# C_2008311EN.01005701.xml

| 5.12.2008 | EN | Official Journal of the European Union | C 311/57 |
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5.12.2008

EN

Official Journal of the European Union

C 311/57

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REPORT

REPORT

on the annual accounts of the European Maritime Safety Agency for the financial year 2007 together with the Agency's replies

(2008/C 311/09)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

| 3-6 | STATEMENT OF ASSURANCE |
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3-6

| 7-9 | OBSERVATIONS |
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7-9

Tables 1 to 4

The Agency's replies

The Agency's replies

INTRODUCTION

| 1. | The European Maritime Safety Agency (hereinafter called the Agency) was set up by Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 (1). The Agency's tasks are to ensure a high level of maritime safety and prevention of pollution by ships, to provide the Commission and the Member States with technical assistance, to monitor the implementation of Community legislation and to evaluate its effectiveness. |
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1.

The European Maritime Safety Agency (hereinafter called the Agency) was set up by Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 (1). The Agency's tasks are to ensure a high level of maritime safety and prevention of pollution by ships, to provide the Commission and the Member States with technical assistance, to monitor the implementation of Community legislation and to evaluate its effectiveness.

1

| 2. | Table 1 summarises the Agency's competences and activities. Key data summarised from the financial statements drawn up by the Agency for the financial year 2007 are presented in Tables 2, 3 and 4for information purposes. |
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2.

Table 1 summarises the Agency's competences and activities. Key data summarised from the financial statements drawn up by the Agency for the financial year 2007 are presented in Tables 2, 3 and 4for information purposes.

Table 1

Tables 2, 3 and 4

STATEMENT OF ASSURANCE

| 3. | This Statement is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 (2); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community. |
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3.

This Statement is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 (2); it was drawn up following an examination of the Agency's accounts, as required by Article 248 of the Treaty establishing the European Community.

2

| 4. | The Agency's accounts for the financial year ended 31 December 2007 (3) were drawn up by its Executive Director, pursuant to Article 18 of Regulation (EC) No 1406/2002, and sent to the Court, which is required to give a Statement of Assurance as to their reliability and the legality and regularity of the underlying transactions. |
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4.

The Agency's accounts for the financial year ended 31 December 2007 (3) were drawn up by its Executive Director, pursuant to Article 18 of Regulation (EC) No 1406/2002, and sent to the Court, which is required to give a Statement of Assurance as to their reliability and the legality and regularity of the underlying transactions.

3

| 5. | The Court conducted its audit in accordance with the IFAC and ISSAI (4) International Auditing Standards and Codes of Ethics, in so far as these are applicable in the European Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and that the underlying transactions are legal and regular. |
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5.

The Court conducted its audit in accordance with the IFAC and ISSAI (4) International Auditing Standards and Codes of Ethics, in so far as these are applicable in the European Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and that the underlying transactions are legal and regular.

4

| 6. | The Court has thus obtained a reasonable basis for the Statement set out below:

  Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |
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6.

The Court has thus obtained a reasonable basis for the Statement set out below:

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Agency's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question.

OBSERVATIONS

| 7. | The Agency's 2007 budget amounted to 48,2 million euro, as compared with 44,7 million euro the previous year. The principal expenses for operating activities concern anti-pollution measures. The Agency's budget is mainly financed by subsidies from the European Commission. The procedures for establishing the budget were not sufficiently rigorous. This led to a high number of budgetary transfers (5), incorrect budget presentation (6) and irregular modification of the funding source for anti-pollution appropriations (7). |
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7.

The Agency's 2007 budget amounted to 48,2 million euro, as compared with 44,7 million euro the previous year. The principal expenses for operating activities concern anti-pollution measures. The Agency's budget is mainly financed by subsidies from the European Commission. The procedures for establishing the budget were not sufficiently rigorous. This led to a high number of budgetary transfers (5), incorrect budget presentation (6) and irregular modification of the funding source for anti-pollution appropriations (7).

5

6

7

| 8. | Legal commitments were entered into before the corresponding budgetary commitments (8). |
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8.

Legal commitments were entered into before the corresponding budgetary commitments (8).

8

| 9. | For the audited recruitment procedures, the selection criteria and the threshold scores for passing to the next stage of competitions were not decided upon before the evaluation process started. The Staff Committee was never invited by the Appointing Authority to participate in the recruitment procedures. This situation did not ensure transparent and non-discriminatory procedures. |
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9.

For the audited recruitment procedures, the selection criteria and the threshold scores for passing to the next stage of competitions were not decided upon before the evaluation process started. The Staff Committee was never invited by the Appointing Authority to participate in the recruitment procedures. This situation did not ensure transparent and non-discriminatory procedures.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 24 and 25 September 2008.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

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(1)  OJ L 208, 5.8.2002, p. 1.

1

(2)  OJ L 248, 16.9.2002, p. 1.

2

(3)  These accounts were drawn up on 11 June 2008 and received by the Court on 2 July 2008.

3

(4)  International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

4

(5)  More than 32 transfers of appropriations in 2007.

5

(6)  For differentiated appropriations, the budget must include the schedule of payments due in subsequent financial years to meet budget commitments entered into in earlier financial years (Article 31(2)(c) of the Agency's financial regulation).

6

(7)  From mid-June to December, 25 million euro for anti-pollution measures, authorised by the Budget Authority as normal appropriations (C1), were unduly moved to assigned revenues (R0).

7

(8)  Three cases with a total value of 208 000 euro.

8

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Table 1

European Maritime Safety Agency (Lisbon)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Regulation (EC) No 1406/2002 of the European Parliament and of the Council as amended by Regulations (EC) No 1644/2003 and (EC) No 724/2004 | Governance | Resources made available to the Agency 2007

  (Data for 2006) | Products and services supplied
  2007 |
| --- | --- | --- | --- | --- |
| Common transport policy

  ‘The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport.’


  (Article 80 of the Treaty) | Objectives







  — | To ensure a high, uniform and effective level of maritime safety and prevention of pollution by ships. |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Regulation (EC) No 1406/2002 of the European Parliament and of the Council as amended by Regulations (EC) No 1644/2003 and (EC) No 724/2004

Governance

Resources made available to the Agency 2007

(Data for 2006)

Products and services supplied

2007

Common transport policy

‘The Council may, acting by a qualified majority, decide whether, to what extent and by what procedure appropriate provisions may be laid down for sea and air transport.’

(Article 80 of the Treaty)

(Article 80 of the Treaty)

Objectives

Objectives

—

To ensure a high, uniform and effective level of maritime safety and prevention of pollution by ships.

| — | To provide the MemberStates and the Commission with technical and scientific assistance. |
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—

To provide the MemberStates and the Commission with technical and scientific assistance.

| — | To monitor the implementation of Community legislation in this field and to evaluate the effectiveness of the measures in place. |
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—

To monitor the implementation of Community legislation in this field and to evaluate the effectiveness of the measures in place.

| — | To introduce operational methods for combating pollution in European waters. |
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—

To introduce operational methods for combating pollution in European waters.

Tasks

Tasks

| — | To assist the Commission in drawing up Community legislation and in its implementation. |
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—

To assist the Commission in drawing up Community legislation and in its implementation.

| — | To monitor the overall functioning of the Community port State control regime, which may include visits to the Member States. |
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—

To monitor the overall functioning of the Community port State control regime, which may include visits to the Member States.

| — | To provide the Commission with technical assistance for the port State control of ships. |
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—

To provide the Commission with technical assistance for the port State control of ships.

| — | To work with the Member States on developing technical solutions and to provide technical assistance related to the implementation of Community legislation. |
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—

To work with the Member States on developing technical solutions and to provide technical assistance related to the implementation of Community legislation.

| — | To promote cooperation between riparian States in the shipping areas concerned. |
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—

To promote cooperation between riparian States in the shipping areas concerned.

| — | To develop and operate any information system necessary. |
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—

To develop and operate any information system necessary.

| — | To facilitate cooperation between the MemberStates and the Commission in the development of a common methodology for investigating maritime accidents. |
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—

To facilitate cooperation between the MemberStates and the Commission in the development of a common methodology for investigating maritime accidents.

| — | To provide the Commission and the Member States with reliable information on maritime safety and on pollution by ships. |
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—

To provide the Commission and the Member States with reliable information on maritime safety and on pollution by ships.

| — | To assist the Commission and the Member States in the identification and pursuit of ships making unlawful discharges. |
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—

To assist the Commission and the Member States in the identification and pursuit of ships making unlawful discharges.

| — | To monitor the classification societies recognised by the EU and to issue the corresponding reports to the Commission. |
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—

To monitor the classification societies recognised by the EU and to issue the corresponding reports to the Commission.

| — | To assist the Commission with the input for and implementation of tasks relating to the Directive on marine equipment. |
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—

To assist the Commission with the input for and implementation of tasks relating to the Directive on marine equipment.

| — | To provide the Commission with data on the introduction of the Directive on ship waste reception facilities in European ports. |
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—

To provide the Commission with data on the introduction of the Directive on ship waste reception facilities in European ports.

1.   Administrative Board

Composition

One representative per MemberState, four representatives of the Commission, four representatives, without the right to vote, from the professional sectors concerned.

Tasks

| — | To adopt the budget and the work programme. |
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—

To adopt the budget and the work programme.

| — | To examine requests from Member States for assistance. |
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—

To examine requests from Member States for assistance.

2.   Executive Director

Appointed by the Administrative Board on a proposal from the Commission.

3.   External audit

Court of Auditors.

4.   Discharge authority

Parliament acting on a recommendation by the Council.

Final budget

Final budget

Title 1: 15 320 297 euro (13 400 000 euro)

13 400 000 euro

Title 2: 3 179 703 euro (2 905 000 euro)

2 905 000 euro

Title 3: 29 749 058 euro (28 433 440 euro)

28 433 440 euro

Total: 48 249 058 euro (44 738 440 euro)

44 738 440 euro

TA and Permanent Staff 153 (132)

TA and Permanent Staff

132

Other staff

Other staff

AUX & CA: 13 (9)

9

SNE: 13 (11)

11

(non exhaustive lists; details can be found in the AAR)

(non exhaustive lists; details can be found in the AAR)

| — | Preparations of a draft methodology related to a new visits programme to MS; |
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—

Preparations of a draft methodology related to a new visits programme to MS;

| — | Preparation of the technical specifications of the new THETIS project; |
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—

Preparation of the technical specifications of the new THETIS project;

| — | Design of the interface between STIRES/SSN and CleanSeaNet; |
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—

Design of the interface between STIRES/SSN and CleanSeaNet;

| — | Add additional oil recovery capacity in the Atlantic, Aegean Sea, West Mediterranean and Strait of Gibraltar; |
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—

Add additional oil recovery capacity in the Atlantic, Aegean Sea, West Mediterranean and Strait of Gibraltar;

| — | Establishment of the CleanSeaNet service; |
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—

Establishment of the CleanSeaNet service;

| — | Start of the Activity of the Maritime Support Services. |
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—

Start of the Activity of the Maritime Support Services.

Source: Information supplied by the Agency.

Source:

Table 2

European Maritime Safety Agency (Lisbon) — Implementation of the budget for the financial year 2007

| (1000 euro) |
| --- |
| Revenue | Expenditure |
| Origin of revenue | Revenue entered in the final budget for the financial year | Revenue received | Allocation of expenditure | Final budget appropriations for the financial year | Appropriations carried over from the previous financial year |
| entered | committed | paid | carried over | cancelled | entered | paid | cancelled |
| Community subsidies | 48 249 | 37 387 | Title I
  Staff (NDA) | 15 320 | 11 999 | 11 805 | 194 | 3 321 | 664 | 245 | 419 |
| Title II
  Administration (NDA) | 3 180 | 3 149 | 1 881 | 1 267 | 31 | 606 | 523 | 83 |
| Other income | | 157 | Title III
  Operating activities (DA) | | | | | | | | |
| — CA | 29 749 | 28 132 | 0 | 141 | 1 617 | 0 | 0 | 0 |
| — PA | 29 749 | 0 | 19 295 | 141 | 10 454 | 0 | 0 | 0 |
| Total | 48 249 | 37 544 | Total CA | 48 249 | 43 280 | 0 | 1 603 | 4 969 | 1 270 | 768 | 502 |
| Total PA | 48 249 | 0 | 32 982 | 1 603 | 13 806 | | | |
| NDA | : | non-differentiated appropriations (commitment appropriations equal payment appropriations). |
| DA | : | differentiated appropriations (commitment and payment appropriations may differ). |
| CA | : | commitment appropriations in a system of differentiated appropriations. |
| PA | : | payment appropriations in a system of differentiated appropriations. |

(1000 euro)

Revenue

Expenditure

Origin of revenue

Revenue entered in the final budget for the financial year

Revenue received

Allocation of expenditure

Final budget appropriations for the financial year

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

entered

paid

cancelled

Community subsidies

48 249

37 387

Title I

Staff (NDA)

15 320

11 999

11 805

194

3 321

664

245

419

Title II

Administration (NDA)

3 180

3 149

1 881

1 267

31

606

523

83

Other income

157

Title III

Operating activities (DA)

— CA

29 749

28 132

0

141

1 617

0

0

0

— PA

29 749

0

19 295

141

10 454

0

0

0

Total

Total

48 249

48 249

37 544

37 544

Total CA

Total CA

48 249

48 249

43 280

43 280

0

0

1 603

1 603

4 969

4 969

1 270

1 270

768

768

502

502

Total PA

Total PA

48 249

48 249

0

0

32 982

32 982

1 603

1 603

13 806

13 806

NDA

:

non-differentiated appropriations (commitment appropriations equal payment appropriations).

DA

:

differentiated appropriations (commitment and payment appropriations may differ).

CA

:

commitment appropriations in a system of differentiated appropriations.

PA

:

payment appropriations in a system of differentiated appropriations.

Carried-over appropriations for the financial year linked to Title III consist exclusively in re-used income (101 000 euro) and assigned revenue (PHARE –40 403 euro).

Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Source:

Table 3

European Maritime Safety Agency (Lisbon) — Economic outturn account for the financial years 2007 and 2006

| (1000 euro) |
| --- |
| | 2007 | 2006 |
| Operating revenue |
| Community subsidies | 33 801 | 24 716 |
| Other subsidies | 1 111 | 678 |
| Total (a) | 34 912 | 25 394 |
| Operating expenditure |
| Staff expenditure | 10 791 | 9 616 |
| Fixed-asset-related expenditure | 356 | 236 |
| Other administrative expenditure | 3 252 | 3 548 |
| Operational expenditure | 14 842 | 14 151 |
| Total (b) | 29 242 | 27 551 |
| Economic result for the year (c = a – b) | 5 669 | –2 157 |
| Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis. |

(1000 euro)

2007

2006

Operating revenue

Community subsidies

33 801

24 716

Other subsidies

1 111

678

Total (a)

Total (a)

34 912

34 912

25 394

25 394

Operating expenditure

Staff expenditure

10 791

9 616

Fixed-asset-related expenditure

356

236

Other administrative expenditure

3 252

3 548

Operational expenditure

14 842

14 151

Total (b)

Total (b)

29 242

29 242

27 551

27 551

Economic result for the year (c = a – b)

Economic result for the year (c = a – b)

5 669

5 669

–2 157

–2 157

Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis.

Source:

Table 4

European Maritime Safety Agency (Lisbon) — Balance sheet at 31 December 2007 and 2006

| (1000 euro) |
| --- |
| | 2007 | 2006 |
| Non-current assets |
| Intangible fixed assets | 257 | 55 |
| Tangible fixed assets | 555 | 523 |
| Current assets |
| Short-term pre-financing | 10 003 | 4 849 |
| Short-term receivables | 254 | 270 |
| Cash and cash equivalents | 15 166 | 11 633 |
| Total assets | 26 234 | 17 330 |
| Current liabilities |
| Provisions for risks and charges | 232 | 191 |
| Accounts payable | 15 305 | 12 111 |
| Total current liabilities | 15 537 | 12 301 |
| Net assets | 10 697 | 5 028 |
| Reserves |
| Accumulated surplus/deficit | 5 028 | 7 185 |
| Economic result for the year | 5 669 | –2 157 |
| Net capital | 10 697 | 5 028 |
| Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis. |

(1000 euro)

2007

2006

Non-current assets

Intangible fixed assets

257

55

Tangible fixed assets

555

523

Current assets

Short-term pre-financing

10 003

4 849

Short-term receivables

254

270

Cash and cash equivalents

15 166

11 633

Total assets

Total assets

26 234

26 234

17 330

17 330

Current liabilities

Provisions for risks and charges

232

191

Accounts payable

15 305

12 111

Total current liabilities

Total current liabilities

15 537

15 537

12 301

12 301

Net assets

Net assets

10 697

10 697

5 028

5 028

Reserves

Accumulated surplus/deficit

5 028

7 185

Economic result for the year

5 669

–2 157

Net capital

Net capital

10 697

10 697

5 028

5 028

Source: Data supplied by the Agency. This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis.

Source:

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THE AGENCY'S REPLIES

| 7. | The Agency welcomes the observation of the Court. The Agency continues its efforts to improve its planning and monitoring. Specific attention is paid to the forecasting and scheduling of payments. The budgetary transfers necessary in 2007 are within the 10 % threshold authorised by the Financial Regulation. After proposals of the Commission the Administrative Board decided on 20 March 2007 to qualify Anti-Pollution Funds as assigned revenue and decided on 21 November 2007 to no longer treat these funds as such. |
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7.

The Agency welcomes the observation of the Court. The Agency continues its efforts to improve its planning and monitoring. Specific attention is paid to the forecasting and scheduling of payments. The budgetary transfers necessary in 2007 are within the 10 % threshold authorised by the Financial Regulation. After proposals of the Commission the Administrative Board decided on 20 March 2007 to qualify Anti-Pollution Funds as assigned revenue and decided on 21 November 2007 to no longer treat these funds as such.

| 8. | The measures to avoid a posteriori commitments are further strengthened. The key factors are continuous training and communication. Finance checklists have been established to provide guidance. |
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8.

The measures to avoid a posteriori commitments are further strengthened. The key factors are continuous training and communication. Finance checklists have been established to provide guidance.

| 9. | Following the observations made by the Court, measures have been taken to ensure that selection criteria and threshold scores are defined at an earlier stage in the selection procedure. In the context of the forthcoming adoption of the new Implementing Rules regarding the recruitment of Temporary Agents, the Agency will take into account the Court's further observations regarding the procedures to follow during recruitment. |
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9.

Following the observations made by the Court, measures have been taken to ensure that selection criteria and threshold scores are defined at an earlier stage in the selection procedure. In the context of the forthcoming adoption of the new Implementing Rules regarding the recruitment of Temporary Agents, the Agency will take into account the Court's further observations regarding the procedures to follow during recruitment.

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