# C_2005332EN.01003001.xml

| 28.12.2005 | EN | Official Journal of the European Union | C 332/30 |
| --- | --- | --- | --- |

28.12.2005

EN

Official Journal of the European Union

C 332/30

---

REPORT

REPORT

on the annual accounts of the European Maritime Safety Agency for the financial year 2004 together with the Agency's replies

(2005/C 332/05)

CONTENTS

| 1-2 | INTRODUCTION |
| --- | --- |

1-2

| 3-6 | THE COURT'S OPINION |
| --- | --- |

3-6

| 7-9 | OBSERVATIONS |
| --- | --- |

7-9

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). It began its operational activities in 2003. 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. Table 1 summarises the Agency's competences and activities on the basis of information it has supplied. |
| --- | --- |

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). It began its operational activities in 2003. 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. Table 1 summarises the Agency's competences and activities on the basis of information it has supplied.

1

Table 1

| 2. | For information, the annual accounts drawn up by the Agency for the financial year 2004 are summarised in Tables 2, 3 and 4. |
| --- | --- |

2.

For information, the annual accounts drawn up by the Agency for the financial year 2004 are summarised in Tables 2, 3 and 4.

Tables 2, 3 and 4

THE COURT'S OPINION

| 3. | The Court's opinion is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (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. |
| --- | --- |

3.

The Court's opinion is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (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 2004 (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 its opinion on their reliability and on the legality and regularity of the underlying transactions. |
| --- | --- |

4.

The Agency's accounts for the financial year ended 31 December 2004 (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 its opinion on their reliability and on the legality and regularity of the underlying transactions.

3

| 5. | The Court conducted an audit in accordance with its policies and standards, which are based on international auditing standards that have been adapted to the Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and the underlying transactions are legal and regular. |
| --- | --- |

5.

The Court conducted an audit in accordance with its policies and standards, which are based on international auditing standards that have been adapted to the Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and the underlying transactions are legal and regular.

| 6. | The Court has obtained a reasonable basis for the opinion expressed below. |
| --- | --- |

6.

The Court has obtained a reasonable basis for the opinion expressed below.

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2004 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 opinion into question.

Reliability of the accountsThe Agency's accounts for the financial year ended 31 December 2004 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 opinion into question.

OBSERVATIONS

| 7. | According to Article 31 of the Agency's financial regulation, a distinction has to be made in the Agency's budget between commitment appropriations and payment appropriations. This distinction between types of appropriations is not in evidence in the Agency's budget for the financial year 2004. During the year in question, the Agency nevertheless managed part of its operating appropriations according to the rules applicable to differentiated appropriations. However, the accounts relating to the Agency's implementation of its budget are not suited to presenting differentiated appropriations. The Agency must adapt its budget and the presentation of its accounts to the kind of appropriations it is managing. |
| --- | --- |

7.

According to Article 31 of the Agency's financial regulation, a distinction has to be made in the Agency's budget between commitment appropriations and payment appropriations. This distinction between types of appropriations is not in evidence in the Agency's budget for the financial year 2004. During the year in question, the Agency nevertheless managed part of its operating appropriations according to the rules applicable to differentiated appropriations. However, the accounts relating to the Agency's implementation of its budget are not suited to presenting differentiated appropriations. The Agency must adapt its budget and the presentation of its accounts to the kind of appropriations it is managing.

| 8. | The appropriations carried over from the previous financial year which were not used by the end of the year were not cancelled. Moreover, an analysis of the implementation of the budget shows a low level of execution of payments (4), and a substantial volume of carry-overs of appropriations to the following year (5). Such practices do not comply with the budgetary principles of accuracy and annuality (6). |
| --- | --- |

8.

The appropriations carried over from the previous financial year which were not used by the end of the year were not cancelled. Moreover, an analysis of the implementation of the budget shows a low level of execution of payments (4), and a substantial volume of carry-overs of appropriations to the following year (5). Such practices do not comply with the budgetary principles of accuracy and annuality (6).

4

5

6

| 9. | The share of carry-overs of appropriations that is to be regarded as expenditure for the financial year is evaluated on the basis of declarations made by the authorising officers by delegation. These declarations have to be drawn up in such a way as to enable the accounting officer to correctly appraise the Agency's actual expenditure, which has not often been the case. Furthermore, the files concerning commitments and payments are frequently incomplete and operations carried out on the basis of provisional commitments cannot be properly traced. The internal control system needs to be strengthened in order to remedy its shortcomings. |
| --- | --- |

9.

The share of carry-overs of appropriations that is to be regarded as expenditure for the financial year is evaluated on the basis of declarations made by the authorising officers by delegation. These declarations have to be drawn up in such a way as to enable the accounting officer to correctly appraise the Agency's actual expenditure, which has not often been the case. Furthermore, the files concerning commitments and payments are frequently incomplete and operations carried out on the basis of provisional commitments cannot be properly traced. The internal control system needs to be strengthened in order to remedy its shortcomings.

This report was adopted by the Court of Auditors in Luxembourg at the Court meeting of 5 October 2005.

For the Court of Auditors

Hubert WEBER

President

---

(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 15 June 2005 and received by the Court on 22 July 2005.

3

(4)  Overall, the rate of payment for commitments for the year is 62 %; for operating expenditure (Title III), this rate falls to 17 %.

4

(5)  Overall, the rate of carry-over is 39 %; for operating expenditure (Title III), this rate is 85 %.

5

(6)  Articles 9 and 10 of the Agency's financial regulation.

6

---

Table 1

European Maritime Safety Agency (temporary headquarters in Brussels, planned relocation to Lisbon)

| Areas of Community competence deriving from the Treaty | Competence 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 Regulation (EC) No 1644/2003 of 22 July 2003 and No 724/2004 of 31 March 2004 | Governance | Resources made available to the Agency in 2004

  (2003 data) | Products and services supplied in 2004 |
| --- | --- | --- | --- | --- |
| 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

Competence 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 Regulation (EC) No 1644/2003 of 22 July 2003 and No 724/2004 of 31 March 2004

Governance

Resources made available to the Agency in 2004

(2003 data)

Products and services supplied in 2004

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; |
| --- | --- |

—

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; |
| --- | --- |

—

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. |
| --- | --- |

—

to introduce operational methods for combating pollution in European waters.

Tasks

| — | To assist the Commission in drawing up Community legislation and in its implementation; |
| --- | --- |

—

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; |
| --- | --- |

—

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: |
| --- | --- |

—

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; |
| --- | --- |

—

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; |
| --- | --- |

—

to promote cooperation between riparian States in the shipping areas concerned;

| — | to develop and operate any information system necessary; |
| --- | --- |

—

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; |
| --- | --- |

—

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; |
| --- | --- |

—

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; |
| --- | --- |

—

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; |
| --- | --- |

—

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; |
| --- | --- |

—

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. |
| --- | --- |

—

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;

to examine requests from Member States for assistance.

2. Executive Director

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

3. External audit

European Court of Auditors.

4. Discharge Authority

Parliament on a recommendation from the Council.

Final budget:

13,3 million euro (4,5 million euro) Community contribution: 100 % (100 %)

Total staff at 31 December 2004:

55 (40) posts in the establishment plan

No of posts occupied: 34 (8)

+ 9 (7) other posts

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

Total staff numbers: 43 (15)

assigned to the following duties:

operational tasks: 27 (7)

administrative tasks: 13 (4)

mixed tasks: 3 (4)

Number of specifications and guideline documents: 18

Inspections: 12

Investigations: 5

Seminars: 10

Source: Data sent by the Agency.

Table 2

European Maritime Safety Agency — Budgetary implementation for the financial year 2004

| (1000 euro) |
| --- |
| Revenue | Expenditure |
| Origin of revenue | Revenue entered in the final budget for the financial year | Revenue collected | Allocation of expenditure | Final budget appropriations | Appropriations carried over from the previous financial year | Available appropriations (2004 budget and financial year 2003) |
| entered | committed | paid | carried over | cancelled | Outstanding commitments | paid | cancelled | Appropriations | committed | paid | carried over | cancelled |
| Community subsidies | 13 340 | 12 800 | Title I
  Personnel | 8 170 | 3 736 | 3 594 | 143 | 4 434 | 66 | 13 | 53 | 8 236 | 3 802 | 3 607 | 143 | 4 487 |
| Other revenue | | 5 | Title II
  Administration | 1 630 | 1 319 | 635 | 684 | 311 | 315 | 267 | 48 | 1 945 | 1 634 | 902 | 684 | 359 |
| Title III
  Operating activities | 3 540 | 2 448 | 437 (1) | 2 074 | 1 092 | 155 | 5 (2) | 150 | 3 695 | 2 603 | 442 | 2 074 | 1 242 |
| Total | 13 340 | 12 805 | Total | 13 340 | 7 503 | 4 666 | 2 901 | 5 837 | 536 | 285 | 251 | 13 876 | 8 039 | 4 951 | 2 901 | 6 089 |
| NB: Variations in totals are due to the effects of rounding.

  Source: Agency data — This table summarises the data supplied by the Agency in its annual accounts. |

(1000 euro)

Revenue

Expenditure

Origin of revenue

Revenue entered in the final budget for the financial year

Revenue collected

Allocation of expenditure

Final budget appropriations

Appropriations carried over from the previous financial year

Available appropriations (2004 budget and financial year 2003)

entered

committed

paid

carried over

cancelled

Outstanding commitments

paid

cancelled

Appropriations

committed

paid

carried over

cancelled

Community subsidies

13 340

12 800

Title I

Personnel

8 170

3 736

3 594

143

4 434

66

13

53

8 236

3 802

3 607

143

4 487

Other revenue

5

Title II

Administration

1 630

1 319

635

684

311

315

267

48

1 945

1 634

902

684

359

Title III

Operating activities

3 540

2 448

437 (1)

2 074

1 092

155

5 (2)

150

3 695

2 603

442

2 074

1 242

Total

13 340

12 805

Total

13 340

7 503

4 666

2 901

5 837

536

285

251

13 876

8 039

4 951

2 901

6 089

NB: Variations in totals are due to the effects of rounding.

Source: Agency data — This table summarises the data supplied by the Agency in its annual accounts.

Table 3

European Maritime Safety Agency — Revenue and expenditure account for the financial years 2004 and 2003

| (1000 euro) |
| --- |
| | 2004 | 2003 (3) |
| Revenue |
| Community subsidies | 12 800 | 2 630 |
| Other revenue | 5 | 2 |
| Total budget revenue (a) | 12 805 | 2 632 |
| Expenditure |
| Staff — Title I of the budget |
| Payments | 3 594 | 647 |
| Appropriations carried over | 143 | 66 |
| Administration — Title II of the budget |
| Payments | 635 | 238 |
| Appropriations carried over | 684 | 315 |
| Operating activities — Title III of the budget |
| Payments | 437 | 13 |
| Appropriations carried over | 2 074 | 155 |
| Total budget expenditure (b) | 7 567 | 1 434 |
| Balance (c = a – b) | 5 238 | 1 198 |
| Appropriations carried over and cancelled | 251 | — |
| Exchange-rate differences | –1 | 0 |
| Balance of the budget implementation for the financial year (d) | 5 488 | 1 198 |
| Variation in automatic carry-overs of appropriations and invoices to be received | 2 089 | 399 |
| Variation in investments for the financial year | 242 | 11 |
| Variation in debts (Commission) | –5 489 | –1 198 |
| Depreciation for the financial year | –43 | –3 |
| Variation in advances to suppliers | 56 | — |
| Outturn of the economic adjustments for the financial year (e) | 2 343 | 407 |
| NB: Variations in totals are due to the effects of rounding.

  Source: Agency data — This table summarises the data supplied by the Agency in its annual accounts. |

(1000 euro)

2004

2003 (3)

Revenue

Community subsidies

12 800

2 630

Other revenue

5

2

Total budget revenue (a)

12 805

2 632

Expenditure

Staff — Title I of the budget

Payments

3 594

647

Appropriations carried over

143

66

Administration — Title II of the budget

Payments

635

238

Appropriations carried over

684

315

Operating activities — Title III of the budget

Payments

437

13

Appropriations carried over

2 074

155

Total budget expenditure (b)

7 567

1 434

Balance (c = a – b)

5 238

1 198

Appropriations carried over and cancelled

251

—

Exchange-rate differences

–1

0

Balance of the budget implementation for the financial year (d)

5 488

1 198

Variation in automatic carry-overs of appropriations and invoices to be received

2 089

399

Variation in investments for the financial year

242

11

Variation in debts (Commission)

–5 489

–1 198

Depreciation for the financial year

–43

–3

Variation in advances to suppliers

56

—

Outturn of the economic adjustments for the financial year (e)

2 343

407

NB: Variations in totals are due to the effects of rounding.

Source: Agency data — This table summarises the data supplied by the Agency in its annual accounts.

Table 4

European Maritime Safety Agency — Balance sheet at 31 December 2004 and 31 December 2003

| (1000 euro) |
| --- |
| Assets | 2004 | 2003 | Liabilities | 2004 | 2003 (4) |
| Fixed assets | | | Own capital | | |
| Computer software | 30 | 11 | Outturn carried over | 2 750 | 407 |
| Equipment and machinery | 27 | 0 | Subtotal | 2 750 | 407 |
| Computer equipment | 193 | 0 | | | |
| Depreciation | –44 | –3 | | | |
| Subtotal | 206 | 8 | | | |
| Current assets | | | Long-term debt | | |
| | | | Budgetary balance to be repaid (2004) | 5 488 | 1 198 |
| Sundry accounts receivable | 38 | 2 | Subtotal | 5 488 | 1 198 |
| Recoverable VAT | 2 | 0 | | | |
| Advances to staff | 19 | 17 | Current liabilities | | |
| Advances to Community bodies | 1 | 1 | Budgetary balance to be repaid (2003) | 1 198 | |
| Advances to suppliers | 56 | 0 | Invoices to be received | 413 | 137 |
| Advances to Social Security (ONSS) | 22 | 0 | Sundry accounts payable | 249 | 29 |
| Subtotal | 138 | 20 | Subtotal | 1 860 | 167 |
| Cash accounts | | | | | |
| Bank accounts | 9 754 | 1 744 | | | |
| Subtotal | 9 754 | 1 744 | | | |
| Total | 10 098 | 1 772 | Total | 10 098 | 1 772 |
| NB: Variations in totals are due to the effects of rounding.

  Source: Agency data — This table summarises the data supplied by the Agency in its annual accounts. |

(1000 euro)

Assets

2004

2003

Liabilities

2004

2003 (4)

Fixed assets

Own capital

Computer software

30

11

Outturn carried over

2 750

407

Equipment and machinery

27

0

Subtotal

2 750

407

Computer equipment

193

0

Depreciation

–44

–3

Subtotal

206

8

Current assets

Long-term debt

Budgetary balance to be repaid (2004)

5 488

1 198

Sundry accounts receivable

38

2

Subtotal

5 488

1 198

Recoverable VAT

2

0

Advances to staff

19

17

Current liabilities

Advances to Community bodies

1

1

Budgetary balance to be repaid (2003)

1 198

Advances to suppliers

56

0

Invoices to be received

413

137

Advances to Social Security (ONSS)

22

0

Sundry accounts payable

249

29

Subtotal

138

20

Subtotal

1 860

167

Cash accounts

Bank accounts

9 754

1 744

Subtotal

9 754

1 744

Total

10 098

1 772

Total

10 098

1 772

NB: Variations in totals are due to the effects of rounding.

Source: Agency data — This table summarises the data supplied by the Agency in its annual accounts.

---

(1)  EMSA's operating appropriations are managed as differentiated appropriations. An amount of 64 419 euro in payment appropriations for the financial year was used to pay outstanding commitments relating to differentiated appropriations from the preceding financial year.

(2)  All the commitment appropriations carried over were paid using the appropriations for the financial year, except for a payment of 4 953 euro.

NB: Variations in totals are due to the effects of rounding.

Source: Agency data — This table summarises the data supplied by the Agency in its annual accounts.

(3)  The data for the financial year 2003 have been restated in order to comply with the principle of accruals-based accounting.

NB: Variations in totals are due to the effects of rounding.

Source: Agency data — This table summarises the data supplied by the Agency in its annual accounts.

(4)  The data for the financial year 2003 have been restated in order to comply with the principle of accruals-based accounting.

NB: Variations in totals are due to the effects of rounding.

Source: Agency data — This table summarises the data supplied by the Agency in its annual accounts.

---

THE AGENCY'S REPLIES

| 7. | The Agency managed part of its operating appropriations according to the rules applicable to differentiated appropriations. It is in contact with the Commission with a view to drawing up appropriate presentation models for its budget data. |
| --- | --- |

7.

The Agency managed part of its operating appropriations according to the rules applicable to differentiated appropriations. It is in contact with the Commission with a view to drawing up appropriate presentation models for its budget data.

| 8. | Following the Court's observation, the Agency cancelled the appropriations carried over which were not used. Due to a lack of operational managerial staff, it was only possible to launch the calls for tenders in the autumn, which explains the low rate of payment observed and, consequently, the high rate of carry-overs. |
| --- | --- |

8.

Following the Court's observation, the Agency cancelled the appropriations carried over which were not used. Due to a lack of operational managerial staff, it was only possible to launch the calls for tenders in the autumn, which explains the low rate of payment observed and, consequently, the high rate of carry-overs.

| 9. | From the financial year 2005 the carry-overs to be taken into account will be examined on the basis of invoices and not on the basis of declarations made by the authorising officers. The Agency is in the process of strengthening its internal control system in order to ensure better traceability of its operations, in particular by standardising book-keeping procedures. |
| --- | --- |

9.

From the financial year 2005 the carry-overs to be taken into account will be examined on the basis of invoices and not on the basis of declarations made by the authorising officers. The Agency is in the process of strengthening its internal control system in order to ensure better traceability of its operations, in particular by standardising book-keeping procedures.

---