ANNUAL ACTIVITY REPORT 2011 - European …€¦ · European Economic and Social Committee ANNUAL ACTIVITY REPORT 2011 (Section VI of the EU-budget) (Final – June 2012)

European Economic and Social Committee

ANNUAL ACTIVITY REPORT 2011

(Section VI of the EU-budget)

(Final – June 2012)

Table of contents

Page

Statement of Assurance 11

EESC – Main Achievements 2011 13

Annual General Accounts 2011 (Accrual Accounting Principle) 29

Annual Budgetary Accounts 2011 (Modified Cash Accounting Principle)

&

Report on Budgetary and Financial Management 57

Appendices 93

PART I

PART II

PART III

PART IV

EESC – Main Achievements 2011

Contents PART I

1 INTRODUCTION................................................................................................................................................. 15

2 ACTIVITY OF THE COMMITTEE .................................................................................................................. 15

2.1 HUNGARIAN PRESIDENCY .......................................................................................................................... 15

2.2 POLISH PRESIDENCY .................................................................................................................................... 16

2.3 NOTEWORTHY EVENTS FOR THE EESC DURING 2011.......................................................................... 19 3 ADMINISTRATIVE SUPPORT ACTIVITIES................................................................................................. 26

3.1 Consolidation of budgetary management and the internal budgetary procedure................................................ 26

3.2 Mid-term review of the Cooperation Agreement ............................................................................................... 26

3.3 Modernisation of document management and electronic archiving................................................................... 27

3.4 A pilot site for the civil society database............................................................................................................ 27

Annual General Accounts 2011

Contents

PART II

1. CERTIFICATION BY THE ACCOUNTING OFFICER ......................................................31

2. ACCOUNTING POLICIES ......................................................................................................32

2.1 CHANGES TO THE ACCOUNTING POLICIES ETC......................................................32 2.2 LEGAL PROVISIONS AND THE FINANCIAL REGULATION.....................................33 2.3 ACCOUNTING PRINCIPLES ...........................................................................................33 2.4 CURRENCY AND BASIS FOR CONVERSION...............................................................34 2.5 THE ECONOMIC OUTTURN ACCOUNT .......................................................................34

2.5.1 Revenue ..........................................................................................................................34 1.5.2 Expenditure ....................................................................................................................35

2.6 BALANCE SHEET.............................................................................................................35 2.6.1 Intangible fixed assets ....................................................................................................35 2.6.2 Tangible fixed assets ......................................................................................................35 2.6.3 Depreciation rates..........................................................................................................36 2.6.4 Leases.............................................................................................................................36 2.6.5 Impairment of assets.......................................................................................................37 2.6.6 Receivables.....................................................................................................................37 2.6.7 Cash & cash equivalents ................................................................................................38

2.7 THE CASHFLOW STATEMENT......................................................................................38 2.8 USE OF ESTIMATES ........................................................................................................38

3. THE ECONOMIC OUTTURN ACCOUNT............................................................................39

4. THE BALANCE SHEET...........................................................................................................42

5. STATEMENT OF CHANGES IN NET ASSETS....................................................................44

6. THE CASHFLOW STATEMENT............................................................................................45

7. NOTES.........................................................................................................................................46

Contents

Annual Budgetary Accounts 2011

& Report on Budgetary and Financial Management

PART III

1. GENERAL REMARKS ON THE BUDGET OUTTURN..........................................................59

2. REVENUE ......................................................................................................................................61

3. FINAL APPROPRIATIONS.........................................................................................................63

3.1 HUMAN RESOURCES................................................................................................................63 3.2 OTHER RESOURCES - PART 1/2 ..............................................................................................64 OTHER RESOURCES - PART 2/2 ..............................................................................................65 TOTAL HUMAN RESOURCES + OTHER RESOURCES..................................................................65

4. USE OF FINAL APPROPRIATIONS (C1) .................................................................................68

4.1 HUMAN RESOURCES................................................................................................................68 4.2 OTHER RESOURCES - PART 1/2 ..............................................................................................70 OTHER RESOURCES - PART 2/2 ..............................................................................................72

5. USE OF APPROPRIATIONS AUTOMATICALLY CARRIED OVER FROM 2010 TO 2011 (C8) ............................................................................................................80

HUMAN RESOURCES AND OTHER RESOURCES - PART 1/2 .......................................................80 OTHER RESOURCES - PART 2/2 ..............................................................................................82

6. USE OF ASSIGNED REVENUE IN 2011 (C4) ................................................................................86

7. RE-USED 2010 APPROPRIATIONS (C5)........................................................................................88

8. APPROPRIATIONS FROM EXTERNAL ASSIGNED REVENUE (R0)................................90

Contents APPENDICES

PART IV

APPENDIX A......................................................................................................................................95

INTERNAL CONTROL ENVIRONMENT............................................................................................. 95 1. POWERS OF FINANCIAL OFFICERS ..................................................................................................... 95

1.1 Authorising officer ........................................................................................................95 1.2 Managing officer...........................................................................................................95 1.3 Verifier ..........................................................................................................................96 1.4 Specialised financial irregularities panel .....................................................................98 1.5 The internal auditor ......................................................................................................98 1.6 Audit Committee............................................................................................................99 1.7 Staff members responsible for managing access to the budget management software (ABAC) 99

2. ASSISTANCE TO THE FINANCIAL ACTORS.......................................................................................... 99 2.1 Assistance/advice function ............................................................................................99 2.2 Training ........................................................................................................................99 2.3 EESC intranet (CESNET) ...........................................................................................100

3. BUSINESS CONTINUITY.................................................................................................................... 100 4. RISK ANALYSIS AND SENSITIVE FUNCTIONS ................................................................................... 101 5. DOCUMENT MANAGEMENT............................................................................................................. 102

APPENDIX B....................................................................................................................................103

MAIN RECOMMENDATIONS OF THE INTERNAL AUDITOR CONTAINED IN AUDIT

REPORTS PRODUCED IN 2011 AND ACTION TAKEN (AT THE DATE OF THIS REPORT) .... 103 1. Audits ...............................................................................................................................103 2. Follow-up of agreed action plans ....................................................................................104 3. Other internal audit service involvement and cooperation..............................................104 4. Audit Committee, internal auditor reporting ...................................................................105

APPENDIX C....................................................................................................................................107

DISPOSING OF FIXED ASSETS 2011.................................................................................................. 107 1. Financial regulation ........................................................................................................107 2. Implementing rules ..........................................................................................................107 3. Disposing of immovable property or major installations free of charge in 2011 ............107

APPENDIX D....................................................................................................................................109

KEY PERFORMANCE AND ACTIVITY INDICATORS ("KAPIS") ................................................. 109 1. Introduction .....................................................................................................................109 2. Scope and interpretation..................................................................................................109 3. Presentation.....................................................................................................................109 4. Development ....................................................................................................................110

5. KEY PERFORMANCE AND ACTIVITY INDICATORS .......................................................................... 111 5.1. DIRECTORATES FOR CONSULTATIVE WORK.............................................................. 111

Opinions ....................................................................................................................................111 Reports ......................................................................................................................................112

5.2. DIRECTORATE FOR GENERAL AFFAIRS ........................................................................ 113 Interpretation activity and unused interpretation rate ..............................................................113 Legal opinions...........................................................................................................................114 Events and partnerships ............................................................................................................115

5.3. COMMUNICATION ............................................................................................................... 116 Visitor Groups...........................................................................................................................116 Press activities ..........................................................................................................................117

Contents APPENDICES

Information subscribers ............................................................................................................118 Publications...............................................................................................................................119

5.4. DIRECTORATE FOR HUMAN RESOURCES & INTERNAL SERVICES....................... 120 HR workforce ............................................................................................................................120

5.4.1. RECRUITMENT, CAREERS, TRAINING UNIT ................................................................................ 121 Number of recruitments/renewals .............................................................................................122 Post occupation rate..................................................................................................................123 Staff pyramid and equal opportunities ......................................................................................124 Staff flexibility index..................................................................................................................125 Staff turnover.............................................................................................................................126 Staff internal mobility................................................................................................................127 Training intensity ......................................................................................................................128

5.4.2. STAFF SUPPORT SERVICES, INDIVIDUAL RIGHTS, EQUAL OPPORTUNITIES UNIT........................ 129 Overtime follow-up....................................................................................................................129 Absence rate ..............................................................................................................................130 Harassment cases......................................................................................................................131

5.4.3. MEETING SERVICE...................................................................................................................... 132 Meetings organised ...................................................................................................................132 Meeting participants .................................................................................................................133

5.5. DIRECTORATE FOR FINANCE, BUDGET AND ACCOUNTING................................... 134 5.5.1. BUDGET, SERVICE TO MEMBERS UNIT....................................................................................... 134

Members expenses – payment lead time....................................................................................134 5.5.2. FINANCE UNIT............................................................................................................................ 135

Average lead time provisional salaries .....................................................................................135 Mission costs reimbursement lead time.....................................................................................136

5.5.3. ACCOUNTING UNIT.................................................................................................................... 136 5.5.3. ACCOUNTING UNIT.................................................................................................................... 137

Registration of invoices.............................................................................................................137 Liquidity accuracy NOK............................................................................................................138

5.6. DIRECTORATE FOR LOGISTICS ........................................................................................ 139 5.6.1. INFRASTRUCTURE UNIT.............................................................................................................. 139

Number of building maintenance interventions.........................................................................139 Building maintenance intervention lead time............................................................................140

5.6.2. IT AND TELECOMMUNICATIONS UNIT....................................................................................... 141 IT costs per user ........................................................................................................................141 IT Unit workforce ......................................................................................................................142 IT user support requests ............................................................................................................143 IT helpdesk reaction ..................................................................................................................144 IT availability ............................................................................................................................145

5.6.3. PRINTING AND DISTRIBUTION UNIT........................................................................................... 146 Copy shop productivity..............................................................................................................146 Offset productivity .....................................................................................................................147 Mailing productivity ..................................................................................................................148 Internal distribution productivity ..............................................................................................149

5.7 DIRECTORATE FOR TRANSLATION ..................................................................................... 150 Internal translation productivity ...............................................................................................150 Translation deadline compliance rate.......................................................................................151 Translation revision rate ...........................................................................................................152 Direct translation rate...............................................................................................................153 Number of translation requests .................................................................................................154 External translation rate ...........................................................................................................155 Translation software users ........................................................................................................156

APPENDIX E....................................................................................................................................157

Contents APPENDICES

RESULTS OF EX-POST CONTROLS 2011.......................................................................................... 157

APPENDIX F ....................................................................................................................................163

REPORT ON BUILDING CONTRACTS 2011 ..................................................................................... 163 1. Financial Regulation (FR)...............................................................................................163 2. Implementing rules (IPR).................................................................................................163 3. Building contracts 2011...................................................................................................163

APPENDIX G....................................................................................................................................165

INSTRUCTIONS GIVEN REGARDING DECISIONS WHICH ARE IRREGULAR OR CONTRARY

TO THE PRINCIPLES OF SOUND FINANCIAL MANAGEMENT DURING 2011........................ 165 1. Financial Regulation (FR)...............................................................................................165 2. Implementing rules (IPR).................................................................................................165

APPENDIX H....................................................................................................................................167

WAIVING OF RECOVERY OF AMOUNTS RECEIVABLE INVOLVING EUR 100,000 OR MORE

IN 2011...................................................................................................................................................... 167 1. Financial Regulation (FR) Art. 73 (2): Recovery ............................................................167 2. Implementing rules (IPR) Art. 87 (5): Waiving of recovery of an established amount receivable ..................................................................................................................................167 3. Waiving of recovery of amounts receivable involving EUR 100,000 or more in 2011....167

APPENDIX I .....................................................................................................................................169

REPORT ON ORDERS/CONTRACTS AND NEGOTIATED PROCEDURES 2011........................ 169 1. Implementing rules (IR) Art. 54: Report on negotiated procedures ................................169 2. Implementing rules (IR) Art. 119.1: Report on contracts awarded .................................169 4. Report on negotiated procedures according to Article 54 of the Implementing rules for the Financial Regulation.................................................................................................................170 5. Report on orders/contracts according to Article 119 of the Implementing rules for the Financial Regulation.................................................................................................................171

APPENDIX J.....................................................................................................................................177

FOLLOW-UP TO OBSERVATIONS IN PARLIAMENT'S 2010 DISCHARGE RESOLUTION..... 177

I. EESC – Main Achievements 2011

PART I

European Economic and Social

Committee

Main achievements 2011

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1 INTRODUCTION

This report presents in summary form the main activities and accomplishments of the EESC. It covers important achievements based on the political priorities of the Council Presidencies, followed by the main political events of the Committee during the past year.

The document concludes with a description of the most noteworthy administrative activities in support of the EESC's core deliberative and advisory functions on behalf of organised civil society with a view to actively assisting the European Parliament, the Council and the Commission, in keeping with Articles 256 and 259 of the Consolidated Treaty.

2 ACTIVITY OF THE COMMITTEE

2.1 HUNGARIAN PRESIDENCY

Thanks to the efforts of the Committee's Hungarian members and its administration, and to support from the EESC's political authorities, cooperation with the Hungarian presidency was very strong during Hungary's tenure of the rotating presidency of the Council of Ministers in many areas, ranging from consultative work to cultural events.

In particular, the EESC drew up the following nine exploratory opinions at the request of the Hungarian government:

Integration of water policy into other EU policies The effect of the economic and financial crisis on labour force distribution

among production sectors, with special regard to SMEs Consumers and cross border possibilities within the Single Market The contribution of civil society to the Eastern Partnership The role and priorities of cohesion policy in the EU 2020 strategy Smart fiscal policy consolidation strategies – challenges of identifying growth

drivers for Europe. How to exploit fully the labour potential of our economies in parallel with the pressing need for fiscal adjustments

The role of family policy in relation to demographic change with a view to sharing best practices among Member States

Societal empowerment and integration of Roma citizens in Europe Energy supply: what kind of neighbourhood policy do we need to ensure security

of supply for the EU?

EESC plenary sessions held during Hungary's six-month presidency were marked on two occasions by extremely productive discussions with representatives of the Hungarian government. On 19 January 2011 Mr Zsolt Becsey, Minister of State for International Trade, presented the Hungarian presidency's programme, and on 15 June Ms Enikő Győri, Minister of State for EU Affairs, presented a preliminary review of the six-month presidency. A large

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number of Hungarian journalists were present at both these events, which received massive coverage in the Hungarian press.

This close cooperation enabled the EESC to put its opinions to the Council of Ministers. In this context, Ms Leila Kurki, president of the SOC section, attended the EPSCO meeting in January 2011 and Mr Stéphane Buffetaut, president of the TEN section, and Ms Béatrice Quin took part in the Informal meeting of ministers responsible for demography and family policy, held by the Hungarian presidency in Budapest on 1 April 2011.

The seminar held for press attachés by the EESC in January 2011 was marked by the attendance of Mr Zoltán Kovács, Minister of State for Government Communication. His presence made it possible to hold a detailed debate on the situation of the media in Hungary, a vast subject which significantly marked the beginning of the Hungarian presidency.

It is worth singling out a few of the many events held by the EESC presidency, groups, sections and CCMI. In particular, EESC president Staffan Nilsson addressed a conference held by the Hungarian presidency on demographic change entitled The Impact of Work and Family – Reconciliation on Demographic Dynamics in Hungary on 28 March. The Group II bureau held a meeting in Budapest on 8 April and the Group III bureau met in Budapest on 13 May 2011. The NAT section also held a meeting in Budapest, followed by a fact-finding visit to Hungarian farmers, in May. The INT section held a hearing with Hungarian partners entitled Towards a Single Market Act – The priorities of Hungarian organised civil society in Budapest in March.

The Hungarian presidency was also marked by several cultural events held with the cooperation or support of our Hungarian partners (the permanent representation or cultural service of the Hungarian embassy). The EESC and its Hungarian members held a very colourful Hungarian cultural and gastronomic event on the sidelines of the January plenary session. The Committee hosted a photographic exhibition featuring the bridges of the Danube, organised jointly with the Hungarian cultural centre in Brussels; the cultural centre was also our partner for the musical evening commemorating Hungarian composer Ferenc Liszt, held to celebrate the bicentenary of his birth in 2011.

2.2 POLISH PRESIDENCY

Exploratory opinions requested by the Polish Presidency

"The future of the labour market in Europe – in search of an effective response to demographic trends"

"The impact of the crisis on the ability of European firms to undertake pro-climate investments"

"Eastern Partnership and the eastern dimension of the EU policies, with particular emphasis on the EU agricultural Policy – food security, undisturbed trade, greater cooperation and development aid, strategic partnership"

"Sustainable development of the EU transport policy and planning for the TEN-T"

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Informal Council meetings and summits

Informal meeting of Ministers in charge of Culture and Audiovisual matters on 8-10 September 2011, Wrocław (Poland); participation of President of the EESC Staffan Nilsson

Eastern Partnership Summit 30 September 2011 in Warsaw (Poland): participation of President of the EESC Staffan Nilsson

Participation of President of the EESC Staffan Nilsson (in the panel with European Commission President Mr Barosso, European Parliament President Mr Buzek and President of the Committee of the Regions Ms Bresso) in the conference "Integrated approach to development – a key to smart, inclusive and sustainable Europe" and in the Informal Council of Ministers in charge of Regional Policy on 24-25 November 2011, Poznań (Poland)

Official relations between the EESC and the Polish Presidency

Participation of Mr Waldemar Pawlak, Polish Deputy Prime Minister and Minister of Economy in the EESC Plenary Session on 13 July 2011

EESC extraordinary Bureau meeting together with a conference on "Sources of sustainable economic growth after the crisis" in Warsaw on 15 November 2011, in cooperation with the Polish Ministry of Economy and the Ministry of Labour and Social Policy (support from the Polish Deputy Prime Minister and Minister of Economy Mr Waldemar Pawlak); an event marked in the official agenda of the Polish Presidency

Organisations of the EESC Groups' meetings in Poland during the PL Presidency: o Group II: 30 June 2011, Warsaw (Poland) o Group I: 29 September 2011, jointly with a conference "European Forum of

New Ideas" (the conference marked in the official agenda of the Polish Presidency), 28-30 September, Sopot (Poland); participation of the Group I in Business Forum of Eastern Partnership on 30 September in Sopot.

o Group III: 30 September 2011, Warsaw (Poland), jointly with a conference on voluntary activities in the Presidential Palace in Warsaw, with the participation of President Staffan Nilsson

Participation of the EESC in events organised by the Polish Presidency or co-organisation of events

A joint conference regarding Sustainable development of the EU transports Policy and planning for the TEN-T with the Polish Ministry of Infrastructure on 20 July 2011 in Warsaw (Poland).

The EESC (TEN Section in cooperation with the Communication Department) organised a "Click it Forum" (participation in the inauguration of Ms Neelie Kroes, European Commission Vice-President in charge of information society and Ms Barbara Kudrycka, Polish Minister of science and education), in parallel to the conference "Innovation for Digital Inclusion", 5-07 October, Gdańsk,

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Poland) organised by the Polish Presidency with the EESC: Vice-President Anna Maria Darmanin and Ms Laure Batut were among the main speakers.

"Annual Convention on Poverty and Social Exclusion", 17-18 October, Cracow (Poland), co-organised by the Commission and the Polish Presidency with around 400 participants; the EESC organised a side-event on 17 October.

A joint conference with the Ministry of Infrastructure and the European Commission on 28 November 2011 in Warsaw (Poland). More than 200 participants discussed the future of the Single European Sky project. Meeting attended by the Commissioner Kallas and Mr Nowak, Minister of Infrastructure of the Polish government. EESC represented by Vice President Jacek Krawczyk

Economic Congress, 16-18 May 2011 Katowice (Poland): participation of President of the EESC Staffan Nilsson and three EESC Members as speakers.

European Forum of New Ideas, 28-30 September 2011 Sopot (Poland): participation as speakers of President Staffan Nilsson, of Vice-President Jacek Krawczyk and of Henri Malosse, President of the Group I.

"The Eastern Partnership Conference: Towards a European Community of Democracy, Prosperity and a stronger civil society", prior to the Eastern Partnership Summit, 29 September 2011, Warsaw (Poland): participation of President Staffan Nilsson as a speaker and Mr Seppo Kallio from the Eastern Neighbours Contact Group.

Single Market Forum, 3-4 October 2011, Cracow (Poland): the EESC involved in the organisation of this event: President Staffan Nilsson as speaker at the Plenary meeting and Mr Ivan Voleš at a workshop on 4 October as well as eight other EESC Members.

European Congress of Small and Medium Enterprises, 6-7 October 2011, Katowice (Poland): participation of EESC Vice-President Mr Jacek Krawczyk as a speaker.

President Staffan Nilsson participated to the Ministerial Conference entitled “Adjusting the regulations of the States involved in the Eastern Partnership Initiative to the EU law within the scope of veterinary and phytosanitary issues as well as food safety and quality” on 27 – 28 of October 2011 in Cracow (Poland).

Participation of the EESC delegation headed by the EESC Vice-President Mr Jacek Krawczyk in the Eastern Partnership Civil Society Forum co-organised by the Polish Presidency with the participation of the Polish Minister for Foreign Affairs, Mr Radoslaw Sikorski, Poznań (Poland) 28-30 November 2011.

Organisation of Civil Society Media Seminar on Freedom of media in the EU and neighbouring countries in Cracow on 24-25 November 2011 in cooperation with the Polish Presidency and the European Commission Representation to Poland. Presence of the Presidency Spokesperson, EESC Vice President Anna Maria Darmanin and EESC Vice President Jacek Krawczyk.

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Cultural events (organised by the Communication Department and supported by the team of Polish officials at the EESC

Polish cultural event on 13 July 2011 organised by the EESC and the Permanent Representation of the Republic of Poland to the EU started by the vernissage of the exhibition proposed by the Museum of Caricature from Warsaw "Satirical Art Drawings by Pawel Kuczynski"

Literary Lunch on 14 July 2011 presenting the young Polish writer Jacek Dehnel (in cooperation with the Polish Culture Institute in Brussels).

Exhibition on the Polish chemist Ms Maria Skłodowska-Curie in the framework of Chemistry week at the EESC (linked to the celebration of Year 2011 as the Chemistry Year): 3-7 October 2011.

Project "Poems in subway" in the cooperation with the British Council and the Polish Book Institute (presentation of poems of the young Polish poets at the EESC): started on 25 October 2011.

Poland soundtracked. Discover Poland through the best of its film music: musical event on 26 October 2011.

Exhibition "Artists for Europe" offered by the Museum of Lazienki (Royal Baths Parc in Warsaw) presenting 100 Polish artists who contributed the most to the European culture (in the multimedia from during the Plenary Session in July 2011 and the exhibition in December 2011 at the EESC main building: opening on 7 December 2011).

2.3 NOTEWORTHY EVENTS FOR THE EESC DURING 2011

2011 saw the EESC organise a range of economic, social, cultural and educational events centred on a plethora of themes, reflecting the diversity of Europe and its interests and concerns. The focus areas can be divided into sustainable environmental development and solutions to climate change and energy issues; sustainable solutions for economic and social development in wake of the economic crisis; increased citizen and civil society involvement; and international and intra-European dialogue and debate.

11 January - Public hearing on use of security scanners at EU airports

The Committee held a public hearing on 11 January as part of its opinion on the use of security scanners in order to guarantee representation of all relevant viewpoints on the issue. The European Commission is considering their introduction as a routine security measure, leading to a debate involving opposing issues of security, respect of fundamental rights and the health of passengers and staff. Participants called for a common EU framework for this issue.

Uncertainty remained about scanners’ ability to improve security. This is key considering the major investment required for their introduction. Fears remain that scanners may infringe fundamental rights while airport operators stressed that trials have shown their passenger-friendliness.

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27-28 January - Citizens’ Agora highlighted crises and the different faces of poverty

In partnership with the EESC, the European Parliament (EP) held its third Citizens’ Agora on 27 and 28 January, focusing on the economic and financial crisis and poverty, chaired by EP Vice-Presidents Libor Rouček and Isabelle Durant.

Attended by some 250 representatives of civil society organisations, the event marked the conclusion of the 2010 European Year for Combating Poverty and Social Exclusion. The Agora’s purpose was to formulate practical recommendations to both the EP and the EESC on how to tackle poverty, and it came up with specific proposals that should be implemented now. About 30 EESC Members participated actively in the discussions, some as speakers, bringing the Committee’s ideas into the debate.

For the EESC, co-organising the Agora was a great occasion to cooperate successfully with the Parliament and to bring its expertise into play — reaching out to civil society organisations across the continent.

18 March – European Consumer Day

On 18 March, in Budapest, the EESC celebrated the 13th edition of its brainchild, the European Consumer Day. The EESC President, European Commissioners, MEPs, EESC Members, Hungarian government officials and stakeholders discussed issues relating to cross-border consumption in the single market and consumer rights. The event, organised by the Section for the Single Market, Production and Consumption, is aimed primarily at taking stock of expertise and sharing views.

The conclusions of the conference were forwarded to the EU institutions and the Hungarian Presidency of the EU Council.

21 March – The EU Budget Review and the proposals for the next multiannual financial framework

The EESC organised a public hearing on the EU Budget Review and proposals for the next multiannual financial framework, attended by the budget Commissioner, Mr Lewandowski, and the rapporteur of the European Parliament's special committee, Mr Garriga Polledo.

Mr Malosse, EESC rapporteur, and Mr Dantin, co-rapporteur, presented the ongoing work on the related EESC opinion.

The hearing provided an exchange of views with key civil society stakeholders in view of the preparation of the multiannual financial framework.

22 March – What are the prospects for participatory democracy in Europe?

This seminar was a starting-point for structured work on civil dialogue over the next two years. Major players and various representatives of organised civil society attended the event.

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A compendium on "Participatory democracy: a retrospective overview of the story written by the EESC", was launched, documenting chronologically the step-by-step development of the concept of civil dialogue from Contessa Beatrice Rangoni Machiavelli (President of the EESC, 1998-2000) to the current EESC President, Staffan Nilsson.

23 March – "Greener Europe – Greener World. Preparing for the 2012 Rio Summit on Sustainable Development. The contribution of civil society in Europe"

The United Nations has convened a summit-level conference on sustainable development in Rio in June 2012, 20 years after the first 1992 Earth Summit and ten years after the World Summit on Sustainable Development in Johannesburg in 2002. The European Commission launched a public consultation with European civil society on some of the key issues to be addressed at the summit, in preparation for the June 2011 Communication establishing the European position for the summit.

The EESC, in its capacity as a channel for organised civil society in Europe, played an active part in the process. It held hearings in 2010 to help identify the aspirations of civil society for the summit, and produced a first opinion on the summit and the European approach to it in September 2010 (“2012 World Summit for Sustainable Development”). In order to produce a further opinion in 2011 responding to the Commission’s consultation, this hearing addressed the questions highlighted in the Commission’s consultation document, with particular emphasis on those of relevance for organised civil society.

The results of the hearing fed into the EESC's Rio+20 opinion adopted in September 2011, which was then followed up by a major civil society conference in February 2012. The main conclusions of this conference have since been expressed in yet another opinion, also adopted in February 2012.

5-7 May - Your Europe, your Say

For the second year running, the EESC offered a unique opportunity for secondary schools from across Europe to come to Brussels to debate, negotiate, stand up for their beliefs and try to reach a consensus in a simulated plenary session. Taking place from 5 to 7 May 2011, the simulated plenary session allowed young people to debate a specific topic with the Committee’s other “extraordinary” Members – students of the same age from each of the 27 EU Member States. Around 150 students and teachers came and shared their experiences in a multicultural environment, exchanged ideas and made new friends. For them it was also a good opportunity to discover Brussels from the inside.

The EESC is committed to this goal, pursuing initiatives aimed at reaching out to a larger audience. Young people are at the core of our agenda, they represent our future and their ideas can energise our development.

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23-24 May - Fifth meeting of the European Integration Forum

On 23 and 24 May the EESC hosted the fifth meeting of the European Integration Forum. The Committee, together with the European Commission, manages this platform whose objective is to give civil society organisations an opportunity to express their views on migrant integration issues, in particular relating to the EU agenda on integration. This allows the European institutions to promote a comprehensive approach to integration involving stakeholders at all levels.

The Committee also makes a political contribution to the Forum’s work, via a permanent study group on immigration and integration (IMI) within the Section for Employment, Social Affairs and Citizenship (SOC) and through its representation in the Forum Bureau.

23 May - Food for everyone - towards a global deal, the EESC’s voice at the G20 agriculture meeting

The French G20 presidency in 2011 made food security one of its key political priorities, and asked the EESC to provide input for the meeting of G20 agriculture ministers on 22 and 23 June. In line with the democratic and participatory principles that underpin the EESC, the conference organised on 23 May served to prepare a set of recommendations that formed the Committee’s contribution to the G20 agriculture ministers’ meeting. The conference was a great success and was attended by some 300 participants (decision-makers, EU officials, public officials and representatives of non-governmental organisations). Invited speakers included Dacian Cioloş, Commissioner for Agriculture and Rural Development, and Hafez Ghanem, Assistant Director-General at the United Nations Food and Agriculture Organisation.

The concrete ideas discussed and agreed in Paris on 22 and 23 June, following the EESC’s proposal to the French Presidency, cover six pillars: promotion of sustainable agriculture, the crucial role of civil society, recognition of the right to food, the need for policy coherence, improving the functioning of agricultural markets, and protection of the most vulnerable.

23-24 May - "Volunteer! Make a difference"

The second EU-level conference, held as part of the European Year of Volunteering (EYV 2011), took place on 23 and 24 May 2011 and was a resounding success. The overall aim of the conference was to bring together volunteers from across Europe to allow them to network and to share and learn from one another’s experiences in the area of volunteering. The EESC and the European Commission jointly organised a workshop at the EESC building, which focused on corporate citizenship and employee volunteering. Back in 2006, the EESC was the first institution to put forward the idea of a European Year dedicated to volunteering, and this conference represented an important milestone of the EYV 2011 in recognition of the skills and contributions of volunteer workers.

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6 June – Conference on Youth unemployment

The EESC Labour Market Observatory organised in cooperation with the Spanish Economic and Social Council a conference on youth unemployment at the premises of the Spanish ESC in Madrid. The conference was extremely timely and a resounding success. The Spanish Minister for Labour and Immigration together with representatives of the major Spanish social partners addressed the issue of the staggeringly high youth unemployment rate in Spain, at a moment where a major collective bargaining reform in Spain was at a critical stage. Several experts from European organisations and bodies and from various Member States exchanged views on rising youth unemployment in the EU against the backdrop of the financial, economic and social crisis. Approximately 100 people attended the conference which also received broad media coverage.

5-7 July - EESC meets ACP counterparts to discuss the challenges of food security

Over 220 participants attended the 26th meeting of ACP–EU economic and social interest groups, which took place in Brussels from 5 to 7 July 2011, in order to discuss the issue of food security. As well as civil society organisations, ACP countries' diplomatic missions, EU institutions and other interested parties took part. The EESC’s role and activities in the field of ACP–EU relations are multifaceted. The Committee holds general ACP conferences, regional seminars and ad hoc hearings. It is also an active participant in the work of the ACP–EU Joint Parliamentary Assembly and cooperates with Economic and Social Councils in African countries.

23 September - "The Council of Europe’s Social Charter 50 years on: What next?"

On 23 September the Council of Europe, the Economic, Social and Environmental Council of France (ESEC) and the EESC held a joint conference on "The Council of Europe’s Social Charter 50 years on: What next?" at the headquarters of the French ESEC in Paris to commemorate the 50th anniversary of the 1961 Social Charter. The conference brought together representatives of legal and academic circles, trade unions and employers’ organisations, as well as civil society bodies. The conference looked at how the European Social Charter has been applied over the last 50 years and how it can be better used to help tackle the current economic crisis. The last session, which was attended by many EESC Members, reflected particularly on how the European Social Charter, the EU Charter of Fundamental Rights and the Community Charter of Fundamental Social Rights of Workers can complement each other to create a more social Europe.

While recognising that the European Social Charter revised in 1996 was very comprehensive, participants admitted that monitoring of compliance should be improved in the current context of economic crisis to avoid the development of a real social crisis and protect the most vulnerable.

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I.


17-18 October - Annual convention of the European Platform against Poverty and Social Exclusion

On 17 October the European Commission and the Polish Presidency held in Cracow the first convention of the 7th flagship initiative of the Europe 2020 strategy, the "European Platform against poverty and social exclusion", which aims to create a "dynamic framework " to fight poverty during the next 10 years and, in particular, to reach the poverty reduction target of at least 20 million fewer people facing poverty by 2020.

Replacing the Round Table against Poverty, this convention is the first step in its transition to its final format. Among the workshops, the one on "Building dynamic national, regional and local engagement in the fight against poverty" was jointly organised by the EESC, the CoR, EAPN and Eurocities. The workshop conclusions were presented at the closing session on 18 October and published by the Commission to ensure proper follow-up.

5 December –"Joint EESC-EC Conference on the White paper on Transport – Roadmap to a Single European Transport Area – Towards a Competitive and Resource-Efficient Transport System"

The event brought together a range of transport users and stakeholders to discuss their views on this major policy document. The European Commission presented its White Paper Roadmap to a Single European Transport Area in March 2011. This includes a set of forty specific initiatives for the next decade aimed at building a competitive transport system that will increase mobility, remove major barriers in key areas and fuel growth and employment. At the same time, the proposals would dramatically reduce Europe's dependence on imported oil and achieve a 60% cut in carbon emissions in transport by 2050.

The conference was opened by EESC President Staffan Nilsson, and Siim Kallas, Vice-President of the European Commission in charge of transport policy. A broad range of transport users and stakeholders had the opportunity to share their views on the White Paper and making concrete suggestions about how they intend to work towards reaching its ambitious goal.

9-10 November – 6th European Integration Forum

The European Integration Forum – the dialogue platform on integration of immigrants – met for the sixth time on 9 and 10 November 2011 in the EESC premises. The main theme of this meeting was "Involvement of countries of origin in the integration process". Representatives of several European organisations presented their projects aimed at improving the integration of newcomers and co-operation with countries of their origin.

In round tables the participants discussed three subjects linked to the main theme: pre-departure measures in support of integration; relationships between diaspora communities and countries of origin; and integration in the light of circular migration and development.

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I.


16-18 November – Euromed Summit of Economic and Social Councils and Similar Institutions

In accordance with the decision taken at the Euro-Mediterranean Ministerial Conference in Barcelona (November 1995), the Economic and Social Councils and Similar Institutions of the European Union and the Euromed partner countries have regularly held summits since 1995. The 2011 summit was held in Istanbul and brought together some 150 participants. The countries involved are Algeria, Egypt, Morocco, Mauritania, Tunisia, Jordan, Israel, the Palestinian Territories, Lebanon, Syria, Turkey, Albania, Montenegro, Croatia, Bosnia-Herzegovina, Monaco and the European Union Member States. Economic and social councils and committees can play important flanking roles for parliamentary democracies.

Outside the EU civil society organisations and civic dialogue can play vital transitional roles in consolidating strong civil society cultures and also form the basis for strong democratic cultures.

28 November – Public hearing on the role of civil society in financial regulation

The current financial crisis has emphatically illustrated that financial market regulation has a strong public interest dimension. On 28 November 2011 the ECO section organised a hearing entitled "The role of civil society in financial regulation" in order to explore how to better involve stakeholders in this policy area.

EESC President Staffan Nilsson opened the event. European Commissioner Michel Barnier made the keynote speech and this was followed by discussions led by important personalities from EU institutions and their stakeholder groups as well as by top representatives of the key civil society organisations. The hearing provided valuable feedback and input to the EESC opinion.

7 December – 4th edition of the Civil Society Prize

The Civil Society Prize is primarily a symbol, highlighting outstanding initiatives generated by civil society players in Europe. For the fourth time, the EESC rewarded excellence in civil society initiatives and celebrated the achievements of civil society organisations which have taken the initiative to develop projects that have had a positive impact on the lives of European citizens and have significantly contributed to promoting European identity and integration.

The specific theme of the 2011 Civil Society Prize was "Dialogue and participation fostering EU values: integration, diversity, solidarity, tolerance. The Civil Society Prize was awarded to the Erasmus Student Network (ESN).

12 December – Nuclear safety: a much needed public debate

At a joint conference organised by the EESC and the European Commission, EESC Members and stakeholders grappled with challenging issues relating to nuclear safety. The event took

26

I.


place in the wake of the European Commission's publication of the interim report on stress tests on nuclear power plants in the EU. This conference focused on concerns and questions of civil society around the safety of nuclear power. Perception of risk, daily and crisis communication on nuclear safety and varying attitudes across the EU were the main topics of the debate.

The lively debate, of eminent public interest, was followed and assessed by a citizens' panel comprising people from EU countries that use nuclear energy, countries that do not and countries that are about to join the "nuclear club".

3 ADMINISTRATIVE SUPPORT ACTIVITIES

The EESC secretariat is carrying out administrative activities in support of the EESC's core deliberative and advisory functions on behalf of organised civil society with a view to actively assisting the European Parliament, the Council and the Commission. The following activities were the most noteworthy additional administrative activities in 2011.

3.1 Consolidation of budgetary management and the internal budgetary procedure

During the period under review, the reform of budgetary management was consolidated under the authority of the Vice-president for budgetary matters. This included the implementation of the budget in a decentralised way with operational budgets devolved to the spending actors. The internal budgetary procedure for the preparation of the draft estimates for the following year was undertaken in an open and transparent way and fully included all stakeholders within the Committee. The EESC preceded Commissioner Lewandowski's call for limited increases, which were echoed by Council and Parliament, and in the end of 2011 a budget with a nominal freeze was adopted for the EESC.

3.2 Mid-term review of the Cooperation Agreement

The administrative cooperation arrangement between the EESC and the CoR runs for a seven-year period, from 2008 to 2014, and provides for an interim evaluation. This mid-term evaluation took place in 2011 and was coordinated by the Secretariat of the Secretary-General. Overall, the evaluation concluded that the cooperation agreement was working well and in the best interests of the Committees, their members and the administrations. Furthermore, it allows each Committee to develop its own profile and institutional identity. By pooling resources for translation and also through the joint management and use of meeting-rooms, to quote just two examples, the evaluation argued that considerable savings, although difficult to quantify, were being made. Thus, with regard to the European Parliament's request for budgetary neutrality of the new Cooperation Agreement, the evaluation showed that significant savings for the EU budget were achieved.

27

I.


3.3 Modernisation of document management and electronic archiving

Following decisions taken by the Management Board, a joint working group (EESC – CoR) has been working on the modernisation of document management and delivered its final report. The purpose is to adopt an integrated approach to modernisation of the entire lifecycle of documents (registration, various internal workflows, dissemination and electronic archiving). The inception phase is ongoing, in parallel with the modernisation of the IT infrastructure (MOTA project), in effective cooperation with the CoR, the Directorate for Translation and the ITT unit.

3.4 A pilot site for the civil society database

Early in 2011, the Communication Group decided to launch a limited pilot project to assess the approach proposed for building the future Organised Civil Society database. The feasibility study took place in the context of Rio+20 and, although some delays occurred during the practical implementation of the platform, the concept proved to be practicable.

_____________

Annual General Accounts 2011 II.

PART II

Annual General Accounts 2011

(Accrual Accounting Principle)

32

II. Annual General Accounts 2011

2. ACCOUNTING POLICIES

In this chapter we will provide a description of the policies, principles, methods and assumptions lying beneath the annual general accounts.

The accounting policies remain unchanged from the previous year, except for the changes described in paragraph 1.1.

2.1 CHANGES TO THE ACCOUNTING POLICIES ETC. During 2011 the update of 5 existing accounting rules : EU accounting rule 6 : Intangible assets EU accounting rule 7 : Property, plant and equipment EU accounting rule 8 : Leases EU accounting rule 9 : Inventories EU accounting rule 11 : Financial instruments And one new accounting rule : EU accounting rule 18: Impairment of assets have been adopted, being effective for annual financial statements covering periods beginning on or after 1st January 2012. The above mentioned changes have no influence on this years accounts.

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2.2 LEGAL PROVISIONS AND THE FINANCIAL REGULATION

The main source of principles is the Financial Regulation and its Implementing Rules (Council and Commission Regulations). On top of this the Accounting Officer of the Commission has issued rules regarding the Harmonised Chart of Accounts and also 18 accounting rules, covering important accounting topics.

The Commission also provides a Consolidation Manual.

From 2005 the accounting rules have been based on the Accrual Accounting Principle and inspired by International Public Sector Standards (IPSAS) or by default International Financial Reporting Standards (IFRS).

2.3 ACCOUNTING PRINCIPLES

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 EESC, 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 an Institution's activities, explain how it is financed and supply definitive information on its operations, but do so in a clear and comprehensible manner which allows comparisons between financial years.

The accounting system of the European Institutions comprises general accounts and budget accounts. These accounts are kept in euro on the basis of the calendar year. The budget accounts (Part III of this report) give a detailed picture of the implementation of the budget. They are based on the modified cash accounting principle1. The general accounts (Part II of this report) allow for the preparation of the financial statements as they show all charges and income for the financial year and are designed to establish the financial position in the form of a balance sheet at 31 December.

The accounting policies described in this document are the basis of the general accounts (accrual accounting).

1 This differs from cash-based accounting because of elements such as carry-overs.

34


Article 124 of the Financial Regulation sets out the accounting principles to be applied in drawing up the financial statements:

going concern basis;

prudence;

consistent accounting methods;

comparability of information;

materiality;

no netting;

reality over appearance;

accrual-based accounting.

2.4 CURRENCY AND BASIS FOR CONVERSION

The financial statements are presented in euros, which is the European Economic and Social Committee's functional and reporting currency.

Foreign currency transactions are translated into euros 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 euros on the basis of the exchange rates applying on 31 December 2011.

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.

2.5 THE ECONOMIC OUTTURN ACCOUNT

2.5.1 Revenue

The vast majority of revenue is funds transferred from the Commission. All transfers received on the bank account of the European Economic and Social Committee within the reporting year is recognised as revenue. A part of the funds are indirectly transferred via a liaison account, mainly used for managing internal transfers with the Commission, regarding interpretation costs etc.

Revenue from the sale of goods is recognised when the significant risk and rewards of ownership of the goods are transferred to the purchaser.

35


Revenue associated with a transaction involving the provision of services is recognised by reference to the stage of completion of the transaction at the reporting date.

1.5.2 Expenditure

Exchange expenses arising from the purchase of goods are recognised when the supplies are delivered and accepted by the European Economic and Social Committee. They are valued at original invoice cost.

When any request for payment or cost claim is received and meets the recognition criteria, it is recognised as an expense for the eligible amount. At year-end, incurred eligible expenses already due to the beneficiaries but not yet reported are estimated and recorded as accrued expenses.

2.6 BALANCE SHEET

2.6.1 Intangible fixed assets

Intangible fixed assets are valued at their acquisition price, with the exception of assets acquired free of charge that are valued at their market value. Tangible and intangible fixed assets are valued at their historic value converted into euros at the rate applying when they were purchased. The book value of a fixed asset is equal to its acquisition price or production cost, plus or minus revaluations, depreciation and other amounts written off. See depreciation rates below.

2.6.2 Tangible fixed assets

All property, plant and equipment are stated at historical cost less depreciation (excluding land), and impairment. 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 European Economic and Social Committee 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.

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Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

2.6.3 Depreciation rates

Type of asset Straight line depreciation rate

Intangible assets 25% Buildings 4% Plant, machinery and equipment 12.5% to 25% Furniture 10% to 25% Fixtures and fittings 12.5% to 25% Computer hardware 25%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. 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.

2.6.4 Leases

Leases of tangible assets, where the European Economic and Social Committee have substantially all the risks and rewards of ownership, are classified as financial leases. Financial leases are classified at the inception of the lease at the lower of the fair value of the leased asset and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The rental obligations, net of finance charges, are included in other long-term liabilities. The interest element of the finance cost is charged to the economic outturn account over the lease period so as to produce a constant periodic interest rate on the remaining balance of the liability for each period. The assets acquired under financial leases are depreciated over the shorter of the assets' useful life and the lease term.

37


Leases where the lessor retains a significant portion of the risks and rewards of ownership are classified as operating leases. Payments made under operating leases are charged to the economic outturn account on a straight-line basis over the period of the lease.

2.6.5 Impairment of assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for 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.

2.6.6 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 European Economic and Social Committee will not be able to collect all amounts due according to the original terms of receivables. The amount of the write-down is recognised in the economic outturn account statement.

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2.6.7 Cash & cash equivalents

Cash and cash equivalents are carried in the balance sheet at cost. They include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

2.7 THE CASHFLOW STATEMENT

Cash flow information is used to provide a basis for assessing the ability of the Communities to generate cash and cash equivalents, and its needs to utilise those cash flows.

The cash flow statement is prepared using the indirect method. This means that the net surplus or deficit for the financial year is adjusted for the effects of transactions of a non-cash nature, any deferrals and accruals of past or future operating cash receipts or payments, and items of revenue or expenses associated with investing cash flows.

2.8 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, amounts for employment benefits, provisions for future charges, financial risk on accounts receivables, 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.

39


3. THE ECONOMIC OUTTURN ACCOUNT

Note 2011 2010

Operating Revenue

Funds transferred from the Commission 113,057,351 105,289,237

Revenue from administrative operations 15,754,180 15,265,973

Other operating revenue 17,877 52,485

1 128,829,408 120,607,695

Operating Expenses

Administrative expenses

Members and staff expenses (84,142,537) (82,176,109)

Fixed assets related expenses (4,586,073) (4,997,076)

Other administrative expenses (29,094,596) (30,374,661)

(117,823,206) (117,547,846)

Operational expenses

Other operating expenses (6,203) (14,978)

(6,203) (14,978)

(117,829,409) (117,562,824)

Surplus from operating activities 10,999,999 3,044,871

Financial operations revenue 31,512 23,749

Financial operations expenses 2 (7,604,385) (7,497,898)

Deficit from non-operating activities (7,572,873) (7,474,149)

Economic result of the year

3,427,126 (4,429,277)

As the European Economic and Social Committee is not a profit-maximising organisation, the economic result of the year should be interpreted with care, and no direct management conclusions should be derived from it.

The revenue side is quite arbitrary. The funds transferred from the Commission are not accrually founded.

40


Revenue 2011

Funds transferred from the

Commission; 87,7%

Other operating revenue

0,0%

Financial operations revenue

0,0%

Revenue from administrative

operations12,2%

Revenue 2010

Other operating revenue

0,0%

Revenue from administrative

operations12,7%

Financial operations revenue

0,0%

Funds transferred from the

Commission 87,3%

41


Expenses 2011

Financial operations expenses

6,1%

Other operating expenses

0,0%

Other administrative

expenses23,2%

Fixed assets related

expenses3,7%

Members and staff expenses

67,1%

Expenses 2010

Financial operations expenses

6,0%Other operating

expenses0,0%

Other administrative

expenses24,3%

Fixed assets related

expenses4,0%

Members and staff expenses

65,7%

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4. THE BALANCE SHEET

Note 31/12/2011 31/12/2010

I. Non-current assets Intangible fixed assets 3 198,085 131,503

Tangible fixed assets

Buildings under Financial leasing 4 125,966,260 130,582,861

Plant and Equipment 5 391,111 277,547

Furniture 6 556,337 486,437

Computer Hardware 7 867,107 508,081

127,780,814 131,854,926

Long-term receivables 8 55,915 55,563 128.034.814 132,041,992 II. Current assets Short-term receivables Current receivables 9 16,364 59,459

Sundry receivables 77,993 52,623

94,357 112,082

Cash & cash equivalents 17,356,935 13,461,591

17,451,292 13,573,672

Total assets 145,486,106 145,615,665

III. Non-current liabilities Other long-term liabilities 10 107,936,379 111,733,244

107,936,379 111,733,244IV. Current liabilities Provisions for risks and Charges 11 534,470 0

Accounts payable 534,470 0

Current payables 12 1,158,390 1,202,923

Long-term liabilities falling due within the year 13 3,635,210 3,424,141

Sundry payables 660,295 921,120

Accrued charges 5,700,000 5,900,000

11,153,895 11,448,185

Total liabilities 119,624,744 123,181,429

V. Net assets 25,861,362 22,434,236 Contingent assets 14

Contingent liabilities and Commitments for future funding 15

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Distribution of Assets 31/12/2011

Other1,5%

Furniture and Vehicles0,4%

Computer Hardw are0,6%

Long-term receivables0,0%

Intangible f ixed assets0,1%

Plant and Equipment0,3%

Current receivables0,0%

Sundry receivables0,1%Buildings under Financial

leasing86,6%

Deferred charges0,0%

Cash & cash equivalents11,9%

Distribution of Assets 31/12/2010

Furniture and Vehicles0,3%

Computer Hardw are0,3%

Long-term receivables0,0%

Current receivables0,0%

Plant and Equipment0,2%

Intangible f ixed assets0,1%

Buildings under Financial leasing89,7%

Cash & cash equivalents9,2%

Sundry receivables0,0%

Deferred charges0,0%

Other10,3%

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5. STATEMENT OF CHANGES IN NET ASSETS

Accumulated

Surplus/(Deficit)

Economic Outturn of the

Year

Total Net Assets

Balance as of 31 December 2010 26,863,514 (4,429,277) 22,434,236

Allocation of the Economic Outturn 2010 (4,429,277) 4,429,277 0

Economic Outturn of 2011 0 3,427,126 3,427,126

Balance as of 31 December 2011 22,434,236 3,427,126 25,861,362

Note: The European Economic and Social Committee has no share capital or previously injected capital. The Net Assets is exactly that – the difference between the valuation of the assets and the valuation of the liabilities. The main differences are between the principles for depreciation on buildings and the payment profile on the liabilities regarding the buildings held under long leases.

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6. THE CASHFLOW STATEMENT

2011 2010

Cash flows from ordinary activities

Surplus from ordinary activities 3,427,126 (4,429,277)

Operating Activities

Amortisation 22,194 62,608

Depreciation 4,563,879 5,333,627

Increase/(decrease) in provision for risks and liabilities 534,470 (406,921)

(Increase)/decrease in long-term receivables (352) 16,807

(Increase)/decrease in short-term receivables 17,725 10,643,928

Increase/(decrease) in other long-term liabilities (3,796,865) (3,614,019)

Increase/(decrease) in accounts payable (294,290) 3,535,929

Other non-cash movements 57,247 12,680

Net cash-flow from operating activities 4,531,134 11,155,363

Investing activities

(Increase)/decrease in intangible & tangible fixed assets (635,790) (1,051,307)

Net cash-flow from investing activities (635,790) (1,051,307)

Net Increase/(decrease) in cash & cash equivalents 3,895,345 10,104,056

Cash & cash equivalents at the beginning of 2011 13,461,591 3,357,535

Cash & cash equivalents at the end of 2011 17,356,935 13,461,591

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7. NOTES

NOTE 1 Operating Revenue 2011 2010 Funds transferred from the Commission 113,057,351 105,289,237 Revenue from staff 12,050,107 11,608,189Other administrative revenue 3,704,073 3,657,784Revenue from administrative operations 15,754,180 15,265,973 Other operating revenue 12,912 39,490Exchange rate gains 4,965 12,995

Other operating revenue 17,877 52,485

128,829,408 120,607,695 Non-exchange revenue Exchange revenue

126,759,253 2,070,155

118,390,673 2,217,022

128,829,408 120,607,695 NOTE 2 Financial Operations Expenses 2011 2010 Other interest expenses (7,601,461) (7,492,197)

Other financial expenses (bank charges) (2,924) (5,701)

(7,604,385) (7,497,898)

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NOTE 3 Intangible Fixed Assets 31/12/2011 31/12/2010

Computer Software

Gross carrying amount 1. January 712,255 531,938

Additions 88,776 180,317

Gross carrying amount 31. December 801,031 712,255

Accumulated amortization 1. January (580,752) (518,145)

Amortization (22,194) (62,608)

Accumulated amortization 31. December (602,946) (580,752)

Net Carrying Amount 31. December 198,085 131,503

Non-capitalised research costs

Non-capitalised development costs

0

1,087,506

0

1,137,843

1,087,506 1,137,843

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NOTE 4 Buildings under Financial Leasing 31/12/2011 31/12/2010

Gross carrying amount 1. January 163,223,636 163,085,358

Additions (57,247) 138,278

Gross carrying amount 31. December 163,166,389 163,223,636

Accumulated depreciation 1. January (32,640,775) (28,083,568)

Depreciation (4,559,354) (4,557,207)

Accumulated depreciation 31. December (37,200,129) (32,640,775)

Net Carrying Amount 31, December 125,966,260 130,582,861

Capital Interest

Distribution of charges Cumulative charges paid 51,513,769 77,283,224 Charges to be paid < 1 year 3,635,210 5,957,2801-5 years 16,562,061 21,596,291> 5 years 91,374,319 35,143,563 111,571,590 62,697,134

Gross Carrying Amount 31. December 163,085,358 139,980,358

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At 31 December 2011, the European Economic and Social Committee (EESC) and the

Committee of Regions (CoR) together had five buildings2 under long-term leases:

TOTAL NET ASSET VALUE

TOTAL DEBT

Building Bertha von Suttner (BvS), Rue Montoyer 92-102 45,574,447 47,854,113

Building Jacques Delors (JDE), Rue Belliard 103-113 111,010,622 92,545,689

Building Remorqueur (REM), Rue Belliard 93 8,989,119 0

Rue Belliard 68-72 (B68-72) 21,937,138 21,833,254

Rue de Trèves 74 (TR74) 19,462,121 21,926,052

TOTAL 206,973,447 184,159,108

These long-term leases are defined as finance leases and are thus recognised and accounted for as assets, and their associated lease obligations as liabilities.

The EESC-part of the total net-asset-value is EUR 125,966,260. On the liability-side the EESC-part of the total debt is EUR 111,571,589 (other long term liabilities EUR 107,936,379 and long-term liabilities falling due within 1 year EUR 3,635,210).

In 2009, the EESC and the CoR signed an agreement as follows:

- According to the practice in previous years, each Committee's share in the net asset values and the liabilities of these five buildings is fixed as follows:

EESC CoR

BvS 67% 33%

JDE 67% 33%

REM 50% 50%

B68-72 40% 60%

TR74 40% 60%

2 For completeness should be mentioned that part of the building "Van Maerlant II" has been rented from the European

Commission since 1 April 2007. This contract is not defined as a financial lease.

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- Each Committee's contribution to the lease payments is defined in the cooperation agreement between the two Committees. These depend on the respective proportion of the number of staff of each Committee according to the respective establishment plans, adopted by the budgetary authority, on 1 January of the previous financial year and may differ from the shares as defined in the table above.

NOTE 5

Plant and Equipment 31/12/2011 31/12/2010 Gross carrying amount 1 January 2,749,522 2,662,159Additions 234,422 103,419Disposals 0 (16,056)Other changes 0 0 Gross carrying amount 31. December 2,983,944 2,749,522 Accumulated depreciation 1. January (2,471,975) (2,279,747)Depreciation (120,859) (208,284)Disposals 0 16,056Other changes 0 0

Accumulated depreciation 31. December (2,592,834) (2,471,975)


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NOTE 6 Furniture 31/12/2011 31/12/2010 Gross carrying amount 1. January 2,097,692 2,044,957Additions 42,981 127,706Disposals 0 (74,971)Other changes 0 0 Gross carrying amount 31. December 2,140,673 2,097,692 Accumulated depreciation 1. January (1,611,255) (1,562,103)Depreciation 26,919 (122,324)Disposals 0 73,172Other changes 0 0 Accumulated depreciation 31. December (1,584,336) (1,611,255)


NOTE 7 Computer Hardware 31/12/2011 31/12/2010 Gross carrying amount 1. January 2,683,609 2,502,835Additions 269,611 501,586Disposals 0 (320,812)Other changes 0 0 Gross carrying amount 31. December 2,953,220 2,683,609 Accumulated depreciation 1. January (2,175,528) (2,039,646)Depreciation 89,415 (445,813)Disposals 0 309,931Other changes 0 0 Accumulated depreciation 31. December (2,086,112) (2,175,528)


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NOTE 8 Long-Term Receivables 31/12/2011 31/12/2010

Other (Advances to Members) 55,915 55,563

55,915 55,563

NOTE 9 Current Receivables 31/12/2011 31/12/2010 Customers Gross total 1,602 4,801Amounts written down 0 0Net Value 1,602 4,801

Member States Gross total 12,023 11,793Amounts written down 0 0Net Value, VAT to be recovered 12,023 11,793

Other Institutions Gross total 0 2,578Amounts written down 0 0Net Value 0 2,578

OPOCE

Gross total 2,738 40,287Amounts written down 0 0Net Value 2,738 40,287

16,364 59,459

53


NOTE 10 Other Long-Term Liabilities 31/12/2011 31/12/2010

Buildings under Financial Leasing (*) Staff regulation Art. 50 (2012)

107,936,379 0

111,571,590 161,654

107,936,379 111,733,244 (*)Part of the charges (capital) that has to be paid after 1 year. See also Note 4.

NOTE 11 Provisions for Risks and Charges 31/12/2011 31/12/2010

Possible salary increase of 2011, 1.7 %, pending court case

534,470 0

534,470 0

NOTE 12 Current Payables 31/12/2011 31/12/2010

Vendors

Gross total 1,158,390 809,228

Other Institutions

European Commission

European Parliament

0

0

260,426

70,896

European Council 0 58,718

Committee of the Regions 0 1,157

Other agencies etc. 0 2,498

Gross total 0 393,695

1,158,390 1,202,923

54


NOTE 13 Long Term Liabilities Falling Due Within The Year 31/12/2011 31/12/2010

Buildings under Financial Leasing 3,635,210 3,424,141

3,635,210 3,424,141 Part of the charges (capital) that has to be paid within 1 year See also Note 4

NOTE 14 Contingent Assets

31/12/2011 31/12/2010

Performance guarantees(*) 0 0

0 0 (*) The sum of performance guarantees in supplier contracts is EUR 1,055,614 (EUR 764,303) at 31/12/2011. As the probability of inflow of economic benefits is low (estimated by management to be less than 5%) the value is insignificant.

55


NOTE 15 Contingent Liabilities and Commitments for future funding

31/12/2011 31/12/2010

Commitments for future funding

Commitments against appropriations not yet consumed (RAL) 2,881,167 4,174,066

Operating leases 14,931,492 16,920,504

Contractual Commitments 7,680,832 5,744,089

Other(**) 72,587,519 74,791,106

98,081,010 101,629,765 (**) As the EESC and the CoR have jointly signed the long-lease contracts on the buildings, they are responsible in solidarity for the payments.

Therefore, the difference between the total liability and the booked liability is recognised as a contingent liability.

It can be calculated like this: Total liability 31/12/2011: 184,159,108 Booked by EESC: Debt (111,571,589) 72,587,51

III.



PART III


(Modified Cash Accounting Principle)

&

Report on Budgetary and Financial

Management

59

III.



1. GENERAL REMARKS ON THE BUDGET OUTTURN

The 2011 budget amounted to EUR 128.6 million, of which EUR 122.6 million were spent (a take-up rate of 95.4%), if the committed final appropriations for the financial year (C1) including the appropriations carried over as of right from 2011 to 2012 are taken into account – see table in Heading 4: "Use of final appropriations".

The take-up rate of appropriations carried over as of right from 2010 to 2011 was on an equally high level as the year before (80.29% (80.53% in 2010)). For details, see Heading 5 below.

60

61

III.



2. REVENUE

2011 2010

Revenue from staff 12,050,106.51 11,608,188.82

Taxation on salaries and pensions 4,277,155.38 4,290,004.46Refunds of wages and allowances of Members of the institution 879.36 0.00

Special levy 748,750.09 685,354.91

Contribution to the pension scheme 6,027,047.39 5,794,078.36

Transfer or purchase of pension rights 996,274.29 838,751.09

Other administrative revenue 3,764,998.24 3,699,299.81

Sale of other movable property - Assigned revenue 3,390.65 1.155.45

Sale of publications, printed works and films 31,286.07 19,912.86

Proceeds from letting and subletting immovable property 1,389,690.00 1,376,142.73Investments or loans granted, bank and other interest on the institution's accounts 29,638.68 21,602.53

Supply of services and works to others institutions 2,011,281.14 2,176,154.27

Repayment of amounts wrongly paid - Assigned revenue 36,300.74 15,597.85Revenue earmarked for a specific purpose, such as income from foundations, subsidies, gifts and bequests, including the earmarked revenue specific to each institutions. 67,239.32 54,095.20Other contributions and refunds in connection with the administrative operation of the institution - Assigned revenue 150,573.18 29,456.68

Insurance payments received - Assigned revenue 3,027.77 5,182.24

Miscellaneous revenue 42,570.69 0.00

TOTAL REVENUE 15,815,104.75 € 15,307,488.63 €

62

63

III.



3. FINAL APPROPRIATIONS

3.1 Human Resources

Initial

Appropriations 2011

Transfers 2011

Amendments 2011

Final Appropriations

2011


2010

Members and Delegates 18,911,770.00 0.00 0.00 18,911,770.00 17,560,559.00Salaries, allowances and insurance 104,000.00 0.00 0.00 104,000.00 104,000.00 Travel and subsistence allowances 18,292,130.00 (50,000.00) 0.00 18,242,130.00 16,930,000.00Travel and subsistence allowances, CCMI 463,120.00 50,000 0.00 513,120.00 474,039.00 Further training, language courses and other training 52,520.00 0.00 0.00 52,520.00 52,520.00

Officials and Temporary Staff 64,896,874.00 0.00 0.00 64,896,874.00 62,832,426.00Remuneration and allowances 63,188,510.00 0.00 0.00 63,188,510.00 62,134,926.00Paid overtime 40,000.00 0.00 0.00 40,000.00 24,000.00 Entering, transfers and leaving the service 1,037,000.00 0.00 0.00 1,037,000.00 480,000.00 Staff retired in the interests of the service 202,000.00 0.00 0.00 202,000.00 193,500.00 Provisional appropriation 429,364.00 0.00 0.00 429,364.00 0.00

Other staff and outside services 4,448,680.00 0.00 0.00 4,448,680.00 4,339,767.00Other staff 2,182,011.00 (40,000.00) 0.00 2,142,011.00 2,246,098.00Graduate traineeships, grants and exchanges of officials 953,213.00 0.00 0.00 953,213.00 824,213.00 Entering, transfers and leaving the service 70,000.00 0.00 0.00 70,000.00 66,000.00 Supplementary services for the translation service 440,000.00 (10,000.00) 0.00 430,000.00 400,000.00 Expert advice connected with consultative work 734,000.00 10,000.00 0.00 744,000.00 734,000.00 Interinstitutional cooperation and external services 30,702.00 40,000.00 0.00 70,702.00 30,702.00 Provisional appropriation 38,754.00 0.00 0.00 38,754.00 38,754.00

Other expenditure 1,941,087.00 0.00 0.00 1,941,087.00 1,735,087.00Recruitment 60,000.00 0.00 0.00 60,000.00 30,417.00 Further training 505,752.00 0.00 0.00 505,752.00 501,335.00 Mission expenses 521,335.00 0.00 0.00 521,335.00 461,335.00 Social welfare 41,500.00 0.00 0.00 41,500.00 44,000.00 Social contacts between members of staff 197,500.00 0.00 0.00 197,500.00 197,500.00 Medical service 85,000.00 0.00 0.00 85,000.00 110,500.00 Early Childhood Centre and approved day nurseries 530,000.00 0.00 0.00 530,000.00 390,000.00

Total Human resources 90,198,411.00 € 0.00 € 0.00 € 90,198,411.00 € 86,467,839.00 €

64

III.



3.2 Other Resources - Part 1/2

Initial

Appropriations 2011

Transfers 2011

Amendments 2011


2011


2010

Buildings & associated costs 19,291,278.00 (58,551.00) 0.00 19,232,727.0018,781,493.0

0

Rent 2,076,000.00(185,000.00

) 0.00 1,891,000.00 2,010,000.00Annual lease payments and similar expenditure 10,990,603.00 35,000.00 0.00 11,025,603.00

10,772,288.00

Fitting-out of premises 322,457.00 115,000.00 0.00 437,457.00 374,471.00Other expenditure on buildings 57,163.00 29,000.00 0.00 86,163.00 59,315.00Cleaning and maintenance 2,532,670.00 0.00 0.00 2,532,670.00 2,573,181.00Energy consumption 1,077,996.00 0.00 0.00 1,077,996.00 881,543.00Security and surveillance 2,093,295.00 0.00 0.00 2,093,295.00 2,055,503.00Insurance 141,094.00 (52,551.00) 0.00 88,543.00 55,192.00

Data processing 6,347,937.00 52,551.00 0.00 6,400,488.00 5,651,414.00Purchase, servicing and maintenance of equipment and software 1,584,210.00

(134,866.00) 0.00 1,449,344.00 1,332,451.00

Outside assistance 1,905,815.00 299,694.00 0.00 2,205,509.00 2,067,961.00

Telecommunications 1,532,047.00(112,277.00

) 0.00 1,419,770.00 598,264.00Furniture 213,269.00 0.00 0.00 213,269.00 182,590.00Technical equipment and installations 1,002,196.00 0.00 0.00 1,002,196.00 1,359,748.00Vehicles 110,400.00 0.00 0.00 110,400.00 110,400.00

Current administrative expenditure 533,786.00 6,000.00 0.00 539,786.00 603,245.00

Stationary, office supplies and miscellaneous consumables 231,398.00 0.00 0.00 231,398.00 235,638.00Financial charges 5.000.00 0.00 0.00 5.000.00 10,000.00Legal costs and damages 40.000.00 0.00 0.00 40.000.00 75,000.00Postage on correspondence and delivery charges 130.000.00 0.00 0.00 130.000.00 150,000.00Other administrative expenditure 127,388.00 6,000.00 0.00 133,388.00 132,607.00

Operational activities 9,913,412.00 0.00 0.00 9,913,412.00 9.626,745.00Internal meetings 215,000.00 70,000.00 0.00 285,000.00 304,000.00Organisation of and participation in conferences, congresses and meetings 587,745.00 0.00 0.00 587,745.00 587,745.00Organisation of CCMI 105,000.00 0.00 0.00 105,000.00 90,000.00Entertainment and representation obligations 139,000.00 -40,000.00 0.00 99,000.00 95,000.00Interpreting 8,866,667.00 -30,000.00 0.00 8,836,667.00 8,550,000.00

65

III.



Other Resources - Part 2/2

Initial

Appropriations 2011

Transfers 2011

Amendments 2011


2011


2010

Communication 2,245,357.00 0.00 0.00 2,245,357.00 2,043,013.00Communication 825,000.00 50,000.00 0.00 875,000.00 906,000.00Publishing and promotion of publications 563,000.00 (50,000.00) 0.00 513,000.00 412,000.00Official Journal 500,000.00 0.00 0.00 500,000.00 329,251.00Studies, research and hearings 175,000.00 0.00 0.00 175,000.00 175,000.00Documentation and library 182,357.00 0.00 0.00 182,357.00 177,106.00Archiving and related work 43.656.00 0.00 0.00 43.656.00 43,656.00

Provisional appropriations 0.00 0.00 0.00 0.00 0.00Provisional appropriations 0.00 0.00 0.00 0.00 0.00

Total Other resources 38,375,426.00 € 0.00 € 0.00 € 38,375,426.00 € 36,705,910.00 €

Total Human Resources + Other Resources

TOTAL FINAL

APPROPRIATIONS 128,573,837.00 € 0.00 € 0.00 € 128,573,837.00 € 123,173,749.00 €

66

67

III.



Final Appropriations 2011

Communication1,7%

Members & Delegates14,7%

Current administrative expenditure

0,4%

Operational activities7,7%

Data processing5,0%

Buildings & associated costs15,0%

Other staff and outside services

3,5%

Other expenditure1,5%

Officials and Temporary Staff50,5%

Final Appropriations 2010

Officials and Temporary Staff51,0%

Other expenditure1,4%

Other staff and outside services

3,5%

Buildings & associated costs15,2%

Data processing4,6%

Operational activities7,8%


0,5%

Members & Delegates14,3%

Communication1,7%

68

III.



4. USE OF FINAL APPROPRIATIONS (C1)

4.1 Human Resources

NoteFinal

Appropriations Committed

Percentage Committed

Human resources 90,198,411.00 86,324,840.00 95.71%

Members & Delegates 18,911,770.00 17,553,926.48 92.82%

Salaries, allowances and insurance 104,000.00 84,712.47 81.45%

Travel and subsistence allowances (a) 18,242,130.00 16,903,574.01 92.66%

Travel and subsistence allowances, CCMI 513,120.00 513,120.00 100.00%

Further training, language courses and other training 52,520.00 52,520.00 100.00%

Officials and Temporary Staff 64,896,874.00 63,020,157.54 97.11%

Remuneration and allowances 63,188,510.00 62,411,101.47 98.77%

Paid overtime 40,000.00 24,275.08 60.69%

Entering, transfers and leaving the service (b) 1,037,000.00 388,800.00 37.49%

Staff retired in the interests of the service 202,000.00 195,980.99 97.02%

Provisional appropriation (c) 429,364.00 0.00 0.00%

Other staff and outside services 4,448,680.00 4,062,879.57 91.33%

Other staff (d) 2,142,011.00 1,929,714.97 90,09%

Graduate traineeships, grants and exchanges of officials (e) 953,213.00 857,929.38 90.00%

Entering, transfers and leaving the service (f) 70,000.00 43,028.03 61.47%

Supplementary services for the translation service 430,000.00 417,505.19 97.09%

Expert advice connected with consultative work 744,000.00 744,000.00 100.00%

Interinstitutional cooperation and external services 70,702.00 70,702.00 100.00%

Provisional appropriation (g) 38,754.00 0.00 0.00%

Other expenditure 1,941,087.00 1,687,876.41 86.96%

Recruitment 60,000.00 35,005.98 58.34%

Further training 505,752.00 504,587.09 99.77%

Mission expenses (h) 521,335.00 432,721.24 83.00%

Social welfare 41,500.00 40,500.00 97.59%

Social contacts between members of staff (i) 197,500.00 149,123.10 75.51%

Medical service (j) 85,000.00 55,900.00 65.76%

Early Childhood Centre and approved day nurseries (k) 530,000.00 470,039.00 88.69%

69

III.



Payments Appropriations carried over

from 2011 Unused Appropriations

Percentage of Unused Appropriations

84,500,179.66 1,824,660.34 3,873,571.00 4.29%

16,681,927.67 871,998.81 1,357,843.52 7.18%

63,712.47 21,000.00 19,287.53 18.55%

16,103,523.01 800,051.00 1,338,555.99 7.34%

493,818.66 19,301.34 0.00 0.00%

20,873.53 31,646.47 0.00 0.00%

62,997,775.17 22,382.37 1,876,716.46 2.89%

62,407,031.78 4,069.69 777,408.53 1.23%

24,275.08 0.00 15,724.92 39.31%

370,487.32 18,312.68 648,200.00 62.51%

195,980.99 0.00 6,019.01 2.98%

0.00 0.00 429,364.00 100.00%

3,824,712.07 238,167.50 385,800.43 8.67%

1,907,951.17 21,763.80 212,296.03 9.91%

813,456.93 44,472.45 95,283.62 10.00%

43,028.03 0.00 26,971.97 38.53%

334,703.16 82,802.03 12,494.81 2.91%

725,572.78 18,427.22 0.00 0.00%

0.00 70,702.00 0.00 0.00%

0.00 0.00 38,754.00 100.00%

995,764.75 692,111.66 253,210.59 13.04%

25,501.78 9,504.20 24,994.02 41.66%

411,968.09 92,619.00 1,164.91 0.23%

353,922.96 78,798.28 88,613.76 17.00%

24,812.85 15,687.15 1,000.00 2.41%

114,205.40 34,917.70 48,376.90 24.49%

28,844.82 27,055.18 29,100.00 34.24%

36,508.85 433,530.15 59,961.00 11.31%

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4.2 Other Resources - Part 1/2

NoteFinal



Other resources 38,375,426.00 36,321,994.24 94.65%

Buildings & associated costs 19,232,727.00 18,865,704.94 98.09%

Rent 1,891,000.00 1,884,564.00 99.66%

Annual lease payments and similar expenditure 11,025,603.00 11,025,603.00 100.00%

Fitting-out of premises 437,457.00 431,135.00 98.55%

Other expenditure on buildings 86,163.00 79,276.85 92.01%

Cleaning and maintenance 2,532,670.00 2,476,907.51 97.80%

Energy consumption (l) 1,077,996.00 862,396.80 80.00%

Security and surveillance 2,093,295.00 2,059,044.28 98.36%

Insurance (m) 88,543.00 46,777.50 52.83%

Data processing 6,400,488.00 6,179,624.02 96.55%Purchase, servicing and maintenance of equipment and software 1,449,344.00 1,449,336.84 100.00%

Outside assistance 2,205,509.00 2,205,218.59 99.99%

Telecommunications 1,419,770.00 1,352,669.07 95.27%

Furniture (n) 213,269.00 172,791.81 81.02%

Technical equipment and installations (o) 1,002,196.00 908,629.64 90.66%

Vehicles 110,400.00 90,978.07 82.41%

Current administrative expenditure 539,786.00 483,217.92 89.52%Stationary, office supplies and miscellaneous consumables 231,398.00 219,875.58 95.02%

Financial charges 5,000.00 5,000.00 100.00%

Legal costs and damages 40,000.00 34,680.00 86.70%

Postage on correspondence and delivery charges (p) 130,000.00 102,060.00 78.51%

Other administrative expenditure 133,388.00 121,602.34 91.16%

Operational activities 9,913,412.00 8,717,546.14 87.94%

Internal meetings 285,000.00 281,550.65 98.79%Organisation of and participation in conferences, congresses and meetings (q) 587,745.00 454,040.46 77.25%

Organisation of CCMI (r) 105,000.00 39,447.08 37.57%

Entertainment and representation obligations 99,000.00 80,000.00 80.81%

Interpreting (s) 8,836,667.00 7,862,507.95 88.98%

71

III.






30,800,137.32 5,521,856.92 2,053,431.76 5.35%

17,195,847.70 1,669,857.24 367,022.06 1.91%

1,433,007.54 451,556.46 6,436.00 0.34%

11,025,603.00 0.00 0.00 0.00%

0.00 431,135.00 6,322.00 1.45%

20,407.93 58,868.92 6,886.15 7.99%

1,802,133.90 674,773.61 55,762.49 2.20%

862,396.80 0.00 215,599.20 20.00%

2,007,181.42 51,862.86 34,250.72 1.64%

45,117.11 1,660.39 41,765.50 47,17%

4,363,067.02 1,816,557.00 220,863.98 3.45%

948,121.63 501,215.21 7.16 0.00%

1,598,717.43 606,501.16 290.41 0.01%

1,253,559.00 99,110.07 67,100.93 4.73%

74,980.83 97,810.98 40,477.19 18.98%

422,748.09 485,881.55 93,566.36 9.34%

64,940.04 26,038.03 19,421.93 17.59%

356,769.65 126,448.27 56,568.08 10.48%

173,300.55 46,575.03 11,522.42 4.98%

1,402.48 3,597.52 0.00 0.00%

19,617.36 15,062.64 5,320.00 13.30%

66,456.85 35,603.15 27,940.00 21.49%

95,992.41 25,609.93 11,785.66 8.84%

7,699,003.47 1,018,542.67 1,195,865.86 12.06%

180,186.94 101,363.71 3,449.35 1.21%

352,672.59 101,367.87 133,704.54 22.75%

28,569.18 10,877.90 65,552.92 62.43%

45,000.62 34,999.38 19,000.00 19.19%

7,092,574.14 769,933.81 974,159.05 11.02%

72

III.




NoteFinal



Communication 2,289,013.00 2,075,901.22 90.69%

Communication (t) 875,000.00 816,429.33 93.31%

Publishing and promotion of publications (u) 513,000.00 434,471.21 84.69%

Official Journal (v) 500,000.00 440,630.75 88.13%

Studies, research and hearings 175,000.00 172,300.92 98.46%

Documentation and library 182,357.00 170,613.01 93.56%

Archiving and related work 43,656.00 41,456.00 94.96%

TOTAL FINAL APPROPRIATIONS

128,573,837.00 € 122,646,834.24 € 95.39%

73

III.






1,185,449.48 890,451.74 213,111.78 9.31%

515,556.32 300,873.01 58,570.67 6.69%

129,129.35 305,341.86 78,528.79 15.31%

295,174.83 145,455.92 59,369.25 11.87%

53,552.72 118,748.20 2,669.08 1.54%

150,598.20 20,014.81 11,743.99 6.44%

41,438.06 17.94 2,200.00 5.04%

115,300,316.98 € 7,346,517.26 € 5,927,002.76 € 4.61%

74

III.



For all budget lines having uncommitted appropriations of more than EUR 25,000, representing more than 5% of the final appropriations, more detailed information is provided below.

(a) Travel and subsistence allowances

Uptake of appropriations under this item depends on the meetings planned and on the participation of EESC members at those meetings. Travel expenses were reimbursed in accordance with requests received. EUR 1 million were set aside for the implementation of the new Members' financial statute and it became clear that this amount could be used for activities too late in the year for any practical planning purposes.

(b) Entering, transfers and leaving the service

These appropriations cover various statutory allowances and costs for removals for officials and temporary agents at entry and/or departure. Estimates of costs are bound to be inaccurate, particularly for a small institution with a low number of annual cases, because the various allowances are highly dependent on the individual situation of the officials concerned and removals can take place up to almost two years after entering the service and three years after leaving the service. Furthermore, the cost of removal may vary considerably depending on the distance from Brussels of the place from/to which the removal takes place.

(c) Provisional appropriation

This amount constitutes a reserve to cover expected salary adaptations. As the salary adaptation proposed by the European Commission in 2011 was rejected by the Council, the reserve was not used.

(d) Other staff

The need for recruitment of contracts agents is difficult to assess and depends on unpredictable events, such as cases of long duration sickness and maternity leave that vary from one year to the other. Also, variations in contract durations, starting at different periods of the budget year, variations in grading (ranging from 1 to 18) and individual circumstances of each agent affecting the salary, all add to the difficulty of accurately forecasting costs. This led to lower consumption than estimated. The recourse to interim staff was lower than planned due to the postponement of an important digitalisation project to 2012.

75

III.



(e) Graduate traineeships, grants and exchanges of officials

The 2011 budget was based on an estimate of 13 END over the full period, in light of foreseeable new or extended secondments. The under-consumption was caused by delays in recruitment and a refusal of secondment extensions by national authorities.

(f) Entering, transfers and leaving the service

These appropriations cover various statutory allowances and costs for removals for other staff at entry and/or departure. Estimates of costs are bound to be inaccurate particularly for a small institution with a low number of annual cases, because the various allowances are highly dependent on the individual situation of the officials concerned and removals can take place up to three years after recruitment. Given the small amount of the appropriations on this item, even a single case could have a significant budgetary impact. Therefore, a sufficient margin must be kept.

(g) Provisional appropriation

This amount constitutes a reserve to cover expected salary adaptations. As the salary adaptation proposed by the European Commission in 2011 was rejected by the Council, the reserve was not used.

(h) Mission expenses

The estimated budget needs were based on the implementation in the previous years, corrected for expected inflation, and including a small safety margin in order to cover the inherently variable nature of this expenditure. In the light of the current budgetary austerity, additional efforts were made in 2011 to reduce the mission costs to a strict minimum and the EESC, subsequently reduced its 2012 draft budget for staff missions by EUR 30,000.

(i) Social contacts between members of staff These appropriations cover general matters such as social events or support for the Staff Committee, family help or psychological assistance, social support for family members and initiatives related to mobility. This expenditure is intrinsically difficult to predict (in 2011 one request for psychological assistance, no request for family help). Consumption for social events has also been lower than foreseen due to cost restrictions imposed in the context of the current economic situation. On the other hand, the take-up relating to the mobility plan has improved and reached satisfactory levels.

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(j) Medical service

These appropriations are intended for the functioning of the Medical Service and the payment of reimbursement of medical examinations prescribed during 2011 and fee notes for Invalidity Committees, expert opinions and medical checks relating to the year 2011. An important number of the prescribed examinations was not followed by a claim for reimbursement and therefore amounts remained unspent.

(k) Early Childhood Centre and approved day nurseries

These appropriations cover the share of the EESC in spending on childcare (Early Childhood Centre of the Commission and day nursery of the Council of the EU). The appropriations are the result of an estimate and may vary depending on the number of children received and expenditures made in infrastructure. The small under-consumption, which is equivalent to the cost of approximately 3 additional places in childcare, is due to the need to ensure a sufficient margin to accommodate all accepted requests.

(l) Energy consumption

Energy consumption was lower partly due to the mild winter and partly due to the impact of initiatives taken in the context of EMAS. Furthermore, energy costs in 2011 did not rise as much as initially foreseen.

(m) Insurance

In the existing inter-institutional insurance contract with which the EESC is associated, the standard premiums are relatively low but the excesses to be paid in the event of a claim are relatively high. This results in high uncertainty about the amounts to be paid so that a sufficient margin has to be kept. In 2011, there were no significant insurance claims.

(n) Furniture

Requests for specific furniture, which are inherently variable due to their nature, were below average.

(o) Technical equipment and installations

In the printing service, lower expenses were due to the non-indexation of a contract of a supplier, a greater than foreseen decrease in the number of copies in the copy shop and the acquisition of a machine at a price lower than foreseen. In the Infrastructure service a low number of requests

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III.



for repair or supply of equipment. In the Security service, expenses were lower than initially foreseen because a purchase was not possible because no suitable supplier could be found. The call for tender will be relaunched and the expenditure will occur in 2012. In the Restaurant service, the unused appropriations are explained by the less than foreseen need for maintenance equipment.

(p) Postage on correspondence and delivery charges

The lower than estimated take-up on this item is due to a lower number of express mailings than initially planned.

(q) Organisation of and participation in conferences, congresses and meetings

This budget item covers the organisation of and participation in conferences, congresses and meetings involving third parties. The corresponding expenditure is highly dependant on the EESC's work programme, which cannot be established with great accuracy at the time the budget is finalised. Also, the cost of travel can vary considerably, depending on the countries of origin of participants. Often, low-cost airlines are used or travel costs are covered by the participant's own organisation, but it is impossible to take this into account long time before the event. Lastly, the attendance rate is difficult to predict. Hence, in compliance with the Financial Regulations, a sufficient provision must be made to cover the "worst case" situation.

(r) Organisation of CCMI

This budget item covers expenses linked to the organisation of the CCMI's work (Consultative Commission on Industrial Change): Insurance cover for CCMI Delegates during their mandate, costs related to activities designed to promote the ongoing work and results of the CCMI as well as costs related to consultative work (e.g. hearings, studies). The exact use of appropriations is highly dependent on the annual work programme of the CCMI, which is approved long time after the budget is finalised. For example, the final work programme no longer foresaw recourse to an external study initially foreseen in the budget.

(s) Interpreting

At the beginning of the year an advance payment is made to DG Interpretation: 25% of the volume of the services provided to the EESC during the previous year, recoverable by deducting 20% of the amount payable as of July. Uptake is monitored every month, when 12 month forecasts are submitted to the Budget Group. However, numerous alterations and cancellations, together with the non-availability of languages, make forecasting very difficult. Savings have

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been made due to recourse to cheaper local free-lance interpreters for meetings held away from Brussels (albeit to the detriment of quality).

(t) Communication

The estimated budget for travel and hotel costs of participants at a major event was not used entirely as there were fewer participants than expected and cost per participant was lower than expected. Further savings were made in the production of videoclips.

(u) Publishing and promotion of publications

The EESC's Communication Group decided in June 2011 to discontinue EESC participation in the 'Europe Diary' 2011-2012, which led to savings of EUR 60,000.

(v) Official Journal The invoicing procedures of the Publications Office foresee a part based on recourse to the Office in year N-1. Due to lower publication activity in the year of renewal (2010), the EESC was billed less in 2011 and will have to face larger invoices in 2012 and thereafter.

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5. USE OF APPROPRIATIONS AUTOMATICALLY CARRIED OVER FROM 2010 TO 2011 (C8)

Human Resources and Other Resources - Part 1/2

Note Appropriations

carried over

Human Resources 1,887,194.55

Members & Delegates 1,202,428.54

Salaries, allowances and insurance 7,094.51

Travel and subsistence allowances (a) 1,153,170.80

Travel and subsistence allowances, CCMI 26,006.17

Further training, language courses and other training 16,157.06

Officials and Temporary Staff 15,554.38

Remunerations and allowances 2,680.53

Entering, transfers and leaving the service 12,873.85

Other staff and outside services 312,026.80

Other staff 20,890.55

Graduate traineeships, grants and exchanges of officials 55,168.91

Supplementary services for the translation service 135,550.13

Expert advice connected with consultative work (b) 90,417.21

Interinstitutional cooperation and external servicees 10,000.00

Other expenditure 357,184.83

Recruitment 9,284.34

Further training 152,296.76

Mission expenses 33,060.00

Social welfare 14,006.62

Social contacts between members of staff 43,128.88

Medical service 88,410.23

Early Childhood Centre and approved day nurseries 16,998.00

Other Resources 7,230,643.85

Buildings & associated costs 2,903,361.93

Rent (c) 544,901.08

Fitting-out of premises (d) 449,945.01

Other expenditure on buildings 31,124.35

Cleaning and maintenance (e) 1,035,769.39

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Paid in 2011 Percentage paid Unused

Appropriations Percentage of Unused

Appropriations

1,080,286.00 57.24% 806,908.55 42.76%

500,882.89 41.66% 701,545.65 58.34%

5,770.06 81.32% 1,324.45 18.67%

476,467.81 41.32% 676,702.99 58.68%

7,497.66 28.83% 18,508.51 71.17%

11,147.36 68.99% 5,009.70 31.01%

12,862.53 82.69% 2,691.85 17.31%

0.00 0.00% 2,680.53 100.00%

12,862.53 99.91% 11.32 0.09%

258,440.65 82.83% 53,586.15 17.17%

17,657.85 84.52% 3,232.70 15.47%

51,835.34 93.96% 3,333.57 6.04%

132,681.20 97.88% 2,868.93 2.12%

46,381.10 51.30% 44,036.11 48.70%

9,885.16 0.00% 114.84 1.15%

308,099.93 86.26% 49,084.90 13.74%

5,246.06 56.50% 4,038.28 43.50%

139,633.41 91.69% 12,663.35 8.31%

28,365.38 85.80% 4,694.62 14.20%

13,006.62 92.86% 1,000.00 7.14%

41,703.93 96.70% 1,424.95 3.30%

80,144.53 90.65% 8,265.70 9.35%

0.00 0.00% 16,998.00 100.00%

6,240,164.93 86.30% 990,478.92 13.70%

2,607,628.94 88.99% 322,732.99 11.01%

457,953.32 84.04% 86,947.76 15.96%

413,643.65 91.93% 36,301.36 8.07%

25,007.42 80.35% 6,116.93 19.65%

903,076.05 87.19% 132,693.34 12.81%

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Note Appropriations

carried over

Energy consumption 19,084.00

Security and surveillance (f) 843,819.63

Insurance 5,718.47

Data processing

2,321,932.29

Purchase, servicing and maintenance of equipment and software 564,138.80

Outside assistance 388,771.78

Telecommunications 56,841.10

Furniture 106,079.87

Technical equipment and installations (g) 1,186,616.01

Vehicles 19,484.73


177,060.89

Stationary, office supplies and miscellaneous consumables 71,510.43

Financial charges 4,299.41

Legal costs and damages 26,591.98

Postage on correspondence and delivery charges 41,917.91

Other administrative expenditure 32,741.16

Operational activities

1,000,306.03

Internal meetings 74,135.64

Organisation of and participation in conferences, congresses and meetings (h) 99,014.57

Organisation of CCMI 13,907.50

Entertainment and representation obligations 7,907.60

Interpreting (i) 805,340.72

Communication

800,982.71

Communication 155,809.27

Publishing and promotion of publications 295,430.69

Official Journal (j) 192,437.70

Studies, research and hearings 123,578.75

Documentation and library 30,795.67

Archiving and related work 2,930.63

TOTAL FINAL APPROPRIATIONS AUTOMATICALLY CARRIED OVER FROM

2010 TO 2011 9,117,838.40 €

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Paid in 2011 Percentage paid Unused

Appropriations Percentage of Unused

Appropriations

0.00 0.00% 19,084.00 100.00%

807,706.31 95.72% 36,113.32 4.28%

242.19 4.24% 5,476.28 95.76%

2,248,097.50 96.82% 73,834.79 3.18%

562,721.70 99.75% 1,417.10 0.25%

380,588.19 97.90% 8,183.59 2.10%

40,068.50 70.49% 16,772.60 29.51%

106,079.87 100.00% 0.00 0.00%

1,149,288.30 96.85% 37,327.71 3.15%

9,350.94 47.99% 10,133.79 52.01%

124,577.45 70.36% 52,483.44 29.64%

61,110.39 85.46% 10,400.04 14.54%

1,521.35 35.39% 2,778.06 64.61%

13,575.06 51.05% 13,016.92 48.95%

19,111.28 45.59% 22,806.63 54.41%

29,259.37 89.37% 3,481.79 10.63%

549,200.04 54.90% 451,105.99 45.10%

51,135.60 68.98% 23,000.04 31.02%

65,087.82 65.74% 33,926.75 34.26%

10,381.74 74.65% 3,525.76 25.35%

7,907.60 100.00% 0.00 0.00%

414,687.28 51.49% 390,653.44 48.51%

710,661.00 88.72% 90,321.71 11.28%

132,437.13 85.00% 23,372.14 15.00%

285,438.27 96.62% 9,992.42 3.38%

160,240.07 83.27% 32,197.63 16.73%

102,218.05 82.71% 21,360.70 17.29%

27,419.18 89.04% 3,376.49 10.96%

2,908.30 99.24% 22.33 0.76%

7,320,450.93 € 80.29% 1,797,387.47 € 19.71%

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For all budget lines having unused appropriations carried over from 2010 to 2011of more than EUR 25,000 representing more than 5% of the amount carried over, more detailed information is provided below.

(a) Travel and subsistence allowances

Reimbursement claims for meetings in 2010 could still be submitted in 2011. Therefore, a sufficient amount had to be carried over in order to cover 2010 expenditure with 2010 appropriations, according to the annuality principle. This inevitably led to the cancellation of some of the appropriations having been carried over due to the impossibility to determine in advance the exact amounts that would be claimed by EESC Members following their participation in meetings.

(b) Expert advice connected with consultative work

Reimbursement claims for meetings in 2010 could still be submitted in 2011. Therefore, a sufficient amount must be carried over in order to cover 2010 expenditure by 2010 appropriations, according to the annuality principle. This inevitably led to the cancellation of some of the appropriations having been carried over due to the impossibility to determine in advance the exact amounts that would be claimed by experts following their participation in meetings.

(c) Rent The final settlement of the 2010 rent and associated costs of the VMA-2 building rented from the European Commission was received in 2011. Due to lower indexation and energy consumption, service costs for the VMA-2 building were lower than estimated so that the amount carried forward was not paid in full.

(d) Fitting-out of premises

The exact amount to be paid to a supplier was only known in 2011 and the cost of a technical installation turned out to be lower than estimated.

(e) Cleaning and maintenance

For several maintenance projects (repartioning of office space, repair of the footbridge between two buildings and entrance servicing) started in 2010 it was unknown at the end of 2010 what the exact price would be, because an important part of the work was carried out in 2011. The

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amount carried forward was therefore an upper estimate and higher than the payment that was finally made.

(f) Organisation of and participation in conferences, congresses and meetings

Appropriations carried over cover the expenditure that could not be settled at the end of 2010. It does usually take a some time before all reimbursement claims are received, the cost of which can vary considerably (e.g. low-cost airline vs. mainstream airline). In some cases, a participant in an event ultimately does not make a claim at all, since his/her own organisation paid for it. Since the principles of sound and efficient management embodied in the Financial Regulation require that the worst case must be covered, some of the appropriations carried over to 2011 were subsequently cancelled.

(g) Interpreting

Even after a review of its interpreting expenditure planning and invoicing process in 2008 in cooperation with the Commission's DG Interpretation, it remains difficult to calculate the appropriations to be carried over at the end of the year for the invoices still to be received. In 2011, forecasting was further complicated by the DG Interpretation decision not to apply the revised salary adjustment but to keep the rate of EUR 434 instead of EUR 442 for a translation-'slot'.

(h) Official Journal The Publications Office sends its invoices with considerable delay, which, the price per page not being stable within the budgetary year, makes budgetary planning difficult. As a matter of precaution, all of the appropriations committed in 2010 were carried over and consumed in 2011 to a very large extent.

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6. USE OF ASSIGNED REVENUE IN 2011 (C4)

Final

AppropriationsCommitted


Human resources 16,341.53 9,249.19 56.60%

Members & Delegates 3,184.25 3,184.25 100.00%


Other expenditure 13,157.28 6,064.94 46.10%

Mission expenses 7,092.34 0.00 0.00%

Social welfare 6,064.94 6,064.94 100.00%

Other resources 3,524,135.02 3,220,347.53 91.38%

Buildings & associated costs 3,030,953.95 2,836,853.14 93.60%

Rent 1,389,690.00 1,389,690.00 100.00%

Cleaning and maintenance 5,562.55 5,562.55 100.00%

Security and surveillance 1,635,701.40 1,441,600.59 88.13%

Data processing 422,935.70 334,729.14 79,14%Purchase, servicing and maintenance of equipment and software 2,179.40 759.40 34,84%

Telecommunications 208,015.72 192,847.96 92.71%

Technical equipment and installations 199,121.78 141,121.78 70.87%

Vehicles 13,618.80 0.00 0.00%

Current administrative expenditure 42,821.25 42,821.25 100.00%

Stationary, office supplies and miscellaneous consumables 42,821.25 42,821.25 100.00%

Operational activities 6,076.00 5,944.00 97.83%

Interpreting 6,076.00 5,944.00 97.83%

Communication 21,348.12 0.00 0.00%

Official Journal 21,348.12 0.00 0.00%

3,540,476.55 € 3,229,596.72 € 91.22%

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Payments Payment

percentage Outstanding commitments

Available credits

Available Percentage

9,249.19 100.00% 0.00 7,092.34 43.40%

3,184.25 100.00% 0.00 0.00 0.00%

3,184.25 100.00% 0.00 0.00 0.00%

6,064.94 100.00% 0.00 7,092.34 53.90%

0.00 0.00% 0.00 7,092.34 100.00%

6,064.94 100.00% 0.00 0.00 0.00%

2,885,698.13 89.61% 334,649.40 303,787.49 8.62%

2,606,198.25 91.87% 230,654.89 194,100.81 6.40%

1,389,690.00 100.00% 0.00 0.00 0.00%

2,534.78 45.57% 3,027.77 0.00 0.00%

1,213,973.47 84.21% 227,627.12 194,100.81 11.87%

230,734.63 68.93% 103.994.51 88.206.56 20.86%

759.40 100.00% 0.00 1,420.00 65.16%

130,993.10 67.93% 61.854.86 15,167.76 7.29%

98,982.13 70.14% 42,139.65 58,000.00 29.13%

0.00 0.00% 0.00 13,168.80 100.00%

42,821.25 100.00% 0.00 0.00 0.00%

42,821.25 100.00% 0.00 0.00 0.00%

5,944.00 100.00% 0.00 132.00 2.17%

5,944.00 100.00% 0.00 132.00 2.17%

0.00 0.00% 0.00 21,348.12 100.00%

0.00 0.00% 0.00 21,348.12 100.00%

2,894,947.32 € 89.64% 334,649.40 € 310,879.83 € 8.78%

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7. RE-USED 2010 APPROPRIATIONS (C5)

Final



Human resources 15,618.55 15,618.55 100.00%

Members & Delegates 7,688.39 7,688.39 100.00%


Officials and Temporary Staff 701.24 701.24 100.00%

Remuneration and allowances 701.24 701.24 100.00%

Other expenditure 7,228.92 7,228.92 100.00%

Mission expenses 5,343.92 5,343.92 100.00%

Early Childhood Centre and approved day nurseries 1,885.00 1,885.00 100.00%

Other resources 26,607.26 26,607.26 100.00%

Data processing 25,610.11 25,610.11 100.00%

Telecommunications 25,610.11 25,610.11 100.00%

Operational activities 104.80 104.80 100.00%Organisation of and participation in conferences, congresses and meetings 104.80 104.80 100.00%

Communication 892.35 892.35 100.00%

Communication 154.10 154.10 100.00%

Official Journal 738.25 738.25 100.00%

42,225.81 € 42,225.81 € 100.00%

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Payments Payment

percentage Outstanding commitments

Available credits

Available Percentage

15,618.55 100.00% 0.00 0.00 0.00%

7,688.39 100.00% 0.00 0.00 0.00%

7,688.39 100.00% 0.00 0.00 0.00%

701.24 100.00% 0.00 0.00 0.00%

701.24 100.00% 0.00 0.00 0.00%

7,228.92 100.00% 0.00 0.00 0.00%

5,343.92 100.00% 0.00 0.00 0.00%

1,885.00 100.00% 0.00 0.00 0.00%

26,607.26 100.00% 0.00 0.00 0.00%

25,610.11 100.00% 0.00 0.00 0.00%

25,610.11 100.00% 0.00 0.00 0.00%

104.80 100.00% 0.00 0.00 0.00%

104.80 100.00% 0.00 0.00 0.00%

892.35 100.00% 0.00 0.00 0.00%

154.10 100.00% 0.00 0.00 0.00%

738.25 100.00% 0.00 0.00 0.00%

42,225.81 € 100.00% 0.00 € 0.00 € 0.00%

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8. APPROPRIATIONS FROM EXTERNAL ASSIGNED REVENUE (R0)

Final



Other resources 275,554.77 190,274.05 69.05%

Operational activities 275,554.77 190,274.05 69.05%Organisation of and participation in conferences, congresses and meetings 275,554.77 190,274.05 69.05%

275,554.77 € 190,274.05 € 69,05%

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Payments Payment % Outstanding commitments

Available credits Available %

182,097.97 95.70% 8,176.08 85,280.72 30.95%

182,097.97 95.70% 8,176.08 85,280.72 30,95%

182,097.97 95.70% 8,176.08 85,280.72 30,95%

182,097.97 € 95.70% 8,176.08 € 85,280.72 € 30.95%

IV. APPENDICES

PART IV

APPENDICES

95

IV.Appendix A

Appendix A

INTERNAL CONTROL ENVIRONMENT

The European Economic and Social Committee (EESC)'s Internal Financial Rules (IFR) de-fine a strong control framework for all budgetary transactions. As an example, the Financial Regulation (FR) allows an authorising officer to conduct the verification of a budgetary tran-saction personally. The EESC's internal financial rules stipulate that verification be con-ducted by a verifying agent, appointed for this purpose by the secretary-general and inde-pendent of the authorising officer for all transactions that required authorisation from the financial controller under the former Financial Regulation (a detailed list of such transactions is included in the said Internal Rules).

The role of the different financial actors, the framework for their assistance and details of the budgetary procedures are specified in the EESC's Internal Financial Rules. They are detailed below:

1. Powers of financial officers

1.1 Authorising officer

The authorising officer by delegation may subdelegate the powers of the authorising officer to one or more EESC staff members covered by the Staff Regulations. They usually occupy AD grade positions. They may act only within the limits of the powers expressly conferred upon them in the subdelegation decision. They may not subdelegate the powers of the autho-rising officer.

1.2 Managing officer

Managing officers are persons subject to the Staff Regulations who assist the authorising officer within the meaning of FR Art. 59(4). They are responsible, inter alia, for initiating budgetary operations within the meaning of FR Art. 60(4). Managing officers are appointed by the authorising officer they assist.

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IV.Appendix A

Managing officers are appointed according to a formal procedure:

a) before appointing a managing officer, the authorising officer:

confirms the managing officer's management abilities, his/her actual involve-ment in managing (in the true sense of the word) the sector, and ensures com-patibility between financial/administrative management and operational man-agement;

consults the Directorate for Human and Financial Resources (DHFR), which va-lidates the proposed managing officer's management abilities (including training: introduction seminar to the Financial Regulation and training course ABAC, "managing officer" module) and the compatibility of his/her appointment with the verifier (the corresponding verifier must not be subordinate to the managing officer).

b) after the appointment of a managing officer, the authorising officer reports this appoint-ment and ensures that management quality is maintained by the managing officer and that he/she continues to receive training in the field of financial and administrative management.

1.3 Verifier

Theoretically, in the absence of internal rules specifying otherwise, the authorising officer is not prohibited from acting simultaneously as verifier. However, in order to ensure optimum guarantees, this role may only be carried out by a staff member who has been appointed veri-fier by the secretary-general, in accordance with the Internal Financial Rules.

During the last years, there were two verification units: one for the organisational structure of the EESC, and one for the Joint Services, shared with the Committee of Regions (CoR). When the new Cooperation Agreement with the CoR entered into force on 01/01/08, the ve-rification unit in charge of the Joint Services was split and its EESC part integrated into the own EESC verification unit.

A code of professional standards for verification has been adopted.

All operations that were previously authorised by the financial controller must now be veri-fied beforehand by a verifier.

This covers:

commitment of budgetary expenditure;

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IV.Appendix A

legal commitments (such as purchase orders, contracts and amendments, frame-work contracts etc.);

authorisation of payment (payment orders);

estimate of entitlements to be recovered (debit notes);

recovery orders;

waiver of established entitlements;

carry-over of appropriations as of right;

application for a decision on the transfer of appropriations;

recruitment of staff covered by the Staff Regulations, and changes to contracts;

establishment of, and changes to, the rights of staff covered by the Staff Regula-tions (in the broad sense, including promotion, reclassification etc.);

application for the establishment of an imprest account;

assignment without payment of immovable property or large installations (Im-plementing Rules for the Financial Regulation (IPR) Art. 227);

writing-off of items on the inventory.

On top of ex-ante verification of the above operations, the verifier is responsible for:

at the request of the authorising officer, the ex-ante verification of other opera-tions

ex-post verifications (FR Art. 27(4), IPR Art. 21)

Verifications include, but are not confined to, establishing the legality and regularity of all proposed operations with a budgetary impact and establishing compliance with the principles of economy and sound financial management, referred to in FR Art. 27. Verifiers take ac-count of any comments set out in the discharge decisions.

Verifiers enjoy functional independence in the exercise of their verification tasks.

The duties of accounting officer, accounting officer by delegation and imprest administrator on the one hand, and those of verifier on the other hand, are mutually incompatible.

The verifier must give an opinion on any matter referred to him. The opinion may be favour-able or negative. A favourable opinion may not be conditional, but it may include comments. Any negative opinion must be documented and include a statement of reasons.

In the event of a negative opinion by the verifier, the authorising officer may:

refuse the dossier;

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IV.Appendix A

overrule the negative opinion, if the amount involved is less than € 5,000. The decision to overrule must be accompanied by reasons and documentation, and it must be communicated to the verifier and the internal auditor;

submit the dossier to the appeal authority, which may authorise him to overrule the negative opinion of the verifier. If the dossier falls within the remit of the au-thorising officer by delegation, the directors' meeting constitutes the appeal au-thority. The authorising officer by delegation acts as the appeal authority in other cases. Any decision by the appeal authority must be accompanied by rea-sons and documentation, and it must be communicated to the verifier and the in-ternal auditor.

Thus, the EESC has set up a verification process which would normally be used for high-risk operations. However, it has chosen to adopt a cautious approach by adopting this system for all its budgetary operations (see the above-mentioned list), including low-risk operations.

1.4 Specialised financial irregularities panel

The specialised financial irregularities panel, referred to in FR Art. 66(4), comprises five members, one of whom is from outside the EESC (Commission director), appointed by the secretary-general. The legal service is represented by one member. Panel members enjoy functional independence in their activities on behalf of the panel. They enjoy complete and unlimited access to any information required for the performance of their duties.

The panel draws up an opinion for the institution on the action to be taken, in accordance with the terms of the second paragraph of FR Art. 66(4). The internal auditor, or his repre-sentative, may participate in the work of the panel as an observer. The operation of the panel is subject to rules of procedure.

1.5 The internal auditor

The internal auditor is appointed by the president.

In addition to the powers and responsibilities specified in the Financial Regulation, the inter-nal auditor is consulted on:

the establishment and modification of accounting, inventory and computerised financial management systems;

any draft regulation or general instructions with financial implications.

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IV.Appendix A

1.6 Audit Committee

The Audit Committee is composed of 3 Members of the EESC and 1 external personality with a vast experience in internal auditing. Its mission is to ensure the independence of the internal auditor and to monitor the implementation of the internal auditor's work programme as well as the follow-up of agreed actions resulting from internal audit reports.

1.7 Staff members responsible for managing access to the budget management software (ABAC)

These staff members are appointed by the secretary-general. They may not perform the func-tion of managing officer, verifier, authorising officer, accounting officer, accounting officer by delegation, imprest administrator or internal auditor.

2. Assistance to the financial actors

2.1 Assistance/advice function

Technical assistance (e.g. use of ABAC) is provided by the finance department (DRHF).

Assistance with rules and procedures is provided by the verifiers. With regard to the contract award procedure, the principle of sound financial management requires that the authorising officer consult a verifier, or arrange for him to be consulted, during the preliminary phase of the procedure.

Legal assistance is provided by the legal service.

2.2 Training

The following training modules are organised by the EESC departments:

financial management;

using the ABAC budget management software; inventory regulation.

Other courses (e.g. public procurement) are organised in cooperation with the Com-mission.

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IV.Appendix A

2.3 EESC intranet (CESNET)

Financial officers can consult the "financial management" section on CESNET, which in-cludes regulatory texts, standard documents, forms, etc. in the field of financial, budget and contract management. Specific needs of the Joint Services are covered in an own section on CESNET.

Checklists for financial transactions are also included and can be consulted by financial offi-cers.

In the following fields, major progess concerning the internal control enviroment has been reached this year:

3. Business continuity

In the wake of the swine flu, the ash cloud crisis and the ceiling incident, the EESC and the CoR have seized the opportunity to reinforce their business continuity framework by setting up a specific business continuity plan, tightening their working relationship with the inter-institutional business continuity network and preparing the setting up of a joint crisis man-agement team for the two committees (EESC and CoR).

The business continuity plan is meant to ensure that the EESC will remain able to perform its critical and essential functions in the event of crises, disasters and operational disruptions to its normal business activities, in a coordinated approach with the CoR. It should also help to return quickly to a state of "business as usual" should any of these events occur. The busi-ness continuity plan was the result of a business continuity working group set up as a perma-nent platform to ensure further development and maintenance of the plan.

A comprehensive approach with security aspects has been set up and approved, including "Alert states", "Emergency situations" and "Business continuity", and presented to the joint crisis management team during 2010.

Since 2010, the interinstitutional dimension of business continuity was reinforced with the European Commission in the lead and based on lessons learnt from the power cut that af-fected almost all institutions in Brussels – lessons about how security, safety and business continuity are linked as well as the importance of good communication and information in crisis situation.

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IV.Appendix A

The EESC, in close cooperation with the CoR, has taken the following measures:

• Expertise and training: Small institutions have much to learn from what has al-ready been developed within the Commission and the Council. The Commission opened its training Programmes to participants from other institutions and representatives from the EESC and the CoR attended.

• Cooperation agreement on business continuity: The EESC and the CoR played their part in the inter-institutional business continuity network (which has been meeting on a regular basis since 2009) and fully support the setting up of a cooperation agreement be-tween the Commission, the Council and the other main EU institutions and bodies.

• Adjustment to the size of the organisation: Complex procedures put in place in large institutions need to be transposed to smaller organisations in a simplified manner, while maintaining the capacity for coordination and operational cooperation in crisis situa-tions or when arranging business continuity. In this context, business continuity plans are regularly reviewed and information is shared with the CoR.

• Further strengthening of interservice coordination and planning: The EESC cooperates with the CoR in the operational articulation of alert states, emergency plans, crisis management and business continuity in order to standardise the way these different fields of responsibility are managed and interact during the different phases of a crisis. It would be desirable to extend this form of cooperation to a wider inter-institutional level.

4. Risk analysis and sensitive functions

A guidance note sets out how sensitive functions should be defined and managed under the Internal Control Standards for Effective Management. It aims to concentrate on those func-tions which are genuinely sensitive, where the risk of fraud or misuse of funds or highly sen-sitive information is significant.

This guidance note was approved by the EESC management board on 13 October 2010 and a network of correspondents at Directorate level was set up in order to focus particularly on preventative measures to reduce risks, which will enable, where possible, the desensitisation of these functions in a manageable manner, or to organise the rotation thereof, in order to avoid wherever possible, forced mobility of personnel.

During 2011, a complete review of sensitive functions was carried out according to the new guidelines, and the registry of sensitive functions, along with their mitigation measures is

102

IV.Appendix A

kept up to date, to be reviewed every year in the context of the annual review of the internal control framework.

5. Document management

Following the Commission's announcement of the end of the support given to ADONIS, the current mail/documents management system in use at the EESC and the CoR, the two com-mittees launched a project for the replacement of ADONIS in the context of their coopera-tion agreement.

A working group was charged with the following mandate:

• The definition of needs

• The identification of processes and application potentially affected

• An array of possible solutions

• A complete project plan.

The working group has developed a plan for the modernisation of the underlying infrastruc-ture, upon which solutions are to be based concerning the complete lifecycle of the most im-portant documents of the two committees. The project plan covers the following domains:

• Foundation: o Metadata and Policy o Document management governance

• Management of the document lifecycle o Initiation and registration o Workflows, team sites and collaborative platforms o Archiving and transparency / access to document

• Opportunistic productivity gains o Automatic generation of working documents o Scanning of documents o Management of lists of addressees

103

IV. Appendix B

Appendix B

MAIN RECOMMENDATIONS OF THE INTERNAL AUDITOR CONTAINED IN AUDIT REPORTS PRO-DUCED IN 2011 AND ACTION TAKEN (AT THE DATE OF THIS REPORT)

1. Audits

After recent audits on the staff salary payment procedure and on the Members' reimburse-ment procedure in 2009, an audit on payment security as such assessed payment risks along the workflow of financial transactions. Specifically, it evaluated the effectiveness and effi-ciency of internal control procedures, as foreseen in the internal rules and incorporated into the IT systems, for the detection of potential risks. The internal audit service evaluated ac-cess rights, electronic signatures and documentation and ran several scenarios in order to test the robustness of the payment procedures and systems. No major risks were detected. The internal audit service made a number of recommendations aiming at improving formal as-pects and raising awareness for risks. The internal audit service will follow up on the imple-mentation in 2012. The internal audit service conducted an evaluation of the budgetary estimates and calculation methods for staff salaries to assist in mitigating the budgetary risk involved, due to the large proportion of the staff salary budget (more than half of the EESC's total budget). The goal was to assure the adequacy of the methods used, hereby contributing to improved forecasts for salary expenditure. The audit showed that the methods used were sufficiently precise for budgeting and expenditure control. Therefore, no follow-up is required. The internal audit service evaluated the proper application of rules concerning compensation and overtime of the driver service, as well as managerial changes in this regard, which were introduced recently. Apart from some minor deficiencies concerning formalities, implemen-tation was found to be compliant with the rules. The internal audit service made a number of proposals to further increase managerial efficiency. No follow-up is required. As the EESC and the Committee of the Regions jointly manage their inventory, their internal audit services coordinate investigations in the joint services concerned. Several audits on

104

IV. Appendix B

inventory have been conducted in the past. The EESC conducted its latest inventory audit in 2006, which resulted in an in-depth review of the internal rules on inventory management. In 2011, the internal audit service investigated the application of these new rules in terms of compliance, efficiency and practicability. Documentation, reports, calculation, roles and re-sponsibilities of different stakeholders, as well as use and maintenance in the inventory IT system were evaluated. No major deficiencies or significant risks were detected. The internal audit service made a number of recommendations most of which aimed at improving formal procedures and some of which were already implemented while the investigations continued. The internal audit service will follow up on the implementation in 2012.

2. Follow-up of agreed action plans

As in previous years, the internal audit service evaluated the implementation of recommen-dations as laid down in agreed action plans. Overall, satisfactory progress was made, many open points were closed.

3. Other internal audit service involvement and cooperation The internal audit service is routinely involved in modifications of procedures carried out by the secretariat, and keeps close contact with the responsible services concerning control standards, risk analyses, sensitive functions, etc. The Financial Regulations require all operations to be verified before authorisation. In 2011, the internal audit service accompanied the ongoing process of evaluating and adapting veri-fication procedures. The process aims to render the verification service more targeted and efficient without making compromises regarding compliance with regulations. The EESC's internal audit service keeps close contact with the corresponding service of the Committee of the Regions, with the internal audit services of other European institutions, and with the verification services of both Committees.

105

IV. Appendix B

4. Audit Committee, internal auditor reporting

With the renewal of the mandate of EESC Members at the end of 2010, a new Audit Com-mittee was nominated at the beginning of 2011. The Audit Committee held four meetings in 2011, at which the internal audit service reported on ongoing audit work and other control related issues. Representatives of the Secretariat always attended these meetings and re-sponded to inquiries of the Audit Committee. In addition to these meetings, the internal audit service maintains continuous communication with the Audit Committee members. The internal audit service is currently composed of a staff of three. The internal auditor now reports directly to the President of the Committee.

106

107

IV. Appendix C

Appendix C

DISPOSING OF FIXED ASSETS 2011

1. Financial regulation

Art. 138: Property Inventories. 1.1 "Each institution and each body referred to in Article 121 shall keep inventories sho-

wing the quantity and value of the Communities' tangible, intangible and financial as-sets in accordance with a model drawn up by the accounting officer of the Commis-sion.

Each institution and each body referred to in Article 121 shall check that entries in the inventories correspond to the actual situation."

1.2 The sale of movable property shall be suitably advertised.

2. Implementing rules

Art. 227: Procedure for disposing of fixed assets. “A statement or record shall be drawn up by the authorising officer whenever any property in the inventory is sold, given away free of charge, scrapped, hired out or missing on account of loss, theft or any other reason.

The statement or record shall indicate in particular whether the item must be replaced at the expense of an official or other servant of the Communities or any other person.

Where immovable property or major installations are made available free of charge, a con-tract must be drawn up and the case notified in an annual report sent to the European Parlia-ment and the Council when the preliminary draft budget is presented.”

3. Disposing of immovable property or major installations free of charge in 2011 No immovable property or major installations were made available free of charge by the Eu-ropean Economic and Social Committee during 2011.

108

109

IV. Appendix D

Appendix D

KEY PERFORMANCE AND ACTIVITY INDICATORS ("KAPIs")

1. Introduction

According to the Financial Regulation, every institution must define and report annually on a set of performance indicators.

Thus, in 2007 the EESC Secretariat developed a set of indicators for all of its directorates. Some indicators measure a level of performance (e.g. payment lead times), others measure a certain level of activity (e.g. a production volume). This is why the EESC's indicators are re-ferred to as Key Activity and Performance Indicators (KAPIs).

2. Scope and interpretation

The KAPI initiative is not a top-down exercise. It is, first and foremost, a management tool for the competent services and heads of units. KAPIs are also a means to raise awareness amongst all officials in the Secretariat. Moreover, the exercise gives transparency to our work, not only for members or senior management, but also vis-à-vis the other institutions.

KAPIs are tools. Care should be taken when interpreting them, for there cannot be any auto-matic conclusions. It is not so much their absolute values as their evolution over time that can reveal and confirm trends which may need attention and action.

3. Presentation

KAPIs are presented by the directorate and unit monitoring them, but it should be stressed that these units cannot necessarily be held accountable for the indicators in question (e.g. the absence rate is monitored by the "Working conditions" Unit but reflects an overall situation).

For internal purposes, most KAPIs are measured on a monthly basis. On one page they show relevant figures and a graphical presentation. This allows for analysis of short-term trends (within the year) as well as medium-term trends (including the previous three years). For this annual activity report, only the KAPI's annual data have been included. One example of a complete monthly KAPI report is included as well (see last page).

110

IV. Appendix D

4. Development

KAPIs evolve along with the Secretariat's activities and organisation. They are reviewed an-nually. In some cases, definitions will need rewording, in other cases a KAPI will lose its re-levance or a new one may appear to be useful.

111

IV. Appendix D

5. Key Performance and Activity Indicators 5.1. DIRECTORATES FOR CONSULTATIVE WORK

Opinions

This indicator measures the number of opinions issued by the Committee (text based, explo-ration, own initiative, supplementary opinions, information report). It also indicates the breakdown by category: A (study group), B+ (drafting group), B (rapporteur working alone) or C (simple letter). It indicates the level of activity of the Committee and the Secretariat.

Opinions Opinions per category

text based

Explo-ration

Own initia-tive

Suppl. opinions

Inf. report

total A (%) B (%) B+ (%) C (%)

2011 161 20 29 4 2 216 70,8% 14,4% 6,9% 7,9%

2010 94 25 55 3 3 180 76,1% 1,7% 10,6% 11,7%

2009 155 23 31 5 1 215 72,0% 15,0% 7,5% 5,5%

2008 177 33 42 0 6 252 66,5% 7,3% 8,9% 17,3%

Opinions & reports

0

50

100

150

200

2011201020092008

Text based ExplorationOwn initiative supplementary opinionsinformation report

Opinions per category

0%

20%

40%

60%

80%

100%

2011201020092008

A (%) B (%) B+ (%) C (%)

112

IV. Appendix D

Reports

This indicator measures the number of reports by type (Information, Joint Consultative Committee, Round Table, Follow-up Committee, Other), issued by the EESC. It indicates the activity in this area.

Type of report

Information Joint Consulta-tive Committee Round Table

Follow-up Committee Other Total

2011 2 2 8 5 7 24

2010 3 2 8 5 7 25

2009 1 11 8 5 15 40

2008 3 16 8 0 15 42

Total number of reports

0

10

20

30

40

50

60

2011201020092008

113

IV. Appendix D

5.2. DIRECTORATE FOR GENERAL AFFAIRS

Interpretation activity and unused interpretation rate

The EESC depends for its interpretation on DG Interpretation and the rules set by the DG; which bills for services which are no longer required but not cancelled at least 4 weeks in advance. The indicator shows the level of interpretation activity at the EESC, as well as the level of DG SCIC services paid but not rendered.

Slots invoiced Slots unused

number amount (€) number amount (€) Unused rate

2011 16.918 7.477.756 1.495 664.768 8,9%

2010 16.883 7.462.286 2.116 918.344 12,3%

2009 18.121 7.719.546 1.633 695.658 9,0%

2008 16.704 6.882.872 1.682 692.976 10,1%

Slots invoiced

0

5.000

10.000

15.000

20.000

2011201020092008

Slots invoiced Slots cancelled

Cancellation rate

0%

10%

20%

30%

2011201020092008

114

IV. Appendix D

Legal opinions

This indicator measures the number of legal opinions issued by the legal unit (including ad-vice on public procurement). It indicates the level of activity in that sector.

Legal opinions

2011 61

2010 60

2009 95

2008 90

Legal Opinions

0

40

80

120

160

200

2008 2009 2010 2011

115

IV. Appendix D

Events and partnerships

This indicator measures the number of events (conferences, round tables, seminars, etc.) or-ganised by the EESC, as well as the number of events organised by external organizations in partnership. It indicates the EESC's level of activity in this respect.

Events organized by the

EESC Partnerships

2011 39 110

2010 30 70

2009 49 70

2008 27 61

Events organised by the EESC

0

20

40

60

80

100

2008 2009 2010 2011

Partnerships

0

20

40

60

80

100

120

2008 2009 2010 2011

116

IV. Appendix D

5.3. COMMUNICATION

Visitor Groups

This indicator measures the number of visitor groups and of visitors, as well as the number of members who have given presentations to visitor groups. It indicates the activity level in that area.

Visitor groups Members' presentations Visitors

2011 384 172 9.622

2010 354 143 10.456

2009 369 178 10.068

2008 360 160 9.561

Visitor groups and Members' presentations

0

100

200

300

400

2011201020092008

Visitor groups Members' presentations

Visitors

0

3.000

6.000

9.000

12.000

2011201020092008

117

IV. Appendix D

Press activities

This indicator measures the number of press releases issued by the Committee and the num-ber of press cuttings reported in which the Committee is mentioned. It indicates the activity level in that area.

EESC press releases Press cuttings mentioning

the EESC

2011 128 718

2010 140 839

2009 171 694

2008 117 594

EESC press releases

0

50

100

150

200

2011201020092008

Press cuttings mentioning the EESC

0

200

400

600

800

1.000

2011201020092008

118

IV. Appendix D

Information subscribers

This indicator measures the number of press releases issued by the Committee and the num-ber of press cuttings reported in which the Committee is mentioned. It is an indicator for the activity level in that area.

EESC press release subscribers CESINFO subscribers

2011 3.468 4.155

2010 2.883 4.889

2009 2.551 5.469

2008 2.024 4.668

EESC press release subscribers

0

1.000

2.000

3.000

4.000

5.000

6.000

2011201020092008

CESINFO subscribers

0

1.000

2.000

3.000

4.000

5.000

6.000

2011201020092008

119

IV. Appendix D

Publications

This indicator measures the number of editions of leaflets, brochures and booklets. It is an indicator for the activity level in that area.

Leaflets Brochures Booklets

2011 31 31 17

2010 14 26 4

2009 19 18 6

2008 14 19 3

Leaflets

0

10

20

30

40

2011201020092008

Brochures

0

10

20

30

40

2011201020092008

Booklets

0

5

10

15

20

2011201020092008

120

IV. Appendix D

5.4. DIRECTORATE FOR HUMAN RESOURCES & INTERNAL SER-VICES

HR workforce

This indicator measures the ratio between resources of the HR department, in "Full-time equivalents" (FTEs) and the total headcount (establishment plan) of the Committee. It is an indicator for the adequacy of the resources in this area.

HR Workforce EESC officials HR Workforce / EESC

officials

2011 40 721 5,5%

2010 43 704 6,1%

2009 44 704 6,3%

2008 39 700 5,6%

HR workforce

0,00

15,00

30,00

45,00

60,00

2008 2009 2010 2011

HR workforce / EESC officials

0%

2%

4%

6%

8%

10%

2008 2009 2010 2011

121

IV. Appendix D

5.4.1. Recruitment, careers, training Unit

For the indicators in this area, the following codes are used to identify the different categories of staff:

FS = officials on probation FT = established officials TP = temporary agents CT = contract agents (CT-S= structural contract agent) END = seconded national experts

122

IV. Appendix D

Number of recruitments/renewals

This indicator measures the number of recruitments and renewals by type of contract. It is an indication for the workload of the unit.

Recruitments Renewals

FS&FT TP CT END Total TP CT END Total

2011 40 42 34 3 119 104 38 4 146

2010 56 47 35 1 139 143 40 4 187

2009 57 48 39 5 149 144 30 5 179

2008 69 33 28 1 131 196 39 3 238

Recruitments

0

2

4

6

8

10

12

14

2008 2009 2010 2011

FS&FT TP CT EN Total

Renewals

0

5

10

15

20

25

2008 2009 2010 2011

TP CT EN Total

123

IV. Appendix D

Post occupation rate

This indicator measures the average occupation rate, based on "Full-time equivalents" (FTEs), of the Committee's posts. It distinguishes between an occupation by officials and by tempo-rary agents (Temporary occupation due to CCP or parental leave of an official for less than 6 months is considered as permanently occupied). It is an indication of the efficiency of the Recruitment process (efficiency of the recruitment Unit, availability of reserve lists, continu-ity of staff, etc.).

Permanent posts Temporary posts

Total (plan) all AD AST occupied

perm. occupied

temp. vacant all occupied vacant

2011 721 686 334 352 642 35 9 35 35 0

2010 704 678 326 352 637 30 11 32 32 0

2009 704 673 316 355 615 50 7 31 31 0

2008 700 672 319 361 577 78 18 28 27 1

Permanent posts

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011

occupied perm. occupied temp. vacant

Temporary posts

0%

20%

40%

60%

80%

100%

1 2 3 4

occupied vacant

124

IV. Appendix D

Staff pyramid and equal opportunities

This indicator measures, at the end of the year, the distribution of the Committee's staff by gender and nationality (grouped by category: head of unit, AD, AST/CT). It indicates the le-vel of diversity and equal opportunities.

Directors/Heads of Unit AD AST

Num-ber

% M % F % of total

Num-ber

% M % F % of total

Num-ber

% M % F % of total

2011 47 73,0% 27,0% 5,9% 334 45,0% 55,0% 41,7% 420 31,4% 68,6% 52,4%

2010 48 70,8% 29,2% 6,2% 315 40,3% 59,7% 40,5% 414 30,7% 69,3% 53,3%

2009 46 73,3% 21,7% 5,9% 318 39,3% 60,7% 40,8% 416 31,5% 68,5% 53,3%

2008 45 73,0% 27,0% 6,1% 292 39,0% 61,0% 39,5% 402 31,0% 69,0% 54,4%

Directors/Heads of Units by gender AD by gender

AST by gender

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011

Male Female EESC gender distribution

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011


0%

20%

40%

60%

80%

100%

2008 2009 2010 2011


125

IV. Appendix D

Staff flexibility index

This indicator measures the proportion of permanent staff having worked part-time versus full-time, by gender and category (AD, AST, and CT-S). It indicates the level of flexibility of the Committee towards its staff.

By Gender By Category All

M F AD AST CT-S

Number % Number % Number % Number % Number % Number %

2011 42 15,4% 149 35,1% 100 30,1% 88 25,3% 3 15,0% 191 27,4%

2010 39 14,4% 150 35,3% 98 30,3% 87 24,7% 4 21,1% 189 27,2%

2009 37 14,0% 140 34,7% 94 30,2% 81 24,0% 2 10,0% 177 26,5%

2008 33 13,2% 131 32,8% 84 28,1% 79 23,7% 1 5,6% 164 25,2%

Staff flexibility by gender

0%

10%

20%

30%

40%

2008 2009 2010 2011

Male Female All

Staff flexibility by category

0%

10%

20%

30%

40%

2008 2009 2010 2011

AD AST CT-S All

126

IV. Appendix D

Staff turnover

This indicator measures the number of permanent staff (officials and structural contract agents) who left the Committee during the last year, by reason of departure. It indicates the degree of satisfaction of staff, as well as the level of continuity of the Secretariat.

Staff leaving the EESC

Change of employer End of career Total % of total staff

2011 11 9 20 2,8%

2010 12 18 30 4,3%

2009 14 15 29 4,1%

2008 11 24 35 5,0%

Number of staff leaving the EESC (monthly average)

0

1

1

2

2

3

3

4

2008 2009 2010 2011

Change of employer End of career Total

% of staff leaving the EESC (monthly average)

0,0%

0,5%

1,0%

1,5%

2008 2009 2010 2011

127

IV. Appendix D

Staff internal mobility

This indicator measures the number of moves of permanent officials (FS, FT) from one sector to another within the Committee. Mobility is an important component in the personal devel-opment of staff. It is also essential for the Committee to keep its Secretariat dynamic and to adapt to evolving needs.

Staff changing service

Number of moves % of total permanent officials

2011 17 2,4%

2010 13 2,0%

2009 20 3,3%

2008 32 4,2%

Staff changing service - number of moves (monthly average)

0,00

2,00

4,00

6,00

8,00

10,00

2008 2009 2010 2011

Staff changing service - % of permanent officials (monthly average)

0,0%

0,5%

1,0%

1,5%

2,0%

2008 2009 2010 2011

128

IV. Appendix D

Training intensity

This indicator measures the percentage of staff having followed training and the average number of days of training. It indicates the commitment of staff to its professional develop-ment, its increase of skills and its capability to adapt to evolving needs.

By Gender By Category All

M F AD AST Ext

partici-pation

rate

average training

days

partici-pation

rate

average training

days

partici-pation

rate

average training

days

partici-pation

rate

average training

days

partici-pation

rate

average training

days

partici-pation

rate

average training

days

2011 71% 7,0 78% 8,1 74% 9,4 79% 7,4 71% 4,9 75% 7,7

2010 76% 9,2 83% 10,6 85% 10,8 78% 7,0 77% 5,1 81% 10,1

2009 74% 13,0 84% 11,5 82% 11,1 80% 8,9 72% 5,5 81% 12,0

2008 79% 11,7 79% 13,4 82% 10,8 77% 9,8 76% 7,8 79% 12,9

Training Intensity by gender Participation Training Intensity by gender Average training days 2008 - 2011

Training Intensity by category Participation Training Intensity by category Average training days 2008 - 2011

2004 - 2007

2004 - 2007

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011

Male Female All

0

5

10

15

20

2008 2009 2010 2011

Male Female All

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011

AD AST Ext All

0

5

10

15

20

2008 2009 2010 2011

AD AST Ext All

129

IV. Appendix D

5.4.2. Staff support services, individual rights, equal opportunities Unit

Overtime follow-up

This indicator measures the number of hours of overtime per member of staff eligible for overtime (according to the Staff Regulations). It indicates to what extent the Secretariat is able to spread workload equally over time.

Hours Overtime

EESC Pivot lan-guages

Other lan-guages

Printshop Meeting ushers

Conference operators

Security Others

eligible staff

total hours

per person

total per person

total per person

total per person

total per person

total per person

total per person

total per person

2011 264 3.029 11,5 269 22,2 337 6,2 374 20,0 356 45,8 511 73,0 295 98,2 888 5,5

2010 279 3.224 11,5 229 18,5 384 6,8 423 17,6 214 30,1 450 80,1 231 78,8 1.237 7,0

2009 305 5.637 18,5 540 33,8 475 7,4 769 28,5 458 57,3 756 126,0 480 159,9 2.160 11,9

2008 331 5.832 17,8 357 20,2 750 10,9 682 22,4 667 79,8 464 93,0 694 212,7 2.278 11,4

Total hours overtime - EESC

0

200

400

600

800

1.000

2008 2009 2010 2011

Total hours overtime by person eligible - EESC - (monthly average)

0

1

2

3

4

5

2008 2009 2010 2011

130

IV. Appendix D

Absence rate

This indicator measures the absence rate according to the interinstitutional definition (adopted 2001: total absence in calendar days, divided by 365 and by the number of staff at the end of the year), by gender and by category (AD, AST, CT). It can be an indicator of the level of motivation of staff and the effectiveness of the Committee to deal with this issue.

Male Female All

AD AST CT Total AD AST CT Total AD AST CT Total

2011 2,7% 5,2% 2,7% 3,7% 3,3% 5,1% 7,1% 4,2% 3,1% 5,1% 4,5% 4,0%

2010 2,5% 6,7% 4,3% 4,3% 2,6% 5,5% 12,2% 4,4% 2,6% 5,9% 7,3% 4,4%

2009 2,8% 6,0% 2,8% 4,1% 3,0% 5,2% 16,4% 4,5% 2,9% 5,5% 8,0% 4,3%

2008 2,5% 7,5% 5,7% 4,7% 2,6% 4,8% 13,3% 4,1% 2,6% 5,6% 8,7% 4,3%

Absence rate by gender

0%

2%

4%

6%

8%

10%

2008 2009 2010 2011

Male total Female total All

Absence rate by category

0%

2%

4%

6%

8%

10%

2008 2009 2010 2011

AD AST CT All

131

IV. Appendix D

Harassment cases

This indicator measures the number of reported harassment cases. It shows the number of requests for assistance received by the panel on harassment and the number of cases treated subsequently by the DRH. It indicates the level of reported cases of those who felt a victim of or witness to harassment and provides a global picture of this phenomenon as it is perceived internally.

By follow up By gender By type of contract

Number of cases Treated by

panel Panel to DRHF

Male plaintiff

Female plaintiff Officials

Temporary agents

Contract agents

2011 11 11 1 4 7 8 1 2

2010 8 8 2 5 3 6 1 1

2009 4 4 0 0 2 2 0 2

2008 4 4 0 2 2 3 1 0

Harassment cases - follow-up

0

2

4

6

8

10

2008 2009 2010 2011

Treated by panel Panel to DRHF

132

IV. Appendix D

5.4.3. Meeting service

Meetings organised

This indicator measures the number of meetings taking place in the Committees' conference rooms (rooms equipped with interpretation facilities), divided by the number of relevant "Full-time equivalent" staff (FTEs) of the meetings services. It indicates the level of meeting activity of the Committees and performance of the meeting services as a whole.

EESC CoR JS Total FTE Meet-ing Ser-

vices

number % number % number %

Meetings / FTE

2011 1.292 52,1% 1.140 46,0% 47 1,9% 2.479 20,2 123

2010 1.197 51,5% 1.096 47,1% 33 1,4% 2.326 29,8 78

2009 1.264 55,5% 990 43,5% 22 1,0% 2.276 22,7 100

2008 1.183 56,2% 854 40,6% 67 3,2% 2.104 25,5 83

Total number of meetings organised(Monthly average)

0

100

200

300

2008 2009 2010 2011

133

IV. Appendix D

Meeting participants

This indicator measures the number of participants at meetings in the Committees' conference rooms, divided by the number of "Full-time equivalent" staff (FTEs) of the meetings services. It indicates the performance of the meeting services as a whole.

EESC CoR JS

number % number % number %

Total Partici-pants

FTE Meet-ing Ser-

vices

Participants / FTE

2011 58.472 46,1% 66.952 52,8% 1.460 1,1% 126.884 20,2 6.309

2010 56.728 46,3% 64.706 52,8% 1.161 0,9% 122.625 24,9 4.921

2009 57.203 49,0% 59.184 50,7% 432 0,3% 116.819 22,7 5.144

2008 47.507 47,9% 49.743 50,1% 1.990 2,0% 99.240 25,7 3.857

Participants / FTE(Monthly average)

0

200

400

600

2008 2009 2010 2011

134

IV. Appendix D

5.5. DIRECTORATE FOR FINANCE, BUDGET AND ACCOUNTING 5.5.1. Budget, service to members Unit

Members expenses – payment lead time

EESC members receive a compensation for their expenses incurred in that capacity. This in-dicator measures the average lead times between the meeting date and the completion of the file and between the latter and the payment date. It indicates the efficiency of the actors in-volved in this process. All lead times are in working days.

Lead times (working days)

Meeting to file completion File completion to payment Meeting to payment

multiple steps

average (days)

for 80 %

1 step average aver-

age %

aver-age

for 80 %

Verifi- cation

Author. Officer

Ac-count./ Bank

aver-age

for 80 %

Monthly average

Files created (work-load)

2011 6,4 8 5,0 18,7 10,3% 3,4 4 2,5 0,3 0,6 9,9 12 1.717

2010 9,2 10 7,3 26,3 10,0% 3,6 5 2,6 0,5 0,5 12,9 14 1.650

2009 9,5 10 6,5 33,6 10,2% 4,2 5 2,1 1,1 1,0 13,7 14 1.597

2008 7,6 8 5,8 30,1 7,6% 5,3 6 3,2 1,0 1,1 12,9 13 1.385

Members expenses - avarage payment lead time (working days)

0

5

10

15

20

2011201020092008

Meeting to f ile completion File completion to payment Meeting to payment

135

IV. Appendix D

5.5.2. Finance Unit

Average lead time provisional salaries

On arrival of a new staff member who falls under the Staff Regulations, the exact salary can-not be determined until all his/her rights have been established. Until this is done, he/she re-ceives a provisional salary. This indicator measures the average lead time (in calendar days) between the start date of the contract of a new agent and the date at which he/she receives his/her exact salary. The exact salary is the salary as it is established in the notification deci-sion that is addressed to the new staff member once all his/her rights have been fixed. It indi-cates the efficiency of the payroll and rights fixation process.

Exact salary for the first time this quarter

Provisional salary at the end of this quarter

Number of staff Average lead time (calendar days)

Number of staff Average lead time (calendar days)

2011 112 49 48 28

2010 130 47 42 37

2009 146 48 58 34

2008 152 54 51 33

Number of cases

0

10

20

30

40

50

60

70

2008 2009 2010 2011

1st exact salary provisional salary

Lead times (days)

0

10

20

30

40

50

60

2008 2009 2010 2011

1st exact salary provisional salary

136

IV. Appendix D

Mission costs reimbursement lead time

This indicator measures the percentage of mission costs reimbursement claims that have been settled within 20 working days of their reception. It indicates the efficiency of the department dealing with mission expenses.

Claims paid

paid =< 20 working days

total

number %

Claims pending

2011 426 406 95,3% 35

2010 462 228 49,4% 59

2009 393 225 57,3% 47

2008 481 252 52,4% 51

2008 - 2011

2008 - 2011 2011

Number of claims2011

Claims paid within 20 working days (%)

0

50

100

150

200

250

Q1 Q2 Q3 Q4 2008 2009 2010 2011

claims paid claims pending

0%

20%

40%

60%

80%

100%

Q1 Q2 Q3 Q4 2008 2009 2010 2011

Quarterly average

137

IV. Appendix D

5.5.3. Accounting Unit

Registration of invoices

This indicator measures the average lead time between the reception of invoices and their registration and the number and percentage of invoices for which this registration took more than seven calendar days. It indicates the efficiency of the accounting Unit in this respect.

Average lead times (calendar days)

Late registration (> reception + 7 calendar days)

invoice date to

reception reception to registration

number late registration % of total

2011 15,3 1,1 35 1,1%

2010 16,4 2,7 19 6,7%

2009 14,3 2,1 29 0,7%

2008 14,9 4,1 262 5,9%

Lead times - Registration of invoices (calendar days)

0

10

20

30

40

50

2008 2009 2010 2011

invoice date to receptionreception to registration

Late registration of invoices (%)

0%

5%

10%

15%

20%

25%

2008 2009 2010 2011

138

IV. Appendix D

Liquidity accuracy NOK

The Committee's bank account should hold enough funds to make payments in time. At the same time, the amount of these funds should not be unnecessarily high. This indicator meas-ures the percentage of calendar days when the balance of the Committees bank account was less than EUR 500,000 (risk of unavailability of funds for a payment due) or more than EUR 5,000,000 (too much cash on hand). It indicates the efficiency of the accounting Unit in this respect. Data are available as of 2007.

Bank account balance

Calendar days below € 500.000,--

Calendar days between € 500.000,-- and € 5.000.000,--

Calendar days above € 5.000.000,--

days % days % days %

2011 10 3% 319 87% 36 10%

2010 1 5% 27 87% 2 8%

2009 0 0% 29 96% 1 4%

2008 14 4% 327 89% 25 7%

Liquidity accuracy

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011

low (< 500.000) w ithin thresholds high (> 5.000.000)

139

IV. Appendix D

5.6. DIRECTORATE FOR LOGISTICS This directorate delivers services to both EESC and CoR. Unless mentioned explicitly, the following indicators relate to the activities of this directorate for both Committees.

5.6.1. Infrastructure unit

Number of building maintenance interventions

This indicator measures the number of building maintenance interventions carried out by the Infrastructure unit. This reflects the workload of the unit. Also, an increasing number of in-terventions could indicate a degradation of the service delivered.

Number of Interventions

2011 3.235

2010 2.797

2009 2.555

2008 2.576

Number of building maintenance interventions

0,00

100,00

200,00

300,00

400,00

2008 2009 2010 2011

140

IV. Appendix D

Building maintenance intervention lead time

This indicator measures the percentage of interventions that were successfully handled within a set time (depending on the category of the intervention: two days or five days). It indicates the efficiency of the Infrastructure unit;

Interventions < set time (%)

2011 75,0%

2010 66,1%

2009 60,3%

2008 50,5%

Interventions < set time

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011

141

IV. Appendix D

5.6.2. IT and Telecommunications Unit

IT costs per user

This indicator measures the ratio between the total operational IT budget (equipment, external sub-contractors, telecommunication costs; excluding the cost of statutory IT staff) and the total headcount (establishment plan). It also measures the proportion of this budget vs. the overall EESC budget. It can be used as a benchmark and enables the evolution of IT costs to be kept under control.

EESC IT budget (€) EESC officials EESC IT budget (€) / EESC official

EESC budget (€) % IT budget

2011 3.918.223 721 5.434 128.573.837 3,1%

2010 3.604.276 710 5.076 123.153.749 2,9%

2009 3.745.805 704 5.321 120.710.809 3,1%

2008 2.895.573 700 4.137 114.744.176 2,5%

EESC IT budget (€)

0,00

1.000.000,00

2.000.000,00

3.000.000,00

4.000.000,00

2008 2009 2010 2011

IT budget (€) / EESC official

0,00

1.000,00

2.000,00

3.000,00

4.000,00

5.000,00

6.000,00

2008 2009 2010 2011

142

IV. Appendix D

IT Unit workforce

This indicator measures the ratio between statutory resources of the IT Unit and the total headcount (posts, according to establishment plan) of the two Committees. It is an indicator for the efficiency of this unit.

EESC + CoR IT officials

EESC + CoR officials

EESC + CoR IT officials / officials

2011 28 1.245 2,2%

2010 26 1.216 2,1%

2009 30 1.206 2,5%

2008 25 1.191 2,1%

IT officials (EESC + CoR)

0,00

5,00

10,00

15,00

20,00

25,00

30,00

2008 2009 2010 2011

IT officials / official (EESC + CoR)

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

2008 2009 2010 2011

143

IV. Appendix D

IT user support requests

This indicator measures the number of IT user support requests, divided by the total staff re-sources (internal and external) of the service handling these. The number of user support re-quests accounts for all questions addressed to the IT helpdesk (by telephone or email) as reg-istered in the helpdesk software tool. Requests may be handled immediately or may give rise to an "incident" (e.g. repairing a broken hard disk) or to a "change request" (e.g. moving a PC). It indicates the performance of the IT user support service as a whole.

Requests Incidents Change Orders Helpdesk staff (FTE) Requests / Helpdesk

staff

2011 40.941 13.649 17.302 21,0 1.950

2010 36.936 12.976 17.183 21,0 1.759

2009 35.980 13.744 14.704 20,0 1.799

2008 34.057 11.637 12.585 18,1 1.879

Support requests

0,00

1.000,00

2.000,00

3.000,00

4.000,00

5.000,00

2008 2009 2010 2011

Requests Incidents Change Orders

Requests / helpdesk staff

0,00

100,00

200,00

300,00

400,00

500,00

2008 2009 2010 2011

144

IV. Appendix D

IT helpdesk reaction

This indicator measures the calls received by the IT helpdesk and the proportion of calls han-dled within a set time. It shows the reaction time of the IT helpdesk.

Calls received Calls handled Calls abandoned

handled within abandoned within

number % of calls received

15 sec. 30 sec. number % of calls received

15 sec. 30 sec.

2011 19.895 17.784 89,6% 96,0% 99,9% 2.111 10,4% 96,7% 99,9%

2010 16.141 15.360 95,2% 95,0% 99,9% 780 4,8% 92,3% 99,9%

2009 16.310 15.641 95,9% 96,2% 99,9% 675 4,1% 92,3% 98,8%

2008 15.171 14.562 96,0% 96,0% 99,8% 609 4,0% 90,6% 99,0%

Calls (number)

0

5.000

10.000

15.000

20.000

2011201020092008

Calls received Calls handled Calls abandoned

Calls handeld - reaction time

75%

80%

85%

90%

95%

100%

2008 2009 2010 2011

w ithin 15 sec. w ithin 30 sec.

145

IV. Appendix D

IT availability

This indicator measures the availability of each of the main components of the IT infrastruc-ture (network, telephony, data bases, office automation servers), as well as their average. Availability is calculated based on 24 hours per day and 365 days per year. Availability is also measured taking planned downtime into consideration.

IT availability IT availability - without planned downtime

Network Telephony Data bases

Office automa-

tion serv-ers

Average Network Telephony Data bases

Office automa-

tion serv-ers

Average

2011 99,99% 100,00% 100,00% 99,98% 99,99% 99,99% 100,00% 100,00% 99,98% 99,99%

2010 99,95% 99,86% 99,97% 99,20% 99,75% 99,97% 99,98% 99,97% 99,55% 99,87%

2009 99,96% 99,94% 99,98% 99,97% 99,96% 99,97% 99,96% 99,98% 99,98% 99,97%

2008 99,29% 99,68% 99,74% 99,89% 99,65% 99,77% 99,99% 100,00% 99,98% 99,94%

Average IT availability

96%

97%

98%

99%

100%

2008 2009 2010 2011

overall w ithout planned dow ntime

146

IV. Appendix D

5.6.3. Printing and distribution Unit

Copy shop productivity

This indicator measures the number of copies produced by the copy shop team, divided by the number of "Full-time equivalent" staff (FTEs) in that team. It indicates the productivity of the team.

EESC CoR JS

copies % copies % copies % Total FTE Copies / FTE

2011 11.489.706 55,1% 9.352.140 44,9% 0 0,0% 20.841.846 10,3 2.034.438

2010 12.341.588 59,4% 8.441.878 40,6% 0 0,0% 20.783.466 11,3 1.847.419

2009 12.929.226 50,2% 12.817.335 49,8% 0 0,0% 25.746.561 10,7 2.413.740

2008 22.366.752 59,2% 15.420.580 40,8% 0 0,0% 37.787.332 11,8 3.193.296

Copies / FTE

0,00

200.000,00

400.000,00

600.000,00

800.000,00

2008 2009 2010 2011

147

IV. Appendix D

Offset productivity

This indicator measures the number of equivalent print runs, that is print runs (sheets) and "settings" (initialisation of a print run; 1 "setting" accounts for 3,700 print runs) produced by the offset team, divided by the number of staff in "Full-time equivalent" staff (FTEs) in that team. It indicates the productivity of the team.

EESC CoR JS

print runs (equiv.) %



Total FTE print runs (equiv.) / FTE

2011 7.711.140 62,1% 4.700.435 37,9% 0 0,0% 12.411.575 3 4.323.942

2010 6.189.425 54,4% 5.190.935 45,6% 0 0,0% 11.380.360 3 3.793.453

2009 12.227.045 68,9% 5.527.405 31,1% 0 0,0% 17.754.450 3 5.918.150

2008 9.092.996 61,1% 5.791.845 38,9% 0 0,0% 14.884.841 3 4.961.614

Number of equivalent print runs / FTE

0,00

200.000,00

400.000,00

600.000,00

800.000,00

2008 2009 2010 2011

148

IV. Appendix D

Mailing productivity

This indicator measures the number of mailings (transmissions) done by the expedition team, divided by the number of "Full-time equivalent" staff (FTEs) in that team. It indicates the productivity of the team.

EESC CoR JS

transmissions % transmissions % transmissions % Total FTE transmissions

/ FTE

2011 4.476 65,9% 2.312 34,1% 0 0,0% 81.464 6 13.859

2010 73.014 61,6% 45.421 38,4% 0 0,0% 118.435 6 19.206

2009 79.858 55,1% 65.167 44,9% 0 0,0% 145.025 7 20.003

2008 117.204 64,8% 63.599 35,2% 0 0,0% 180.803 9 19.724

Number of transmissions / FTE

0

5.000

10.000

15.000

20.000

2008 2009 2010 2011

149

IV. Appendix D

Internal distribution productivity

This indicator measures the number of files for members that the internal distribution team made in preparation for their meetings, divided by the number of "Full-time equivalent" staff (FTEs) in that team. It indicates the productivity of the team.

EESC CoR JS

files % files % files % Total FTE files / FTE

2011 50.127 64,5% 27.597 35,5% 0 0,0% 77.724 6 13.221

2010 49.008 63,9% 27.647 36,1% 0 0,0% 76.655 6 12.956

2009 50.760 68,6% 23.246 31,4% 0 0,0% 74.006 6 12.334

2008 59.929 67,2% 29.202 32,8% 0 0,0% 89.131 6 14.855

Number of files / FTE

0

5.000

10.000

15.000

20.000

2008 2009 2010 2011

150

IV. Appendix D

5.7 DIRECTORATE FOR TRANSLATION This directorate delivers services to both EESC and CoR. Unless mentioned explicitly, the following indicators relate to the activities of this directorate for both Committees.

Internal translation productivity

This indicator measures the total number of pages translated per translator post in the estab-lishment plan. It indicates the performance of the translation department as a whole. A page is defined as 1500 characters without spaces and including footnotes. (See also KAPI 31 "Meet-ings organised").

EESC CoR JS

pages % pages % pages % Total pages Translator

posts Pages /

Translator

2011 201.277 54,0% 169.423 45,5% 1.880 0,5% 372.580 353 1.0565

2010* 180.016 52,1% 163.343 47,2% 2.346 0,7% 345.705 353 979

2009* 214.686 57,9% 154.265 41,6% 1.970 0,5% 370.921 353 1.051

2008* 236.721 57,5% 172.621 42,0% 2.040 0,5% 411.382 353 1.165 * Figures for 2008-2010 have been multipled by a conversion factor of 0.91 to allow for the change to decimal page counts.

Number of pages(Monthly average)

0

20.000

40.000

60.000

80.000

2008* 2009* 2010* 2011

EESC CoR JS Total pages

Pages / translator(Monthly average)

0

50

100

150

200

2008* 2009* 2010* 2011

151

IV. Appendix D

Translation deadline compliance rate

This indicator measures the percentage of translation requests that were finalised within the requested deadline. It is an indicator for the efficiency of the translation units

Requests finalised in time

2011 98,0%

2010 99,6%

2009 98,2%

2008 98,0%

Requests finalised in time

90%

92%

94%

96%

98%

100%

2008 2009 2010 2011

152

IV. Appendix D

Translation revision rate

This indicator measures the percentage of pages that have been revised. A low percentage indicates a risk in the quality of the translation. A high percentage can indicate that available resources are not used in an optimal manner.

Translated pages revised

2011 71,7%

2010 69,0%

2009 63,5%

2008 65,5%

Translated pages reviewed

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011

153

IV. Appendix D

Direct translation rate

Until 2004, nearly all translations could be made directly from the source language into the target language. After enlargement, it was no longer possible to cover all source languages in every translation unit. Therefore, a system based on indirect translation (through "pivot" lan-guages) was put into place. This indicator measures the percentage of pages translated di-rectly from source language to target language, i.e. not translated via a pivot language. It is an indication of the degree of source language coverage in the translation units.

Pages translated directly

2011 93,0%

2010 95,4%

2009 94,4%

2008 91,2%

Pages translated directly

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011

154

IV. Appendix D

Number of translation requests

This indicator measures the number of translating requests over the reference period. It indi-cates the workload linked with the translation request management, in central planning as well as in the translation units.

EESC CoR JS

requests % requests % requests %

Total number of requests

2011 7.617 63,6% 4.207 35,1% 153 1,3% 11.977

2010 6.210 60,2% 3.960 38,4% 145 1,4% 10.315

2009 6.690 63,5% 3.721 35,3% 120 1,2% 10.531

2008 6.403 61,4% 3.866 37,1% 155 1,5% 10.424

Number of transaltion requests(Monthly average)

0

500

1.000

1.500

2.000

2008 2009 2010 2011

EESC CoR JS Total number of requests

155

IV. Appendix D

External translation rate

This indicator compares the number of pages outsourced for translation with the total number of pages translated (see also KAPI DT 1). This percentage is an indication for the flexibility of the translation units to balance their workload.

Outsourced translations (pages)

2011 5,8%

2010 4,2%

2009 2,9%

2008 5,1%

Outsourced translation pages

0%

5%

10%

15%

20%

2008 2009 2010 2011

156

IV. Appendix D

Translation software users

This indicator measures the percentage of TWB-software users out of the total translation staff. It indicates the degree of transformation towards a translation process supported by software tools.

(TWB = Translator's Workbench, a computer-aided translation tool).

TWB Users (% of total transla-

tion staff)

2011 96%

2010 96%

2009 95%

2008 90%

Translation Workbench users(% of total translation staff)

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011

157

IV. Appendix E

Appendix E

RESULTS OF EX-POST CONTROLS 2011

Financial Regulation (FR) Art. 60.7: Duties of the authorising officer by delegation “The authorising officer by delegation shall report to his/her institution on the performance of his duties in the form of an annual activity report together with financial and management information confirming that the information contained in the report presents a true and fair view except as otherwise specified in any reservations related to defined areas of revenue and expenditure. That report shall indicate the results of the operations by reference to the objectives set, the risk associated with these operations, the use made of the resources provided and the effi-ciency and effectiveness of the internal control system. The internal auditor shall take note of the annual report and any other pieces of information identified. No later than 15 June each year, the Commission shall send to the budgetary authority a summary of the annual reports for the previous year.” Implementing rules (IPR) Art. 52: Ex post verification and annual activity report “The result of the ex post verifications shall, with other matters, be set out in the annual activ-ity report submitted by the authorising officer by delegation to his institution.” Results of ex post verification regarding 2011 Ex-post controls are done by sampling, based on an assessment of the risk. They are done by a verifying agent, other than the one who did the ex-ante verification. Please refer also to Ap-pendix A, describing the internal control environment of EESC. As can be seen from the table below, the 2011 ex-post controls confirmed that the EESC's internal control system works satisfactorily and only a few minor issues required follow-up.

158

IV. Appendix E

Type of expenditure Ex-post control undertaken Verifier's observations Conclusions/ main actions taken

Reimbursement to EESC Members

Re-examination of files, which had under-gone ex ante verification and two specific control samples:

File folder 170/2011

File folder 180/2011 sample

Examination of the compensation paid to 1 member over 3 months

Coherence of data encoded for the compensation of members from 3 Member States

Correct application of the Rules on reimbursement with some minor re-marks. The verifiers underlined the need to better structure and maintain the IT-tool "PHOENIX" allowing all players to have an up-to-date and transparent view on information re-quired for the reimbursement.

More stringent encoding of data and updating of supporting do-cuments such as rent contracts or flight prices

Review the optional aid module for compensation calculation

The effectiveness of the PHOENIX-tool is constantly monitored and im-proved. The points raised by the veri-fiers are currently assessed and will be included in the priority list sub-mitted to the IT department.

Payment of salaries 2011

Re-examination of the remunerations of the EESC's personnel for May 2011, which had undergone ex ante verification.

The budget execution of remunera-tion related items is correct. Figures used in the different remuneration tables and those used for the payment in ABAC are correct. Situation con-cerning supporting documents avail-able has clearly improved.

A check list 'payments' should give advice on classification of supporting documents relating to the variation list.

Continuation of the current practice. A verification checklist for the ex ante verification of remuneration will be finalized in the short term. To make verification easier, the evi-dence explaining the variation in re-muneration from one month to an-other will be sorted differently to follow the verification advice.

159

IV. Appendix E


Infrastructures

– Energy certification build-ings

- Specific Contract: CES.17884-11

- Budgetary commitment: CES.17884

No particular problem identified. Minor remark is of a formal na-ture: Documentation on the dead-line for the execution of works is necessary for their effective moni-toring.

Information on the deadline for the execution of works is kept in the files of the infrastructure unit but normally not in the financial transaction folder. No follow-up action necessary.

Infrastructures

– Verification and validation of environmental declaration for EMAS

- Specific Contract: CES.17727-11;


No particular problem identified.

Minor remark of a formal nature: Documentation could be im-proved: order forms should show start- and end-date of works.

Information on the start- and end- date of works is specified in the framework contract and in the terms of reference respectively. No follow-up action necessary

Restaurant

– Purchase of coffee ma-chine


- Payment order

No particular problem identified.

Minor remarks of a formal nature: No written proof for offer price by contractor. Offer prices should regularly be requested from con-tractors by writing.

A reminder will be made within the catering service of the impor-tance to include a written trace of requests for price offers in all files including for values below EUR 5 000 in negotiated proce-dures.

160

IV. Appendix E


Print shop

- Concerning 5 commitments and tens of related payments

No particular problem identified. Minor remarks of a formal nature:

"Certified correct" affixed by non-authorised managing officer

Incomplete payment check-list not signed by verification

Only authorised staff figuring on a list or financial managing offi-cer will continue to sign 'certified correct'.

Only complete lists signed by ve-rifier will be accepted in the fu-ture.

Security


No particular problem identified. Minor remarks of a formal nature:

Justification for additional works was given by managing officer in an e-mail.

Payments for the initial technical installation as well as for the complementary activity to this installation were made from the same budget article.

Justification for additional works was checked and accepted in ad-vance by the authorising officer and verification was consulted.

The authorising officer will en-sure that the appropriate budget line is used.

161

IV. Appendix E


IT consulting


No particular problem identified. No follow-up needed.

Restaurant

– Repairs to catering equip-ment for kitchen and cafete-ria

- Budgetary commitment: CDR.3361

- Specific contracts: N° 1 CDR.3361-1-11, N° 2 CDR.3361-1-11 (provision of maintenance and repair services in 2011)

- Payment orders: CDR.82070, CDR.83519, CDR.83565; CDR.83576; CDR.83526; CDR.90957.

Remarks are mainly of formal na-ture:

Two specific contracts for the same type of services in parallel instead of replacement by a single new contract.

De-commitment based on fore-casts by the contractor instead of by managing service.

Non respect of payment delays.

Two intervention requests were paid twice and required a recov-ery order.

Missing documents and signatures on check-lists.

Problems with the supplier relat-ing to the planning and execution of works have been resolved and invoicing has improved.

The catering service of the Com-mittees is now fully staffed and distribution of tasks has been cla-rified. This is resulting in im-proved documenting and archiv-ing and will also ensure a more rigorous management of financial files as well as keeping up-to-date records of interventions of third parties and their follow-up.

162

163

IV. Appendix F

Appendix F

REPORT ON BUILDING CONTRACTS 2011

1. Financial Regulation (FR)

Art. 90: Publication

1. "All contracts exceeding the thresholds provided for in Art.105 or Art.167 shall be published in the Official Journal of the European Union.

Contract notices shall be published in advance except in the cases referred to in Art.91(2) of this Regulation, as specified in the implementing rules, and for the service contracts covered by Annex IIB to Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of proce-dures for the award of public works contracts, public supply contracts and public service contracts.

Publication of certain information after the contract has been awarded may be dropped where it would hinder application of the law, would be contrary to the public interest or would harm the legitimate business interests of public or private undertakings or could distort fair competition between them.

2. Contracts with a value below the thresholds provided for in Art.105 or Art.167 and the service contracts referred to in Annex IIB to Directive 2004/18/EC shall be advertised by appropriate means, as specified in the implementing rules.”

2. Implementing rules (IPR)

Art. 119(2): Advertising of contracts not covered by Directive 2004/18/EC, and of the contracts referred to in Annex IIB thereto

“A list of contractors to whom building contracts and contracts declared secret in ac-cordance with Art. 126 (1) (j) are awarded shall be published only once a year, with an indication of the subject and value of the contracts awarded. That list shall be sent to the budgetary authority.”

3. Building contracts 2011

No building contracts were awarded in 2011.

164

165

IV. Appendix G

Appendix G

INSTRUCTIONS GIVEN REGARDING DECISIONS WHICH ARE IRREGULAR OR CONTRARY TO THE PRINCIPLES OF SOUND FINANCIAL MANAGEMENT DURING 2011

1. Financial Regulation (FR)

Art. 66 (2): Rules applicable to authorising officers by delegation and subdelega-tion “An authorising officer by delegation or subdelegation who considers that a decision which it is his/her responsibility to take is irregular or contrary to the principles of sound financial management shall inform the delegating authority in writing.

If the delegating authority then gives a reasoned instruction in writing to the authorising offi-cer by delegation or subdelegation to take the decision in question, the authorising officer may not be held liable.”

2. Implementing rules (IPR)

Art. 73 (3): Confirmation of instructions “Any instructions confirmed in the circumstances described in Article 66 (2) of the Financial Regulation shall be recorded by the authorising officer by delegation responsible and men-tioned in his annual activity report.”

Article 66 (2) instructions received in 2011 The delegating authority has not issued any such instructions in 2011.

166

167

IV. Appendix H

Appendix H

WAIVING OF RECOVERY OF AMOUNTS RECEIV-ABLE INVOLVING EUR 100,000 OR MORE IN 2011

1. Financial Regulation (FR) Art. 73 (2): Recovery

“Where the responsible authorising officer by delegation is planning to waive or partially waive recovery of an established amount receivable, he/she shall ensure that the waiver is in order and complies with the principle of sound financial management and proportionality in accordance with the procedures and the criteria laid down in the implementing rules.

The waiver decision must be substantiated.

The authorising officer may delegate the decision only as laid down in the implementing ru-les.

The responsible authorising officer may furthermore cancel or adjust an established amount receivable, in accordance with the conditions set out in the implementing rules."

2. Implementing rules (IPR) Art. 87 (5): Waiving of recovery of an estab-lished amount receivable

“Each institution shall send to the budgetary authority each year a report on the waiv-ers ……….involving EUR 100,000 or more.”

3. Waiving of recovery of amounts receivable involving EUR 100,000 or more in 2011

The European Economic and Social Committee has made no waivers of recovery of amounts receivable involving EUR 100,000 or more in 2011.

168

169

IV. Appendix I

Appendix I

REPORT ON ORDERS/CONTRACTS AND NEGOTI-ATED PROCEDURES 2011

1. Implementing rules (IR) Art. 54: Report on negotiated procedures

“Authorising officers by delegation shall record, for each financial year, contracts concluded by the negotiated procedures referred to in Articles 126(1)(a) to (g), 127(1)(a) to (d), 242, 244, and 246.

If the proportion of negotiated procedures in relation to the number of contracts awarded by the same authorising officer by delegation increases appreciably in relation to earlier years or if that proportion is distinctly higher than the average recorded for the institution, the author-ising officer responsible shall report to the institution setting out any measures taken to re-verse that trend.

Each institution shall send a report on negotiated procedures to the budgetary authority.”

2. Implementing rules (IR) Art. 119.1: Report on contracts awarded

“Contracts with a value below the thresholds laid down in Article 158 and the service con-tracts referred to in Annex IIB to Directive 2004/18/EC shall be advertised by appropriate means in order to ensure competitive tendering and impartiality of the procurement proce-dure. Such advertising shall involve:

(a) (…)

(b) the annual publication of a list of contractors, specifying the subject and the value of the contract awarded, for contracts with a value greater than EUR 25,000.”

170

IV. Appendix I

4. Report on negotiated procedures according to Article 54 of the Implementing rules for the Financial Regulation

Contractor Subject of the contractOverall amount

or estimated total

Type of legal commitmentType of legal

procedureStart date

of contract

Last possible end date

of contract

FR: relvant article

Comment

G4S (1)Guarding services, surveillance, dispatching, receiving, technical

officer and related services17,762,004 Service contract

Negotiated Procedure with

publication01/12/2011 30/11/2015 (IR)127.1( e )

Directive 2004/18/EC

Of the contracts with a value greater than EUR 60.000, 1 out of 37 (2,70%) was handled as negociated procedures in 2011 for a total amount of EUR 17.762.004 out of EUR 28.296.153 (62,77%). For all contracts marked with a (1):under cooperation agreement between the European Economic and Social Committee and the Committee of the Regions, this contract was awarded for the two committees, therefore the estimated amount for the duration of the contract corresponds to the expenditure of the two committees. In compliance with Article 127§1e of the Implementation Rules of the Financial Regulations, according to annexe II B of the Directive 2004/18/CE, and in order to obtain the best possible financial conditions, it was chosen to publish the contract notice as a negotiated procedure. Three offers were received and, since it was a negotiated procedure, all three tenderers were given the possibility to review their prices downwards. The new contract was finally awarded to G4S, offering the lo-west price of the three tenderers, for an amount of EUR 17,762,004 over the maximum period of 4 years. In the context of its annual audit on financial year 2011, the Court of auditors audited this award procedure and found it to be fully compliant with the financial regulations.

171

IV. Appendix I

5. Report on orders/contracts according to Article 119 of the Implementing rules for the Financial Regulation

Contractor SubjectStart date

of contract


of contract

Estimated valueType of legal

procedureType of legal commitment

ACCENTUREImplementation SharePoint 2010

migration - EESC intranet restructuring14/12/2011 30/06/2012 71,968.32 NA Specific contract

Ashridge Vocational training / Strategic Planning 11/12/2011 10/12/2015 52,964.00 Restricted Procedure

Interinstitutional Framework

Contract COM

Belgacom (1) Mobile telephony and communication services (MTS II)

10/02/2011 09/02/2015 581,771.03 Open

Procedure


Contract COM

Belgacom (1) Deinstallation 'Carrier Network Services' connection (CNS)

16/11/2011 30/04/2012 26,835.00 NA Purchase Order

Belgacom (1) Provision of telecommunication and informatics services

09/08/2011 08/08/2019 3,278,376.00 Open

Procedure


Contract COM

Bick ConsortiumVocational training / Basic management

skills17/06/2011 16/06/2015 197,699.00

Restricted Procedure


Contract COM

Bick Consortium Vocational training / Middle Managers 17/06/2011 16/06/2015 103,322.00 Restricted Procedure


Contract COM

Bick Consortium Vocational training / Senior managers 17/06/2011 16/06/2015 159,709.00 Restricted Procedure


Contract COM

Bick ConsortiumVocational training / Coaching for

managers17/06/2011 16/06/2015 746,394.00



Contract COM

172

IV. Appendix I


of contract


of contract



BTI (1) Inspection lifting appliances 30/03/2011 29/03/2014 53,500.00 Restricted

procedure with publication


Contract CoR

CREASET 2011 (1) Supply and installation of visual aids, signs and exhibition material

22/06/2011 21/06/2015 670,000.00 Restricted



Contract COM

CREASET 2011Supply and installation of visual aids,

signs and exhibition material22/06/2011 21/06/2015 100,000.00

Restricted procedure with

publication


Contract COM

DAWSONAcquisition of books and e-books in all

EU languages08/08/2011 07/08/2015 500,000.00

Open Procedure


Contract COM

Deloitte Consulting Vocational training / Consultancy in HR 17/06/2011 16/06/2015 142,779.00 Restricted Procedure


Contract COM

DEMOS Vocational training / Strategic Planning 11/12/2011 10/12/2015 52,964.00 Restricted Procedure


Contract COM

DEMOSVocational training / Organisational

development11/12/2011 10/12/2015 66,424.00



Contract COM

DEMOS Vocational training / Specific trainings 26/11/2011 25/11/2015 40,787.00 Restricted Procedure


Contract COM

DGTAnnual Financing agreement for

DocFinder, IATE, Euramis and Quest II01/04/2011 31/03/2012 71,280.46 NA

Interinstitutional agreement

173

IV. Appendix I


of contract


of contract



EFE Vocational training / Strategic Planning 11/12/2011 10/12/2015 52,964.00 Restricted Procedure


Contract COM

EFEVocational training / Organisational

development11/12/2011 10/12/2015 66,424.00



Contract COM

EIPAVocational training / European

governance 13/12/2011 12/12/2015 252,502.00



Contract COM

EJC Foundation Information event for journalists 31/05/2011 30/05/2015 120,000.00 Open

Procedure


Contract COM

Falck Benelux Vocational training / First aid 01/06/2011 31/05/2015 59,940.00 Restricted Procedure


Contract COM

Freie Universität Berlin

Study on Rio World Summit on Sustainable Development 2012

14/06/2011 13/10/2011 33,550.00 Negociated

Procedure with publication

Service contract

G4S (1)Guarding services, surveillance,

dispatching, receiving, technical officer and related services

01/12/2011 30/11/2015 17,762,004.00Negociated


Service contract

Greenhouse Group consortium

Vocational training / Basic management skills

17/06/2011 16/06/2015 197,699.00 Restricted Procedure


Contract COM

Greenhouse Group consortium

Vocational training / Middle Managers 17/06/2011 16/06/2015 103,322.00 Restricted Procedure


Contract COM

174

IV. Appendix I


of contract


of contract



HTDS (1) Purchase of two X-ray machines for the inspection of luggage and parcels

19/12/2011 18/04/2012 42,200.00 Negociated


Direct contract

Indurope Handy Tools

Overhauling of mobile maintenance platforms and access equipment for

facades25/07/2011 24/07/2015 57,214.90


publication


Contract CoRInstitute for European

Environmental Policy

Study on investments improving the environment

10/11/2011 09/05/2012 27,530.00 Negociated

procedure (low value)

Service contract

LAMPIRIS (1) Natural gas supply 01/07/2011 30/06/2015 950,000.00 Restricted



Contract COM

MAN-ROLAND

BENELUX (1)Provision of a trimmer / guillotine for

paper13/10/2011 12/01/2012 49,210.00


publicationSpecific contract

Microsoft (1)Informatics services supplied under the Interinstitutional Licensing Agreement

with Microsoft28/06/2011 27/06/2014 1,275,600.00

Interinstitutio-nal procedure


Contract COM

RIVANCO Promotional articles 2011 07/04/2011 05/05/2011 51,686.40 Negociated


Supply contract

SICLI (1) Rental, placement and omnium maintenance of portable fire extinguishers

20/04/2011 19/04/2015 88,000.00 Restricted Procedure


Contract COM

175

IV. Appendix I


of contract


of contract



VAN DEN BRANDE

TAEKELS (1)Roof refurbishment BvS building 15/12/2011 14/02/2012 59,846.00

Negociated Procedure with

publicationSpecific contract

Vanderstraeten SA (1)

Replacing window frames of an office building

16/12/2011 15/12/2017 129,687.75 Restricted


Framework contract CoR

The above list of contractors gives details on contracts awarded with a value greater than EUR 25,000 according to Article 119.1 (IR) For all contracts marked with a (1) under cooperation agreement between the European Economic and Social Committee and the Committee of the Re-gions, this contract was awarded for the two committees, therefore the estimated amount for the duration of the contract corresponds to the expenditure of the two committees.

176

177

IV. Appendix J

Appendix J

FOLLOW-UP TO OBSERVATIONS IN PARLIAMENT'S 2010 DISCHARGE RESOLUTION The European Parliament, 1. Notes that in 2010 the European Economic and Social Committee (EESC) had commit-

ment appropriations available amounting to a total of EUR 127 200 000 (EUR 122 000 000 in 2009), and that the utilisation rate of these appropriations was 98 % ( 98 % in 2009); stresses that the EESC budget is purely administrative: 70 % relates to expendi-ture on persons working with the institution, and 30 % on buildings, furniture, equipment and miscellaneous operating expenditure;

In 2011, budget execution was again very high and around 96%. The main items "Remu-neration and allowances" and "Other staff", "Annual lease payments" and "Rent" have very high execution rates and are closely monitored.

2. Calls on the EESC to limit increases to its budgets in the coming years to an absolute minimum and to finance new and extended activities primarily though savings;

The EESC has limited its budget for 2013 to the strict minimum required in line with Commissioner Lewandowski's letter of 23 January 2012 to the Presidents of the EU insti-tutions on the establishment of estimates for the 2013 draft budget, the European Parlia-ment's report on the guidelines for the 2013 budgetary procedure of 16 February 2012 and the budget guidelines for 2013 adopted by the Council on 21 February 2012, which demonstrate that the major institutions are in tune with regard to their analysis of the cur-rent budgetary possibilities.

3. Reiterates the call made in its resolution of 10 May 20111 on discharge to the EESC for the financial year 2009 to undertake with urgency a comprehensive spending review of all areas of activity to ensure that all expenditure delivers value for money, and in order to identify possible savings which would allow pressure on the budget to be reduced gi-ven the period austerity currently being experienced in the Union;

The EESC scrutinises spending at regular intervals. This allows for detection and correc-tion of potential budget overshooting at an early stage as well as the identification of

1

OJ L 250, 27.9.2011 p. 98.

178

IV. Appendix J

amounts qualifying for being put to best possible use in accordance with political priori-ties. As in 2011 and taking account of Commissioner Lewandowski's letter of 23 January 2012 to the Presidents of the EU institutions on the establishment of estimates for the 2013 draft budget, the EP report on the guidelines for the 2013 budgetary procedure of 16 February 2012 and the budget guidelines for 2013 adopted by the Council on 21 February 2012, the EESC carried out a detailed spending review.

4. Welcomes the fact that in its annual report, the Court of Auditors concluded, based on its audit work, that the payments for the financial year ended 31 December 2010 for admin-istrative and other expenditure of the institutions and bodies were, on the whole, free from material error; the most likely rate of error in the category of ‘administrative and other expenditure’ in general, was estimated at 0,4 % (points 7.9. and 7.10.);

5. Points out that the Court of Auditors included observations in its 2010 annual report concerning the reimbursement of travel expenses to EESC members and the awarding of procurement contracts based on a restricted procedure;

6. Notes with satisfaction that the EESC Bureau decided, on 6 December 2011, to undertake a reform of the system for reimbursing expenses to members, which is aimed, in particu-lar, at reimbursement of transport tickets on the basis of real costs only, which brings daily allowances and travel allowances into line with those paid by Parliament, and pro-vides for allowances to compensate for the time spent by members in performance of their duties and for related administrative costs, taking into account the fact that EESC members do not receive any form of remuneration or pension from the EU budget;

7. Encourages and expects a swift implementation of the above-mentioned decision of 6 De-cember 2011;

In the meantime, the EESC is already making arrangements for the entry into force of the new reimbursement rules

8. Expresses surprise at the high number of flights invoiced by members of the EESC in 2010, and at their long distance (average: 2 000 km); requests the EESC to provide a de-tailed list of all flights invoiced in 2010, indicating the departure airport, stops en route, destination, length of flight and the costs incurred by the European taxpayer;

The EESC points out that most of its meetings are held in Brussels. As the EESC is com-posed of members from all 27 EU Member states, an average distance of return flights of 2,000 km ( 2x 1,000km) should therefore be expected. The EESC will provide the re-quested information.

9. Welcomes the fact that changes were made at the EESC Bureau meeting of 21 February 2012 with regard to confirmation of attendance, and reimbursement for taking part in vi-deo conferences , in compliance with the guidance of Parliament (stricter documentary

179

IV. Appendix J

evidence in order to justify entitlement to the allowance referred to in Article 12 of the Decision of the Bureau of the European Economic and Social Committee of 21 February 2012 on the reimbursement of expenses incurred and the allowances received by the Committee members and consultative commission delegates, as well as their respective alternates, and deletion of the point relating to videoconferencing); looks forward to the results of the negotiations between the EESC and the Council with a view to reaching a definitive and satisfactory solution to all these issues, in respect of which the decision de-pends on the Council;

See follow-up to point 7.

10. Notes with satisfaction the decision by the EESC Bureau providing for publication of the declarations of financial interests of its members; welcomes the fact that this decision has already been implemented;

The declarations of financial interests of EESC Members are accessible on the EESC website via the list of Members (http://www.eesc.europa.eu/?i=portal.en.members-list-of-members).

11. Welcomes the recent and increased interest on the part of EESC members in financial and budgetary matters, in particular within the budget group, which includes a full com-mitment as regards both the drafting of the budget and the monitoring of its implementa-tion; would like to see a strengthening of cooperation between EESC members and Par-liament's Committee on Budgetary Control;

As for the establishment of the 2012 draft estimates, the EESC Budget Group set up a subgroup led by a rapporteur who closely followed the preparations of the 2013 draft es-timates. The Budget Group scrutinizes expenditure and spending estimates for the re-mainder of the year in its regular meetings. The Chairman of the Budget Group and the rapporteur for the EESC's 2010 budget have established close contact with the EP Com-mittee on Budgetary Control.

12. Welcomes the fact that the two committees – the Committee of the Regions and the EESC – finally managed to obtain certification under the EU Eco-Management and Audit Scheme (EMAS) on 27 December 2011; would like to be informed on an annual basis of the progress which is anticipated and/or made to reduce further the negative impact of the Committees‘ activities on the environment ;

The EESC will systematically report on progress with this issue in its future annual activ-ity reports.

13. Expresses satisfaction with the results revealed by the mid-term evaluation of the func-tioning of the administrative cooperation agreement between the Committee of the Re-gions and the EESC; notes, primarily, that the establishment of joint services has allowed the two Committees to make budget savings; would like the Committees to implement the

180

IV. Appendix J

two Committees to make budget savings; would like the Committees to implement the re-commendations made relating to the areas of staff (greater harmonisation of rules), so-cial and medical services and internal services;

The Committees are evaluating jointly how to best implement the recommendations they made following the mid-term evaluation of their co-operation agreement.

14. Suggests a strengthening of accounting procedures in relation to the priority budget lines of the two Committees; believes that this will in turn lead to an increase in savings and to additional strengthening of inter-institutional cooperation;

The EESC has already drawn the attention of the Committee of the Regions to this obser-vation of the Parliament, which is not contained in the CoR's discharge resolution, and will continue to evaluate with its counterpart how to best strengthen co-operation with a view to increased efficiency of the Committees' activities.

15. Welcomes the decision taken by the EESC on 24 April 2012 to organise an assessment of its work, as the Committee of the Regions has already done (CAF 2: Common Assessment Framework), following the recommendation contained in this resolution, as adopted by the Committee on Budgetary Control on 27 March 2012;

The EESC has started preparations for this assessment in co-operation with the European Institute for Public Administration.

16. Notes with satisfaction also that the EESC has taken good note of the observations of the Court of Auditors and that a reminder of the important elements to be observed in pro-curement procedures has been sent to all authorising officers by sub-delegation; notes, too, that the EESC will step up efforts to ensure that the necessary public procurement expertise is available in the evaluation committees;

The EESC will continue to follow up swiftly to the observations and recommendations of the Court of Auditors.

17. Calls on the EESC to improve the quality of the summary of the internal audit service's activities in order for Parliament to be able to assess the monitoring and control mecha-nisms within the EESC; stresses that the summary should be both informative and rele-vant; calls on the EESC to send a re-drafted version to its competent committee without delay;

A corrected, more informative and pertinent version has been sent to the Committee on Budgetary Control on 12 June 2012.

2

Common Assessment Framework, European Institute for Public Administration, Maastricht 2006.

181

IV. Appendix J

18. Found Annex D to the annual activity report, containing activity and performance indica-tors, to be very useful; is concerned by the fact that 12,3 % of the interpreting service re-quested was cancelled, at a cost of EUR 913 344; would like to be informed of which ur-gent measures are taken to remedy this problem;

19. Calls for better financial planning and budgetary management in order to avoid similar situations in the future;

The EESC depends for its interpretation on DG Interpretation and the rules set by the DG, which bills for services which are no longer required but not cancelled at least 4 weeks in advance. The EESC has reduced the costs for unused interpretation slots by about one third in 2011 and its Bureau adopted new guidelines for the use of interpreta-tion on 21 February 2012 with the aim to further reduce the number of unused slots.

20. Expects that the annual activity report will, in future, also include an exhaustive table of all the human resources at the EESC's disposal, broken down by category, grade, gender, participation in professional training, and nationality;

The EESC's annual activity report and the working documents accompanying its draft es-timates contain exhaustive information on its human resource among others by category, grade, gender, participation in training and nationality. The EESC stands ready to adapt its reporting on human resources in line with any guidelines that the budgetary and budg-etary control authorities may establish in order to improve interinstitutional comparabil-ity.

21. Reiterates its call for the Ombudsman to inform the Committee on Budgetary Control of the results of the investigations into staff promotion procedures;

This request is addressed to the European Ombudsman.

22. Calls for all opinions issued by the EESC to be attached to the relevant files.

This request is addressed to the European Parliament.

_____________

182

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ANNUAL ACTIVITY REPORT 2011 - European …€¦ · European Economic and Social Committee ANNUAL ACTIVITY REPORT 2011 (Section VI of the EU-budget) (Final – June 2012)