EN Official Journal of the European Union C 332/30

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

3-6 THE COURT'S OPINION

7-9 OBSERVATIONS

Tables 1 to 4

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.

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

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.

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.

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.

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).

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.

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

(3) These accounts were drawn up on 15 June 2005 and received by the Court on 22 July 2005.

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

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

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

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; — 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 introduce operational methods for combating pollution in European waters. Tasks — 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 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 promote cooperation between riparian States in the shipping areas concerned; — 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 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 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 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.

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.

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. (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.