Brussels, 11/07/2006 (Agence Europe) - On 4 July, the European Commission adopted a progress report as at 31 March 2006 on modernising the accounting system within its departments. “The transition to a new accounting system in the European Commission has so far been successful,” it says in the report, which points out that on 1st January 2005, the Commission moved the general accounting of the EU from cash-based to accrual-based accounts, a system which has already given the European Commission greater day-to-day control over its finances. The accrual-based accounting system continued to be developed throughout 2005, and development and improvement will continue in 2006 and 2007 to include progressively the European Development Fund, Delegations, the Agencies and a single datawarehouse.
On 31 March 2006, Commission's accounting officer forwarded to the European Court of Auditors the first provisional accounts of the European Communities to be prepared in accordance with internationally accepted accounting standards. These accounts are the fruit of three years' intensive work. The report concludes that the Commission thus respected the deadlines set in the Financial Regulation for the preparation of financial statements.
The Commission acknowledges that the work is not complete. Although the transition from the former to the new system has gone well and comprehensive tests have been conducted, the verification work on local systems at the end of 2005 highlighted concerns on three systems where validation was not possible. Two of three - Europe Aid (DG AIDCO) and external relations (DG RELEX) - should be compliant by the end of the year. DC EAC will have to ensure that the present system can be improved in time of the closure of the 2006 financial year.
The report highlights the need to improve: - control of accounting information, the understanding of the choice of accounting codes and accountancy training. The Commission is addressing the issue of its lack of qualified accounting staff by launching specialised external competitions to attract candidates with appropriate training and experience. It will also increase the number of training courses offered to existing staff. The IT developments necessary to incorporate the European Development Fund, the Delegations' imprest accounts and the Agencies should be completed by mid-2006, says the Commission, and thereafter it will concentrate on completing the integration of the central IT systems and on perfecting its security checks.