2007 discharge: European Medicines Agency EMEA

PURPOSE: to present the report by the Court of Auditors on the 2007 annual accounts of the European Medicines Agency (EMEA).

CONTENT: the Court of Auditor’s report includes a detailed section on the Agency’s expenditure and an analysis of the expenditure, as well as the Agency’s replies.

• Analysis of the accounts by the Court: in its report, the Court makes a number of observations, particularly with regard to carry-overs and cancellations of budget appropriations (which, in 2007, amounted to EUR 32 million and EUR 4 million respectively). As in 2006, the high level of carry-overs for administrative expenditure (EUR 189 million) was mainly due to the programme Telematics for the regulation of medical products. The Court calls on the Agency and the other parties involved in this programme to ensure better planning and monitoring of the implementation of the programme. The Agency should consider using the differentiated appropriations system for the Telematics programme which is more suitable for the budgetary management of such programmes. The Court also notes weaknesses in the tendering procedures. There were difficulties in evaluating the cost of the bids and there was a need to review the volumes and values of the services to be procured. The Court calls on the Agency to improve the quality of its public procurement procedures;
• The Agency’s replies: the Agency takes note of the Court’s observations in terms of difficulties in complying fully with the annuality principle when it comes to the implementation of Telematics programmes and in terms of financial management. It notes that it commits itself to make every effort to reduce the level of carry-overs and to consider the proposal of applying differentiated appropriations. It also notes that it has established a formula for the objective evaluation of price as an award criterion.