PURPOSE: to grant discharge to EUROJUST for the financial year 2007.

LEGISLATIVE ACT: Decision 2009/643/EC of the European Parliament on the discharge for the implementation of the budget of Eurojust for the financial year 2007.

CONTENT: with the present decision, the European Parliament grants discharge to the Administrative Director of EUROJUST for the implementation of its budget for the financial year 2007.

This decision is in line with the European Parliament’s resolution adopted on 23 April 2009 and comprises a series of observations that form an integral part of the discharge decision (please refer to the summary of the opinion of 23/04/2009). The decision to grant discharge is also an approval of the closure of the accounts of this EU agency.

The European Parliament adopted a decision concerning the discharge to be granted to the Administrative Director of EUROJUST in respect of the implementation of its budget for the financial year 2007. The decision to grant discharge is also an approval of the closure of the accounts of this EU agency.

In parallel, the European Parliament adopted a resolution with observations which are an integral part of the decision to grant discharge.

Parliament states that:

structural problems remain in the areas of EUROJUST’s budget implementation, procurement and recruitment planning; because of EUROJUST’s rapid growth and the resulting need for new headquarters, the agency required additional office space in cooperation with the host state which is committed to providing suitable new premises by 2012 (in this regard, Parliament requests EUROJUST to include information about progress in the negotiations in its 2008 annual report).

As far as the high level of appropriations carried over is concerned, Parliament notes, like the Court of Auditors, that of the EUR 18 million, EUR 5.2 million were carried over, a matter that is of concern to it. It welcomes the fact that EUROJUST has introduced a carry-over reduction strategy in 2008.

On the matter of procurement procedures , Parliament regrets that the Court of Auditors still found weaknesses, as in the two previous financial years. It welcomes the fact that EUROJUST has defined a general procurement plan for 2008.

As far as recruitment is concerned, Parliament notes the Court’s finding that the establishment plan for 2007 provided for 147 posts compared to 112 in 2006, and that, at the end of 2006, only 87 posts had been filled. Although concerned that the Court found that EUROJUST did not manage to recruit the 60 staff necessary to fill the establishment plan in 2007, they welcome the fact that, in 2008, efforts were made to fill the posts (of the 175 posts planned for 2008, 130 had been filled by the end of the 2008 financial year). It also welcomes the adoption of a new recruitment policy describing the legal framework, principles, selection process, roles and actors involved.

Regarding the follow-up to the 2006 discharge exercise , Parliament calls on EUROJUST to follow up on the Court's recommendations, in particular in the areas of budget implementation, procurement and recruitment. It welcomes the conclusion of the Practical Arrangement on arrangements of cooperation between EUROJUST and OLAF on 24 September 2008.

Lastly, noting that EUROJUST’S annual accounts for the financial year 2007 are reliable, and the underlying transactions are legal and regular, the Parliament approves the closure of its accounts and refers, for other observations accompanying its decision on discharge, to its resolution on financial management and control of EU agencies - see 2008/2207(INI) - adopted in parallel.

The Committee on Budgetary Control adopted the report by. Christofer FJELLNER (EPP-ED, SE) on discharge to be granted to EUROJUST calling on the European Parliament to grant the administrative director of EUROJUST discharge in respect of the implementation of its budget for the financial year 2007.

Noting that EUROJUST’s annual accounts for the financial year 2007 are reliable, and the underlying transactions are legal and regular, MEPs approve the closure of EUROJUST’s accounts.

However, they make a number of recommendations as part of the decision on discharge. In addition to the general recommendations appearing in the draft resolution on financial management and control of EU agencies (see 2008/2207(INI) ), MEPs make the following observations:

the fact that the Court of Auditors indicates that structural problems remain in the areas of EUROJUST’s budget implementation, procurement and recruitment planning; because of EUROJUST’s rapid growth and the resulting need for new headquarters, the agency required additional office space in cooperation with the host state which is committed to providing suitable new premises by 2012 (in this regard, MEPs request EUROJUST to include information about progress in the negotiations in its 2008 annual report).

As far as the high level of appropriations carried over is concerned, MEPs note, like the Court of Auditors, that of the EUR 18 million, EUR 5.2 million were carried over, a matter that is of concern to them. They welcome the fact that EUROJUST has introduced a carry-over reduction strategy in 2008.

On the matter of procurement procedures , MEPs regret that the Court of Auditors still found weaknesses, as in the two previous financial years. They welcome the fact that EUROJUST has defined a general procurement plan for 2008 and adopted a decision on the organisation of procurement and related tasks.

As far as recruitment is concerned, MEPs note the Court’s finding that the establishment plan for 2007 provided for 147 posts compared to 112 in 2006, and that, at the end of 2006, only 87 posts had been filled. Although concerned that the Court found that EUROJUST did not manage to recruit the 60 staff necessary to fill the establishment plan in 2007, they welcome the fact that, in 2008, efforts were made to fill the posts (of the 175 posts planned for 2008, 130 had been filled by the end of the 2008 financial year). They also welcome the adoption of a new recruitment policy describing the legal framework, principles, selection process, roles and actors involved.

Regarding the follow-up to the 2006 discharge exercise, MEPs call on EUROJUST to follow up on the Court's recommendations, in particular in the areas of budget implementation, procurement and recruitment. They welcome the conclusion of the Practical Arrangement on arrangements of cooperation between EUROJUST and OLAF on 24 September 2008

Based on the observations contained in the revenue and expenditure account and the balance sheet of EUROJUST for the financial year 2007, as well as on the Court of Auditor’s report and EUROJUST’s replies to the Court’s observations, the Council recommends that the Parliament grant the Director of EUROJUST discharge in respect of the implementation of the budget for the financial year 2007.

In doing so, the Council confirms that EUR 2 million (79%) of the appropriations carried over from 2006 to 2007 (EUR 2.6 million) were used, that the appropriations carried over from 2007 to 2008 amount to EUR 5.2 million and that a total of EUR 300 000 was cancelled.

Recalling that the Court of Auditors was able to obtain reasonable assurance that EUROJUST’s annual accounts were, in all material aspects, reliable, the Council believes that there is a certain number of observations that must be taken into consideration when granting discharge in respect of the implementation of the 2007 budget, particularly regarding the following points:

Carry-overs : the Council notes with concern the persisting high carry-over rates for administrative and operational expenditure and calls on EUROJUST to improve the programming and monitoring of its activities, in order to comply with the budgetary principle of annuality; Procurement : while taking note of EUROJUST's efforts to centralise its procurement management and to improve the quality of the procedures, the Council calls on EUROJUST to remedy the remaining weaknesses in its procurement implementation regarding the planning and the management. Recruitment : the Council asks EUROJUST to improve its recruitment planning and execution by accelerating the recruitment of temporary staff for vacant posts in accordance with the available budget appropriations.

PURPOSE: to present the report by the Court of Auditors on the 2007 annual accounts of EUROJUST.

CONTENT: the Court of Auditor’s report includes a detailed section on EUROJUST’s expenditure and an analysis of the expenditure, as well as the EUROJUST’s replies.

Analysis of the accounts by the Court : in its report, the Court makes a number of observations, particularly with regard to carry-overs of budget appropriations (which amounted to EUR 5.2 million). Most of the carry-overs (EUR 4.1 million) concerned administrative and operating activities expenditure. The Court notes that such high levels of carry-overs were at odds with the principle of annuality and suggest weaknesses in the programming and the monitoring of Eurojust’s activities. Moreover, once again the Court notes discrepancies in the management of procurement procedures (EUROJUST extended existing contracts in a manner contrary to the rules). Lastly, the Court notes shortcomings in recruitment planning (with an overestimated forecast budgetary expenditure); The Agency’s replies : EUROJUST notes that, due to the lack of appropriate staff to manage them, funds were reallocated in order to best use the budget. This resulted in commitments being prepared late. EUROJUST has taken corrective actions to fill its deficit of staff and has introduced a carry over reduction strategy for 2008. EUROJUST has initiated new procurement procedures in order to sort out the situation of existing contracts. Lastly, EUROJUST notes that its recruitment policy was reviewed in 2007, which had as a consequence an unforeseen delay in recruitment and the need to hire more employment-agency staff. In 2008, Eurojust aims to reduce the use of this staff and to fulfil its establishment plan.

PURPOSE: to present the final accounts of EUROJUST for the financial year 2007.

CONTENT: this document sets out a detailed account of the implementation of EUROJUST’s budget for the financial year 2007. It notes that EUROJUST’s final budget amounted to EUR 18.9 million in 2007 (compared to EUR 14.7 million in 2006).

As regards the staffing policy, EUROJUST, whose head office is based in The Hague (The Netherlands), set out 147 posts in its establishment plan of which 98 are currently occupied. 32 other posts (contract agents, seconded national experts and employment agency staff) are also occupied totalling 179 posts assigned to operational, administrative and mixed tasks.

In 2007, EUROJUST’s main activities concentrated on bilateral and multilateral cooperation operations with regard to:

236 standard cases; 849 complex cases.

Total number of cases : 1 085 in the following areas:

Fraud: 744 cases; Drug trafficking: 207 cases; Terrorism: 23 cases; Murder: 80 cases; Trafficking in human beings: 71 cases.

In total, members met 91 times in the course of 2007.

The complete version of the final accounts may be found at the following address: http://www.EUROJUST.europa.eu/adm_budg_finance.htm

PURPOSE: to present the final accounts of EUROJUST for the financial year 2007.

CONTENT: this document sets out a detailed account of the implementation of EUROJUST’s budget for the financial year 2007. It notes that EUROJUST’s final budget amounted to EUR 18.9 million in 2007 (compared to EUR 14.7 million in 2006).

As regards the staffing policy, EUROJUST, whose head office is based in The Hague (The Netherlands), set out 147 posts in its establishment plan of which 98 are currently occupied. 32 other posts (contract agents, seconded national experts and employment agency staff) are also occupied totalling 179 posts assigned to operational, administrative and mixed tasks.

In 2007, EUROJUST’s main activities concentrated on bilateral and multilateral cooperation operations with regard to:

236 standard cases; 849 complex cases.

Total number of cases : 1 085 in the following areas:

Fraud: 744 cases; Drug trafficking: 207 cases; Terrorism: 23 cases; Murder: 80 cases; Trafficking in human beings: 71 cases.

In total, members met 91 times in the course of 2007.

The complete version of the final accounts may be found at the following address: http://www.EUROJUST.europa.eu/adm_budg_finance.htm