# C_2010338EN.01004001.xml

| 14.12.2010 | EN | Official Journal of the European Union | C 338/40 |
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14.12.2010

EN

Official Journal of the European Union

C 338/40

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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 2009, together with the Agency’s replies

2010/C 338/08

CONTENTS

CONTENTS

| | Paragraph | Page |
| --- | --- | --- |
| INTRODUCTION ... | 1-2 | 41 |
| STATEMENT OF ASSURANCE ... | 3-12 | 41 |
| COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ... | 13-16 | 42 |
| OTHER MATTERS ... | 17 | 42 |
| Table ... | 43 |
| The Agency’s replies ... | 45 |

Paragraph

Paragraph

Page

Page

INTRODUCTION ...

1-2

41

STATEMENT OF ASSURANCE ...

3-12

41

COMMENTS ON THE BUDGETARY AND FINANCIAL MANAGEMENT ...

13-16

42

OTHER MATTERS ...

17

42

Table ...

43

The Agency’s replies ...

The Agency’s replies

45

INTRODUCTION

INTRODUCTION

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

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

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2

| 2. | The Agency’s 2009 budget amounted to 89 million euro compared with 71,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 226 as compared with 185 the previous year. |
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2.

The Agency’s 2009 budget amounted to 89 million euro compared with 71,2 million euro the previous year. The number of staff employed by the Agency at the end of the year was 226 as compared with 185 the previous year.

12.

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| 12. | The comments which follow do not call the Court’s opinions into question. |
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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. | In 2009, the budget increased by 17,2 million euro, nearly 28 % compared with the previous year. However, appropriations amounting to 27 million euro had to be carried forward and appropriations amounting to 13,9 million euro (12) had to be cancelled. Similarly, in 2008, appropriations amounting to 13 million euro had also to be cancelled. This indicates that the Agency has still to improve the level of utilisation of appropriations. |
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13.

In 2009, the budget increased by 17,2 million euro, nearly 28 % compared with the previous year. However, appropriations amounting to 27 million euro had to be carried forward and appropriations amounting to 13,9 million euro (12) had to be cancelled. Similarly, in 2008, appropriations amounting to 13 million euro had also to be cancelled. This indicates that the Agency has still to improve the level of utilisation of appropriations.

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| 14. | Of the 25,5 million euro of commitments for Title III — Operational expenditure carried forward — 3,4 million euro related to elapsed operations and should have been decommitted. |
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14.

Of the 25,5 million euro of commitments for Title III — Operational expenditure carried forward — 3,4 million euro related to elapsed operations and should have been decommitted.

| 15. | The procedures for drawing up the budget were not sufficiently rigorous and led to 28 budgetary transfers. By the end of the year six out of 39 budgetary lines of Title II — Administrative expenditures — had not been used and 35 % of the corresponding appropriations were cancelled. |
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15.

The procedures for drawing up the budget were not sufficiently rigorous and led to 28 budgetary transfers. By the end of the year six out of 39 budgetary lines of Title II — Administrative expenditures — had not been used and 35 % of the corresponding appropriations were cancelled.

| 16. | The Agency’s accounts show an amount of 7,5 million paid as prefinancing to border authorities for operational activities. The audit of a sample of eight activities showed that the cost estimates were overstated by 27 %. For the activities closed in 2009, more than 40 recovery orders had to be issued to recover advances made in excess. |
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16.

The Agency’s accounts show an amount of 7,5 million paid as prefinancing to border authorities for operational activities. The audit of a sample of eight activities showed that the cost estimates were overstated by 27 %. For the activities closed in 2009, more than 40 recovery orders had to be issued to recover advances made in excess.

OTHER MATTERS

OTHER MATTERS

| 17. | As in 2008 (13), more than 28 million euro was paid out in 2009 on the basis of unilateral grant decisions signed by the Agency. This type of instrument is not mentioned in the rules in force for Agencies. Article 75(2) of the Commission Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (14) requires grants to be covered by written agreements between the Agency and the beneficiary. Following the Court’s observation, a Framework Partnership Agreement was signed with Member State border authorities and under this new instrument about 0,3 million euro was paid. |
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17.

As in 2008 (13), more than 28 million euro was paid out in 2009 on the basis of unilateral grant decisions signed by the Agency. This type of instrument is not mentioned in the rules in force for Agencies. Article 75(2) of the Commission Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (14) requires grants to be covered by written agreements between the Agency and the beneficiary. Following the Court’s observation, a Framework Partnership Agreement was signed with Member State border authorities and under this new instrument about 0,3 million euro was paid.

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This Report was adopted by Chamber IV, headed by Mr Igors LUDBORŽS, Member of the Court of Auditors, in Luxembourg at its meeting of 14 and 16 September 2010.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

Table

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

| Areas of Union competence deriving from the Treaty | Competences of the Agency as defined in Council Regulation (EC) No 2007/2004 | Governance | Resources made available to the Agency in 2009

  (Data for 2008) | Products and services supplied in 2009 |
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| The Council shall adopt measures to ensure administrative cooperation between the relevant departments of the Member States in the (domains described hereafter), as well as between those departments and the Commission ...
  The Union shall develop a policy with a view to:
  ...






  (b) | carrying out checks on persons and efficient monitoring of the crossing of external borders; |

Areas of Union competence deriving from the Treaty

Competences of the Agency as defined in Council Regulation (EC) No 2007/2004

Governance

Resources made available to the Agency in 2009

(Data for 2008)

Products and services supplied in 2009

The Council shall adopt measures to ensure administrative cooperation between the relevant departments of the Member States in the (domains described hereafter), as well as between those departments and the Commission ...

The Union shall develop a policy with a view to:

...

(b)

carrying out checks on persons and efficient monitoring of the crossing of external borders;

| (c) | the gradual introduction of an integrated management system for external borders. |
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(c)

the gradual introduction of an integrated management system for external borders.

(Articles 74 and 77 of the TFEU)

Objectives

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

Frontex must:

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

Facilitate and render more effective the application of existing and future 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) | to coordinate operational cooperation between Member States in the field of the management of external borders; |
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(1)

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

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

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

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

to carry out risk analysis;

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

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

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

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

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

to 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

Court of Auditors.

4 —   Discharge authority

Parliament, acting on a recommendation from the Council.

Budget

88,8 million euro (71,2 million euro)

| * | Union contribution 85,0 million euro (68 million euro) |
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*

Union contribution 85,0 million euro (68 million euro)

Staff at 31 December 2009

| * | Establishment plan: 117 (94) |
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Establishment plan: 117 (94)

| * | Occupied: 100 (75) |
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Occupied: 100 (75)

Other posts:

| | Contract staff planned 68 (50) |
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Contract staff planned 68 (50)

| | Contract staff occupied 60 (44) |
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Contract staff occupied 60 (44)

| | SNE’s planned: 70 (70) |
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SNE’s planned: 70 (70)

| | SNE’s occupied: 66 (66) |
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SNE’s occupied: 66 (66)

Total staff number: 255 (214)

of which occupied: 226 (185)

Assigned to the following occupied tasks:

| * | operational: 157 (126) |
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operational: 157 (126)

| * | administrative: 69 (59) |
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administrative: 69 (59)

Risk Analysis has produced 14 long–term strategic assessments, 4 quarterly reports, 294 analytical products supporting Joint Operations (including Weekly Briefings), 64 reports of other types, including briefings for Frontex Management and contributions to other organisations or institutions. 4 regular FRAN meetings and 2 regional Expert Meetings were organised. 6 FronBAC training sessions were organised with the total participation of 108 MS and RAU analysts.

On the Operational Cooperation side, 16 joint operations, 2 pilot projects and 32 return operations were organised. Total number of operational days reached the level of 5 086. Moreover 4 conferences were organised.

Training has continued with 192 training development activities; based on F’x tools about 250 000 BG officers in MS/SAC/3rd countries attended training activities centrally organised by F’x or nationally carried out or accessed self-learning based on these F’x curricula/training tools.

The mechanism for the creation of Rapid Border Intervention Teams has been further developed through the conduct of induction training courses, (5) workshops and (two) full-scale exercises for the Rapid Pool.

Frontex Situation Centre, as the single point of contact for information exchange with externals, implemented the Frontex-One-Stop-Shop, a web-based information sharing portal, being used by 28 countries and 250 users. Frontex Situation Centre started providing situation and crisis monitoring on a 9/7 basis delivering early alerts, situation and mission awareness reports to internal and external customers. Daily newsletters were delivered to 300 accounts, amongst which many external portals which provide distribution to many more external clients.

Research & Development Unit organised and held 6 major workshops/conferences, and started preparations for 3 follow-up events scheduled for 2010. It participated in over 180 internal and external workshops, conferences and working meetings. R&D produced 10 reports, 4 studies and 1 booklet/manual. The unit initiated 5 new projects and continued 1 large-scale project from 2008. It also intensified preparations for a EUROSUR Big Pilot Project. The unit arranged and made country visits to Latvia, Lithuania, Estonia and Greece.

Cooperation with Non-EU countries included the conclusion of working arrangements with the competent authorities of Albania, Serbia, Bosnia and Herzegovina, Montenegro, the USA, Belarus, and the former Yugoslav Republic of Macedonia. A cooperation Plan with Moldova was signed.

Cooperation with EU Bodies and international organisations has continued and has been strengthened. By the end of 2009, a working arrangement had been signed with Europol, Interpol, the SGC Sitcen, Cepol, IOM, ICMPD, UNHCR, EMSA, CFCA. A MoU has been signed with DG JLS for the development of ICONet and a coordination mechanism Council document was agreed with CCWP. With Europol and IOM we have signed a cooperation plan and with JRC two service level agreements.

Source: Information supplied by the Agency.

THE AGENCY’S REPLIES

| 13. | The Agency has continued its efforts to better plan and implement its budget. Significant progress has been registered in the first half of 2010, based on effective monitoring of activities with Member States. |
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13.

The Agency has continued its efforts to better plan and implement its budget. Significant progress has been registered in the first half of 2010, based on effective monitoring of activities with Member States.

| 14. | The Agency has significantly improved its internal procedures related to payments and carry forwards. In 2010, similar situations should not happen. |
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14.

The Agency has significantly improved its internal procedures related to payments and carry forwards. In 2010, similar situations should not happen.

| 15. | Transfers in Title 2 occurred to bring the present size and pattern of administrative expenditure in line with the Agency’s needs. |
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15.

Transfers in Title 2 occurred to bring the present size and pattern of administrative expenditure in line with the Agency’s needs.

| 16. | The Agency budgets its activities in accordance with the operational plans jointly made with the Member States. At times, lower participation leads to the need to recover advances made. Efforts are constantly being made to improve the accuracy of the operational budget. |
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16.

The Agency budgets its activities in accordance with the operational plans jointly made with the Member States. At times, lower participation leads to the need to recover advances made. Efforts are constantly being made to improve the accuracy of the operational budget.

| 17. | The Agency has introduced a new legal form of agreement with the Member States that is producing the intended objectives. |
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17.

The Agency has introduced a new legal form of agreement with the Member States that is producing the intended objectives.

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(1)  OJ L 349, 25.11.2004, p. 1.

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

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(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.

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(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.

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

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

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(7)  Article 33 of Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 (OJ L 357, 31.12.2002, p. 72).

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

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(9)  The rules concerning the presentation of the accounts and accounting by the Agencies are laid down in Chapter 1 of Title VII of Regulation (EC, Euratom) No 2343/2002 as last amended by Regulation (EC, Euratom) No 652/2008 of 9 July 2008 (OJ L 181, 10.7.2008, p. 23) and are integrated as such in the Financial Regulation of the Agency.

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

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(11)  The Final Annual Accounts were drawn up on 22 June 2010 and received by the Court on 12 July 2010. 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.frontex.europa.eu/budget_and_finance/

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Official Journal of the European Union

(12)  6,7 million of 2009 appropriations and 7,2 million of appropriations carried over from 2008.

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(13)  Paragraph 15 of the 2008 Annual Report (OJ C 304, 15.12.2009, p. 38).

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(14)  OJ L 181, 10.7.2008, p. 23.

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