10.12.2014 |
EN |
Official Journal of the European Union |
C 442/326 |
REPORT
on the annual accounts of the European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA) for the financial year 2013, together with the Agency’s replies
(2014/C 442/38)
INTRODUCTION
1. |
The European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA), hereinafter ‘the Agency’, which is located in Tallinn, Strasbourg and St. Johann im Pongau (see para. 18), was established by Regulation (EC) No 1077/2011 of the European Parliament and of the Council (1). The core mission of this Agency is to fulfil the operational management tasks for the Second Generation Schengen Information System (SIS II), the Visa Information System (VIS) and Eurodac (2). |
2. |
The Commission granted financial autonomy to the Agency on 22 May 2013. Therefore the audited period for the financial year 2013 runs from 22 May 2013 to 31 December 2013. |
INFORMATION IN SUPPORT OF THE STATEMENT OF ASSURANCE
3. |
The audit approach taken by the Court comprises analytical audit procedures, direct testing of transactions and an assessment of key controls of the Agency’s supervisory and control systems. This is supplemented by evidence provided by the work of other auditors (where relevant) and an analysis of management representations. |
STATEMENT OF ASSURANCE
The management’s responsibility
The auditor’s responsibility
Opinion on the reliability of the accounts
Opinion on the legality and regularity of the transactions underlying the accounts
Emphasis of matter in relation to the reliability of the accounts
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12. |
The comments which follow do not call the Court’s opinion on the reliability of the accounts and its opinion on the legality and regularity of the transactions underlying the accounts into question. It should be noted that 2013 was the first year of the Agency’s financial autonomy and that the establishment of its procedures is ongoing. |
COMMENTS ON INTERNAL CONTROLS
13. |
The development of the Agency’s Internal Control Standards was ongoing at the end of the year. They were approved by the Management Board in June 2014. |
14. |
There is no insurance coverage for fixed tangible assets, except for multi-risk fire for the premises in Tallinn. |
COMMENTS ON BUDGETARY MANAGEMENT
15. |
According to the Agency’s Founding Regulation (8), the Commission was responsible for the establishment and initial operation of the Agency until it was granted financial autonomy on 22 May 2013. The migration of data on commitment and payment appropriations from the Commission to the Agency was a complex process and a reconciliation of the figures between the Commission’s and the Agency’s accounting systems was finally completed in June 2014. This affected the Agency’s payment planning and the preparation of its provisional accounts. |
16. |
According to the Agency’s final accounts budget implementation rates were 96 % for commitment appropriations and 67 % for payment appropriations. Due to the fact that part of the Agency’s total annual budget was executed by the Commission and the differences between the Commission’s and the Agency’s budgetary structures, a more detailed analysis per budget title could not be carried out for 2013. |
17. |
According to the Agency’s Founding Regulation (9), countries associated with the implementation, application and development of the Schengen acquis and Eurodac-related measures must make a contribution to the Agency’s budget. Although Schengen associated countries were using the systems managed by the Agency in 2013 the Commission’s negotiations were still ongoing. |
OTHER COMMENTS
18. |
Though the seat of the Agency is in Tallinn (with 46 occupied posts), operational activities are carried out in Strasbourg (with 79 occupied posts) (10). It is likely that management effectiveness could be increased and administrative costs reduced if all staff were centralised in one location. |
19. |
A headquarters agreement that would clarify the conditions under which the Agency and its staff operate has not yet been signed with the host Member State, Estonia, and negotiations were still ongoing at the time of the audit. |
This Report was adopted by Chamber IV, headed by Mr Pietro RUSSO, Member of the Court of Auditors, in Luxembourg at its meeting of 16 September 2014.
For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
President
(1) OJ L 286, 1.11.2011, p. 1.
(2) Annex summarises the Agency’s competences and activities. It is presented for information purposes.
(3) These include the balance sheet and the economic outturn account, the cash flow table, the statement of changes in net assets and a summary of the significant accounting policies and other explanatory notes.
(4) These comprise the budgetary outturn account and the annex to the budgetary outturn account.
(5) Articles 39 and 50 of Commission Delegated Regulation (EU) No 1271/2013 (OJ L 328, 7.12.2013, p. 42)
(6) The accounting rules adopted by the Commission’s accounting officer are derived from the International Public Sector Accounting Standards (IPSAS) issued by the International Federation of Accountants or, where relevant, the International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board.
(7) Article 107 of Regulation (EU) No 1271/2013.
(8) Article 32 of Regulation (EU) No 1077/2011 of the European Parliament and of the Council (OJ L 286, 1.11.2011, p. 1).
(9) Article 32 of Regulation (EU) No 1077/2011.
(10) The Agency’s back-up systems are located in Sankt Johann im Pongau with no staff located there.
ANNEX
EU Agency for the operational management of large-scale IT systems in the area of freedom, security and justice (Tallinn)
Competences and activities
Areas of Union competence deriving from the Treaty (Article 74, 77(2)(a) and (b), 78(2)(e), 79(2)(c), 82(1)(d), 85(1), 87(2)(a) and Article 88(2) of the Treaty on the Functioning of the European Union) |
Contribute to the creation of an area of free circulation of people by increasing cooperation on cross-border issues, such as asylum, immigration, border control, as well as judicial and police cooperation in criminal matters. |
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Competences of the Agency (Regulation (EC) No 1077/2011of the European Parliament and of the Council) |
With reference to its establishing Regulation (EU) No 1077/2011, and without prejudice to the respective responsibilities of the Commission and of the Member States under the legislative instruments governing large-scale IT Systems, the Agency’s objectives are the following:
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Governance |
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Resources made available to the Agency in 2013 |
Final Budget (1) 61,35 million euro (commitment appropriations) 34,38 million euro (payment appropriations) Staff as at 31 December 2013 Posts authorised:
Posts occupied:
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Products and services in 2013 |
Products and services in 2013 included:
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(1) For the period 22nd May 2013, when the Agency was granted financial autonomy, to 31 December 2013
Source: Annex supplied by the Agency.
THE AGENCY’S REPLIES
11. |
The Agency acknowledges the Court’s mention, having regard to it in the notes to the balance sheet, 6.3.1 ‘Non-current assets’, section ‘Material transfer of tangible & intangible fixed assets received from other consolidated entities’. |
13. |
The Agency acknowledges the Court’s comment and will continue to develop further its robust processes and procedures already in place in order to ensure full compliance with Internal Control Standards’ requirements. |
14. |
Technical specifications are being drafted, procurement is planned for the second half of the year, aiming at start of contractual execution in the fourth quarter 2014. |
15. |
During the handover of responsibilities on operational management of the systems from the European Commission to the Agency there was intensive exchange of information at working level. As the Commission informed the Agency:
A comprehensive set of documents relating to the technical documentation or contracts signed were transmitted to eu-LISA in electronic or paper format in support of the migration exercise; some original documents were retained by the Commission for control and audit purposes. While the Agency acknowledges the complexity and length of the reconciliation exercise, a full reconciliation of the budgetary data has been achieved, presenting a complete — i.e. combining DG HOME’s and the Agency’s implementation — overview of the 2013 budget. As the migration of appropriations following financial independence is a non-recurring exercise, future budgetary implementation reporting is expected to provide the basis for fully detailed analysis. |
17. |
The procedure for adoption by the Council will be launched as soon as the negotiations led by the Commission are over. Following the decision by the Council, the associated countries will have to ratify the agreement in line with their national legislation. It should be noted that the text of the agreements currently includes a provision which entails retroactive payment of contribution to the Agency starting from December 2012. |
18. |
The organisational set-up of the Agency is governed by its establishing Regulation. The Agency is not in a position to elaborate on this comment. |
19. |
The Agency acknowledges the observation. The only outstanding item subject of negotiations with the Estonian Government is VAT regime applicable to the Agency's staff. |