# L_2016246EN.01033301.xml

| 14.9.2016 | EN | Official Journal of the European Union | L 246/333 |
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14.9.2016

EN

Official Journal of the European Union

L 246/333

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RESOLUTION (EU) 2016/1556 OF THE EUROPEAN PARLIAMENT

of 28 April 2016

with observations forming an integral part of the decision on discharge in respect of the implementation of the budget of the European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice for the financial year 2014

THE EUROPEAN PARLIAMENT,

| — | having regard to its decision on discharge in respect of the implementation of the budget of the European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice for the financial year 2014, |
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having regard to its decision on discharge in respect of the implementation of the budget of the European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice for the financial year 2014,

| — | having regard to Rule 94 of and Annex V to its Rules of Procedure, |
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having regard to Rule 94 of and Annex V to its Rules of Procedure,

| — | having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A8-0124/2016), |
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having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A8-0124/2016),

| A. | whereas, according to its financial statements, the final budget of the European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (‘the Agency’) for the financial year 2014 was EUR 59 380 000, representing a decrease of 3,2 % compared to the year 2013; whereas the entire budget of the Agency derives from the Union budget; |
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A.

whereas, according to its financial statements, the final budget of the European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (‘the Agency’) for the financial year 2014 was EUR 59 380 000, representing a decrease of 3,2 % compared to the year 2013; whereas the entire budget of the Agency derives from the Union budget;

| B. | whereas the Court of Auditors, in its report on the annual accounts of the European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom for the financial year 2014 (‘the Court’s report’), states that it has obtained reasonable assurances that the annual accounts of the Agency are reliable and that the underlying transactions are legal and regular; |
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B.

whereas the Court of Auditors, in its report on the annual accounts of the European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom for the financial year 2014 (‘the Court’s report’), states that it has obtained reasonable assurances that the annual accounts of the Agency are reliable and that the underlying transactions are legal and regular;

Emphasis of matter

Emphasis of matter

| 1. | Notes that the Court's report emphasises the issues related to the valuation of the SIS II, VIS and EURODAC systems in the Agency’s accounts; notes that the systems were transferred from the Commission to the Agency in May 2013 by way of a non-exchange transaction; takes note that in the absence of reliable and complete information in respect of the total development cost of those systems, the value of the systems was recorded in the Agency’s accounts at their net book values as per the Commission’s books and updated at year-end; acknowledges the Agency's comment that as long as the book value of the assets transferred by the Commission to the Agency was established in line with the Commission’s internal accounting rules, there was no action that the Agency had to or could have performed in this respect; also acknowledges that the value of transferred assets is expected to become immaterial in the year 2015 due to the yearly application of depreciation of asset value and that as such, for future discharges, this comment will no longer be relevant; |
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1.

Notes that the Court's report emphasises the issues related to the valuation of the SIS II, VIS and EURODAC systems in the Agency’s accounts; notes that the systems were transferred from the Commission to the Agency in May 2013 by way of a non-exchange transaction; takes note that in the absence of reliable and complete information in respect of the total development cost of those systems, the value of the systems was recorded in the Agency’s accounts at their net book values as per the Commission’s books and updated at year-end; acknowledges the Agency's comment that as long as the book value of the assets transferred by the Commission to the Agency was established in line with the Commission’s internal accounting rules, there was no action that the Agency had to or could have performed in this respect; also acknowledges that the value of transferred assets is expected to become immaterial in the year 2015 due to the yearly application of depreciation of asset value and that as such, for future discharges, this comment will no longer be relevant;

Budget and financial management

Budget and financial management

| 2. | Notes that according to Regulation (EU) No 1077/2011, the Commission was responsible for the Agency's establishment and initial operation until it was granted financial autonomy on 22 May 2013; notes also that the year 2014 was the second year in which the Court proceeded to conduct an audit on the Agency’s financial statements; |
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2.

Notes that according to Regulation (EU) No 1077/2011, the Commission was responsible for the Agency's establishment and initial operation until it was granted financial autonomy on 22 May 2013; notes also that the year 2014 was the second year in which the Court proceeded to conduct an audit on the Agency’s financial statements;

| 3. | Notes that budget-monitoring efforts during the financial year 2014 resulted in a budget implementation rate of 99,32 % and that the payment appropriations execution rate was high at 99,14 %; |
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3.

Notes that budget-monitoring efforts during the financial year 2014 resulted in a budget implementation rate of 99,32 % and that the payment appropriations execution rate was high at 99,14 %;

Commitments and carry-overs

Commitments and carry-overs

| 4. | Notes from the Court’s report that out of EUR 6 600 000 of committed appropriations carried forward to 2014 for Title I (staff expenditure) and Title II (administrative expenditure), EUR 1 700 000 (26 %) were cancelled, showing that the budgetary needs were overestimated at the end of 2013; acknowledges however, the Agency's observation that upon becoming financially independent in 2013, a number of commitments for administrative expenditure were migrated from the Commission to the Agency; acknowledges furthermore that, by the time the Agency made the decision regarding these carry-forwards, it had still not attained its full staff complement and therefore had a limited budget management capacity in certain areas; notes with satisfaction that the Agency subsequently improved its capacity to monitor and implement the carry-overs and expects the volume and percentage of cancellations to decrease in 2015; |
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4.

Notes from the Court’s report that out of EUR 6 600 000 of committed appropriations carried forward to 2014 for Title I (staff expenditure) and Title II (administrative expenditure), EUR 1 700 000 (26 %) were cancelled, showing that the budgetary needs were overestimated at the end of 2013; acknowledges however, the Agency's observation that upon becoming financially independent in 2013, a number of commitments for administrative expenditure were migrated from the Commission to the Agency; acknowledges furthermore that, by the time the Agency made the decision regarding these carry-forwards, it had still not attained its full staff complement and therefore had a limited budget management capacity in certain areas; notes with satisfaction that the Agency subsequently improved its capacity to monitor and implement the carry-overs and expects the volume and percentage of cancellations to decrease in 2015;

| 5. | Takes note from the Court’s report that the committed appropriations carried over to 2015 were high for Title II (administrative expenditure) at EUR 15 000 000 (87 %); acknowledges that these carry-overs mainly resulted from delayed procurements for the extension and refurbishment of the Agency’s site in Strasbourg; notes furthermore that the carry-overs for Title III (operational expenditure) were high at EUR 24 500 000 (85 %) and mainly related to multi-annual contracts for the maintenance of the Agency’s IT systems; acknowledges the Agency's observation that it has taken steps to improve its capacity for planning, monitoring and implementing available appropriations, to ensure closer coordination between its operational and administrative functions and to further design and improve effective internal controls; calls on the Agency to reduce the high level of carry-overs as it is at odds with the principle of annuality; |
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5.

Takes note from the Court’s report that the committed appropriations carried over to 2015 were high for Title II (administrative expenditure) at EUR 15 000 000 (87 %); acknowledges that these carry-overs mainly resulted from delayed procurements for the extension and refurbishment of the Agency’s site in Strasbourg; notes furthermore that the carry-overs for Title III (operational expenditure) were high at EUR 24 500 000 (85 %) and mainly related to multi-annual contracts for the maintenance of the Agency’s IT systems; acknowledges the Agency's observation that it has taken steps to improve its capacity for planning, monitoring and implementing available appropriations, to ensure closer coordination between its operational and administrative functions and to further design and improve effective internal controls; calls on the Agency to reduce the high level of carry-overs as it is at odds with the principle of annuality;

| 6. | Recalls that according to Regulation (EU) No 1077/2011, countries associated with the implementation, application and development of the Schengen acquis and EURODAC-related measures must make a contribution to the Agency’s budget; notes furthermore that although Schengen-associated countries were using the systems managed by the Agency, the Commission’s negotiations were still ongoing; acknowledges the Agency's observation that Iceland and Liechtenstein accepted the Regulation and that the negotiations with Switzerland and Norway are still ongoing, meaning that signature of the agreement is not possible before the acceptance of all associated countries; |
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6.

Recalls that according to Regulation (EU) No 1077/2011, countries associated with the implementation, application and development of the Schengen acquis and EURODAC-related measures must make a contribution to the Agency’s budget; notes furthermore that although Schengen-associated countries were using the systems managed by the Agency, the Commission’s negotiations were still ongoing; acknowledges the Agency's observation that Iceland and Liechtenstein accepted the Regulation and that the negotiations with Switzerland and Norway are still ongoing, meaning that signature of the agreement is not possible before the acceptance of all associated countries;

Prevention and management of conflicts of interests and transparency

Prevention and management of conflicts of interests and transparency

| 7. | Notes the Agency's observation that its establishing regulation requests all members of the management board and advisory groups to issue an annual public statement of interest in writing; acknowledges that the Agency strictly follows this requirement and keeps all annual statements duly signed in the secretariat of the management board; notes furthermore that no national experts are sitting on the management board and advisory groups of the Agency; |
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7.

Notes the Agency's observation that its establishing regulation requests all members of the management board and advisory groups to issue an annual public statement of interest in writing; acknowledges that the Agency strictly follows this requirement and keeps all annual statements duly signed in the secretariat of the management board; notes furthermore that no national experts are sitting on the management board and advisory groups of the Agency;

| 8. | Encourages the Agency further to raise awareness of the conflict-of-interest policy among its staff, alongside ongoing awareness-raising activities and the inclusion of integrity and transparency as an obligatory item to be discussed during recruitment procedures and performance reviews; |
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8.

Encourages the Agency further to raise awareness of the conflict-of-interest policy among its staff, alongside ongoing awareness-raising activities and the inclusion of integrity and transparency as an obligatory item to be discussed during recruitment procedures and performance reviews;

| 9. | States that the annual reports of the Agency could play an important role in compliance regarding transparency, accountability and integrity; calls on the Agency to include a standard chapter on these components in its annual report; |
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9.

States that the annual reports of the Agency could play an important role in compliance regarding transparency, accountability and integrity; calls on the Agency to include a standard chapter on these components in its annual report;

| 10. | Takes note that CVs of the Agency’s executive director and the chairperson of its management board have been published and are kept up to date on the Agency’s website; notes the Agency's observation that the individual statements of commitment for the members of its management board and advisory groups are kept by the secretariat of the management board, as there is no specific legal requirement in the Agency’s establishing regulation calling for the publication of these statements; |
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10.

Takes note that CVs of the Agency’s executive director and the chairperson of its management board have been published and are kept up to date on the Agency’s website; notes the Agency's observation that the individual statements of commitment for the members of its management board and advisory groups are kept by the secretariat of the management board, as there is no specific legal requirement in the Agency’s establishing regulation calling for the publication of these statements;

| 11. | Requests that the Agency implement Article 16 of the Staff Regulations by publishing information about senior officials who have left the service and a list of conflicts of interest on an annual basis; |
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11.

Requests that the Agency implement Article 16 of the Staff Regulations by publishing information about senior officials who have left the service and a list of conflicts of interest on an annual basis;

Internal controls

Internal controls

| 12. | Notes that the Agency’s 16 internal control standards (ICS), structured around six major areas, were adopted by its management board in June 2014; |
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12.

Notes that the Agency’s 16 internal control standards (ICS), structured around six major areas, were adopted by its management board in June 2014;

| 13. | Acknowledges the Agency's observation that it successfully concluded a procurement procedure to acquire the necessary insurance coverage for its fixed tangible assets in its seat premises in Tallinn; |
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13.

Acknowledges the Agency's observation that it successfully concluded a procurement procedure to acquire the necessary insurance coverage for its fixed tangible assets in its seat premises in Tallinn;

| 14. | Asks the Agency to apply strictly the measures pertaining to discretion and exclusion in public procurement, with proper background checks being carried out in every instance, and to apply the exclusion criteria so as to debar companies in the event of any conflict of interest, this being essential to protect the financial interests of the Union; |
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14.

Asks the Agency to apply strictly the measures pertaining to discretion and exclusion in public procurement, with proper background checks being carried out in every instance, and to apply the exclusion criteria so as to debar companies in the event of any conflict of interest, this being essential to protect the financial interests of the Union;

Other comments

Other comments

| 15. | Is pleased that the negotiations between the Agency and France were successfully concluded and that the seat agreement was signed for the Agency’s operational site in Strasbourg; acknowledges that at the end of 2015 the agreement was still expecting ratification from the French National Assembly; |
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15.

Is pleased that the negotiations between the Agency and France were successfully concluded and that the seat agreement was signed for the Agency’s operational site in Strasbourg; acknowledges that at the end of 2015 the agreement was still expecting ratification from the French National Assembly;

| 16. | Calls for an overall improvement in the prevention of, and the fight against, corruption through a holistic approach, commencing with better public access to documents and more stringent rules on conflicts of interest, the introduction or strengthening of transparency registers and the provision of sufficient resources for law enforcement measures, and also through improved cooperation among Member States and with relevant third countries; |
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16.

Calls for an overall improvement in the prevention of, and the fight against, corruption through a holistic approach, commencing with better public access to documents and more stringent rules on conflicts of interest, the introduction or strengthening of transparency registers and the provision of sufficient resources for law enforcement measures, and also through improved cooperation among Member States and with relevant third countries;

| 17. | Is pleased that the negotiations between the Agency and Estonia were successfully concluded and the seat agreement was signed at the end of 2014; acknowledges that the agreement was ratified by the Estonian Parliament in February 2015 and entered into force in March 2015; |
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17.

Is pleased that the negotiations between the Agency and Estonia were successfully concluded and the seat agreement was signed at the end of 2014; acknowledges that the agreement was ratified by the Estonian Parliament in February 2015 and entered into force in March 2015;

| 18. | Calls on the Agency to enhance its procedures and practices aimed at safeguarding the financial interests of the Union and to actively contribute to a results-oriented discharge process; |
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18.

Calls on the Agency to enhance its procedures and practices aimed at safeguarding the financial interests of the Union and to actively contribute to a results-oriented discharge process;

| 19. | Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its resolution of 28 April 2016 (1) on the performance, financial management and control of the agencies. |
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19.

Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its resolution of 28 April 2016 (1

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(1)  Texts adopted of that date, P8_TA(2016)0159 (see page 447 of this Official Journal).

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