A-I STAFF A-il STAFF SALARIES 1,302, ,213, , % A-12 STAFF RECRUITMENT 20, , % A-14 SOCIAL INFRASTRUCTURE AND TRAINING 15, , , % A-17 MISSIONS AND REPRESENTATION 85, , , % Total A-I 1,422, ,267, , % Title A-2 BUILDINGS EQUIPMENT & OPERATING EXPENDITURE A-20 BUILDINGS AND ASSOCIATED COSTS 280, , , % A-21 INFORMATION TECHNOLOGY 90, , , % A-22 MOVABLE PROPERTYAND ASSOCIATED 5, , % A-23 CURRENTADMINISTRTATIVE EXPENDITURE 12, , , % A-24 TELECOMMUNICATIONS 10, , , % A-26 R&D SUPPORT 250, , , % A-27 INNOVATION 10, , % A-28 COMMUNICATION 210, , , % A-29 AUDITS 10, , % Total A-2 877, , , % B3-1 Title 80-3 R&D EC OPERATIONAL EXPENDITURE 30,347, , ,343, % Total B0-3 30,347, , ,343, % TOTAL ARTEMIS I 32,647, ,957, ,689, Source: ABAC DWH This table shows, by budget line, the open commitments at the end of From administrative expenditures, 120, are reported to be used carry forward- in The unspent amounts (225, ) are reported to be available for operational payments in the cash flow forecast of ARTEMIS - JU T056 5/ Brussels T: 32 (0) F: +32 (0)

20 F/riot nnuoiaccounts for2ot3 4.4 Budgetary principles The establishment and implementation of the budget of the ARTEMIS Joint Undertaking are governed by the following basic principles according with the Financial Rules: (a) Unity and Budget Accuracy: (b) Annuality: (c) Equilibrium: (d) Unit of account: (e) Universality: (f) Specification; (g) Sound Financial Management: (h) Transparency: 5 Report on budgetary and financial management 5.1 Accounting and Finance functions The key objectives in 2013 relating to Accounting and Finance were the following: Ensure that the Budgetary and Financial Reporting Management systems perform properly; Implement the budget and monitor its financial performance; Provide horizontal support to the other Departments of the Joint Undertaking regarding financial issues; Provide relevant and reliable information to the users of the Financial Statements. On October 26, 2009 ARTEMIS Joint Undertaking, obtained its autonomy from DG INFSO (now DG CONNECT). Year 2013 is the fourth year of autonomy and no relevant incidents have to be mentioned. The accounting data quality and other indicators like delay on payments, etc. are within the expected values. 5.2 Budget The budget of the Joint Undertaking is distributed in three Titles. Title 1 covers staff expenditure such as salaries, training and costs associated to recruitment procedures and staff welfare. Title 2 covers the costs associated to the functioning of the Joint Undertaking such as infrastructure, equipment and IT needs. Title 3 corresponds to the JU s operational activities. ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

21 Appropriations were committed at a rate of % to reflect obligations related to the operational costs of the Joint Undertaking and activities implemented according to the Work Programme Payments reached the level of 69% of the total appropriations managed. The overall perfonnance is acceptable, bearing in mind the uncertainty of the payment schedule of the Member States and the lack of enough historical data. The execution of the budget was in line with the Joint Undertaking Financial Regulation. Sound financial management as well as verification and control systems have been properly applied. ARTEMIS has put into place appropriate financial management systems in order to manage all its revenue and expenditure. The evolution of the budget implementation in commitments and payments per title since the autonomy (*) was the following: Commitment appropriations Year Ti T2 T3 Total , , ,086, ,494, ,343, ,117, ,000, ,460, ,326, ,095, ,000, ,421, ,334, , ,909, ,183, ,422, , ,347, ,647, Total 5,707, ,156, i79,343, ,207, Payment appropriations Year Ti T2 T3 Total , , ,348, ,542, ,088, , ,600, ,215, ,163, , ,153, ,026, ,268, , ,959, ,067, ,270, , ,529, ,568, Total 4,945, ,884, ,590, ,421, (*) The Call 2008 managed before the Autonomy by the European Commission consumed 33.8MEur in commitment appropriations Revenue of the Joint Undertaking - Commitment and payment appropriations Following the FR, revenues are funds made available to the Joint Undertaking by different sources to cover administrative and operational expenditure for a year and compose the budget of payment appropriations. The budget revenue and payment appropriations of the JU should be in balance. 6 Since 2010 only operational expenditures were charged to the Title 3. For comparison reasons the same criteria has been applied to 2010 In 2012 for Title 3 l0.2meur coming from previous years (C2 credits) were re-used to reinforce the EU contribution reaching the 49.9MEur. ARTEMIS - JU T056 5/ Brussels T: +32 (0) F: +32 (0)

22 5.2.2 Amending Budgets / Budgetary Transfers Budget Description Initial Budget Final Budget Difference A-i 1 STAFF SALARIES 1 302, , A-12 STAFF RECRUITMENT 20, , #14 SOCIAL INFRASTRUCTURE AND TRtJNING 1 5, , A-17 MISSIONS AND REPRESENTATION 85, , Sub-total Title , , #20 BUILDINGS AND ASSOCIATED COSTS 280, , #21 INFORMATION TECHNOLOGY 90, , #22 MOVABLE PROPERTYAND ASSOCIATED COSTS 5, , #23 CURRENTADMINISTRTATIVE EXPENDITURE 12, , A-24 TELECOMMUNICATIONS 10, , A-26 R&D SUPPORT 250, , A-27 INNOVATION 10, , A-28 COMMUNICATION 210, , A-29 AUDITS 10, , Sub-total Title 2 877, , Sub-total Title 1+2 (running costs) 2,300, ,300, B3-1 SELECTED PROJECTS R&D EC CONTRIBUTION 66,690, ,343, ,346, For the operational expenditures an amendment of the budget was decided on the Governing Board meeting held on December 3, 2013 where the EC contribution for projects was decreased by 36,346,292. This reduction of the operational budget is according with the sound financial management. It is important to explain that the initial budget is in line with the expected Member States contributions and that the final one with the real ones. Artemis Joint Undertaking has no direct control on the budgets from the Member States that according with article I 2.6.(b) of the Statutes (Council Regulation n 74/2008) shall represent at least 1.8times the Community financial contribution. ARTEMIS - JU T056 5/ Brussels T: +32 (0) F: +32 (0)

23 Final Annual Accounts for Analysis of Budgetary Management by Fund Source Cl & C4: Commitments in Cl: rr RECRUITMENT A-14 SOCIAL INFRASTRUCTURE AND TRAINING 15, , % A-17 MISSIONS AND REPRESENTATiON 85, , % Total 1,422, ,422, % A-20 BUILDINGS AND ASSOCIATED COSTS 280, , % A-21 INFORMATION TECHNOLOGY 90, , % A-22 MOVABLE PROPERTY AND ASSOCIATED COSTS 5, , % A-23 CURRENT ADM INISTRTATIVE E>PENDIThRE 12, , % A-24 TELECOMMUNICATIONS 10, , % A-26 R&D SUPPORT 250, , % A-27 INNOVATION 10, , % A-28 COMMUNICATION 210, , % A-29 AUDITS 10, , % Total 877, , % B3-1 SELECTED PROJECTS R&D EC CONTRIBUTION 30,343, ,343, % Source: ABAC DWH These commitments are the approved in Commitments in C4: ISELECu t-..ects R&D EC CONTRIBUTION 3,,....J 2% Source: ABAC DWH -- 0 These Commitments are the ones created to re-use amounts coming from recovery orders cashed in the year (C4). ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

24 JU ARTEMIS JOINT UNDERTAKING 5.3 Budgetary Outturn Account: Revenue Item EU R&D activities 19,549, ,350, EU Administrative operations 573, ,128, ARTEMISIA Administrative operations 1,600, ,200, Total Revenues: 21,723, ,679, Running Costs Staff Expenditure Item Salary payments Other staff costs payments 1,213, ,202, , , Other Running costs Payments 768, , Appropriations carry over 120, , Operating expenditure Payments 20,529, ,959, Appropriations carry over (Bank interest included) 16,598, ,155, Total Expenditure: 39,287, ,297, Budget Surplus -17,564, ,618, Budget outturn previous year -28,960, ,342, Total Budget outturn -46,525, ,960, Appropriations carry over 2012 for running costs From the 74, estimated in 2012 the final consumption in 2013 was 84, The major part of that deviation was a short estimation in costs related with experts. ARTEMIS - T056 5/ Brussels T: +32 (0) F: +32 (0)

25 5.4 Reconciliation between budgetary and accrual based accounts (EUR) sign 2013 amount +1- Economic result (- for loss) ,765, Ajustment for accrual items (items not in the budgetary result but included in the economic result) A Adjustments foraccrual Cut-off (reversal N-i) - -41,353, B Adjustments foraccrual Expenses Cut-off (cut-off N ) + 28,455, BI Adjustments for Accrual Pre-financings Cut-off(cut-off3i.12.N ,947, C Short-term psyables N - (N-i) , D Depreciation of intangible and tangible fixed assets + 23, E Provisions AdministratNe (excluding Assets) + -78, F Bank Charges G no not yet cashed (class 6) -3, H Prefinancing given in previous year and cleared in the year + 6,061, I Bank Interest rece[ved , J Short-term rece[vables (N-i) - N 23, K No Budgetary recoxery orders issued and cashed + -1, L Others (Ajustements pensiontiers, Cashed RO, +1- inoices N-i/N+i) , Ajustment for budgetary items (item included in the budgetary result but not in the economic result) M Assetacquisitions (less unpaid amounts) N New pre-financing paid in the year and remaining open - -8,405, Budgetaryrecoeryorders issued in on balance sheetaccounts (not7 or6 accounts) and cashed + 21,723, P Payment appropriations carried ouerto N+l - -16,718, Q Payments for staff(theyare budgetary payments but booked against pro4sions) - -47, Z Remaining Reconciliation difference between Budget and Financial Accounts Budgetary result (+ for surplus) -17,564, ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

26 F/nc,! Annual Accounts for Human Resources 6.1 Establishment Plan The approved establishment plan for the years 2011 and 2012 is the following: Posts filled Posts in Posts Promotion / Category Establishment actually by external Departures actually reclassification and plan 2013 filled at publication 2013 filled at in 2013 grade in AD_16 AD_15 perm temp perm temp perm temp perm temp perm temp perm temp AD AD_13 AD_12 AD AD_10 AD9 AD AD_7 AD_6 AD_5 TotalAD Number of Contractual Agents GFIV Posts actually Envisaged filled at Posts actually filled at Envisaged GFIII GFII GFI TOTAL ARTEMIS - JU T056 5/23 B-i 049 Brussels T: +32 (0) F: +32 (0)

27 Final Annual Accounts for Organisational Chart Executive Director 1TA-AD14 r4 TA - AD8 Programme Officers JU Secretariat 2 CA - GFII I Programme Manager - 1TA-AD11 I + 1 Financial Assistant CA-G Fill I a Legal Officer Head of Adm. & Finance /Acounting Officer I 1TA-AD11 ance&contract I ARTEMIS - JU T056 5/23 B-1049 Brussels T: +32 (0) F: +32 (0)

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