Report on the annual accounts of the European Maritime Safety Agency for the 2003 financial year together with the Agency's replies
Date: 2004-09-30
Institutions: European Court of Auditors
Subjects: European Court of Auditors, European Maritime Safety Agency, administration of the Institutions, financial control, interinstitutional relations (EU), operating result, report

C 324/16

EN

Official Journal of the European Union

30.12.2004

on the annual accounts of the European Maritime Safety Agency for the 2003 financial
year together with the Agency’s replies

REPORT

(2004/C 324/03)

CONTENTS

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

THE COURT’S OPINION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

OBSERVATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

2-5

6-10

Tables 1-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Agency’s replies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17

17

17

18

22

Paragraph

Page

30.12.2004

EN

Official Journal of the European Union

C 324/17

INTRODUCTION

1.
The European Maritime Safety Agency (hereinafter called
the Agency) was established by Regulation (EC) No 1406/2002 (1)
of the European Parliament and of the Council of 27 June 2002.
The financial year 2003 was the first one during which the
Agency actually began to carry out its operational activities. 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 the relevant Community legislation and to
evaluate its effectiveness. Table 1 summarises the powers and
activities of the Agency on the basis of information supplied by
it.

THE COURT’S OPINION

2.
This opinion is addressed to the European Parliament and
the Council in accordance with Article 185(2) of Council Regu-
lation (EC, Euratom) No 1605/2002 (2).

3.
The Court has examined the Agency’s annual accounts for
the financial year ended 31 December 2003. In accordance with
Article 19(1) of Regulation (EC) No 1406/2002, the budget was
implemented on the responsibility of the Executive Director. This
responsibility includes the drawing-up and presentation of the
financial statements (3) in accordance with the internal financial
provisions adopted on the basis of Article 21 of Council Regula-
tion (EC) No 1406/2002. The Court of Auditors is required under
Article 248 of the Treaty establishing the European Community
to examine these accounts.

The Court carried out its audit in accordance with its
4.
auditing policies and standards, which have been adapted from
generally accepted international auditing standards to reflect the
specific nature of the Community context. It examined the
accounting documents and applied the audit procedures that it
considered necessary in that context.

5.
The Court thus obtained reasonable assurance that the
annual accounts for the financial year ended 31 December 2003
were reliable and that the underlying transactions, taken as a
whole, were legal and regular. The content of the following obser-
vations does not call the audit opinion expressed by the Court in
this respect into question.

OBSERVATIONS

6.
Table 2 shows the implementation of appropriations for
the financial year 2003. The Agency’s revenue and expenditure
account and the balance sheet for the financial year 2003 are
summarised in Tables 3 and 4.

7.
The Executive Director, who is the authorising officer, is
also empowered to sign banking instructions, which is contrary
to Article 37 of the Agency’s financial regulation.

8.
Article 43(1)(e) of the Agency’s financial regulation stipu-
lates that the accounting officer is to validate the systems laid
down by the authorising officer to supply or justify accounting
information. This validation has yet to be formalised.

The Agency should carry out systematic checks on salary

9.
payments made to its employees.

An analysis of the computer system control environment
10.
showed that it requires strengthening in view of the forecast
increase in the Agency’s activities.

This Report was adopted by the Court of Auditors in Luxembourg at its meeting of 29 and 30 September
2004.

For the Court of Auditors
Juan Manuel FABRA VALLÉS
President

(1) OJ L 201, 31.7.2002, p. 8.
(2) OJ L 248, 16.9.2002, p. 1.
(3) As

required by Article 82 of Commission Regulation (EC)
No 2343/2002, the final accounts for all Agency revenue and expen-
diture for the financial year 2003 were drawn up on 1 March 2004
and forwarded to the Court of Auditors, which received them on
20 September 2004. A summarised version of these accounts is pre-
sented in the tables attached to this report.

C 324/18

EN

Official Journal of the European Union

30.12.2004

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EN

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C 324/19

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C 324/20

EN

Official Journal of the European Union

30.12.2004

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

Table 3

Revenue
Commission subsidies
Other revenue

Expenditure

Staff — Title I of the budget
Payments
Appropriations carried over

Administration — Title II of the budget
Payments
Appropriations carried over

Operating expenditure — Title III of the budget
Payments
Appropriations carried over

NB: Totals may include differences due to rounding.
Source: Data from the Agency.

(1 000 euro

2003

2 630
2

2 632

647
66

238
315

13
155

1 434

1 198

Total revenue (a)

Total expenditure (b)

Outturn for the financial year (a – b)

30.12.2004

EN

Official Journal of the European Union

C 324/21

European Maritime Safety Agency — Balance sheet as at 31 December 2003

Table 4

Assets

2003

Liabilities

Fixed assets

Computer software

Depreciation

Current assets

Advances to staff

Sundry accounts receivable

Cash accounts

Bank accounts

NB: Totals may include differences due to rounding.
Source: Data from the Agency.

Own capital

Own capital

Balance for the financial year

Current liabilities

Automatic carry-overs of appropriations

Sundry accounts payable

11

– 3

8

17

3

20

1 744

1 744

1 772

Subtotal

Subtotal

Subtotal

Total

(1 000 euro)

2003

8

1 198

1 206

536

29

566

Subtotal

Subtotal

Total

1 772

C 324/22

EN

Official Journal of the European Union

30.12.2004

THE AGENCY’S REPLIES

It was not possible to ensure the separation of duties due
7.
to the Agency’s insufficient human resources. Since January 2004,
following the recruitment of other members of staff, internal con-
trols have been strengthened and the separation of duties ensured.

The Commission’s Paymaster’s Office (PMO) is in charge
9.
of calculating EMSA employee salaries. Following an increase in
staff numbers in the Human Resources department, checks on
payments have been strengthened.

8.
Further to the Court’s observations, the accounting officer
validated the accounting and budgetary systems in March 2004.

The Agency has strengthened its IT team considerably,
10.
and staff numbers should increase from one (end 2003) to five
(end 2004). This will allow for a better division of tasks and
responsibilities and thus improve control of the computer system.