PART BUDGETARY AND FINANCIAL MANAGEMENT REPORT

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1 Ref. Ares(0)749-0/0/0 PART BUDGETARY AND FINANCIAL MANAGEMENT REPORT -INTRODUCTION FINANCIAL SYSTEMS AND MANAGEMENT - BUDGET EXECUTION -4-

2 - INTRODUCTION The presentation of this report on budgetary and financial management has been prepared in accordance with Articles to 7 of the Standard Financial Regulation for the Executive Agencies. -FINANCIAL SYSTEMS AND MANAGEMENT The budget accounts are managed by the ABAC system and the general accounts are maintained by the SAP system, which has a direct interface with the General Accounting System of the European Commission. The various budgetary and financial reports are produced using the Business Object system. For the forecast of its treasury needs, the Agency is using a budget monitoring tool (PECUNIA), where all the units are registering their needs. The tool is linked to ABAC on commitment and payment level. Public procurement procedures are handled by the units concerned under the monitoring of the budget and legal teams for advice on various procurement matters, documentation, legal interpretation of the framework contracts, etc. - BUDGET EXECUTION 0 On basis of the draft budget presented to the Budgetary Authority, the Steering Committee adopted on 7 December 00 the ERCEA annual subsidy 0 for.90.77,00 EUR, pending adoption of the General budget of the European Union by the Budgetary Authority. The so called "Bourlanges" summer budget revision lead the ERCEA to an amending reduced budget, adopted by the Steering Committee on 8 September 0 in favour of a full reallocation to the operational activities related to the IDEAS programme managed by the ERCEA. The reduction of EUR is mainly due to a reduction of audit costs. Amended budget amounts to ,00 EUR. The transfer to the operational budget was accepted by the Budgetary Authority and appropriations were inscribed on the budget line 08. of the Ideas Programme on 7 November 0. In view of optimizing the administrative budget execution the Agency is proceeding to transfers between budget lines and chapters. Transfers are Director decision, submitted to the Steering Committee. 4-

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Budget Line Commitment Budgeted Commitment Available Commitment Consumed Payment Budgeted Payment Available Payment Consumed RAL 0 00 400 40 40 40 600 700 Officials and Other Agents mentioned in the

4 Budget Line Commitment Budgeted Commitment Available Commitment Consumed Payment Budgeted Payment Available Payment Consumed RAL Officials and Other Agents mentioned in the Staff Establishment Plan Contract Agents Seconded National Experts Intérimaires Recruitment, entering and leaving the service, transfer costs Missions and related costs Restaurant, Canteens Medical service Training Other interventions Social service and other interventions Reception, Representation costs Total title , , ,7 8.6, , , 4.4,7 8.6,6 46,.08,6 8.,96.99,9.046, , , ,0 4.8, 00.8, ,9 6.66,8 4.4, ,7 4.84, , , , , , ,7 8.6, , , ,78.60,4 46,.08,6 4.09,0.8,0 4.77,70.076, , , ,0 4.49, 76.0, 84.74, 4.79,46 4.4, , ,0 6.74, ,0.9, , ,6.,07 4.9,9 0.70,4 89,7 4.77,70 9,6.60, Rent Charges Fitting out Hardware, software and linked expenses Others Material and Technical installations Furniture Documentation and library Paper mill and office supplies Financial expenses Other insurances Works of handling and removal of services Correspondence stamping and carriage costs Royalties of telecommunications Internal meetings expenses External meetings expenses Expenses of Information, Publications and Communication Expenses of translation Audit expenses Expenses with consolidated entities Total title TOTAL ,00 0., ,00 49,9 6.9,.04,86 0,97.9,4.9,94.4, 87, , , 4.76, ,87.94, , , , , , , , , ,48 8.8, , ,4.0, , 4.09, , , ,00 0., ,00 49, ,68.04, , ,6.9,94.4, 97, ,8 7,00 49,0 9.60,04 409, , , ,04.94, ,00 4.7, , , ,6.6.7, 76.96, , , , , , , 77,00.70, , ,7 6.9,.44, 68.4, , , , ,.9.768,0 67.7, , , ,8 7, ,04 409,6.6,0.66, ,7 48.6,00 4.7, , ,6 The year end execution rate of the 0 administrative budget (C appropriations,,6 Mio) was 98,% for commitments and 9,% for payments, the difference in execution rate (,0 Mio) corresponding to the Reste A Liquider (RAL) covering goods and services delivered in 0 but not yet invoiced to the Agency, as costs of training and building, IT material and IT consultants, IT helpdesk, communication and external audits, or the value for 0 of the contracts' started in 0 but that extend over the financial year. 4

5 As regards Title Staff expenditure. 0 budget was made to cover the establishment plan of temporary agents, the appointment of contracts staff and 7 Seconded National Experts. End 0, 97 temporary agents, 4 contracts agents and 8 Seconded National Experts were recruited explaining the execution on chapters (salaries and allowances), (removal expenditures, installation costs, change of personnel etc. and recruitment costs incurred by the Agency from the launch of a selection procedure to the effective recruitment of the selected candidates) and item 40 (pre-recruitment medical visits and annual medical visits). The trainings ordered in 0 covered the following activities: - Commission trainings (financial courses such as ABAC accounting systems, languages,etc) managed under the SLA signed by Commission DG's and the ERCEA. - Teambuilding actions - External trainings Crèche and Garderie costs under chapter 6 are related to art 6. of the SLA signed with OIB and substantiated by the confirmation given by the ERC EA to OIB to support this type of expenses. School transport costs under chapter 6 arise from the right for Agency staff to have their children go to European Schools. Based on its decision taken in 00, in line with the Commission, ERC EA reimburses staffs public transportation costs. As regards Title Infrastructure and operating expenditure, the main post is the renting and charges of the building which is nearly % of the amount committed under this title. Building charges come from the services provided by DG SECURITY ("gardiennage", technical and security controls of the building, badges to the staff, etc) and by OIB (maintenance, cleaning,..) In the frame of a Usufruct contract starting in September 008 for a duration of years, the Agency occupies part of the Ground Floor, 6 floors and parking space of Covent Garden Building - Bat В at place Rogier- 0 Saint Josse. IT expenditure (chapter ) concerns mainly: -The ERCEA's participation to the elaboration for the research Directorates General of a common selection platform, -the development of IT applications requiring specialized profiles and specific competencies from IT consultants; -the helpdesk, the costs of computerised central financial and accounting system named ABAC (Service Level Agreement with DG BUDG). Chapter 4 includes the costs paid for the services provided to the Agency by Directorate DIGIT of the Commission in the frame of a Memorandum of Understanding for network service, mailboxes and other Commission applications such as "Adonis", "Syslog" and "Sysper". Chapter 6 concerns expenditures related to meetings of the Members of the Scientific Council, the Board Meetings, the meetings with National Representatives, etc. The communication budget covers among other the items of expenditures necessary to build the corporate identity of the ERCEA, through organisation of events, publication, productions of videos, enhancement of the website and the preparation of the organisation of the th Anniversary event of the Agency. The audit expenses cover the audits, performed by external contractors, on the costs and expenses reported by participants beneficiary of a community financial contribution (grant) under the Seventh

6 Framework Programme of the European Community for research, technological development and demonstration activities. The management of the grants is covered by the operational budget of the Executive Agency. Chapter 7 include the fees paid for the services provided to the Agency by PMO: calculation of the staff salary and entitlements, including SNE's, determination of the rights at entry in service and along the career, liquidation of missions expenses, calculation of reimbursement of travel costs to the convoked candidates at recruitment interview, etc. Recovery orders During the reporting period the ERCEA has issued Recovery orders for an amount of ,7 of which approximately 99,9 % were cashed before the end of 0. Recovery orders, are operations used to claim funds from a third party but are also a technical mean to register in the systems the funds to be cashed by the Agency. They concerned mainly the request for the EC contributions (budgetary recovery order), the corresponding bank interests (budgetary recovery order), and inter entity régularisations for staff mobility between EC consolidated entities (non budgetary recovery orders). --47

7 4- STAFF ESTABLISHMENT PLAN 0 Temporary Posts 0 0 Function group and grade Authorised under the Community Budget Filled as of //0 Authorised under the Community Budget DB Request AD 6 AD AD 4 0 AD AD ADII ADIO AD9 AD AD AD AD AD total 97 ASTU ASTIO AST 9 AST 8 AST 7 AST 6 AST AST 4 AST AST ASTI AST total TOTAL

The Research Executive Agency (REA) The First Amending Administrative Budget 2017

EUROPEAN COMMISSION RESEARCH EXECUTIVE AGENCY Steering Committee The Research Executive Agency (REA) The First Amending Administrative 2017 Final Version Adopted by the Steering Committee at its meeting