Consolidated Annual Activity Report (CAAR) of

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1 Annex 2 Template for Consolidated Annual Activity Report Consolidated Annual Activity Report (CAAR) of <agency name> Year (aaaa) [In pursuance of FR 1605/2002, FFR No /2013] 1 REGULATION (EU) No 1271/2013 of 30 September 2013 on the framework financial regulation for the bodies referred to in Article 208 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council

2 Table of Contents Management Board s (or equivalent) analysis and assessment Indicative Executive Summary Introduction Part I. [Policy] Achievements of the year Part II (a) Management 2.1 Management Board (or equivalent) 2.2 Major developments 2.3 Budgetary and financial management 2.4 Human Resources (HR) management 2.5 Assessment by management 2.6 Budget implementation tasks entrusted to other services and entities 2.7 Assessment of audit results during the reporting year Internal Audit Service (IAS) Internal Audit Capability (IAC) (where applicable) European Court of Auditors (ECA), 2.8 Follow up of recommendations and action plans for audits 2.9 Follow up of observations from the discharge authority, Part II (b) External Evaluations (where applicable) Part III Assessment of the effectiveness of the internal control systems 3.1 Risk Management 3.2 Compliance and effectiveness of Internal Control Standards Part IV. Management assurance 4.1 Review of the elements supporting assurance 4.2 Reservations (if applicable) 4.3 Overall conclusions on assurance (where applicable) Part V. Declaration of Assurance Annexes Annex I. Core business statistics Annex II. Statistics on financial management Annex III. Organisational chart Annex IV. Establishment plan Annex V. Human and financial resources by activity Annex VI. Specific annexes related to part 2 Annex VII. Specific annexes related to part 3 Annex VIII. (draft/final) Financial Accounts Other Annexes can be added depending on the Agency s needs 1

3 Suggested information to be contained in each sub heading Sub heading Management Board s (or equivalent) analysis and assessment Information to be covered Commentary on overall achievements, including notes on recommendations Introduction Executive Summary Agency in brief (short description of the agency's mission and objectives, the conditions and challenges under which it operates, organisation/administrative structure and accountability chain etc. )The Year in brief (Key achievements of the year, major internal or external events, key quantitative data of the reporting year ) Key conclusions (from part I, II and III of the report) Part I [Policy]* Achievements of the year *Only for agencies that are involved in the policy work It is recommended that the structure of this section mirror that of the agency s annual work programme. Each agency should detail its achievements against its annual work programme here. This section should also include reference to progress against Key Performance Indicators (KPIs), and where relevant a customer satisfaction perspective. Furthermore, the multi-annual component of the programming document of the agency will provide the context and reference for the overall achievements of the year. Part II.(a) Management 2.1 Management Board (or equivalent) Short paragraph providing an overview of significant risk and control issues signaled to and discussed with the Management Board (or equivalent) and significant items approved or decided by the Management Board (or equivalent ). 2.2 Major developments Major internal or external developments which had an impact on the Agency during the reporting year (new challenges, organisational changes etc.) 2

4 Sub heading 2.3 Budgetary and financial management Information to be covered (1) Information transmitted currently in the report on the budgetary and financial management (Art 76 current FFR); - rate and type of implementation of appropriations; indicating, where appropriate, reserve fund, -indication of commitments for actions that will extend for more than one financial year; major items only - Information on transfers and amending budgets; - (level of) appropriations carried forward to the following financial year and implementation of appropriations carried forward from the previous financial year, - % of procurement procedure types used (e.g. open/negotiated etc.). Information on interest charged by suppliers through late payments (> 30 days). (2) Summary information on budgetary operations for the year in terms of one paragraph on budget operations, revenue and expenditure (including information on adhoc grants and delegation agreements when applicable). 2.4 Human Resources (HR) management (1) Brief description of the major HR developments (i.e. changes brought to the establishment plan in the reporting year; changes of major Human Resources policies etc.) 2 (2) Brief description of the results of the screening / benchmarking exercise (i.e. overheads/operational ratio; main findings etc) (for data please see annex IV: templates are subject to modifications following results of the WG on benchmarking/screening). 2.5 Assessment by management It is based on the results of controls or control procedures performed by staff of the Agency (ex- post, ex-ante evaluations). Include here the useful indicators of the legality and regularity of the underlying 2 Including, in accordance with the para. 28 Parliaments Discharge Report 2011 discharge: performance, financial management and control of EU agencies (P7_TA(2013)0134), the number of days of leave authorised to each grade under the flexitime and compensatory leave schemes 3

5 Sub heading Information to be covered transactions, and of the other four Internal control objectives in FR 32.2 (sound financial management, prevention/detection/correction of irregularities and fraud, reliable reporting, safeguarding of assets and information). 2.6 Budget implementation tasks entrusted to other services and entities Assurance received from other AO in cases of crossed sub-delegations List of the activities covered by crossed subdelegations granted to another agency or institution; A summary of the conditions of these cross delegations (i.e. the control and reporting requirements); Information on the controls carried out, any weaknesses identified and the actions taken to remedy these; 2.7 Assessment of audit results during the reporting year Internal Audit Service (IAS) Summary of the internal audits conducted by the Internal Auditor, the thematic topic, information whether IAS consider that the audit plan as suitable Internal Audit Capability (IAC) (where applicable) The same level of information as in the case of IAS (point of 2.7.1) European Court of Auditors (ECA) Opinions of the ECA on the reliability of the Accounts, on the legality and regularity of transactions underlying the accounts and the relevant findings issued Follow up of recommendations and action plans for audits State of play of the action plan implementation progress. Only the issues covered by critical and very important recommendations should be briefly described in the report, but not the detailed findings. In case of audit recommendations not accepted by the Agency's management, the recommendation and the related rationale for not acceptance should also be disclosed. Significant delays in the implementation of action plans should be reported (any critical or very important recommendations overdue > 6 months from the original implementation 4

6 Sub heading Information to be covered date). The number and summary of recommendations issued, as well as any potential consequences for the assurance building process. Actions taken on IAS, IAC and ECA recommendations from previous years. Aspects of service that received a "red light" from the ECA for one of the two last years should explain how the weaknesses noted by the Court have been addressed and in case of differences of opinion clearly explain. 2.9 Follow up of observations from the Discharge authority PART II. (b) (when relevant) External Evaluations State of play of actions undertaken to address observations Significant delays in the implementation of action plans should be reported. External evaluations: The results of external evaluations (where applicable) should be summarized. Part III. Assessment of the effectiveness of the internal control systems 3.1 Risk Management Most important types/areas of risks associated with the Agency s operations (for example, where relevant, data protection issues, conflict of interests..etc.) Information on - by means of appropriate monitoring tools - the risk management process, i.e. how the agency responds to or mitigates the most important risks (but not the actual details of the risks, nor their current level of likelihood and potential impact); Very high level information only on fraud prevention and detection; Any prominent risks that have materialised in the reporting year should be noted. 3.2.Compliance and effectiveness of Internal Control Standards (ICS) Methodology applied for assessment of the compliance and effectiveness of the ICS Information on the standards with which the agency does not comply yet (fully or partially), the reasons for this and the planned actions to address the situation, including target dates; Information on the standards with which the 5

7 Sub heading Part IV Management assurance Information to be covered agency is considered fully compliant (i.e. compliant with all their requirements) Information on how effectively the standards prioritised in the Work Programme for the reporting year are implemented. This reporting should include the results of the action taken during the year for each "priority standard". Conclusions as to the overall appreciation of the effectiveness of the internal control system. 4.1 Review of the elements supporting assurance Brief description of the building blocks of assurance Summary analysis of the conclusions of any significant weaknesses reported in Part II and Part III and assessment of their joint combined impact on the declaration of assurance. 4.2 Reservations (where applicable) Indicate the scope of the reservation and describe the specific cause of the weakness. The conclusions on whether the weaknesses are material enough to lead to a reservation should always be clearly explained and justified Quantify the exposure (impact in monetary terms) as far as possible Explain the impact on the declaration of assurance Set out the corrective action planned and who is responsible for taking this action in an action plan including target dates and an assessment of the impact of the actions. 4.3 Overall conclusion on assurance (where applicable) An assessment of the combined impact of any reservations made on the declaration and a clear conclusion as to whether, in the light of those reservations, the assurance to be provided in the declaration can be given. Consideration is to be given to the overall financial impact resulting from the reservations, weighed by the relative share of the activity concerned by each reservation i.e. to what extent do the reservations refer to core business vs. other activities? Annexes: Annex I. Core business statistics Annex II. Statistics on financial For example: KPI s and SLA s and provisions for performance measurement relating to core business of the Agency Additional measures of the financial 6

8 Sub heading management Information to be covered performance: e.g. a. Budget execution, b. number and value of Budget transfers, c. interest charged for late Supplier Payments, Annex III. Organisational chart Last organisational chart valid by the end of the year. Annex IV. Establishment plan -Last establishment plan adopted and additional information on Human Resources management -Information on the entry level for each type of post (See table template attached subject to modifications following results of the WG on benchmarking/screening) -Information on benchmarking exercises where applicable (See table template attached subject to modifications following results of the WG on benchmarking/screening). Annex V. Human and financial resources by activity Actual consumption of the human and financial resources by the end of year split between activities. Annex VI Specific annexes relate to part 2 Annex VII Specific annexes relate to part 3 Annex VIII (draft/final) annual accounts 7

9 Annex IV: Table templates provided by the European Commission Information on the entry level for each type of post: Indicative table Key functions (examples terminology should be adjusted to each agency s job titles) i e.g. Head of Department, Deputy Director etc. Type contract (official, or CA) of TA Function group, grade of recruitment (or bottom of the brackets if published in brackets) Indication whether the function is dedicated to administrative support or operations [ subject to definitions used in screening methodology] (please identify which level in the structure it corresponds to taking the Director as level 1) e.g. Head of Unit, Head of Business Area (please identify which level in the structure it corresponds to taking the Director as level 1) e.g. Head of Sector (please identify which level in the structure it corresponds to taking the Director as level 1) E.g. Senior Officer, Senior Specialist etc e.g. Officer, Specialist e.g. Junior Officer e.g. Senior Assistant e.g. Junior Assistant e.g. Head of Administration e.g. Head of Human Resources e.g. Head of Finance e.g. Head of IT e.g. Secretary e.g. Mail Clerk e.g. Webmaster -Editor e.g. Data Protection Officer e.g. Accounting Officer e.g. Internal Auditor e.g. Secretary to the Director 8

10 Benchmarking against previous year results Indicative table provided by the European Commission final table to be added based on the recommendation of the WG on benchmarking methodology Job Type (sub) category Year N-1 (%) Year N (%) Administrative support and Coordination Administrative Support Coordination Operational General operational Programme management Top level Operational Coord Evaluation & Impact assessment Neutral Finance Control

11 Suggested format for Part IV I, the undersigned, Director of (agency), In my capacity as authorising officer, Declare that the information contained in this report gives a true and fair view. State that I have reasonable assurance that the resources assigned to the activities described in this report have been used for their intended purpose and in accordance with the principles of sound financial management, and that the control procedures put in place give the necessary guarantees concerning the legality and regularity of the underlying transactions. This reasonable assurance is based on my own judgement and on the information at my disposal, such as the results of the self-assessment, ex-post controls,[ the work of the Internal Audit Service delete this if not applicable], [the work of the Internal Audit Capability - delete this if not applicable] [and the lessons learnt from the reports of the Court of Auditors - delete this if not applicable] for years prior to the year of this declaration. Confirm that I am not aware of anything not reported here which could harm the interests of the agency. [However the following reservations should be noted: ] (delete this sentence if not applicable) Place.., date... (signature) Name of the Authorising Officer 10

12 i If function is recruited at more than one entry grades, please indicate in separate lines. For example, this could occur if a Senior Officer can be recruited at ADx or ADy depending on their Unit/specialisation. In this case, the key function Senior Officer should be reported as Senior Officer Unit A Entry grade ADx and (on a separate line) Senior Officer Unit B Entry grade ADy) 11

FINANCIAL REGULATION

FINANCIAL REGULATION The present Financial Regulation shall enter into force on the 1 st of January 2014 Adopted in Parma on 19 December 2013 For EFSA s Management Board [SIGNED] Sue Davies Chair of the