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 2006 together with the Agency's replies
Date: 2007-09-27
Institutions: European Court of Auditors
Subjects: EU office or agency, European Court of Auditors, administration of the Institutions, cooperation policy, external border of the EU, financial control, implementation of the budget, powers of the institutions (EU), report

19.12.2007

EN

Official Journal of the European Union

C 309/29

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 2006 together with the Agency’s replies

(2007/C 309/06)

CONTENTS

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

STATEMENT OF ASSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

1-2

3-6

7-9

Tables 1 to 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

30

30

30

31

33

Paragraph

Page

C 309/30

EN

Official Journal of the European Union

19.12.2007

INTRODUCTION

1.
The European Agency for the Management of Operational
Cooperation at the External Borders of the Members States (here-
inafter referred to as ‘the Agency’) was created by Regulation (EC)
No 2007/2004 of the Council of 26 October 2004 (1). It became
fully autonomous on 1 January 2006 (2). The Agency’s main task
is to coordinate Member States’ activities in the field of manage-
ment of external borders (support for operational cooperation,
technical and operational assistance, risk analysis).

2.
Table 1 summarises the Agency’s competences and activi-
ties. Key data summarised from the financial statements drawn up
by the Agency for the financial year 2006 is presented in Tables 2,
3 and 4 for information purposes.

STATEMENT OF ASSURANCE

3.
This Statement is addressed to the European Parliament
and the Council in accordance with Article 185(2) of Council
Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 (3); 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 2006 (4) were drawn up by its Executive Director,
pursuant to Article 30 of Regulation (EC) No 2007/2004, and
sent to the Court, which is required to give a statement of assur-
ance on their reliability and on the legality and regularity of the
underlying transactions.

5.
The Court conducted its audit in accordance with the IFAC
and INTOSAI International Auditing Standards and Codes of Eth-
ics, insofar as these are applicable in the European Community
context. The audit was planned and performed to obtain reason-
able assurance that the accounts are reliable and that the under-
lying transactions are legal and regular.

The Court has thus obtained a reasonable basis for the

6.
Statement set out below.

Reliability of the accounts

The Agency’s accounts for the financial year ended 31 Decem-
ber 2006 are, in all material respects, reliable.

Legality and regularity of the underlying transactions

The 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 State-
ment into question.

OBSERVATIONS

7.
For the financial year 2006, the rate of commitment was
85 %. The rate of carry-over was more than 70 % overall and
nearly 85 % for operating expenditure. Transfers of appropria-
tions between chapters or titles during the year exceeded the total
ceiling of 10 % provided for in the Financial Regulation. Thus, the
budgetary principles of annuality and specification were not
strictly observed.

8.
Legal commitments (5) were entered into before budget-
ary commitments, contrary to the Agency’s financial regulation.

The criteria and procedures used for recruiting staff were
9.
not in line with the general provisions for implementing the Staff
Regulations: breaches mainly concerned the minimum experience
required for a given grade, the reduced role of the Selection Com-
mittee and the documentation of the preselection process.

This report was adopted by the Court of Auditors in Luxembourg at
27 September 2007.

its meeting of

For the Court of Auditors
Hubert WEBER
President

(1) OJ L 349, 25.11.2004, p. 1.
(2) Up to 1 September 2006, salaries were paid by the Commission.
(3) OJ L 248, 16.9.2002, p. 1.
(4) These accounts were drawn up on 25 May 2007 and received by the

Court on 11 July 2007.

(5) Six cases of an approximate total value of 30 000 euro.

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

Table 1

Areas of Community competence
deriving from the Treaty

Competences of the Agency as defined in Council Regulation (EEC)
No 2007/2004 of 26 October 2004

Governance

Resources made available
to the Agency

Products and services supplied in 2006

The Community policy in this
area aims at developing common
standards and procedures with
regard to carrying out checks on
persons crossing the external bor-
ders of the Member States; fur-
thermore measures shall be taken
to ensure cooperation between
the relevant departments of the
administrations of the Member
States in the areas covered by this
title, as well as between the Mem-
ber States and the Commission.

(Articles 62(2)(a) and 66 of
Treaty)

the

Objectives

Main tasks

1. Management Board

Final Budget for 2006

Operational cooperation:

Frontex was established with a
view to improving the integrated
management of the external bor-
ders of the Member States of the
EU.

(1)
coordinate operational coop-
eration between Member States in
the field of management of exter-
nal borders;

Composed of:

Total budget:

15 Frontex-coordinated joint operations imple-
mented, seven pilot projects launched.

— one representative of each Member

19,2 million euro

State;

Training:

Frontex shall:

(a)

(b)

(c)

Facilitate and render more
effective the application of
existing and future Commu-
nity measures relating to the
management of
external
borders.

Ensure the coordination of
Member States’ actions in
the implementation of those
measures, thereby contribut-
ing to an efficient, high and
uniform level of control on
persons and surveillance of
the external borders of the
Member States.

Provide the Commission and
the Member States with the
necessary technical support
and expertise in the manage-
ment of the external borders
solidarity
promote
and
between Member States.

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

(3)

carry out risk analysis;

(4)
follow up on the develop-
ment of research in control and
surveillance;

assist Member States in cir-
(5)
cumstances
requiring increased
technical and operational assis-
tance;

(6) provide Member States with
the necessary support in organis-
ing joint return operations.

— two representatives of the Commis-

sion;

— one representative per Schengen
associated country (Norway, Ice-
land) with a limited right to vote.

2. Executive Director

Appointed, on a proposal by the Com-
mission, by the Management Board.

3. External audit

European Court of Auditors.

4. Discharge Authority

Community contribution:

18,9 million euro (98,8 %)

Contribution from the UK:

0,2 million euro (1,2 %)

the Common Core Curriculum revised and devel-
oped; establishment of a network of partnership
academies and training coordinators; training pro-
gramme for 3rd countries and ‘falsified documents’
tool developed; training standards for joint return
operations and tactical training for helicopter pilots
developed, European Training Day co-organised.

figures at 31 Decem-

Staff
ber 2006

Risk analysis:

Number of posts in the Establish-
ment Plan for 2006: 28

five risk analysis reports issued; one public law
enforcement bulletin published, the common inte-
grated risk analysis model updated; Frontex Risk
analysis network (MS’ experts) established.

Total staff numbers: 72

25 Temporary Agents

Research & development:

two reports published, four bulletins issued, one
joint workshop with Joint Research Centre.

Parliament on a recommendation by the
Council.

agents

+ 47 other
(seconded
national experts, contract staff,
auxiliaries)

Assistance to the MS:

Assigned to the following tasks:

coordination of two assistance operations.

— operational: 43

— administrative: 29

Assistance to return operations:

three joint return operations.

Source:

Information supplied by the Agency.

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Frontex — The European Agency for the Management of Operational Cooperation at the External Borders (Warsaw) — Implementation of the budget for the financial year 2006

Table 2

Revenue

Source of revenue

Revenue entered in the final
budget for the financial year

Revenue collected

Allocation of expenditure

Community subsidies

Other subsidies

18 940

226

19 504

226

Total

19 166

19 730

Title I
Staff

Title II
Administration

Title III
Operating activities

Expenditure (1)

Final budget appropriations

entered

committed

paid

carried over

cancelled

(1 000 euro)

2 685

2 173

1 017

1 065

1 275

363

69

931

13 135

Total

17 095

11 687

14 223

1 856

2 942

9 936

11 932

603

275

831

1 709

(1) The expenditure figures concern only the one for which the Agency was responsible for (October — December 2006 for Titles I and II, the whole year for Title III), the Commission being responsible for the remaining expenditure.
Source: Data supplied by the Agency. This table summarise the data provided by the Agency in its annual accounts. Revenue collected and payments are estimated on a cash basis.

The European Agency for the Management of Operational Cooperation at the External
Borders (Warsaw) — Economic outturn account for the financial year 2006

The European Agency for the Management of Operational Cooperation at the External
Borders (Warsaw) — Balance sheet at 31 December 2006

Table 3

Table 4

(1 000 euro)

(1 000 euro)

Operating revenue
Community subsidies
Other revenue

Operating expenditure
Staff expenditure
Fixed asset-related expenditure
Other administrative expenditure
Operational expenditure

Total (a)

Total (b)
Surplus/(deficit) from operating activities (c = a – b)

Financial operations expenditure (d)

Surplus/(deficit) from non-operating activities (e = – d)
Economic result for the year (f = c + e)

2006

15 129
253
15 382

860
7
615
4 348
5 830
9 552
5
– 5
9 547

Non-current assets
Tangible fixed assets
Current assets
Short-term receivables
Cash and cash equivalents

Current liabilities
Provisions for risks and charges
Accounts payable

Net assets
Economic result for the year

2006

31

75
14 236
14 342

84
4 711
4 795

9 547
9 547
14 342

Total assets

Total liabilities

Total net assets
Total liabilities and net assets

This table covers the period October — December 2006 during which the Agency was financially independant.

Source: Data supplied by the Agency . This table summarises the data provided by the Agency in its annual accounts: these accounts are drawn up on an accrual basis.

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19.12.2007

EN

Official Journal of the European Union

C 309/33

THE AGENCY’S REPLIES

The rate of carry-over to 2007 is due to the inherent dif-
7.
ficulties to the start-up period of the Agency and to the fact that
important resources were made available only very late in the
year 2006. Concerning the transfers, the Agency has taken note
of the Court’s remark and has implemented since April 2007 a
strict interpretation of the rules concerning transfers.

8.
The Agency was aware of the situation described by the
Court and had already taken corrective measures. The Agency has
financial actors
launched multiple actions

to remind its

the necessity to strictly respect the procedures; a register of excep-
tions was introduced and its content is presented on a monthly
basis to the Executive Director.

9.
Due to the lack of resources in the start-up period, due to
the difficulties of attracting potential staff and due to the neces-
sity to make the Agency as rapidly as possible operational, the
Agency was not able to fully implement normal procedures for
most of the recruitment procedures launched during the year
2006. In 2007, the situation has been gradually normalised.