FINAL ANNUAL ACCOUNTS 2010 - European Commission

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TEN-T Executive Agency established by the European Commission, B-1049 Brussels, Belgium

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TRANS-EUROPEAN TRANSPORT NETWORK EXECUTIVE AGENCY

FINAL ANNUAL ACCOUNTS 2010

15 June 2011 Brussels

Final annual accounts 2010

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TEN-T Executive Agency established by the European Commission, B-1049 Brussels – Belgium

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Table of contents Page CERTIFICATION OF THE ACCOUNTS.................................................................3 Art. 61 of Council Regulation 1605/2002 as amended by Council Regulation (EC) No 1525/2007 INTRODUCTION.....................................................................................................4 ANNUAL ACOUNTS 2010 PART I. FINANCIAL STATEMENTS 2010 Art. 51-53 and 55 of Commission Regulation (EC) No 1653/2004 1. Balance sheet .....................................................................................................7 . 2. Economic outturn account...................................................................................9 3. Cash-flow table...................................................................................................10 . 4. Statement of changes in net assets ...................................................................11 5. Notes to the Financial Statements......................................................................12 5.1. Accounting policies................................................................................12 5.2. Notes to the Balance sheet...................................................................14 5.3. Notes to the Economic outturn account.................................................22 PART II. REPORTS ON BUDGET IMPLEMENTATION 2010 Art. 51 of Commission Regulation (EC) No 1653/2004 6. Budget implementation 2010..............................................................................25 7. Reconciliation of the accrual based result with the budget result ......................36 8. Human resources overview 2010.......................................................................37 9. List of contracts 2010………………………………………………………………...38 PART III. REPORT ON BUDGETARY AND FINANCIAL MANAGEMENT 2010 Art. 51 of Commission Regulation (EC) No 1653/2004 10. Legal framework...............................................................................................41 11. Accounting System...........................................................................................41 12. Financial management and internal control systems........................................42


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CERTIFICATION OF THE FINAL ACOCUNTS The annual accounts of the Trans-European Transport Network Executive Agency for the year 2010 have been prepared in accordance with the Financial Regulation applicable to the general budget of the European Union and the accounting rules adopted by the Commission's Accounting Officer, as are to be applied by all the institutions, agencies and joint undertakings. I acknowledge my responsibility for the preparation and presentation of the annual accounts of the Trans-European Transport Network Executive Agency in accordance with art 61 of the Financial Regulation. I have obtained from the authorising officer, who certified its reliability, all the information necessary for the production of the accounts that show the Trans-European Transport Network Executive Agency's assets and liabilities and the budgetary implementation. I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the accounts, I have a reasonable assurance that the accounts present a true and fair view of the financial position of the Trans-European Transport Network Executive Agency in all material aspects. /signed/ Brussels, 20 June 2010 Milena Chakarova Accounting Officer


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INTRODUCTION The Trans-European Transport Network Executive Agency (TEN-T EA) was formally established by the Commission on 26 October 20061. The Agency assumed full financial and operational autonomy and the Director accepted the delegation from the Commission as from 15 April 2008.

In July 20082, the Commission modified the tasks and extended the lifetime of the Agency up to the end of 2015. This extended mandate gave the Agency responsibility for the budget linked to the 2007 – 2013 Financial Perspective. The TEN-T EA is responsible for managing the technical and financial implementation of the Commission's TEN-T Programme. Its role is to improve the effectiveness of TEN-T implementation at a lower cost; to strengthen the links between the TEN-T and communities of experts; to mobilise a high level of expertise and make the recruitment of specialised staff easier; to ensure a better coordination of funds with other Community instruments; to enable the simplification and flexibility of TEN-T implementation; to raise the profile of Community action in the field of TEN-T; and in general to add value to the management of the TEN-T Programme. Its main tasks are:

- to ensure the technical and financial management of projects and events which are co-financed under the TEN-T budget;

- to collect, analyse and transmit to the Commission all information required for the implementation and programming of the TEN-T;

- to provide technical support to project promoters and the financial institutions responsible for managing the loan guarantee instrument for the TEN-T projects;

- to provide any technical and administrative support requested by the Commission.

Its parent, DG MOVE, continues to address all policy-making and institutional tasks related to the TEN-T. The 2010 financial statements of the TEN-T EA and its reports on budget implementation for 2010 were prepared in conformity with: - Council Regulation 1605/2002, of 25 June 2002, laying down the Financial Regulation applicable to the general budget of the European Communities as last amended by Council Regulation (EC) No 1525/2007; - Commission Regulation 1653/2004, of 21 September 2004, on a standard financial regulation for the executive agencies pursuant to Council Regulation 58/2003 laying down the Statute for executive agencies to be entrusted with certain tasks in the management of Community programmes amended by Commission Regulation No 1821/2005 and by Commission Regulation No 651/2008;

1 Commission Decision 2007/60/EC of 26th October 2006

2 Commission Decision 2008/593/EC of 11th July 2008


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- Commission Regulation 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities as amended by Regulations No 1261/2005, No 1248/2006 and No 478/2007); - The accounting rules on accrual accounting adopted by the Accounting Officer of the Commission. These rules were initially adopted on 28 December 2004 and modified and developed subsequently; - Commission Decision C(2007) 5282, of 5 November 2007, amended by C(2008) 5538 of 7 October 2008, delegating powers to the Trans-European Transport Network Executive Agency with a view to the performance of tasks linked to implementation of the Community Programmes for grants in the field of trans-European transport network, comprising in particular implementation of appropriations entered in the Community budget. ORGANISATION AND PRINCIPAL OFFICE By 31 December 2010, the Agency had 93 staff members in post. Of these, 7 are seconded officials, 24 are temporary agents and 62 are contract agents. The Agency's organisational structure follows the operational and horizontal objectives of the Agency in managing the TEN-T Programme. It is structured around four units led by an Executive Director. There are two operational units responsible for project management (T2 and T3), one horizontal unit (T1) and one technical assistance unit (T4). T4's tasks are closely related to the operational project management tasks. The Director's team – T0 - is directly responsible for a number of horizontal activities: Information and Communication; Accounting; Internal Control; and Internal Audit. The small size and simple organisational structure of the Agency allow quick and direct lines of communication. Decision-making procedures follow the hierarchical structure and management meetings and unit meetings take place every week. The Agency has its own internal website for the diffusion of information, decisions and internal rules and procedures. In November 2010, the Agency moved to its definitive office premises situated at 910, Chaussée de Wavre, W910, BE-1049 Brussels. More information is available on the TEN-T EA website: http://tentea.ec.europa.eu/en/home.htm STRUCTURE OF THE REPORT The report on the annual accounts consists of three parts: Part I: Financial statements and notes The general accounts are accrual accounts, meaning that the effects of transactions and other events are recognised when those transactions or events take place. They are drawn up in accordance with the accounting rules adopted by the European Commission’s Accounting Officer, and are accrual based accounting policies derived from the International Public Sector Accounting Standards (IPSAS) or by


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default, International Financial Reporting Standards (IFRS). Part II: Reports on budget implementation The budget accounts are modified cash accounts. As in any cash accounting system, payments made and revenue received are recorded in the period in which the cash transaction occurs. These accounts are modified because payment appropriations carried over are also recorded. Their purpose is for drawing up the budgetary outturn account and reports on budget implementation. Part III: Report on budgetary and financial management This part is dedicated to reporting on the budgetary and financial management during the period of the annual accounts.

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PART I: FINANCIAL STATEMENTS 2010 1. TENT-T EA BALANCE SHEET 31/12/2010 - ASSETS

Note 31.12.2010 31.12.2009

ASSETS EUR EUR A. NON CURRENT ASSETS 5.2.1 Intangible fixed assets 5.2.1.1 46.021,00 35.923,00 Tangible fixed assets 5.2.1.2 114.121,41 77.303,00 Plant and equipment 15.125,46 650,00 Computer hardware 64.101,00 72.346,00 Furniture and vehicles 30.998,95 433,00 Other fixtures and fittings 3.896,00 3.864,00 Other non-current assets 5.2.1.3 1.553.351,87 0.00 TOTAL NON CURRENT ASSETS 1.713.494,28 113.226,00 B. CURRENT ASSETS 5.2.2 Short-term receivables 5.2.2.1 39.137,48 23.689,33 Current receivables 5.2.2.1.1 7.631,03 6.638,46 Sundry receivables 5.2.2.1.2 12.179,24 2.265,03 Other Deferred charges 5.2.2.1.3 19.191,86 14.785,84

Short-term receivables with

consolidated EC entities 5.2.2.1.4 135,35 0,00 Cash and cash equivalents 5.2.2.2 1.922.044,58 2.383.225,66

TOTAL CURRENT ASSETS 1.961.182,06 2.406.914,99

TOTAL ASSETS 3.674.676,34 2.520.140,99


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TENT-T EA BALANCE SHEET 31/12/2010 – LIABILITIES AND NET ASSETS

Note 31.12.2010 31.12.2009 LIABILITIES EUR EUR A. NON CURRENT LIABILITIES 5.2.3

Provisions for risks and charges 5.2.3.1 0,00 45.050,92

Other long-term liabilities 5.2.3.2 535.031,96 0,00 TOTAL NON CURRENT LIABILITIES 535.031,96 45.050,92 B. CURRENT LIABILITIES 5.2.4

Accounts payable 5.2.4.1 1.569.094,20 1.813.839,81 Current payables 5.2.4.1.1 147.825,45 9.304,12 Long-term liabilities falling due within 12 months 5.2.4.1.2 123.792,31 0,00 Sundry payables 5.2.4.1.3 10.209,06 595,98 Other 681.738,34 558.095,25 Accrued charges 5.2.4.1.4 416.896,34 241.787,34

Deferrals and accruals with consolidated EC entities 5.2.4.1.5 264.842,00 316.307,91

Accounts payable with consolidated EC entities 729.321,35 1.245.844,46

Pre-financing received from consolidated EC entities 5.2.4.1.6 482.074,11 1.181.959,50

Other accounts payable against consolidated EC entities 5.2.4.1.7 247.247,24 63.884,96

TOTAL CURRENT LIABILITIES 1.692.886,51 1.813.839,81 TOTAL LIABILITIES 2.227.918,47 1.858.890,73 C. NET ASSETS 5.2.5 Accumulated surplus/deficit 661.250,26 610.228,89 Economic result of the year (profit+/loss-) 785.507,61 51.021,37 TOTAL NET ASSETS 1.446.757,87 661.250,26 TOTAL NET ASSETS/LIABILITIES 3.674.676,34 2.520.140,99


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2. TENT-T EA ECONOMIC OUTTURN ACCOUNT 2010

Note 2010 2009 Recovery of expenses 5.3.1.1 94.790,44 12.607,21 Revenues from administrative operations 0,00 0,00 Other operating revenue 5.3.1.2 9.312.754,75 7.673.970,35 TOTAL OPERATING REVENUE 5.3.1 9.407.545,19 7.686.577,56 Administrative expenses (8.607.248,84) (7.588.484,73)

Staff expenses 5.3.2.1 (5.818.724,38) (4.804.052,51) Fixed asset related expenses 5.3.2.2 (51.649,16) (40.698,19) Other administrative expenses 5.3.2.3 (2.736.875,30) (2.743.734,03)

Operational expenses 5.3.2.4 (2.023,19) (46.693,82) Other operational expenses (2.023,19) (46.693,82) TOTAL OPERATING EXPENSES 5.3.2 (8.609.272,03) (7.635.178,55) SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES 798.273,16 51.399,01 Financial revenues 0,00 0,00 Financial expenses 5.3.3 (12.765,55) (377,64) SURPLUS/ (DEFICIT) FROM NON OPERATING ACTIVITIES (12.765,55) (377,64) SURPLUS/(DEFICIT) FROM ORDINARY ACTIVITIES 785.507,61 51.021,37 Extraordinary gains Extraordinary losses SURPLUS/(DEFICIT) FROM EXTRAORDINARY ITEMS 0,00 0,00

ECONOMIC RESULT OF THE YEAR 785.507,61 51.021,37

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3.TENT-T EA CASH FLOW TABLE 2010 (INDIRECT METHOD)

Cash flows from ordinary activities 2010 2009 Surplus/(deficit) from ordinary activities 785.507,61 51.021,37 Operating activities Adjustments Amortisation (intangible fixed assets) 15.087,12 10.437,05 Depreciation (tangible fixed assets) 36.220,04 29.219,14 (Increase)/decrease in provisions for risks and liabilities (45.050,92) 45.050,92 (Increase)/decrease in long term receivables (1.553.351,87) 0,00 (Increase)/decrease in short term receivables (15.312,80) 122.534,58 (Increase)/decrease in receivables related to consolidated EC entities (135,35) 99.753,96 Increase/(decrease) in other long term liabilities 535.031,96 0,00 Increase/(decrease) in accounts payable 395.569,81 (43.308,22) Increase/(decrease) in liabilities related to consolidated EC entities (516.523,11) 971.586,05 (Gain)/losses on sale of property, plant and equipment 342,00 1.042,00 Net cash flow from operating activities (362.615,51) 1.287.336,85

Cash flows from investing activities Increase of tangible and intangible fixed assets (98.565,57) (85.407,19) Net cash flow from investing activities (98.565,57) (85.407,19) Net increase/(decrease) in cash and cash equivalents (461.181,08) 1.201.929,66 Cash and cash equivalents at the beginning of the period 2.383.225,66 1.181.296,00 Cash and cash equivalents at the end of the period 1.922.044,58 2.383.225,66


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4.TENT-T EA STATEMENT OF CHANGES IN NET ASSETS 2010

Reserves Net assets Fair value

reserve Other

reserves

Accumulated Surplus / Deficit

Economic result of the year Net assets (total)

Balance as of 31 December 2009 610.228,89 51.021,37 661.250,26 Changes in accounting policies 0,00 Balance as of 1 January 2010 (if restated) 0,00 0,00 610.228,89 51.021,37 661.250,26 Other 0,00 Fair value movements 0,00 Movement in Guarantee Fund reserve 0,00 Allocation of the Economic Result of Previous Year 51.021,37 -51.021,37 0,00 Amounts credited to Member States 0,00 Economic result of the year 785.507,61 785.507,61

Balance as of 31 December 2010 0,00 0,00 661.250,26 785.507,61

1.446.757,87

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5. NOTES TO THE FINANCIAL STATEMENTS These financial statements cover the period from 1 January 2010 to 31 December 2010. 5.1. Accounting policies 5.1.1. Legal provisions and the financial regulation The accounts are kept in accordance with Commission Regulation 1653/2004, of 21 September 2004, on a standard financial regulation for the executive agencies pursuant to Council Regulation 58/2003 and by Commission Regulation No 651/2008 and Commission Regulation 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities. The accounts have been drawn up in accordance with the accounting rules adopted by the Accounting Officer of the Commission. These rules were adopted on 28 December 2004 and thereafter and are accrual based accounting policies derived from International Public Sector Accounting Standards (IPSAS) or by default, International Financial Reporting Standards (IFRS). 5.1.2. Accounting principles The objective of the financial statements is 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 TEN-T EA, the aim is more specifically to demonstrate the accountability of the entity for the resources entrusted to it. The accounting system of the Agency comprises general accounts and budget accounts. These accounts are kept in Euro on the basis of the calendar year. The budget accounts give a detailed picture of the implementation of the budget. They are based on the modified cash accounting principle. The general accounts allow for the preparation of the financial statements as they show all charges and income for the financial year based on accrual accounting rules and are designed to establish the financial position in the form of a balance sheet at 31 December. Article 53 of the standard financial regulation for executive agencies (Commission Regulation (EC) Nr.1653/2004) 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;


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- Reality over appearance; - Accrual-based accounting.

5.1.3 Currency and basis for conversion The financial statements are presented in euro, which is the TEN-T EA functional and reporting currency. Foreign currency transactions are translated into euro using the exchange rates prevailing at the dates of the transactions. 5.1.4 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 cost converted into euro at the rate applying when they were purchased. The book value of a fixed asset is equal to its acquisition price or production cost, adjusted with revaluations, depreciation and other amounts written off. Subsequent costs are recognised as a separate asset only when it is probable that future economic benefits associated with the item will flow to the Agency 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. 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. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives. 5.1.5 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%

5.1.6 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, provisions for future charges,


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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. 5.1.7. Consolidation According to Article 57 of Commission Regulation EC N°1653/2004, the TEN-T EA accounts are consolidated with the Commission's annual accounts. 5.2. Notes to the Balance sheet 5.2.1. Non current assets 5.2.1.1. Intangible fixed assets Intangible fixed assets are identifiable non-monetary assets without physical substance. To be entered in the financial inventory on the assets side of the balance sheet, they must be controlled by the Agency and generate future economic benefits for the Agency. Additionally, they should have a purchase price above 420 EUR. The Agency set a threshold of 65.000 EUR for internally-developed intangible assets. This threshold will be periodically revised and updated if necessary. For more information about IT internal developments in 2010 see note 5.3.2.3. The intangible assets on 31 December2010 amount to 46.021,00 EUR. In 2010 TEN-T EA acquired and classified as intangible assets software licences as follows: Business Objects Enterprise Premium 12 licences 6.594,00 EUR Web Intelligence 5 licences 2.250,00 EUR AUTOCAD LT 2010 2 licences 2.067,12 EUR ARC Info (upgrade from ARC Editor) 2 licences 11.774,00 EUR ODEUM Intranet 1 licence 2.500,00 EUR They are depreciated monthly with an annual depreciation rate of 25 %.

The variation of the intangible fixed assets in 2010 is composed of:

2010 Computer Software Total Gross carrying amounts 01.01.2010 48.274,62 48.274,62 Additions 25.185,12 25.185,12 Disposals Gross carrying amounts 31.12.2010 73.459,74 73.459,74 Accumulated amortisation and impairment 01.01.2010 (12.351,62) (12.351,62)

Amortisation (15.087,12) (15.087,12)


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Write-back of amortisation Disposals Impairment Accumulated amortisation and impairment 31.12.2010 (27.438,74) (27.438,74)

Net carrying amounts 31.12.2010 46.021,00 46.021,00 5.2.1.2. Tangible fixed assets Tangible fixed assets are identifiable non-monetary assets with physical substance. To be entered in the financial inventory on the assets side of the balance sheet, they must be controlled by the Agency and generate future economic benefits or increase the service potential of the Agency. Additionally, they should have a purchase price above 420 EUR. Items with lower value, such as desktop computers, digital cameras, monitors, are treated as expenses of the year; however they are registered in the physical inventory. Repairs and maintenance are charged to the economic period in which they have occurred. The tangible assets on 31 December 2010 amount to 114.121,41 EUR. The acquisitions of tangible assets in 2010 comprise:

- IT and electronic equipment: notebooks, desktops, servers and server equipment, inventory trackers and beamers.

- Office furniture and kitchen equipment for the Agency office premises. A notebook disappeared from the IT storage premises and was accordingly retired from the inventory. The variation of the tangible fixed assets in 2010 is composed of:

2010 Plant and Equipment

Computer hardware

Furniture and

vehicles

Other Fixtures

and Fittings

Total

Gross carrying amounts 01.01.2010 1.200,20 111.759,49 759,00 5.402,44 119.121,13

Additions 15.706,26 24.439,60 31.389,59 1.845,00 73.380,45 Disposals (444,59) (444,59) Gross carrying amounts 31.12.2010 16.906,46 135.754,50 32.148,59 7.247,44 192.056,99

0,00 Accumulated amortisation and impairment 01.01.2010 (550,20) (39.413,49) (316,00) (1.538,44) (41.818,13)

Depreciation (1.230,80) (32.342,60) (833,64) (1.813,00) (36.220,04) Write-back of depreciation 0,00 Disposals 102,59 102,59 Impairment 0,00 Accumulated amortisation and impairment 31.12.2010 (1.781,00) (71.653,50) (1.149,64) (3.351,44) (77.935,58)

Net carrying amounts 31.12.2010

15.125,46 64.101,00 30.998,95 3.896,00 114.121,41

The IT tangible assets are depreciated monthly with an annual depreciation rate of


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25%. The furniture, the kitchen and the lighting equipment are depreciated with either a 10% or 12.5% annual rate according to the rates set in the assets catalogue of DG DIGIT. 5.2.1.3. Other non-current assets The amount of the other non-current assets is 1.553.351,87 EUR and represents the work done by the landlord, in order to bring the building to the conditions for office premises set by the European Commission. The global amount of the work was 1.585.713.37 EUR and the Agency amortised the amount of 32.361,50 EUR during December 2010. The work remaining as a non-current asset will be amortised during the period 1 January 2011 - 31 December 2015. For an overview of the rental contract for the office premises see note 5.2.3.2. 5.2.2. Current assets 5.2.2.1. Short-term receivables 5.2.2.1.1. Current receivables The item is for the amount of 7.631,03 EUR and consists of a customer receivable for 99,01 EUR and interest for the amount of 7.532,02 EUR earned on the Agency’s bank account relating to the last quarter of 2010 and not yet received on 31 December 2010. 5.2.2.1.2. Sundry receivables This item is for the amount of 12.179,24 EUR and represents miscellaneous costs paid to staff members on behalf of the Commission and other institutions and not yet claimed by the TEN-T EA. 5.2.2.1.3. Deferred charges The deferred charges for the amount of 19.191,86 EUR comprise expenses for the years 2011-2015, recorded in the accounts in 2010 and deferred to the appropriate financial periods. These expenses include newspaper and maintenance subscriptions, school busses for staff members' children and missions. 5.2.2.1.4. Short-term receivables with consolidated entities The item is for 135,35 EUR and is a receivable from the Fusion for Energy JU. 5.2.2.2. Cash and cash equivalents The amount is 1.922.044,58 EUR and corresponds to the cash balance held by the TEN-T EA on 31 December 2010 in its bank account at ING Belgium. The Agency does not hold petty cash.


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5.2.3. Non current liabilities 5.2.3.1. Provisions for risks and charges In 2010, the Agency used the provision recorded in 2009 for the 1.85% annual adjustment of the staff remuneration. In 2009, the adjustment was refused by the Council and the Commission brought an action for annulment before the Court of Justice against the decision taken by the Council. In 2010, following the Court's favourable judgement, the Agency paid the indexation amount to the staff and cleared the recorded provision for 45.050,92 EUR. No new provisions have been registered in 2010. 5.2.3.2. Other long-term liabilities The Agency registered a long-term liability for the amount of 535.031,96 EUR based on the contractual agreement with AG Insurance SA (Belgium). The agreement settles the conditions for the rent of the office premises and work to be done by the building owner: The total amount of the work done by the landlord and the fixed assets delivered is 1.627.117,60 EUR and is paid by bi-annual instalments until the end of the contract. Interest of 3,37% is applied to the amount according to a repayment plan.

In 2010, AG Insurance, at the request of the Agency, issued an invoice for 978.045 EUR for the assets (for the amount of 41.404.23 EUR) and part of the work (for the amount of 926.889.10 EUR), with the interest applicable for the period (for the amount of 9.751.67 EUR). The invoice was paid by the TEN-T EA, the assets were registered in the inventory and the charges for the invoiced work were deferred until the end of the contract (see note 5.2.1.3). The total remaining obligation of the Agency for the period 2011-2015 is 658.824,27 EUR and is split between the long-term liability for 535.031,96 EUR due after 31 December 2011 and the short-term liability due in the course of year 2011 (point 5.2.4.1.2). 5.2.4. Current liabilities 5.2.4.1. Accounts payable 5.2.4.1.1. Current payables The item is for the amount of 147.825,45 EUR and represents amounts payable to suppliers for invoices received but not paid at year end. 5.2.4.1.2. Long-term liabilities falling due within 12 months The item is for the amount of 123.792,31 EUR and consists of the short-term liability due to the owner of the Agency's premises (for more detailed information refer to point 5.2.3.2).


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5.2.4.1.3. Sundry payables

Item Amount Deductions from staff for children nursery to be regularised with the Commission 426,48

Deductions from staff salaries to be regularised with the Commission and other institutions

7.263,73

Reimbursement to a staff member for expenses made on behalf of TEN-T EA 44,85

Assets received but not invoiced yet 2.474,00

Total 10.209,06

5.2.4.1.4. Accrued charges with non-consolidated entities Accruals for goods and services: This total amount is 416.896,34 EUR and represents goods and services received in 2010 but not yet booked as supplier payables on 31 December 10. The expenses are of two types:

- Invoices to be received which correspond exactly to the amounts accrued; - Provisions set aside to pay for services or goods received in 2010. As the exact amount was not known when finalising the accounts, estimation was made based on the contractual or other information.

Invoices received in Jan-Feb 2011: Office supplies and maintenance 1.379,59 EUR Recruitment expenses Dec 2010 866,28 EUR Expert-related expenses Dec 2010 9.907,51 EUR Interim staff Dec 2010 6.721,34 EUR Mobile phones charges Dec 2010 1.431,61 EUR Decrease of costs for external audits (230,00) EUR Security and social expenses 2010 331,47 EUR Bank charges 2010 62,23 EUR Accruals:

Estimation method

Charges for the office premises 2010 92.629,96 EUR Budget execution table Scanning of electronic archives 17.500,00 EUR Contract with the supplier IT services 2010 21.615,96 EUR Contract with the supplier Missions 2010 14.146,76 EUR Budget execution table Removal expenses 2010 15.444,51 EUR Contract with the supplier Translations of project proposals 28.272,71 EUR Average cost/ translation Staff transport reimbursement 2010 7.343,95 EUR Claimed requests by staff Trainings 2010 2.787,50 EUR Budget execution table Interim staff Oct 2010 1.029,00 EUR Budget execution table


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Bank fees 30,25 EUR Pre-information letter Others 73,43 EUR Budget execution tables Total accruals with non-consolidated entities: 221.344,06 EUR Accruals for staff expenses: The Agency accrued charges for the amount of 139.765,37 EUR for 792 days of untaken annual leave of the staff for 2010. These days will be used by staff in 2011. The amount is calculated on the basis of the average pay per day for each grade. Two staff members started work in mid-December 2010 and received their salaries in January 2011. An accrual for the worked time in 2010 for the amount of 4.014,65 EUR was booked. As a result of the 2010 annual appraisal exercise some staff members were reclassified to a higher grade as of 1 January 2010. The adaptation of their salaries equals to 18.633,37 EUR and will be paid in 2011. The amount was accrued as an expense in 2010. The annual indexation of the staff remuneration is 0.10% for year 2010 and takes effect from 1 July 2010. The total amount equals to 30.221,03 EUR and will also be paid in 2011. The amount was accrued as an expense in 2010. The delay of the payment to staff of the 1.85% indexation for 2009 generated an interest for late payments for the amount of 2.917,86 EUR. It was accrued as an expense in 2010 and will be paid to staff in 2011. Total accruals for staff expenses: 195.552,28 EUR 5.2.4.1.5. Accrued charges with consolidated entities This amount represents goods and services received in 2010 but not yet booked as a supplier’s payable on 31 December 2010. The accruals are based on the Service Level Agreements signed with Commission Directorates or other EU bodies. Accruals:

Estimation source:

DG HR and Security 204.837,25 EUR budget execution tables PMO (Pay Master Office) 5.305,95 EUR budget execution table DG OIB 54.259,74 EUR budget execution tables DG OPOCE 439,06 EUR budget execution table Total accrued expenses 264.842,00 EUR 5.2.4.1.6. Pre-financing received from the European Commission The item is for the amount of 482.074,11 EUR and represents the balance of the budgetary outturn account at the end of 2010. This amount should be reimbursed to the Commission. For more details please refer to Part II: Reports on budget implementation.


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5.2.1.4.7. Other accounts payable against consolidated entities

Item Amount DG OIB - services invoiced and not paid at the end of the year 181.430,06

DG HR - services invoiced and not paid at the end of the year 33.307,00

Interest earned on the Agency’s bank account 32.510,18

Total 247.247,24

The interest will be reimbursed to the Commission in accordance with the provisions set out in the Agency’s Act of Delegation. 5.2.5. Net assets The net assets amount to 1.446.757,87 EUR and comprise the economic result of previous years and the economic result of the current year. The economic result of the year is different from the budgetary result due the differences between the general accounts and the budgetary accounts. Additional information concerning the reconciliation between both accounts is provided in Part II: Reports on budget implementation. 5.2.6. Contingent assets/liabilities

Contingent Liabilites 31.12.2010 31.12.2009 Security work 134. 854,50 0 TOTAL 134. 854,50 0,00

There are no contingent assets to disclose for the year ended 31 December 2010. The Agency registered a contingent liability for the amount of 134.854,50 EUR based on the Amendment 1 from 4 November 2010 of the contractual agreement with AG Insurance SA (Belgium). The amendment settles the conditions for the security work in the Agency's premises. This work has to be executed in the first quarter of 2011 and paid within one month after completion. 5.2.7. Commitments for future funding

Commitments for future fundings 31.12.2010 31.12.2009

RAL - Commitments against appropriations not yet consumed

935.041,59 719.776,94

Operating lease 3 451.921,20 110.698,91


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Contractual commitments (for which budget commitments have not yet been made)

9.508,00 12.293,13

TOTAL 4.396.470,79 842.768,98 Commitments for future funding are off balance sheet obligations arising from obligations contracted by the Agency in 2010 concerning goods and services to be rendered after the closure date. RAL-Commitments against appropriations not yet consumed are estimated as a difference between the provisional commitments carried over to 2011 (1.421.227,65 EUR) and the accrued charges (staff expenses excluded) booked in 2010 (486.186,06 EUR). The operating lease represents the charges due for the rent of the office premises till the end of the contract on 31 December 2015. Contractual commitments (for which budget commitments have not yet been made) represent the amount resulting from long-term contracts for the maintenance of the Agency's photocopiers. 5.2.8. Post balance sheet events No significant post balance sheet events occurred between 31 December 2010 and the preparation of the final annual accounts.


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5.3. Notes to the Economic Outturn Account 5.3.1. Revenue 5.3.1.1. Recovery of expenses from previous years The item is for the amount of 94.790,44 EUR and comprises the recovery of expenses for services delivered by the European Commission and external suppliers in 2009, for which credit notes for partial decrease of the expenses were received in 2010. 5.3.1.2. Other operating revenues

Item Amount Subsidy received in 2010 in order to cover the administrative autonomy of TEN-T EA 9.311.925,89

Exchange rate gains 828,86

Total 9.312.754,75

5.3.2. Expenditure 5.3.2.1. Staff expenditure Staff expenditure includes total gross salaries and allowances, social and pension contributions and the provision for untaken holidays. The total expenditure for 2011 is for the amount of 5.818.724,38 EUR. 5.3.2.2. Fixed assets related expenses The item is for the amount of 51.649,16 EUR and comprises the depreciation and the amortisation of the long-term assets in possession of the Agency, and the loss from the disposal of an asset during the year. 5.3.2.3. Other administrative expenses

Item Amount Expenses related to the office premises 664.114,34 Office supplies and maintenance 265.432,95 Communication and publication expenses 7.574,87 Recruitment costs 8.977,61 Missions of staff 111.537,97 Training costs 35.831,02 Experts and related expenditure 244.738,85 IT external service providers 106.695,22 IT internal developments (see table below) 28.497,97 Other external service providers (see table below) 284.104,43


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Building expenses with consolidated entities 243.188,07 Other expenses with consolidated entities (see table below) 736.182,00

Total 2.736.875,30

IT developments The Agency employs two staff members who work on internal IT developments for the needs of both the operational and the administrative budget. The time spent in each development is recorded in time sheets and used to estimate its value. Developments for systems owned by DG MOVE are recorded as expenses for the period. A threshold of 65.000 EUR is applied for development of software owned by the Agency. Software with value above the threshold is recorded in the inventory as an intangible asset. Developments for lower value are booked as expenses for the period. During 2010 the Agency did not use external service providers for IT development.

IT development System owner Amount ASR 2010 Tool DG MOVE 1.344,27

TENtec evaluation module DG MOVE 12.003,90 TENtec project follow up module DG MOVE 5.468,47 Action follow up tool TEN-T EA 9.681,33

Total 28.497,97

Other external service providers

Item Amount Translation costs 55.442,13 Removal expenses 19.169,04 Interim staff 88.479,76 Audits by external contractors 95.221,64 Establishment of electronic archives 17.500,00 Security services 144,68 Representation and events expenses 8.147,18

Total 284.104,43


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Other expenses with consolidated entities

Item Amount Security services 143.588,69

PMO and staff related services 63.252,09 Training 99.580,46 Missions 5.558,29 Office maintenance and supplies 26.578,89 Translation 29.813,75 Medical services for staff 33.838,26 IT related services 289.305,00 Archiving services 11.426,91 Communication and publications 1.123,66 Interpretation expenses 32.116,00

Total 736.182,00

5.3.2.4. Operational expenses The item is for 2.023,19 EUR and shows the exchange rate losses during the year. 5.3.3. Financial expenses

Item Amount Accrued interest for the late payment of the 2009 salary indexation of 1,85% 2.917,86

Interest for 2010 according to the repayment plan of the contract for the office renovation works

9.751,67

Bank charges 96,02

Total 12.765,55


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PART II. REPORTS ON BUDGET IMPLEMENTATION 2010

6. BUDGET IMPLEMENTATION 2010 The TEN-T EA has an operating budget governed by Commission Regulation N°1653/2004. According to Article 15 of Regulation EC N°58/2003, the operating budget covers exclusively the administrative expenditure for the financial year. The 2010 subsidy was transferred to the Agency in three instalments. The budget consists of non-differentiated appropriations. Revenue The administrative budget of the TEN-T EA was adopted by the Steering Committee and amounts to 9.794,000 EUR. The Agency presented three amended budgets to its Steering Committee for approval in 2010.

The first one, presented on 29 June 2010, reallocated 219.000 EUR from salaries, because of a lower than expected average number of staff, mainly due to the costs of the new building.

The second amended budget was presented on 22 September 2010; it involved savings on the renegotiation of the SLA with OIB for 65.000 EUR, used to compensate the new policy on the reimbursement of transportation costs to employees. In addition, a further decrease in salaries of 96.000 EUR was proposed, due to a higher than expected turnover. It was used to reinforce the budget for external evaluation for 2010 Calls for Proposals, taking into account the higher than expected number of proposals received.

The third and last amended budget, presented at the Steering Committee meeting on 8 December 2010, proposed that savings achieved of 394.400 € were used to accelerate the reimbursement of work in the new premises. This involved notably savings on salaries (198.000 EUR), mission expenses (19.000 EUR), training (40.000 EUR), equipment, furniture and removal expenditures (41.000 EUR), evaluation for 2010 Calls for Proposals (47.000 EUR), and meetings of experts (23.000 EUR). For more information about the budget amendments and transfers between budget lines refer to p.27. During the year, the Agency received other revenue for the amount of 94.790,44 EUR. The amount consists of recovery orders established for recovery of expenses from 2009 for services provided by the Commission and external suppliers. Expenditure The Agency’s administrative budget appropriations for 2010 were committed to 99,8% by the end of the year (refer to table on p.29). Payment appropriations for the amount of 1.421.227,65 EUR were carried over to 2011 as they correspond to legal commitments contracted in 2010 but not yet paid on 31 December 2010 (refer to table on p.34). Apart from the adopted budget appropriations (type C1), payment appropriations were carried over from 2009 (type C8). The appropriations amounted to 1.184.208,46 EUR; in 2010 the Agency paid 815.658,72 EUR which accounted to a 68,88% execution rate (refer to table on p.33). The unused amount of 368.549,74 EUR will be paid back to the Commission.


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Budgetary outturn The budgetary outturn table on p.35 details the budget revenue and the budget expenditure for 2010 and presents a calculation of the amount of the unused subsidy 2010 which will be reimbursed to the European Commission. For the purposes of calculating the budget outturn for the year, expenditure comprises payments made against the year's appropriations for payments plus any of the appropriations for that year that are carried over to the following year.

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STATEMENT OF COMPARISON BETWEEN THE INITIAL AND THE FINAL BUDGET OF THE TEN-T EA Budget

Line Budget line description Initial Budget

Transfers within the same chapter

Transfers due to

amend-ments

1st Budget Amend-

ment

Transfers within the

same chapter

Transfers due to

amend-ments

2nd Budget Amend-

ment


same chapter

Transfers due to

amend-ments

3rd Budget Amend-

ment


same chapter

Final Budget

A01100 Temporary Agents - Basic salary

2.464.000 - (15.000)

2.449.000 - (41.000) 2.408.000

(12.000)

2.396.000

(5.000)

2.391.000

A01101

Temporary Agents - Allowances and other charges

801.000 - (41.360)

759.640 - (11.000) 748.640

(47.000) 701.640

-

701.640

A01110 Contract Agents - Basic salary

2.391.000 - (104.000)

2.287.000 - (105.000) 2.182.000

(39.000) 2.143.000

-

2.143.000

A01111

Contract Agents - Allowances and other charges

751.000 - (75.640)

675.360 - 61.000 736.360

(100.000)

636.360

5.000

641.360

A01200 Sundries of recruitment of the personnel

10.500 - 5.000

15.500 - - 15.500

(2.500) 13.000

- 13.000

A01201 Expenses of installation of the rights

17.000 - (5.000) 12.000 - - 12.000

-

- 12.000

-

12.000

A01300 Expenses of missions - Personnel of the Agency

150.000 - - 150.000 - - 150.000

-

(19.000) 131.000

-

131.000

A01400 Medical service

36.500 - - 36.500 - - 36.500

-

- 36.500

-

36.500

A01410 Training and language courses

163.500 -

16.000 179.500 - (2.000) 177.500

-

(40.500)

137.000

(24.250)

112.750

A01420

Other social exp, restaurants and assist. to Staff

30.000 -

1.000 31.000 - 2.000 33.000

-

- 33.000

24.250 57.250

A01700 Representation expenses and Events

10.000 - - 10.000 - - 10.000

-

(5.000) 5.000

-

5.000

TITLE I

6.824.500 0

(219.000) 6.605.500 0 (96.000) 6.509.500

0

(265.000) 6.244.500

0

6.244.500

A02000 Rent

655.000 -

(113.000) 542.000 - (135.000) 407.000

134.855

977.238 1.519.093

-

1.519.093

A02090 Other Charges for the Building

1.004.000 - 324.500 1.328.500 - 143.500 1.472.000

(134.855)

(582.838)

754.307

- 754.307

A02100 IT equipment (hardware) and maintenance

55.000 -

(5.000) 50.000 - - 50.000

-

2.000 52.000

-

52.000

A02101

Purchase & dev. of software, Off. auto, IT helpdesk

75.000 -

(19.000) 56.000 - - 56.000

-

(3.000) 53.000

-

53.000

A02102 Other external services for data processing

80.000 -

(40.000) 40.000

(4.305) (27.500) 8.195

-

(7.795) 400

- 400


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A02103 Management expenditures and other IT expenses

280.000 -

5.000 285.000

4.305 - 289.305

-

95 289.400

-

289.400

A02200 First equipment in material and installations

7.000 - - 7.000 - - 7.000

-

(7.000) 0

0

A02210 Equipment purchase in furniture

35.000 - - 35.000 - 70.000 105.000

-

(10.000) 95.000

(17.750) 77.250

A02212 Maintenance, use and repair of furniture

8.000 - - 8.000

(1.500) (500) 6.000

-

- 6.000

-

6.000

A02250 Archives and subscriptions 0 16.000 16.000 1.500 500 18.000

-

- 18.000

17.750 35.750

A02300 Paper mill and office supplies

35.000 - - 35.000 - (14.000) 21.000

-

500

21.500

-

21.500

A02320 Bank charges and Other financial expenses

1.000 - - 1.000 - - 1.000

-

(500) 500

- 500

A02350 Various insurances

2.500 - - 2.500 - 2.500 5.000

5.500

(2.700) 7.800

-

7.800

A02352 Handling and removal services

50.000 - - 50.000 - - 50.000

(5.500)

(21.200) 23.300

-

23.300

A02400 Correspondence stamping and carriage costs

36.000 - - 36.000 -

(21.000) 15.000

-

- 15.000

-

15.000

A02410 Royalties of telecommunications

14.000 -

(9.000) 5.000 - - 5.000

-

- 5.000

- 5.000

TITLE II

2.337.500 0 159.500

2.497.000

0 18.500 2.515.500

0

344.800

2.860.300

0

2.860.300

A03100 Meetings of experts, Conferences and Seminars

25.000 - - 25.000 - - 25.000

-

(23.000) 2.000

-

2.000

A03200 Information and Publications

70.000 -

7.000 77.000 - - 77.000

-

- 77.000

-

77.000

A03201 Expenses of translation

60.000 - - 60.000 - (25.000) 35.000

-

(5.000) 30.000

- 30.000

A03301 Various outside services

97.000 57.500 35.000 189.500

(13.885) 7.500 183.115

-

(4.597) 178.518

-

178.518

A03302 External audits

180.000

(57.500)

(22.500) 100.000

(400) - 99.600

-

- 99.600

-

99.600

A03303 Expenditure for the common platform of evaluation

200.000 -

40.000 240.000

14.285 95.000 349.285

-

(47.203) 302.082

-

302.082

TITLE III 632.000

0

59.500

691.500

0 77.500 769.000

0

(79.799) 689.200

0

689.201

TOTAL BUDGET

9.794.000

0 0

9.794.000 0 0

9.794.000 0

0

9.794.000

0

9.794.000


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EXECUTION OF THE 2010 ADMINISTRATIVE BUDGET

Only C1 appropriations have been taken into account

Budget line Name of the budget line The 2010

Administrative Budget

Execution in Commitments (*)

% of execution Execution in

Payments % of

execution

Title, Chapter, Article

and Item Description

As adopted by the Steering Committee

(08/12/2010) Total committed

appropriations

…in the TEN-T EA's

budget structure

Total paid appropriations

…in the TEN-T EA's

budget structure

TOTAL of the ADMINISTRATIVE EXPENDITURES 9.794.000,00 9.774.071,72 99,80% 8.352.844,07 85,46%

Title 1 STAFF EXPENDITURES 6.244.500,00 6.225.771,72 99,70% 6.018.424,69 96,67%

Chapter 11 Salaries and allowances 5.877.000,00 5.860.271,72 99,72% 5.816.348,55 99,25%

Article 110 Staff occupying an employment in the establishment plan 3.092.640,00 3.082.444,19 99,67% 3.074.100,80 99,73%

Item 1100 Temporary Agents - Basic salary 2.391.000,00 2.381.839,47 99,62% 2.381.839,47 100,00%

Item 1101 Temporary Agents - Allowances and other charges 701.640,00 700.604,72 99,85% 692.261,33 98,81%

Article 111 Contract Agents 2.784.360,00 2.777.827,53 99,77% 2.742.247,75 98,72%

Item 1110 Contract Agents - Basic salary 2.143.000,00 2.137.552,52 99,75% 2.137.552,52 100,00%

Item 1111 Contract Agents - Allowances and other charges 641.360,00 640.275,01 99,83% 604.695,23 94,44%

Chapter 12 Sundries of recruitment and change of personnel 25.000,00 25.000,00 100,00% 17.794,09 71,18%

Article 120 Sundries of recruitment and change of personnel 25.000,00 25.000,00 100,00% 17.794,09 71,18%

Item 1200 Sundries of recruitment of the personnel 13.000,00 13.000,00 100,00% 7.673,83 59,03%


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Item 1201 Expenses of installation of the rights 12.000,00 12.000,00 100,00% 10.120,26 84,34%

Chapter 13 Expenses of missions 131.000,00 131.000,00 100,00% 93.740,26 71,56% Item 1300 Expenses of missions - Personnel of the Agency 131.000,00 131.000,00 100,00% 93.740,26 71,56%

Expenses of missions - T.0 Services 15.000,00 15.000,00 100,00% 0,00%

Expenses of missions - T.1 Unit 7.500,00 7.500,00 100,00% 0,00%




Chapter 14 Socio, infrastructure and training 206.500,00 206.500,00 100,00% 87.770,27 42,50% 0,00 Item 1400 Medical service 36.500,00 36.500,00 100,00% 5.698,07 15,61%

Item 1410 Training and language courses 137.000,00 137.000,00 100,00% 82.027,20 59,87%

Item 1420 Other Social Expenses, restaurants and assistance to staff 33.000,00 33.000,00 100,00% 45,00 0,14%

0,00

Chapter 17 Representation expenses and Events 5.000,00 3.000,00 60,00% 2.771,52 92,38% Item 1700 Representation expenses and Events 5.000,00 3.000,00 60,00% 2.771,52 92,38%

Title 2 INFRASTRUCTURE AND OPERATING EXPENDITURES 2.860.299,68 2.859.099,68 99,96% 1.889.132,57 66,07%

Chapter 20 Offices 2.273.400,00 2.273.400,00 100,00% 1.546.163,57 68,01% Item 2000 Rent 1.519.093,00 1.519.093,00 100,00% 1.384.238,18 91,12%

Item 2090 Charges of Rent 754.307,00 754.307,00 100,00% 161.925,39 21,47%

Chapter 21 Computer equipment purchase and maintenance 394.799,68 394.399,68 99,90% 336.277,46 85,26%

Article 210 Computer and IT purchase 394.799,68 394.399,68 99,90% 336.277,46 85,26%

Item 2100 IT equipment (hardware) and maintenance 51.999,68 51.999,68 100,00% 14.305,96 27,51%

Item 2101 Purchase and development of software, Office automation, IT Helpdesk and Provisions of services 53.000,00 53.000,00 100,00% 32.666,50 61,63%


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Item 2102 Other external services for the data processing 400,00 0,00 0,00% 0,00 0,00%

Item 2103 Management expenditures and other IT expenses 289.400,00 289.400,00 100,00% 289.305,00 99,97%

Chapter 22 Goods, pieces of furniture and incidental expenses 119.000,00 118.500,00 99,58% 3.685,73 3,11%

Article 220 Material and Technical installations 0,00 0,00 0,00% 0,00 0,00%

Item 2200 First equipment in material and installation 0,00 0,00 0,00% 0,00 0,00%

Item 2201 Renewal of material and installation

0,00 0,00 0,00% 0,00 0,00%

Item 2202 Hiring and leasing of material and installation 0,00 0,00 0,00% 0,00 0,00%

Item 2203 Maintenance, use and repairs of material 0,00 0,00 0,00% 0,00 0,00%

Item 2204 Office automation material 0,00 0,00 0,00% 0,00 0,00%

Article 221 Furniture 101.000,00 101.000,00 100,00% 1.173,89 1,16%

Item 2210 Equipment purchase in furniture 95.000,00 95.000,00 100,00% 1.173,89 1,24%

Item 2211 Hiring and leasing of furniture 0,00 0,00 0,00% 0,00 0,00%

Item 2212 Maintenance, use and repair of furniture 6.000,00 6.000,00 100,00% 0,00 0,00%

Article 225 Documentation and library 18.000,00 17.500,00 97,22% 2.511,84 14,35%

Item 2250 Library and archives expenses and subscriptions 18.000,00 17.500,00 97,22% 2.511,84 14,35%

Chapter 23 Administrative running expenditures 53.100,00 52.800,00 99,44% 1.647,43 3,12% Article 230 Paper mill and office supplies 21.500,00 21.500,00 100,00% 0,00 0,00%

Item 2300 Paper mill and office supplies 21.500,00 21.500,00 100,00% 0,00 0,00%

Article 232 Financial expenses 500,00 500,00 100,00% 0,00 0,00%

Item 2320 Bank charges and other financial expenses 500,00 500,00 100,00% 0,00 0,00%

Article 233 Legal charges 0,00 0,00 0,00% 0,00 0,00%

Item 2330 Legal charges 0,00 0,00 0,00% 0,00 0,00%

Item 2331 Damages 0,00 0,00 0,00% 0,00 0,00%

Article 235 Other administrative expenditures 31.100,00 30.800,00 99,04% 1.647,43 5,35%

Item 2350 Various insurances 7.800,00 7.800,00 100,00% 1.647,43 21,12%

Item 2351 Sundries of internal meetings 0,00 0,00 0,00% 0,00 0,00%

Item 2352 Handling and removal services 23.300,00 23.000,00 98,71% 0,00 0,00%


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Chapter 24 Telecommunication and Expenses of posting 20.000,00 20.000,00 100,00% 1.358,38 6,79%

Item 2400 Correspondence stamping and carriage costs 15.000,00 15.000,00 100,00% 0,00 0,00%

Item 2410 Royalties of telecommunications 5.000,00 5.000,00 100,00% 1.358,38 27,17%

Title 3 TECHNICAL AND ADMINISTRATIVE SUPPORT EXPENDITURES 689.200,32 689.200,32 100,00% 445.286,81 64,61%

Chapter 31 Meetings of experts, Conferences and Seminars 2.000,00 2.000,00 100,00% 750,32 37,52%

Item 3100 Meetings of experts, Conferences and Seminars 2.000,00 2.000,00 100,00% 750,32 37,52%

Chapter 32 Information and Publications 107.000,00 107.000,00 100,00% 58.680,43 54,84% Item 3200 Information and Publications 77.000,00 77.000,00 100,00% 28.866,68 37,49%

Item 3201 Translation 30.000,00 30.000,00 100,00% 29.813,75 99,38%

Chapter 33 Other technical expenses and of administrative support 580.200,32 580.200,32 100,00% 385.856,06 66,50%

Item 3300 Studies 0,00 0,00 0,00% 0,00 0,00%

Item 3301 Various outside services 178.518,04 178.518,04 100,00% 123.896,49 69,40%

Item 3302 External audits 99.600,00 99.600,00 100,00% 0,00 0,00%

Item 3303 Expenditure for the common platform of evaluation of projects 302.082,28 302.082,28 100,00% 261.959,57 86,72%

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Page 33 of 42

Payment appropriations carried over from 2009 to 2010

FDI Commitment User Reference Fund Source

Open Amount : RAL

(type C8 in 2010) Payments

(type C8 in 2010)

31/12/2009 SALARIES AND ALLOWANCES 2009 C1 141.535,50 n.a.

31/12/2010 SLA MEDICAL SERVICES 2009 C1 25.073,90 18.499,59

31/12/2010 SLA ADMIN & EAS FOR TRAINING 2009 C1 39.981,69 28.706,50

31/12/2010 RECRUITMENT COSTS 2009 C1 1.942,19 1.437,50

31/12/2010 TEAM BUILDING AND WORKSHOP AWAY DAY 2009 C1 3.579,99 0

31/12/2010 REPRESENTATION EXPENSES 2009 C1 2.192,54 215,91

31/12/2010 MISSIONS 2009 C1 70.138,56 36.352,98

31/12/2010 RENT OF THE BUILDING 2009 C1 1.000,00 0

31/12/2010 IT EQUIPMENT (HARDWARE) AND MAINTENANCE 2009 C1 30.488,86 28.665,63

31/12/2010 FIRST EQUIPMENT INSTALLATION AND INVENTORY 2009 C1 3.000,00 0

31/12/2010 PAPER MILL AND OFFICE SUPPLIES 2009 C1 21.970,44 15.995,11

31/12/2010 TELECOM AND POSTING 2009 C1 22.095,60 18.552,36

31/12/2010 INFORMATION AND PUBLICATIONS 2009 C1 47.217,93 37.242,94

31/12/2010 INTERIMAIRES 2009 C1 12.911,19 10.899,53

31/12/2010 SLA BUDG FOR ABAC WF AND ASSETS 2009 C1 70.000,00 0

31/12/2010 SLA DIGIT 2009 C1 1.287,00 0

31/12/2010 SLA OIB 2009 C1 249.292,01 222.157,11

31/12/2010 C.P.E. AND SCHOOL BUSES 2009 C1 23.612,60 444,00

31/12/2010 SLA PMO 2009 C1 10.313,16 7.267,34

31/12/2010 SLA DS 2009 C1 14.672,00 121,88

31/12/2010 EQUIPMENT PURCHASE IN FURNITURE AND MAINTENANCE 2009 C1 26.197,97 4.989,60

31/12/2010 IT SOFTWARE 2009 C1 17.624,70 12.196,00

31/12/2010 TRANSLATION 2009 C1 2.890,00 1.870,00

31/12/2010 BUILDING EVALUATION BY OIB 2009 C1 16.000,00 11.310,00

31/12/2010 FINANCIAL AND BANK EXPENSES 2009 C1 469,75 30,25

31/12/2010 EXTERNAL AUDIT 2009 C1 90.000,00 86.704,25

31/12/2010 SPECIFIC CONTRACT N°103 UNDER FRAMEWORK CONTRACT N° DI/05850 (SERCO)- 2009

C1 18.697,35 18.341,21

31/12/2010 ITS EVALUATION 2009 C1 12.500,00 0

31/12/2010 PURCHASE OF FURNITURE CTR-091215 -TEA.187/ 1- DROMEAS C1 203.849,03 203.849,03

31/12/2010 MICROSOFT CONSULTANCY 2009- CTR-091217-TEA.196/1- BASED ON FC 5950 C1 134.400,00 39.000,00

31/12/2010 MOORE STEPHENS CONTRACT N° CTR-081223-102-D(2008) - AUDIT 2006-EU-4005-A-S C1 10.810,00 10.810,00

1.325.743,96 815.658,72

01.01.2010 DECOMMITMENT SALARIES AND ALLOWANCES 2009 C9 -141 535,50

01.01.2010 PAYMENT APPROPRIATIONS CARRIED OVER TO 2010 C8 1.184.208,46

31.12.2010 UNUSED PAYMENT APPROPRIATIONS TO BE REIMBURSED TO THE COMMISSION

C8 368.549,74


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Payment appropriations carried over from 2010 to 2011

FDI Commitment User Reference Fund Source

Open Amount: RAL

(type C8 in 2011)

31/12/2011 MISSIONS 2010 C1 31.259,74

31/12/2011 C.P.E. AND SCHOOL BUSES 2010 C1 39.055,00

31/12/2011 CHARGES AND TAXES FOR THE BUILDING 2010 C1 40.751,88

31/12/2011 EQUIPMENT PURCHASE IN FURNITURE AND MAINTENANCE 2010 C1 99.826,11

31/12/2011 FINANCIAL AND BANK EXPENSES 2010 C1 500,00

31/12/2011 INFORMATION AND PUBLICATIONS 2010 C1 48.133,32

31/12/2011 INTERIMAIRES 2010 C1 10.189,79

31/12/2011 IT EQUIPMENT (HARDWARE) AND MAINTENANCE 2010 C1 37.693,72

31/12/2011 CHARGES AND TAXES FOR THE BUILDING ROLIN - 2010 C1 173.842,00

31/12/2011 PAPER MILL AND OFFICE SUPPLIES 2010 C1 21.500,00

31/12/2011 RECRUITMENT COSTS 2010 C1 4.826,17

31/12/2011 REPRESENTATION EXPENSES 2010 C1 228,48

31/12/2011 SLA ADMIN & EAS FOR TRAINING AND EXTERNAL TRAINING 2010 C1 52.731,91

31/12/2011 SLA DIGIT 2010 C1 95,00

31/12/2011 SLA DS 2010 C1 125.000,00

31/12/2011 SLA MEDICAL SERVICES 2010 C1 31.301,93

31/12/2011 SLA OIB 2010 C1 195.600,57

31/12/2011 SLA PMO 2010 C1 12.747,91

31/12/2011 TEAM BUILDING & WORKSHOP AWAY DAY 2010 C1 2.240,89

31/12/2011 TELECOM AND POSTING 2010 C1 18.641,62

31/12/2011 TRANSLATION 2010 C1 186,25

31/12/2011 IT SOFTWARE 2010 C1 20.333,50

31/12/2011 INSURANCE MARSH 2010 C1 52,00

31/12/2011 MEETINGS OF EXPERTS 2010 C1 1.249,68

31/12/2011 SPECIFIC CONTRACT N°120 UNDER FRAMEWORK CONTRACT N° DI/05850 (SERCO)- 2010 C1 26.931,76

31/12/2011 CTR-100219- TEA.220/1 UNDER FC NO 30-CE-0135779/00-80 - MOORE STEPHENS C1 99.600,00

31/12/2011 SCANNING TENT PROJECT FILES - DANSK SCANNING A/S 2010 C1 17.500,00

31/12/2011 WORKS FOR BUILDING ROLIN -INSTALMENT 2010 + SINGLE RENT FOR SECURITY WORKS

C1 134.854,82

31/12/2011 SUBSCRIPTIONS 2010 C1 988,16

31/12/2011 SOCIAL EXPENSES 2010 C1 1.955,00

31/12/2011 INSTALLATION IN THE ROLIN BUILDING - WORK PROVIDED BY COMMISSION SERVICES

C1 35.300,73

31/12/2011 AMENDMENT N°2 TO THE SLA WITH OIB FOR TECHNICAL ASSISTANCE FOR THE BUILDING 2010

C1 39.000,00

31/12/2011 INSTALLATION OF MAIL CAGE IN ROLIN BUILDING 2010 C1 1.487,00

31/12/2011 EVALUATION FOR THE 2010 MOS AND RIS ANNUAL CALL FOR PROPOSALS

C1 28.272,71

31/12/2011 REMOVAL EXPENSES TO ROLIN -2010 C1 23.000,00

31/12/2011 ASSESSMENT ON TEN-T PROGRAMME 2010 C1 11.850,00

31/12/2011 INSURANCES SERVICES FOR TENEA EQUIPMENT (FURNITURE + IT)

C1 5.500,00

31/12/2011 REIMBURSEMENT OF PUBLIC TRANSPORT COSTS 2010 C1 27.000,00

PAYMENT APPROPRIATIONS CARRIED OVER TO 2011 C8 1.421.227,65


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BUDGET OUTTURN ACCOUNT FOR THE FINANCIAL YEAR 2010 2010 2009 REVENUE Commission subsidy (for the operating budget -Titles 1,2 and 3 - of the agency) 9.794.000,00 8.855.000,00 Other contributions and funding received via the Commission 0 0 Other donors 0 0 Fee income 0 0 Other revenue 94.790,44 10.445,71

TOTAL REVENUE (a) 9.888.790,44 8.865.445,71 EXPENDITURE Title I:Staff Payments 6.018.424,69 5.143.829,87 Appropriations carried over 207.347,03 203.834,63 Title II: Administrative Expenses Payments 1.889.132,57 1.051.015,78 Appropriations carried over 969.967,11 769.347,36 Title III: Operating Expenditure Payments 445.286,81 526.622,04 Appropriations carried over 243.913,51 211.026,47

TOTAL EXPENDITURE (b) 9.774.071,72 7.905.676,15 OUTTURN FOR THE FINANCIAL YEAR (a-b) 114.718,72 959.769,56

Cancellation of unused payment appropriations carried over from previous year 368.549,74 222.902,99 Adjustment for carry-over from the previous year of appropriations available at 31.12 arising from assigned revenue 0 0 Exchange differences for the year (gain +/loss -) -1.194,35 -713,05 482.074,11 1.181.959,50

Result used for determining amounts in general accounting 482.074,11 1.181.959,50 Commission subsidy – the Agency registers accrued revenue and the Commission accrued expense 9.311.925,89 7.673040,50

Pre-financing remaining open to be reimbursed by the Agency to Commission in year 2011 482.074,11 1.181.959,50

Not included in the budget outturn: Interest generated by 31/12/2010 on the Commission subsidy funds and to be reimbursed to the Commission

32.510,18

28.560,19


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7. RECONCILIATION OF THE 2010 BUDGET OUTTURN WITH THE 2010 ECONOMIC OUTTURN

The economic outturn for the year presented on page 8 is calculated on the basis of accrual accounting principles. The budget outturn is however based on modified cash accounting rules, in accordance with the Financial Regulation. As both are the result of the same underlying transactions, it is a useful control to ensure that they are reconcilable. The table below shows this reconciliation, highlighting the key reconciling amounts, split between revenue and expenditure items. EUR Economic result 785.507,61 Adjustment for accrual items (items not in the budgetary result but included in the economic result) Adjustments for Accrual Cut-off (reversal 31.12.2009 ) (558.095,25) Adjustments for Accrual Cut-off (cut- off 31.12.2010) 681.738,34 Unpaid invoices at year end but booked in charges (class 6) 349.961,65 Depreciation of intangible and tangible fixed assets 51.307,16 Provisions Value reductions Recovery Orders issued in 2010 in class 7 and not yet cashed (99,01) Pre-financing given in previous year and cleared in the year 13.201,84 Pre-financing received in previous year and cleared in the year (44.628,89) Payments made from carry over of payment appropriations 815.658,72 Other (loss from disposal of an asset) 341,98 Adjustment for budgetary items (item included in the budgetary result but not in the economic result) Asset acquisitions (less unpaid amounts) (87.247,57) Charges paid in 2010 and deferred to the following years (909.917,75) New pre-financing received in the year 2010 and remaining open as at 31.12.2010 482.074,11 Budgetary recovery orders issued before 2010 and cashed in the year Budgetary recovery orders issued in 2010 on balance sheet accounts (not 7 or 6 accounts) and cashed Capital payments on financial leasing (they are budgetary payments but not in the economic result) Payment appropriations carried over to 2011 (1.421.227,65) Cancellation of unused carried over payment appropriations from previous year 368.549,74 Adjustment for carry-over from the previous year of appropriations available at 31.12 arising from assigned revenue Other (payment of an amount reserved as a provision in 2009) (45.050,92) Total 482.074,11

Budgetary result (+ for surplus) 482.074,11 Delta not explained 0,00


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8. HUMAN RESOURCES OVERVIEW on 31 December 2010

Number of staff planned actual % Seconded officials and temporary agents 33 31 94 Contractual agents 66 62 94 Total 99 93 94 Activity planned actual % Director and directly attached staff 10 10 100

Unit T1 Resources 24 22 92 Unit T2 Project management of all road and rail projects 28 28 100 Unit T3 Project management of air and waterborne transport, logistics, Innovation and Co-modality projects 18 17 94 Unit T4 Technical and Financial Engineering, Geographical Information Systems, Evaluation and Monitoring 19 16 84 Total 99 93 94

By 31 December 2010, the Agency had 93 staff members in post. Of these, seven were seconded officials, 24 were temporary agents and 62 were contract agents.

Four further staff members will take up their duties in early 2011.


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9. LIST OF CONTRACTS IN FORCE IN 2010

Contract ID Contractor Amount

CTR-090511-TEA.202/3 Union Internationale des Chemins de Fer (France) 1.580,00

CTR-100525-TEA.202/4 Communicaid Group Ltd. (UK) 1.904,18

CTR-100714-TEA.202/5 ESRI BELUX NV (Belgium) 1.100,00

PO n°CTR-100916-TEA.202/6 Population and Social

Policy Consultants GCV (Belgium)

1.500,00

CTR-101014-TEA.202/7 Inframation Ltd. (UK) 1.329,77

CTR-100423-TEA.209/1 Golden Tulip Westduin VOF (The Netherlands) 15.495,03

CTR-100423-TEA.209/2 Capitale Cars SPRL (Belgium) 1.943,40

CTR-100428-TEA.209/3 Exploraid SA (Belgium) 4.900,00

CTR-100824-TEA.209/4 CROWN Plaza Brussels -Le Palace (Belgium) 1.439,68

CTR-100903-TEA.209/5 De Gentse Barge VZW (Belgium) 695,00

Away day T2 - 209/6 Le chemin de Fer du Bocq (Belgium) 1.287,50

CTR-101108-125 Need to lunch SPRL (Belgium) 337,66

OF_ 376 OR 10 03/59 - L3664802725 RICOH Belgium NV/SA 1.152,00 OF 237 (10-12/2008) or 10 03 ARCD -

L7973500054 RICOH Belgium NV/SA 816,00

OF 314 (2008) or 10 04 ARCC - L7982700281 RICOH Belgium NV/SA 816,00 OF_ 376 or 10 03 ARCD - M9483500013 RICOH Belgium NV/SA 816,00

CTR-100428-TEA.194/1 Cotubex SA (Belgium) 759,50 2010-10342 Systemat SA (Belgium) 1.266,86

2010-14908 (ref Abac Assets) Mobistar SA (Belgium) 190,08 2010-16434 (ABAC Assets) DELL NV (Belgium) 9.542,51

Order form n°2010-28958/beamer for big meeting room Civatel SPRL (Belgium) 1.341,17

Order form n°2010-28207 - batch scanner GETSYS Getronics Belgium SA 971,34

Order form n°2010-28811 high-end server + maintenance Systemat SA (Belgium) 22.706,03

Order form n°2010-28917 / 1 copy machine for 3rd floor ROLIN RICOH Belgium NV/SA 6.800,95

Order form n°2010-29301 / purhcase of 2 new high-end PCs (IT strategic plan)

Econocom Products & Solutions Benelux SA

(Belgium) 4.149,58

2010-11932 (Abac Assets) SAP Belgium SA 789,96

CTR-100601-TEA.212/1 FUJITSU SIEMENS (Belgium) 12.803,09

2010-13724 (ref Abac Assets ESRI BELUX NV (Belgium) 13.474,00

2010-12960 supplier ref /Abac Assets 2010-15093 SAP Belgium SA 8.844,00

2010-12960 supplier ref /Abac Assets 2010-15093 SAP Belgium SA 375,87


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2010-19776 (ref Abac Assets) PC-WARE Information Technologies

5.599,45

2010-22895 PC-WARE Information Technologies 1.556,16

Order form n°2010-29148 / B.O maintenance SAP Belgium SA 1.662,74 Order form n°2010-28747Provision ACAD

Maintenance 1 year from 01/01/2011 PC-WARE Information

Technologies 436,54

P.O n°2010-28167 (ref ABAC assets ) - 3 floating licenses Sparx systems

PC-WARE Information Technologies

605,55

Order form n°2010-28744 licenses TOAD Oracle pro /SQL server xpert

PC-WARE Information Technologies 3.559,92

CTR-100212-TEA.190/1 Buro Market NV (Belgium) 194,00

CTR-100219-TEA.190/2-200/1 NESPRESSO Belgilux SA (Belgium) 0,00

2010-22536 GISPEN SA (Belgium) 48.090,72 2010-23360 DROMEAS SA (Greece) 25.295,63

Ares(2010) 781420 transfert de mobilier DB DG OIB (European Commission) 6.210,47

Lyreco order (ashtray, etc.) based on catalogue price

DG OIB (European Commission) 3.463,65

CTR-101116-TEA.190/3 Verre et Couvert SPRL (Belgium) 910,87

190/4* New Vanden Borre NV (Belgium) 2.031,38

CTR-101112-TEA.190/2 NESPRESSO Belgilux SA (Belgium) 85,00

CTR-101215-TEA.190/3 SIP-WELL NV (Belgium) 502,45 BDC OIB n°KRINKELS/014/10/INT/OIB.RE.2

purchase of plants DG OIB (European

Commission) 3.209,08

BDC OIB n°KRINKELS/015/10/INT/OIB.RE.2 gardening services

DG OIB (European Commission) 499,32

Corbeilles toilettes (achat via OIB) note ARES(2010)973187

DG OIB (European Commission) 1.257,12

Lyreco order December 2010 DG OIB (European Commission) 1.004,56

CTR-100716-TEA.226/1

AMP Agence et Mesageries del a Presse

SA (Partner Press) (Belgium)

1.623,75

CTR-100802-TEA.226/2 Inframation Ltd. (UK) 1.213,10 CTR-101103-124 Agallis SA (Belgium) 5.040,44 CTR-101022-123 GISIS (Belgium) 15.000,00

CTR-101022-122 DM Transports/Terbeek (Belgium) 4.000,00

OF 725 RICOH Belgium NV/SA 720,76

Specific contract n°CTR-101213-232/1 DM Transports/Terbeek (Belgium) 647,59

CTR-100105-TEA.192/1 ESCAPE MULTIMEDIA (Belgium) 750,00

Purchase order n°TEA.192/3 - mugs and bags for launch event

Kick&Rush SPRL (Belgium) 2.391,78

Purchase order n°TEA.192/4 Jazz band for launch event D.V.D.L. (Belgium) 600,00

Purchase order n°TEA.192/6 - lighting Challenge Partners Sa (Belgium) 2.019,00


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Purchase order TEA.192/5 - flowers L'îlot fleuri SPRL (Belgium) 1.000,00

TEA.190/4 camera reflex digital New Vanden Borre NV (Belgium) 587,59

Contract through DG OPOCE with Dansk Scanning

Dansk Scanning (Denmark) 17.500,00

SPECIFIC CONTRACT N°120 UNDER FC N° DI/05850 (SERCO)- 2010 + amendments SERCO Belgium SA 70.517,00

Specific contract CTR-03_01_88-100219-TEA.220/1 Moore Stephens LLP (UK) 99.486,00

30-CE-0360132/00-84 Start People NV (Belgium) 102.602,43

Rent of the building ORBAN 2010 AG Insurance NV/Fortis (Belgium) 406.193,18

POLICE C10333 VAN BREDA international NV (Belgium) 429,37

Renting contract ROLIN building (only 2010 commitment, including works)

AG Insurance NV/Fortis (Belgium) 1.112.899,52

CTR-081120-101-441701 and amendments n°1 and 2

Web House APS (Denmark)

7.440,00

Service contract n°PMO2/PR/2008/005/N°lot1 AMEX Travel SA 58.454,48

The Agency also concluded Service Level Agreements with various European Commission Directorates for the delivery of goods and services.

SLA Subject Commission Directorate/service Amount

Services office Orban + services catering EUREST + services LYRECO + services archives DG OIB 243.704,80

Trainings and language courses DG HR 111.836,00

Security services for staff and office ORBAN DG HR 111.313,56

Pre-recruitment and annual medical visits, administrative services DG HR on request

Maintenance of ABAC Workflow DG BUDG 65.000,00

Delivery and maintenance of the computer network, mailbox, licence SMT, IT trainings DG DIGIT 224.305,00

Publications DG OPOCE on request

Translation and interpretation services DG SCIC on request

Calculation and support for remuneration, staff insurance, pensions, missions PMO 80.577,00

Trainings EAS on request


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PART III. REPORT ON BUDGETARY AND FINANCIAL MANAGEMENT 2010 10. LEGISLATIVE FRAMEWORK

The TEN-T EA’s 2010 financial statements and reports on budget implementation for 2010 were prepared in conformity with the legislation listed in the Introduction of the annual accounts (refer to p.4). TEN-T EA being fully consolidated in the Commission accounts, the 2010 TEN-T EA financial statements have been established by using the consolidation package provided by the European Commission. The accounting rules and regulations used in this report are adopted by the European Commission, are on an accrual basis and are compliant with the International Public Sector Accounting Standards (IPSAS). The assurance statement related to the 2010 accounts has been transmitted to the European Court of Auditors in a separate note. It includes no reservation to any of the listed points. According to the Act of Delegation of the Agency, for budgetary and financial management, the Commission’s 16 internal control standards apply. Since the first day of the Agency’s autonomy the Director has been the authorising officer for the administrative budget. The budget is financed by a grant awarded by the Communities. With regard to the implementation of the administrative budget, a special reporting procedure, resulting in the decision of the European Parliament about the discharge to the Director, applies. The TEN-T EA prepared the draft financial report with the provisional accounts and presented it to the Steering Committee on 23 February 2011. The Steering Committee approved the final accounts of the TEN-T EA on 22 June 2011. 11. ACCOUNTING SYSTEM

From the first day of its autonomy, the Agency has had an accounting officer who is appointed by the Steering Committee. The only bank account was opened in February 2008 under the same conditions as the Commission. Since the beginning of the administrative autonomy, all payments have been made through the Commission’s SWIFT system. The Agency has no petty cash. From 1 January 2010 to 31 December 2010, the Agency used the accounting system SAP which is managed and hosted by the Commission. For its budgetary management (i.e. commitment and payment transactions) the Agency uses the ABAC system managed and hosted by the Commission. From this system, reports on financial management and budget execution are assembled with the help of the database software BO (Business Object). In collaboration with DG DIGIT and DG BUDG, the Agency uses the ABAC Assets system to manage and account for its fixed assets. In 2011 the Agency continues to use the same budgetary management and accounting systems.


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The Accounting officer of the Agency validates the systems according to the requirement set in the financial regulation applicable for the executive agencies. The accounting team consists of the Accounting Officer and an Assistant Accountant who apply the "four eyes principle" for all processes with inherent risk. For processes where the tasks cannot be efficiently separated, such as the bank reconciliation and the incoming payments, additional control procedures are established. All accounting transactions introduced manually in SAP are recorded in a register and documented in a paper file. 12. FINANCIAL MANAGEMENT AND INTERNAL CONTROL SYSTEMS As of 15 April 2008, the Director is the authorising officer for the administrative budget. In order to assure continuity of operations, he delegated powers to two Heads of Unit to validate administrative payments. Therefore, these two Heads of Unit became authorising officers by delegation (AOD) for payments and signed a Charter according to the Commission’s Charter for AODs. The TEN-T EA has implemented a centralised organisational structure based on Commission designed Financial Circuit Model 2 "Partial decentralisation of financial transactions". According to the Model, the verification of financial aspects of a transaction must ensure that the operation is legal, regular and in due respect of the principle of sound financial management and that all related steps have been carried out correctly in conformity with the applicable regulatory requirements. The financial circuits in place are compliant with the "four eyes principle", meaning that the roles of initiation and verification are separated to ensure clearer accountability. All main financial procedures are documented in the Manual of Procedures and published on the intranet. The financial verification of all transactions is done by the Resources Unit and encompasses a financial ex-ante control of all financial transactions and an ex-ante legal control of all legal commitments. According to the Act of Delegation, the Agency reports regularly to both parent DG and the Steering Committee on the implementation of the administrative budget. With a view to establishing an effective and efficient internal control system, the Agency implements the 16 internal control standards of the Commission. For a comprehensive description of the Agency’s internal control system, please refer to the 2010 Annual Activity Report.

Documents

FINAL ANNUAL ACCOUNTS 2010 - European Commission