# C_2007309EN.01002901.xml

| 19.12.2007 | EN | Official Journal of the European Union | C 309/29 |
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19.12.2007

EN

Official Journal of the European Union

C 309/29

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REPORT

REPORT

on the annual accounts of the European Agency for the Management of Operational Cooperation at the External Borders of the Member States for the financial year 2006 together with the Agency's replies

(2007/C 309/06)

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' replies

The Agency' replies

INTRODUCTION

| 1. | The European Agency for the Management of Operational Cooperation at the External Borders of the Members States (hereinafter referred to as ‘the Agency’) was created by Regulation (EC) No 2007/2004 of the Council of 26 October 2004 (1). It became fully autonomous on 1 January 2006 (2). The Agency's main task is to coordinate Member States' activities in the field of management of external borders (support for operational cooperation, technical and operational assistance, risk analysis). |
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1.

The European Agency for the Management of Operational Cooperation at the External Borders of the Members States (hereinafter referred to as ‘the Agency’) was created by Regulation (EC) No 2007/2004 of the Council of 26 October 2004 (1). It became fully autonomous on 1 January 2006 (2). The Agency's main task is to coordinate Member States' activities in the field of management of external borders (support for operational cooperation, technical and operational assistance, risk analysis).

1

2

| 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 2006 is presented in Tables 2, 3 and 4 for 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 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 (3); 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 (3); 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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| 4. | The Agency's accounts for the financial year ended 31 December 2006 (4) were drawn up by its Executive Director, pursuant to Article 30 of Regulation (EC) No 2007/2004, and sent to the Court, which is required to give a statement of assurance on their reliability and on 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 (4) were drawn up by its Executive Director, pursuant to Article 30 of Regulation (EC) No 2007/2004, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

4

| 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. | For the financial year 2006, the rate of commitment was 85 %. The rate of carry-over was more than 70 % overall and nearly 85 % for operating expenditure. Transfers of appropriations between chapters or titles during the year exceeded the total ceiling of 10 % provided for in the Financial Regulation. Thus, the budgetary principles of annuality and specification were not strictly observed. |
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7.

For the financial year 2006, the rate of commitment was 85 %. The rate of carry-over was more than 70 % overall and nearly 85 % for operating expenditure. Transfers of appropriations between chapters or titles during the year exceeded the total ceiling of 10 % provided for in the Financial Regulation. Thus, the budgetary principles of annuality and specification were not strictly observed.

| 8. | Legal commitments (5) were entered into before budgetary commitments, contrary to the Agency's financial regulation. |
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8.

Legal commitments (5) were entered into before budgetary commitments, contrary to the Agency's financial regulation.

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| 9. | The criteria and procedures used for recruiting staff were not in line with the general provisions for implementing the Staff Regulations: breaches mainly concerned the minimum experience required for a given grade, the reduced role of the Selection Committee and the documentation of the preselection process. |
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9.

The criteria and procedures used for recruiting staff were not in line with the general provisions for implementing the Staff Regulations: breaches mainly concerned the minimum experience required for a given grade, the reduced role of the Selection Committee and the documentation of the preselection process.

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 349, 25.11.2004, p. 1.

1

(2)  Up to 1 September 2006, salaries were paid by the Commission.

2

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

3

(4)  These accounts were drawn up on 25 May 2007 and received by the Court on 11 July 2007.

4

(5)  Six cases of an approximate total value of 30 000 euro.

5

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Table 1

The European Agency for the Management of Operational Cooperation at the External Borders — Frontex (Warsaw)

| Areas of Community competence deriving from the Treaty | Competences of the Agency as defined in Council Regulation (EEC) No 2007/2004 of 26 October 2004 | Governance | Resources made available to the Agency | Products and services supplied in 2006 |
| --- | --- | --- | --- | --- |
| The Community policy in this area aims at developing common standards and procedures with regard to carrying out checks on persons crossing the external borders of the Member States; furthermore measures shall be taken to ensure cooperation between the relevant departments of the administrations of the Member States in the areas covered by this title, as well as between the Member States and the Commission.

  (Articles 62(2)(a) and 66 of the Treaty) | Objectives

  Frontex was established with a view to improving the integrated management of the external borders of the Member States of the EU.
  Frontex shall:






  (a) | Facilitate and render more effective the application of existing and future Community measures relating to the management of external borders. |

Areas of Community competence deriving from the Treaty

Competences of the Agency as defined in Council Regulation (EEC) No 2007/2004 of 26 October 2004

Governance

Resources made available to the Agency

Products and services supplied in 2006

The Community policy in this area aims at developing common standards and procedures with regard to carrying out checks on persons crossing the external borders of the Member States; furthermore measures shall be taken to ensure cooperation between the relevant departments of the administrations of the Member States in the areas covered by this title, as well as between the Member States and the Commission.

(Articles 62(2)(a) and 66 of the Treaty)

Objectives

Frontex was established with a view to improving the integrated management of the external borders of the Member States of the EU.

Frontex shall:

(a)

Facilitate and render more effective the application of existing and future Community measures relating to the management of external borders.

| (b) | Ensure the coordination of Member States' actions in the implementation of those measures, thereby contributing to an efficient, high and uniform level of control on persons and surveillance of the external borders of the Member States. |
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(b)

Ensure the coordination of Member States' actions in the implementation of those measures, thereby contributing to an efficient, high and uniform level of control on persons and surveillance of the external borders of the Member States.

| (c) | Provide the Commission and the Member States with the necessary technical support and expertise in the management of the external borders and promote solidarity between Member States. |
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(c)

Provide the Commission and the Member States with the necessary technical support and expertise in the management of the external borders and promote solidarity between Member States.

Main tasks

| (1) | coordinate operational cooperation between Member States in the field of management of external borders; |
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(1)

coordinate operational cooperation between Member States in the field of management of external borders;

| (2) | assist Member States on training of national border guards and establish common training standards; |
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(2)

assist Member States on training of national border guards and establish common training standards;

| (3) | carry out risk analysis; |
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(3)

carry out risk analysis;

| (4) | follow up on the development of research in control and surveillance; |
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(4)

follow up on the development of research in control and surveillance;

| (5) | assist Member States in circumstances requiring increased technical and operational assistance; |
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(5)

assist Member States in circumstances requiring increased technical and operational assistance;

| (6) | provide Member States with the necessary support in organising joint return operations. |
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(6)

provide Member States with the necessary support in organising joint return operations.

1.   Management Board

Composed of:

| — | one representative of each Member State; |
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—

one representative of each Member State;

| — | two representatives of the Commission; |
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—

two representatives of the Commission;

| — | one representative per Schengen associated country (Norway, Iceland) with a limited right to vote. |
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—

one representative per Schengen associated country (Norway, Iceland) with a limited right to vote.

2.   Executive Director

Appointed, on a proposal by the Commission, by the Management Board.

3.   External audit

European Court of Auditors.

4.   Discharge Authority

Parliament on a recommendation by the Council.

Final Budget for 2006

Total budget:

19,2 million euro

Community contribution:

18,9 million euro (98,8 %)

Contribution from the UK:

0,2 million euro (1,2 %)

Staff figures at 31 December 2006

Number of posts in the Establishment Plan for 2006: 28

Total staff numbers: 72

25 Temporary Agents

+47 other agents (seconded national experts, contract staff, auxiliaries)

Assigned to the following tasks:

| — | operational: 43 |
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—

operational: 43

| — | administrative: 29 |
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—

administrative: 29

Operational cooperation:

15 Frontex-coordinated joint operations implemented, seven pilot projects launched.

Training:

the Common Core Curriculum revised and developed; establishment of a network of partnership academies and training coordinators; training programme for 3rd countries and ‘falsified documents’ tool developed; training standards for joint return operations and tactical training for helicopter pilots developed, European Training Day co-organised.

Risk analysis:

five risk analysis reports issued; one public law enforcement bulletin published, the common integrated risk analysis model updated; Frontex Risk analysis network (MS' experts) established.

Research & development:

two reports published, four bulletins issued, one joint workshop with Joint Research Centre.

Assistance to the MS:

coordination of two assistance operations.

Assistance to return operations:

three joint return operations.

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 an accrual basis.

Table 2

Frontex — The European Agency for the Management of Operational Cooperation at the External Borders (Warsaw) — Implementation of the budget for the financial year 2006

| (1000 euro) |
| --- |
| Revenue | Expenditure (1) |
| Source of revenue | Revenue entered in the final budget for the financial year | Revenue collected | Allocation of expenditure | Final budget appropriations |
| entered | committed | paid | carried over | cancelled |
| Community subsidies | 18 940 | 19 504 | Title I
  Staff | 2 685 | 2 173 | 1 017 | 1 065 | 603 |
| Other subsidies | 226 | 226 | Title II
  Administration | 1 275 | 363 | 69 | 931 | 275 |
| | | | Title III
  Operating activities | 13 135 | 11 687 | 1 856 | 9 936 | 831 |
| Total | 19 166 | 19 730 | Total | 17 095 | 14 223 | 2 942 | 11 932 | 1 709 |
| Source: Data supplied by the Agency. This table summarise the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis. |

(1000 euro)

Revenue

Expenditure (1)

Source of revenue

Revenue entered in the final budget for the financial year

Revenue collected

Allocation of expenditure

Final budget appropriations

entered

committed

paid

carried over

cancelled

Community subsidies

18 940

19 504

Title I

Staff

2 685

2 173

1 017

1 065

603

Other subsidies

226

226

Title II

Administration

1 275

363

69

931

275

Title III

Operating activities

13 135

11 687

1 856

9 936

831

Total

19 166

19 730

Total

17 095

14 223

2 942

11 932

1 709

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

Table 3

The European Agency for the Management of Operational Cooperation at the External Borders (Warsaw) — Economic outturn account for the financial year 2006

| (1000 euro) |
| --- |
| | 2006 |
| Operating revenue |
| Community subsidies | 15 129 |
| Other revenue | 253 |
| Total (a) | 15 382 |
| Operating expenditure |
| Staff expenditure | 860 |
| Fixed asset-related expenditure | 7 |
| Other administrative expenditure | 615 |
| Operational expenditure | 4 348 |
| Total (b) | 5 830 |
| Surplus/(deficit) from operating activities (c = a – b) | 9 552 |
| Financial operations expenditure (d) | 5 |
| Surplus/(deficit) from non-operating activities (e = – d) | –5 |
| Economic result for the year (f = c + e) | 9 547 |
| This table covers the period October — December 2006 during which the Agency was financially independant. |

(1000 euro)

2006

Operating revenue

Community subsidies

15 129

Other revenue

253

Total (a)

15 382

Operating expenditure

Staff expenditure

860

Fixed asset-related expenditure

7

Other administrative expenditure

615

Operational expenditure

4 348

Total (b)

5 830

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

9 552

Financial operations expenditure (d)

5

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

–5

Economic result for the year (f = c + e)

9 547

This table covers the period October — December 2006 during which the Agency was financially independant.

Table 4

The European Agency for the Management of Operational Cooperation at the External Borders (Warsaw) — Balance sheet at 31 December 2006

| (1000 euro) |
| --- |
| | 2006 |
| Non-current assets |
| Tangible fixed assets | 31 |
| Current assets |
| Short-term receivables | 75 |
| Cash and cash equivalents | 14 236 |
| Total assets | 14 342 |
| Current liabilities |
| Provisions for risks and charges | 84 |
| Accounts payable | 4 711 |
| Total liabilities | 4 795 |
| Net assets |
| Economic result for the year | 9 547 |
| Total net assets | 9 547 |
| Total liabilities and net assets | 14 342 |

(1000 euro)

2006

Non-current assets

Tangible fixed assets

31

Current assets

Short-term receivables

75

Cash and cash equivalents

14 236

Total assets

14 342

Current liabilities

Provisions for risks and charges

84

Accounts payable

4 711

Total liabilities

4 795

Net assets

Economic result for the year

9 547

Total net assets

9 547

Total liabilities and net assets

14 342

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(1)  The expenditure figures concern only the one for which the Agency was responsible for (October — December 2006 for Titles I and II, the whole year for Title III), the Commission being responsible for the remaining expenditure.

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

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THE AGENCY'S REPLIES

| 7. | The rate of carry-over to 2007 is due to the inherent difficulties to the start-up period of the Agency and to the fact that important resources were made available only very late in the year 2006. Concerning the transfers, the Agency has taken note of the Court's remark and has implemented since April 2007 a strict interpretation of the rules concerning transfers. |
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7.

The rate of carry-over to 2007 is due to the inherent difficulties to the start-up period of the Agency and to the fact that important resources were made available only very late in the year 2006. Concerning the transfers, the Agency has taken note of the Court's remark and has implemented since April 2007 a strict interpretation of the rules concerning transfers.

| 8. | The Agency was aware of the situation described by the Court and had already taken corrective measures. The Agency has launched multiple actions to remind its financial actors the necessity to strictly respect the procedures; a register of exceptions was introduced and its content is presented on a monthly basis to the Executive Director. |
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8.

The Agency was aware of the situation described by the Court and had already taken corrective measures. The Agency has launched multiple actions to remind its financial actors the necessity to strictly respect the procedures; a register of exceptions was introduced and its content is presented on a monthly basis to the Executive Director.

| 9. | Due to the lack of resources in the start-up period, due to the difficulties of attracting potential staff and due to the necessity to make the Agency as rapidly as possible operational, the Agency was not able to fully implement normal procedures for most of the recruitment procedures launched during the year 2006. In 2007, the situation has been gradually normalised. |
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9.

Due to the lack of resources in the start-up period, due to the difficulties of attracting potential staff and due to the necessity to make the Agency as rapidly as possible operational, the Agency was not able to fully implement normal procedures for most of the recruitment procedures launched during the year 2006. In 2007, the situation has been gradually normalised.

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