# L_2015255EN.01031301.xml

| 30.9.2015 | EN | Official Journal of the European Union | L 255/313 |
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30.9.2015

EN

Official Journal of the European Union

L 255/313

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RESOLUTION OF THE EUROPEAN PARLIAMENT

of 29 April 2015

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 2013

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 2013, |
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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 2013,

| — | 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 (A8-0099/2015), |
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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 (A8-0099/2015),

| 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 2013 was EUR 61 345 072; 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 2013 was EUR 61 345 072; 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 2013 (‘the Court's report’), has stated 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 2013 (‘the Court's report’), has stated that it has obtained reasonable assurances that the annual accounts of the Agency are reliable and that the underlying transactions are legal and regular,

| C. | whereas the Agency's core mission is to fulfil the operational management tasks regarding the Second Generation Schengen Information System (SIS II), the Visa Information System (VIS) and Eurodac, |
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C.

whereas the Agency's core mission is to fulfil the operational management tasks regarding the Second Generation Schengen Information System (SIS II), the Visa Information System (VIS) and Eurodac,

1.

Notes from the Court's report that, although the Agency has started its operations in December 2012, it was only granted financial autonomy by the Commission on 22 May 2013, and so the audited period for the financial year 2013 runs from 22 May 2013 to 31 December 2013; notes furthermore that 2013 was the first year in which the Court proceeded to conduct an audit on the Agency's financial statements;

Comments on the reliability of the accounts

Comments on the reliability of the accounts

| 2. | Notes with concern 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 furthermore that although the valuation was not materially misstated, the Court found those issues as essential and drew attention to this matter; notes that the operational management of those systems is the Agency's core task and that the systems were transferred from the Commission to the Agency in May 2013 by way of a non-exchange transaction; notes moreover 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; is concerned that those values relate mainly to hardware and off-the-shelf software components and do not include software development costs; |
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2.

Notes with concern 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 furthermore that although the valuation was not materially misstated, the Court found those issues as essential and drew attention to this matter; notes that the operational management of those systems is the Agency's core task and that the systems were transferred from the Commission to the Agency in May 2013 by way of a non-exchange transaction; notes moreover 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; is concerned that those values relate mainly to hardware and off-the-shelf software components and do not include software development costs;

Budget and financial management

Budget and financial management

| 3. | Notes that according to Regulation (EU) No 1077/2011 (1), the Commission was responsible for the Agency's establishment and initial operation until it was granted financial autonomy; notes with concern that a delay in the completion of the Agency's accounting system affected its payment planning and its preparation of the provisional accounts; |
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3.

Notes that according to Regulation (EU) No 1077/2011 (1

| 4. | Notes that a more detailed analysis per budget title could not be carried out by the Court as a result of the budget being executed by the Commission; |
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4.

Notes that a more detailed analysis per budget title could not be carried out by the Court as a result of the budget being executed by the Commission;

| 5. | Acknowledges from the Agency's final annual accounts that budget implementation rates were 96 % for commitment appropriations and 67 % for payment appropriations; |
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5.

Acknowledges from the Agency's final annual accounts that budget implementation rates were 96 % for commitment appropriations and 67 % for payment appropriations;

| 6. | Takes note 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 in 2013, the Commission's negotiations were still ongoing; calls on the Agency to inform the discharge authority about the state of play as regards the negotiations; |
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6.

Takes note that according to Regulation (EU) No 1077/2011, countries associated with the implementation, application and development of the Schengen acquis

Commitments and carry-overs

Commitments and carry-overs

| 7. | Notes that the budget monitoring efforts during the financial year 2013 resulted in a budget implementation rate of 98,95 % and that the payment appropriations execution rate was 28,94 %; |
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7.

Notes that the budget monitoring efforts during the financial year 2013 resulted in a budget implementation rate of 98,95 % and that the payment appropriations execution rate was 28,94 %;

| 8. | Notes that the high level of committed appropriations carried forward to 2014 comes mainly from Title II and Title III appropriations and is due to the fact that the Agency has a number of multiannual contracts related to its core activities; |
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8.

Notes that the high level of committed appropriations carried forward to 2014 comes mainly from Title II and Title III appropriations and is due to the fact that the Agency has a number of multiannual contracts related to its core activities;

Procurement and recruitment procedures

Procurement and recruitment procedures

| 9. | Notes that for 2013, neither sampled transactions nor other audit findings have led to any comments on the Agency's procurement procedures in the Court's report; |
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9.

Notes that for 2013, neither sampled transactions nor other audit findings have led to any comments on the Agency's procurement procedures in the Court's report;

Prevention and management of conflicts of interests

Prevention and management of conflicts of interests

| 10. | Expresses its deep concern about the Agency's failure to answer the discharge authority's questionnaire relating to questions on conflicts of interests; calls on the Agency to inform the discharge authority about the policies put in place with regard to the prevention and management of conflicts of interests; urges the Agency to publish CVs and declarations of interests of its Executive Director, the members of the Management Board and national experts who sit in Advisory Boards by the end of December 2015; |
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10.

Expresses its deep concern about the Agency's failure to answer the discharge authority's questionnaire relating to questions on conflicts of interests; calls on the Agency to inform the discharge authority about the policies put in place with regard to the prevention and management of conflicts of interests; urges the Agency to publish CVs and declarations of interests of its Executive Director, the members of the Management Board and national experts who sit in Advisory Boards by the end of December 2015;

Internal controls

Internal controls

| 11. | Takes note that the project to implement the Agency's internal control standards (ICS) was ongoing at the end of 2013 and that the ICS were approved by the Management Board in June 2014; |
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11.

Takes note that the project to implement the Agency's internal control standards (ICS) was ongoing at the end of 2013 and that the ICS were approved by the Management Board in June 2014;

| 12. | Notes from the Court's report that the Agency has no insurance coverage for fixed tangible assets except for multi-risk fire for its seat premises in Tallinn; calls on the Agency to inform the discharge authority about the results of any remedial actions taken regarding this matter; |
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12.

Notes from the Court's report that the Agency has no insurance coverage for fixed tangible assets except for multi-risk fire for its seat premises in Tallinn; calls on the Agency to inform the discharge authority about the results of any remedial actions taken regarding this matter;

Internal audit

Internal audit

| 13. | Takes note that the Agency's Internal Audit Capability started to function in October 2013; |
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13.

Takes note that the Agency's Internal Audit Capability started to function in October 2013;

| 14. | Notes that the Commission's Internal Audit Service (IAS) carried out a preliminary risk assessment of the Agency's major administrative processes in order to prepare future internal audit plans; points out that the IAS identified a number of potential high risk areas which have been included in the audit activities for 2014, including business continuity, procurement, governance, facilities management and others; takes note that the Agency has started implementing measures aimed at mitigating the identified risks; |
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14.

Notes that the Commission's Internal Audit Service (IAS) carried out a preliminary risk assessment of the Agency's major administrative processes in order to prepare future internal audit plans; points out that the IAS identified a number of potential high risk areas which have been included in the audit activities for 2014, including business continuity, procurement, governance, facilities management and others; takes note that the Agency has started implementing measures aimed at mitigating the identified risks;

Performance

Performance

| 15. | Acknowledges that the Agency's seat is located in Tallinn (with 46 occupied posts) while its operational activities are carried out in Strasbourg (with 79 occupied posts) and the business continuity site is in Sankt Johann im Pongau (Austria); takes note of the Court's opinion that management effectiveness would increase and administrative costs would be reduced if all staff were centralised in one location; calls therefore on the Commission to include the advantages and disadvantages of having three different locations in its evaluation report to be prepared in accordance to Article 31 of the Agency's founding Regulation, in particular expected budget savings, reflections on practical arrangements and costs with regard to a potential centralisation of its activities; |
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15.

Acknowledges that the Agency's seat is located in Tallinn (with 46 occupied posts) while its operational activities are carried out in Strasbourg (with 79 occupied posts) and the business continuity site is in Sankt Johann im Pongau (Austria); takes note of the Court's opinion that management effectiveness would increase and administrative costs would be reduced if all staff were centralised in one location; calls therefore on the Commission to include the advantages and disadvantages of having three different locations in its evaluation report to be prepared in accordance to Article 31 of the Agency's founding Regulation, in particular expected budget savings, reflections on practical arrangements and costs with regard to a potential centralisation of its activities;

| 16. | Takes note that at the time of the Court's audit, negotiations were ongoing between the Agency and the host Member State (Estonia) with the aim of reaching a headquarters agreement that would clarify the conditions under which the Agency and its staff will operate; calls on the Agency to inform the discharge authority about the state of play of the negotiations until the end of December 2015 and to conclude the headquarters agreement as urgently as possible; |
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16.

Takes note that at the time of the Court's audit, negotiations were ongoing between the Agency and the host Member State (Estonia) with the aim of reaching a headquarters agreement that would clarify the conditions under which the Agency and its staff will operate; calls on the Agency to inform the discharge authority about the state of play of the negotiations until the end of December 2015 and to conclude the headquarters agreement as urgently as possible;

| 17. | Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its Resolution of 29 April 2015 (2) on the performance, financial management and control of the agencies. |
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17.

Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its Resolution of 29 April 2015 (2

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(1)  See Article 32.

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(2)  Texts adopted of that date, P8_TA(2015)0130 (see page 431 of this Official Journal).

2

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