# C_2007309EN.01005501.xml

| 19.12.2007 | EN | Official Journal of the European Union | C 309/55 |
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19.12.2007

EN

Official Journal of the European Union

C 309/55

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REPORT

REPORT

on the annual accounts of the European Maritime Safety Agency for the financial year 2006 together with the Agency's replies

(2007/C 309/10)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

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

| 7-10 | OBSERVATIONS |
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7-10

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 1summarises the Agency's competences and activities. Key data summarised from the financial statements drawn up by the Agency for the financial year 2006 is presented in Tables 2, 3 and 4 for information purposes. |
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2.

Table 1summarises the Agency's competences and activities. Key data summarised from the financial statements drawn up by the Agency for the financial year 2006 is presented in Tables 2, 3 and 4 for 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 2006 (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 2006 (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 INTOSAI International Auditing Standards and Codes of Ethics, insofar 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 INTOSAI International Auditing Standards and Codes of Ethics, insofar 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.

| 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 2006 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 2006 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 2006 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. | More than 43 % of the payment appropriations had to be cancelled at the end of the year 2006. In addition, there was a concentration of transactions during the last quarter of the year. Thus, the budgetary principle of accuracy was not strictly observed. |
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7.

More than 43 % of the payment appropriations had to be cancelled at the end of the year 2006. In addition, there was a concentration of transactions during the last quarter of the year. Thus, the budgetary principle of accuracy was not strictly observed.

| 8. | The procedures for establishing the budget and the establishment plan were not sufficiently rigorous. This led to a high number of budgetary transfers (4), inadequate planning of staff recruitment (5) and incorrect budget presentation (6). |
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8.

The procedures for establishing the budget and the establishment plan were not sufficiently rigorous. This led to a high number of budgetary transfers (4), inadequate planning of staff recruitment (5) and incorrect budget presentation (6).

4

5

6

| 9. | Legal commitments were entered into before the corresponding budgetary commitments (7). Some contracts allowed for 100 % prefinancing: this practice is not in line with the principles of sound financial management (8). |
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9.

Legal commitments were entered into before the corresponding budgetary commitments (7). Some contracts allowed for 100 % prefinancing: this practice is not in line with the principles of sound financial management (8).

7

8

| 10. | The inventory system is weak. The records do not allow all goods to be physically traced. Computer equipment is not recorded in the system. |
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10.

The inventory system is weak. The records do not allow all goods to be physically traced. Computer equipment is not recorded in the system.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 27 September 2007.

For the Court of Auditors

Hubert WEBER

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 13 June 2007 and received by the Court 27 June 2007.

3

(4)  More than 35 transfers of appropriations in 2006.

4

(5)  Failure to meet recruitment objectives resulted in a transfer which decreased budget line 1 100 (salaries) by 1,2 million euro.

5

(6)  The budget is supposed to show a summary statement of 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)  Four cases of a total approximate value of 345 000 euro.

7

(8)  Article 67 of Financial Regulation, (Regulation (EC, Euratom) no 2343/2002 of the Commission of 23 December 2002).

8

o

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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 of 27 June 2002 as amended by Regulations (EC) No. 1644/2003 of 22 July 2003 and No. 724/2004 of 31 March 2004 | Governance | Resources made available to the Agency 2006

  (Data for 2005) | Products and services supplied 2006 |
| --- | --- | --- | --- | --- |
| 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 of 27 June 2002 as amended by Regulations (EC) No. 1644/2003 of 22 July 2003 and No. 724/2004 of 31 March 2004

Governance

Resources made available to the Agency 2006

(Data for 2005)

Products and services supplied 2006

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.

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

To provide the Member States 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

| — | 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 Member States and the Commission in the development of a common methodology for investigating maritime accidents. |
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—

To facilitate cooperation between the Member States 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 Member State, 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 State for assistance. |
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—

To examine requests from Member State 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 on a recommendation from the Council.

Final Budget for 2006:

44,7 million euro (35,3) Community contribution: 100 % (100%)

Total Staff at 31 December 2006:

132 (95) posts in the establishment plan

Number of posts occupied:

111 (80)

20 (20) other posts (auxiliary contracts, seconded national experts, local staff, employment-agency staff)

Total staff numbers: 131 (100)

assigned to the following duties:

| — | operational tasks: 83 (65) |
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—

operational tasks: 83 (65)

| — | administrative and support tasks: 41 (27) |
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—

administrative and support tasks: 41 (27)

| — | mixed tasks: 7 (8) |
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—

mixed tasks: 7 (8)

Number of specifications and guideline documents: 49 (includes reports and/or studies)

Inspections/Audits: 47 (over 600 mission-man days)

Exercises at sea (Operational Activities): 7

Seminars, trainings & workshops: 59 (102 days and 1 440 participants)

Source: Information supplied by the Agency

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 a accrual basis.

Table 2

European Maritime Safety Agency (Lisbon) — Implementation of the budget for the financial year 2006

| (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 | 44 738 | 32 030 | Title I
  Staff (NDA) | 13 459 | 12 705 | 10 387 | 664 | 2 408 | 161 | 62 | 99 |
| Title II
  Administration (NDA) | 2 972 | 2 550 | 1 944 | 606 | 422 | 333 | 248 | 85 |
| Other income | 0 | 362 | Title III
  Operating activities (DA) | | | | | | | | |
| — CA | 28 308 | 19 033 | 0 | 0 | 9 275 | 0 | 0 | 0 |
| — PA | 28 308 | 0 | 11 638 | 0 | 16 669 | 0 | 0 | 0 |
| Total | 44 738 | 32 392 | Total CA | 44 738 | 34 287 | 0 | 1 270 | 12 105 | 0 | 0 | 0 |
| Total PA | 44 738 | 0 | 23 969 | 1 270 | 19 499 | 494 | 310 | 184 |
| 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. |
| CP | : | 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

44 738

32 030

Title I

Staff (NDA)

13 459

12 705

10 387

664

2 408

161

62

99

Title II

Administration (NDA)

2 972

2 550

1 944

606

422

333

248

85

Other income

0

362

Title III

Operating activities (DA)

— CA

28 308

19 033

0

0

9 275

0

0

0

— PA

28 308

0

11 638

0

16 669

0

0

0

Total

44 738

32 392

Total CA

44 738

34 287

0

1 270

12 105

0

0

0

Total PA

44 738

0

23 969

1 270

19 499

494

310

184

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.

CP

:

payment appropriations in a system of differentiated appropriations.

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.

Table 3

European Maritime Safety Agency (Lisbon) — Economic outturnn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 24 716 | 15 666 |
| Other subsidies | 678 | 0 |
| Total (a) | 25 394 | 15 666 |
| Operating expenditure |
| Staff expenditure | 9 616 | 6 099 |
| Fixed asset related expenditure | 236 | 151 |
| Other administrative expenditure | 3 548 | 2 042 |
| Operational expenditure (1) | 14 151 | 2 925 |
| Total (b) | 27 551 | 11 217 |
| Surplus/(deficit) from operating activities (c = a – b) | –2 157 | 4 439 |
| Financial operations revenue (e) | 0 | 0 |
| Financial operations expenditure (f) | 0 | 3 |
| Surplus/(deficit) from non-operating activities (g = e – f) | 0 | –3 |
| Economic result for the year (h = c + g) | –2 157 | 4 435 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

24 716

15 666

Other subsidies

678

0

Total (a)

25 394

15 666

Operating expenditure

Staff expenditure

9 616

6 099

Fixed asset related expenditure

236

151

Other administrative expenditure

3 548

2 042

Operational expenditure (1)

14 151

2 925

Total (b)

27 551

11 217

Surplus/(deficit) from operating activities (c = a – b)

–2 157

4 439

Financial operations revenue (e)

0

0

Financial operations expenditure (f)

0

3

Surplus/(deficit) from non-operating activities (g = e – f)

0

–3

Economic result for the year (h = c + g)

–2 157

4 435

Table 4

European Maritime Safety Agency (Lisbon) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 55 | 69 |
| Tangible fixed assets | 523 | 455 |
| Current assets |
| Short-term pre-financing | 4 849 | 5 351 |
| Short-term receivables | 270 | 105 |
| Cash and cash equivalents | 11 633 | 8 866 |
| Total assets | 17 330 | 14 847 |
| Current liabilities |
| Provisions for risks and charges | 191 | 107 |
| Accounts payable | 12 111 | 7 555 |
| Total liabilities | 12 301 | 7 661 |
| Net assets |
| Accumulated surplus/deficit | 7 185 | 2 750 |
| Economic result for the year | –2 157 | 4 435 |
| Total net assets | 5 028 | 7 185 |
| Total liabilities and net assets | 17 330 | 14 847 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

55

69

Tangible fixed assets

523

455

Current assets

Short-term pre-financing

4 849

5 351

Short-term receivables

270

105

Cash and cash equivalents

11 633

8 866

Total assets

17 330

14 847

Current liabilities

Provisions for risks and charges

191

107

Accounts payable

12 111

7 555

Total liabilities

12 301

7 661

Net assets

Accumulated surplus/deficit

7 185

2 750

Economic result for the year

–2 157

4 435

Total net assets

5 028

7 185

Total liabilities and net assets

17 330

14 847

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(1)  Signature of new contracts for tankers.

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THE AGENCY'S REPLIES

| 7. | The budget in of the Agency was over 50 % devoted to ‘antipollution measures’. In this area the Agency launched calls for tender to conclude four contracts for pollution response vessels. Towards the end of this process two companies decided at the last moment to withdraw their bids so that only two contracts were awarded. This resulted in a cancellation of substantial payment appropriations at the end of the year. |
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7.

The budget in of the Agency was over 50 % devoted to ‘antipollution measures’. In this area the Agency launched calls for tender to conclude four contracts for pollution response vessels. Towards the end of this process two companies decided at the last moment to withdraw their bids so that only two contracts were awarded. This resulted in a cancellation of substantial payment appropriations at the end of the year.

| 8. | The re-location of the Agency in 2006 from Brussels to Lisbon has had budgetary implications difficult to predict, including the departure of almost 20 percent of staff under contract. |
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8.

The re-location of the Agency in 2006 from Brussels to Lisbon has had budgetary implications difficult to predict, including the departure of almost 20 percent of staff under contract.

| 9. | The procedures to avoid a posteriori commitments are being strengthened. The conditions of prefinancing are revised following the comment of the Court. |
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9.

The procedures to avoid a posteriori commitments are being strengthened. The conditions of prefinancing are revised following the comment of the Court.

| 10. | The replacement from June 2007 of the old inventory system by ABAC Assets will eliminate the problems mentioned by the Court. |
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10.

The replacement from June 2007 of the old inventory system by ABAC Assets will eliminate the problems mentioned by the Court.

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