# C_2009304EN.01005501.xml

| 15.12.2009 | EN | Official Journal of the European Union | C 304/55 |
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15.12.2009

EN

Official Journal of the European Union

C 304/55

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REPORT

REPORT

on the annual accounts of the European Maritime Safety Agency for the financial year 2008, together with the Agency’s replies

2009/C 304/11

CONTENTS

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 56 |
| STATEMENT OF ASSURANCE ... | 3-12 | 56 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13-14 | 57 |
| OTHER MATTERS ... | 15 | 57 |
| Table ... | 58 |
| The Agency’s replies ... | 59 |

Paragraph

Paragraph

Page

Page

INTRODUCTION ...

1-2

56

STATEMENT OF ASSURANCE ...

3-12

56

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13-14

57

OTHER MATTERS ...

15

57

Table ...

58

The Agency’s replies ...

The Agency’s replies

59

INTRODUCTION

INTRODUCTION

| 1. | The European Maritime Safety Agency (hereinafter ‘the Agency’), located in Lisboa, 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 the prevention of pollution by ships, provide the Commission and the Member States with technical assistance, and monitor the implementation of Community legislation and to evaluate its effectiveness (2). |
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1.

The European Maritime Safety Agency (hereinafter ‘the Agency’), located in Lisboa, 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 the prevention of pollution by ships, provide the Commission and the Member States with technical assistance, and monitor the implementation of Community legislation and to evaluate its effectiveness (2).

1

2

| 2. | The Agency’s 2008 budget amounted to 50,2 million euro compared with 48,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 211 as compared with 179 the previous year. |
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2.

The Agency’s 2008 budget amounted to 50,2 million euro compared with 48,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 211 as compared with 179 the previous year.

STATEMENT OF ASSURANCE

STATEMENT OF ASSURANCE

| 3. | Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3) of the Agency, which comprise the ‘financial statements’ (4) and the ‘reports on implementation of the budget’ (5) for the financial year ended 31 December 2008 and the legality and regularity of the transactions underlying those accounts. |
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3.

3.

Pursuant to the provisions of Article 248 of the Treaty the Court has audited the annual accounts (3

4

5

| 4. | This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6). |
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4.

4.

This Statement of Assurance is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (6

The Director’s responsibility

The Director’s responsibility

| 5. | As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7). The Director is responsible for putting in place (8) the organisational structure and the internal management and control systems and procedures relevant for drawing up final accounts (9) that are free from material misstatement, whether due to fraud or error, and for ensuring that the transactions underlying those accounts are legal and regular. |
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5.

5.

As authorising officer, the Director implements the revenue and expenditure of the budget in accordance with the financial rules of the Agency under his own responsibility and within the limits of authorised appropriations (7

8

9

The Court’s responsibility

The Court’s responsibility

| 6. | The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them. |
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6.

6.

The Court’s responsibility is to provide, on the basis of its audit, a statement of assurance as to the reliability of the annual accounts of the Agency and the legality and regularity of the transactions underlying them.

| 7. | The Court conducted its audit in accordance with the IFAC and ISSAI (10) International Auditing Standards and Codes of Ethics. Those standards require that the Court complies with ethical requirements and plans and performs the audit to obtain reasonable assurance about whether the accounts are free from material misstatement and whether the underlying transactions are legal and regular. |
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7.

7.

The Court conducted its audit in accordance with the IFAC and ISSAI (10

| 8. | The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgment including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts. |
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8.

8.

The Court’s audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the accounts and about the legality and regularity of the transactions underlying them. The procedures selected depend on its audit judgment including the assessment of the risks of material misstatement of the accounts or of illegal or irregular transactions, whether due to fraud or error. In making those risk assessments internal control relevant to the entity’s preparation and presentation of accounts is considered in order to design audit procedures that are appropriate in the circumstances. The Court’s audit also includes evaluating the appropriateness of accounting policies used and, the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the accounts.

| 9. | The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below. |
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9.

9.

The Court believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the opinions set out below.

Opinion on the reliability of the accounts

Opinion on the reliability of the accounts

| 10. | In the Court’s opinion, the Agency’s Annual Accounts (11) present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation. |
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10.

10.

In the Court’s opinion, the Agency’s Annual Accounts (11

Opinion on the legality and the regularity of the transactions underlying the accounts

Opinion on the legality and the regularity of the transactions underlying the accounts

| 11. | In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular. |
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11.

11.

In the Court’s opinion, the transactions underlying the annual accounts of the Agency for the financial year ended 31 December 2008 are, in all material respects, legal and regular.

| 12. | The comments which follow do not call the Court’s opinions into question. |
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12.

The comments which follow do not call the Court’s opinions into question.

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT

| 13. | The procedures for drawing up the budget were not sufficiently rigorous and led to a significant number of budgetary transfers (12). More than 2 million euro of appropriations for personnel expenditure were transferred to administrative expenditure budget lines between June and November 2008. This made it possible to increase the amount of appropriations carried forward to 2009 and reduced the amount to be repaid to the Commission. Moreover, the high level of cancellation of payment appropriations for operational activities, 7,5 million euro, indicates weaknesses in their planning and their monitoring. |
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13.

The procedures for drawing up the budget were not sufficiently rigorous and led to a significant number of budgetary transfers (12). More than 2 million euro of appropriations for personnel expenditure were transferred to administrative expenditure budget lines between June and November 2008. This made it possible to increase the amount of appropriations carried forward to 2009 and reduced the amount to be repaid to the Commission. Moreover, the high level of cancellation of payment appropriations for operational activities, 7,5 million euro, indicates weaknesses in their planning and their monitoring.

12

| 14. | As in 2007 (13) legal commitments were entered into before the corresponding budgetary commitments (14). |
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14.

As in 2007 (13) legal commitments were entered into before the corresponding budgetary commitments (14).

13

14

OTHER MATTERS

OTHER MATTERS

| 15. | The Agency did not prepare a multi-annual work programme setting performance indicators as required by the Financial Regulation. Its annual work programme is not related to its commitment budget and is largely based on payment forecasts. Budget modifications are made without simultaneous revisions of the work programme even when these have a significant impact. The introduction of an activity based budgeting system would make it easier to establish a clear link between the work programme and the financial forecasts. |
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15.

The Agency did not prepare a multi-annual work programme setting performance indicators as required by the Financial Regulation. Its annual work programme is not related to its commitment budget and is largely based on payment forecasts. Budget modifications are made without simultaneous revisions of the work programme even when these have a significant impact. The introduction of an activity based budgeting system would make it easier to establish a clear link between the work programme and the financial forecasts.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 8 October 2009.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

European Maritime Safety Agency (Lisboa)

| 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 2008

  (Data for 2007) | Products and services supplied in 2008 |
| --- | --- | --- | --- | --- |
| 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 2008

(Data for 2007)

Products and services supplied in 2008

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 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

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

Administrative Board

Composition

Composition

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

Tasks

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

Executive Director

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

3.   External audit

External audit

Court of Auditors.

4.   Discharge Authority

Discharge Authority

Parliament acting on a recommendation by the Council.

Budget

Budget

50,2 million euro

(48,2 million euro)

(48,2 million euro)

Staff

Staff

| | Permanent and temporary staff:
  181 (153) |
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Permanent and temporary staff:

181 (153)

(153)

| | Other Staff: | Contract staff:
  17 (13) |
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Other Staff:

Contract staff:

17 (13)

(13)

| | SNEs:
  13 (13) |
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SNEs:

13 (13)

(13)

| — | 33 Workshops/other events |
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—

33 Workshops/other events

| — | 24 training courses (including 4 for Port State Control (PSC) officers |
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—

24 training courses (including 4 for Port State Control (PSC) officers

| — | 431 national experts trained |
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—

431 national experts trained

| — | 75 inspections and visits |
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—

75 inspections and visits

| — | 2 335 satellite images ordered and analysed through CleanSeaNet |
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—

2 335 satellite images ordered and analysed through CleanSeaNet

| — | 11 anti-pollution vessels contracts |
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—

11 anti-pollution vessels contracts

| — | 31 drills and 6 exercises with the anti-pollution vessels |
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—

31 drills and 6 exercises with the anti-pollution vessels

| — | SafeSeaNet system fully operational |
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—

SafeSeaNet system fully operational

| — | Other major systems under development:
  THETIS (Information System for Port State Control (PSC) Officers EU Long Range Identification and Tracking Data Centre |
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—

Other major systems under development:

THETIS (Information System for Port State Control (PSC) Officers EU Long Range Identification and Tracking Data Centre

Source: Information supplied by the Agency.

Source

THE AGENCY’S REPLIES

| 13. | The Agency takes note of the observation of the Court and will continue its effort to improve its planning and monitoring and consequently to reduce the number of budgetary modifications. Transfers for administrative expenditure — commanded by ad-hoc requirements related to the move to the final office building — are limited to the 2008/2009 timeframe. The total of the budgetary transfers in 2008 did not exceed the 10 % threshold requiring an Administrative Board decision. |
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13.

The Agency takes note of the observation of the Court and will continue its effort to improve its planning and monitoring and consequently to reduce the number of budgetary modifications. Transfers for administrative expenditure — commanded by ad-hoc requirements related to the move to the final office building — are limited to the 2008/2009 timeframe. The total of the budgetary transfers in 2008 did not exceed the 10 % threshold requiring an Administrative Board decision.

| 14. | Following an Internal Audit of the Agency’s commitment and payment procedures, additional measures to reinforce the control over these procedures have been taken. Moreover, the Agency initiated the implementation of ABAC Contracts. |
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14.

Following an Internal Audit of the Agency’s commitment and payment procedures, additional measures to reinforce the control over these procedures have been taken. Moreover, the Agency initiated the implementation of ABAC Contracts.

| 15. | The Agency agrees with the observation of the Court of Auditors. For 2009 the work programme includes specific reference to both commitment and payment appropriations forecasted for the different activities. Moreover, the Agency is currently developing Key Performance Indicators for its activities. These KPI’s will -at a later stage- be included in the annual work programme. At the same time, the Agency is finalizing a five-year strategy which will represent the multi-annual work programme of the Agency. |
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15.

The Agency agrees with the observation of the Court of Auditors. For 2009 the work programme includes specific reference to both commitment and payment appropriations forecasted for the different activities. Moreover, the Agency is currently developing Key Performance Indicators for its activities. These KPI’s will -at a later stage- be included in the annual work programme. At the same time, the Agency is finalizing a five-year strategy which will represent the multi-annual work programme of the Agency.

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

1

(2)  The Table summarises the Agency’s competences and activities. It is presented for information purposes.

2

Table

(3)  These accounts are accompanied by a report on the budgetary and financial management during the year which gives inter alia an account of the rate of implementation of the appropriations with summary information on the transfers of appropriations among the various budget items.

3

(4)  The financial statements include the balance sheet and the economic outturn account, the cash-flow table, the statement of changes in capital and the annex to the financial statements which includes the description of the significant accounting policies and other explanatory information.

4

(5)  The budget implementation reports comprise the budget outturn account and its annex.

5

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

6

(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

7

(8)  Article 38 of Commission Regulation (EC, Euratom) No 2343/2002.

8

(9)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in chapter 1 of Title VII of Commission Regulation (EC, Euratom) No 2343/2002 as last amended by Commission Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.07.2008, p. 23) and are integrated as such in the Financial Regulation of the Agency.

9

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

10

(11)  The Final Annual Accounts were drawn up on 11 June 2009 and received by the Court on 2 July 2009. The Final Annual Accounts, consolidated with those of the Commission are published in the Official Journal of the European Union by 15 November of the following year. These can be found on the following website http://eca.europa.eu or http://www.emsa.europa.eu

11

Official Journal of the European Union

(12)  52 transfers of appropriations in 2008.

12

(13)  Paragraph 8 of the 2007 annual report (OJ C 311 of 5.12.2008 p. 58).

13

(14)  Four cases with a total value of 5,2 million euro out of a total of 46,4 million euro committed in 2008.

14

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