CERN EUROPEAN ORGANIZATION FOR NUCLEAR RESEARCH

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1 CERN/FC/5738 Original: anglais 14 juin 2013 ORGANISATION EUROPEENNE POUR LA RECHERCHE NUCLÉAIRE CERN EUROPEAN ORGANIZATION FOR NUCLEAR RESEARCH Suite à donner Procédure de vote Discussion COMITÉ DES FINANCES 344 e réunion 19 juin Discussion CONSEIL 163 e session 21 juin ÉVALUATION ET COMMENTAIRES DES COMMISSAIRES AUX COMPTES

2 CERN/FC/ ÉVALUATION ET COMMENTAIRES DES COMMISSAIRES AUX COMPTES CONCERNANT LE BILAN INTRODUCTION a été établi pour la première fois en 2008 (CERN/2777). Nous nous félicitons de pouvoir participer au proces afin de soumettre nos suggestions. Ces suggestions prennent en compte les informations qui serviront de base aux futurs «audits cela nous a été demandé en mars 2009 par le précédent président du Conseil, le professeur Akesson. Comparé aux éditions précédentes 2 comporte selon nous cette année encore des améliorations notables, notamment du point de vue de la lisibilité et des renvois transparence des informations fournies et de la précision des chiffres communiqués. pourquoi nous ne formulons pas cette année de nouvelles suggestions et nous con le suivi de celles émises les années précédentes. À la suite de discussions constructives avec la Direction du CERN sur des questions importantes, nous avons le plaisir de soumettre, dans le 1, un récapitulatif de réponses de la Direction.

3 CERN/FC/ Annex 1 Follow-up of the 2008, 2009, 2010 and 2011 suggestions We acknowledge that the Management has implemented most of our suggestions and we have summarized our further the state of implementation of their planned action. In this Annex, we followed up our past suggestions and we report on their implementation status. When our suggestions have been correctly and timely implemented, we have classified them as, whereas, in the case where a suggestion is still waiting for full implementation, we have classified it

4 CERN/FC/ ) Suggestions and Comments on previous Annual Progress Reports The followings are the reported suggestions and comments and the related after discussion and agreement with the Management. Each suggestion followed up maintains the numbering given in that specific year. Ref. N Financial Years 2011 Standard/Fact Suggestion Management's Reply Implementation 1/ #3 Expenses by Activity As also stated in the APR 2010, while most of the categories of expenses related to scientific research and experiments are now in depth examined with an analysis of the goals, achievements, risks and future prospects, we would like to highlight that, although we acknowledge some improvements, other categories of expenses, such analysed in details. Therefore, as last year, we suggest enhancing the analysis of the above mentioned categories of Expenses, specifying better the categories and/or the activities and sub-activities with a direct and clear link with goals, achievements and future prospects. The overall activity breakdown proposed by the Management was accepted by Council. In the APR 2012, even more details were provided than in previous Annual Progress Reports for these activities. The Management considers the current level of details and information sufficient, also in view of keeping the report concise and readable. 2/2011 Expenses by Activity In the APR 2011 on page 9, Figure an indication of the 60 MCHF utilised for the recapitalization of the Pension Fund. Due to the fact that this recapitalization is introduced in the APR for the first year, we would have expected a more detailed description on the effect of the annual balance, such as which programmes have been delayed or abandoned, and a direct link with the MTP explaining the effect in the longer term. 3/ #4 2009#4 Revenues by Activity In APR 2010, we suggested to enhance the description and review of certain Revenues categories,, with particular regard to deviations from budget and to goals, achievements and We suggest improving the level of information with a detailed description over the effect of the Pension on the future prospects over research programmes. For a better understanding of revenues a with regard to objectives, achievements and future prospects in the longer term we furthermore suggest to continue enhancing descriptions and detailed analysis of Revenues; for instance, The APR 2012 includes the reference to the Council decision in 2010 introducing this annual payment. There is no impact on the programmes but a delay in the period to repay the LHC debts as shown in the MTP towards 2020 as explained in the MTP documents and by Management to Council in 2010, 2011 and The June version of the APR will highlight this link with reference to the pages concerned. Significant efforts were made in the APR 2012 to explain the revenue headings and variations in more detail. Based on last been further detailed. The Management considers the current level of analyses Closed Closed

5 CERN/FC/ Ref. N Financial Years 2011 Standard/Fact Suggestion Management's Reply Implementation risks. In APR 2011, we acknowledge a further improvement of the descriptions and analysis of should be treated separately, with a better descriptions of objectives and future prospects, and - already with a good level of description and with clear self-explaining tables should be enhanced in the descriptions about risks and future prospects and longer term with a better link with the MTP. by revenue heading adequate. This applies even more as more than 95% of all revenues are regular Member States. 5/2011 Efficiency Audits: Objectives and Key Performance Indicators are needed We have performed a review of key performance indicators in the (reference page 22 and 23 of the APR) and we found that although key performance indicators were utilized by the Management for internal monitoring of efficiency and effectiveness mainly for the internally set objectives (operational objectives), in certain case they were not directly linked with Moreover,, for historical reason, are also need an increased level of details We are aware that Management is committed to implement performance indicators and we suggest continuing to re-enforce the link between key performance indicators, Council and operational objectives. A scientific efficiency, its technological impact, training output, service to its users and costs with respect to other comparable organisations was presented in March 2013 answering a direct request from Council. It will remain difficult to include any key performance indicators in the APR. 6/2011 Benchmarking as a corroborative tool for assessing the achievement of objectives We are aware that Management, following the ITIL best practices for Service Management, has started developing a project of monitoring processes, that can also be used for future benchmarking. We welcome and we suggest going on with this project. Progress has been made and is reported in the APR. With respect to 2011, the HR and FP services are entered into the service management. Work is on-going to include more IT and technical infrastructure services in the future.

6 CERN/FC/ Date of issuance Financial Years 2008/2009/2010 Standard/Fact Suggestion CERN Management Reply Corte dei Conti Assessment FY /2008 In the Report on CERN Governance Performance Indicators (CERN/2777-annex I) it is stated that Results-Based Budgeting is thus a result-driven should be linked with the progress achieved and clearly defined in a table (as proposed in abovementioned point 3). budgeting process in which: - programme formulation and resources justification involve a set of predefined objectives, expected results, outputs, inputs and performance indicators which constitute a logical. Activities in the APR Progress Report -15) are not linked with performance Indicators. 2009#6 The Council requested since 2008 When assessing that information in economy, efficiency and the APR should form effectiveness, which are the basis for future the essence of performance audits, of of selected activities certain activities and/or of the Organization. scientific projects considered crucial by the Council, internal data (and consequently the Key Performance Indicators KPI) ought to be sufficient and reliable and, thus, an exhaustive and detailed set of information is required. Therefore, for measuring the performance of a given activity, and especially in order to provide more assurance to the Council on results obtained, it should be envisaged that Management, for corroborating its achievements, not only KPIs are predominantly internal management instruments. For the 2012 Annual Progress Report, key statistics on health and safety, incidents, training and development, trainees as well as scientific publications are part of the executive summary, with KPI numbers being tabled in the fact sheets and explained in more detail under the chapter The Management is not against efficiency audits and answered on various occasions to specific requests of Council, FC and SACA and benchmarking items. The APR is supposed to be a concise and readable document. The Management will therefore continue to answer requests on benchmarking, efficiency studies and comparisons outside the APR in a timely manner to the committees concerned.

7 CERN/FC/ Date of issuance Financial Years 2008/2009/2010 Standard/Fact Suggestion CERN Management Reply Corte dei Conti Assessment FY 2012 shows in the APR internal KPI data, but also uses benchmarking techniques wherever and whenever possible, also for comparing them with internal KPI. 1/2010 In the Report on CERN Governance (CERN/2777-annex V par.2) it is stated that achievement shall be broken down following the structure of the Budget document and be compared to the planned goals. Certain categories are not compared to instance no goals are mentioned on page 18 of APR 2010 (activities classified page 22 (centralized expenses), on page detector R&D), page computing detectors -), page 28 (LHC machine upgrade). We suggest enhancing the analysis of such categories of Expenses, specifying in a better way the categories and/or activities and sub-activities with a direct and clear link with goals, achievements and future prospects. Identical structure of the Final Budget 2012 and the APR Closed.

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