PURPOSE: to grant discharge to EUROJUST in respect of the implementation of the Agency's budget for the financial year 2012.

NON-LEGISLATIVE ACT: Decision 2014/611/EU of the European Parliament on discharge in respect of the implementation of the budget of EUROJUST for the financial year 2012.

CONTENT: with the present decision, the European Parliament grants discharge to EUROJUST’s Administrative Director for the implementation of its budget for the financial year 2012.

This decision is in line with the European Parliament's resolution adopted on 3 April 2014 and comprises a series of observations that form an integral part of the discharge decision (please refer to the summary of the opinion of 3 April 2014).

Amongst the main observations made, Parliament highlighted the failures as regards the legality and regularity of operations and transparency in recruitment procedures of Eurojust, without calling into question its overall management.

The European Parliament adopted a decision concerning the discharge to be granted to the Administrative Director of Eurojust discharge in respect of the implementation of Eurojust’s budget for the financial year 2012. The vote on the discharge decision approved the closure of the accounts (in accordance with Annex VI, Article 5(1) of the Rules of Procedure of the European Parliament.

Noting that the Court of Auditors stated that it had obtained reasonable assurances that the annual accounts of Eurojust for the financial year 2012 are reliable, and that the underlying transactions are legal and regular, Parliament adopted by 479 votes to 74, with 17 abstentions, a resolution containing a series of recommendations that form an integral part of the discharge decision and as well as the general recommendations that appear in the draft resolution on performance, financial management and control of EU agencies.

These recommendations are summarised as follows:

Financing, budget and financial management : Parliament recalled that the budget of Eurojust for the financial year 2012 was EUR 33.33 million and that budget monitoring efforts during the financial year 2012 resulted in a high budget implementation rate. Legality and regularity of operations : Parliament was concerned that a framework contract for security services was signed in 2008 and amended in 2009, and that the amended formula to calculate prices progressively increased them by 22%, whereas the original framework contract had provided for a maximum increase of 4 %. It expressed concern that such a significant increase may undermine the transparency and fairness of the initial procurement procedure and distort competition. Rate of implementation and carryovers : Parliament acknowledged that the Court of Auditors' annual audit had found no notable issues as regards the level of carry-overs in 2012, and commended Eurojust for adhering to the principle of annuality and for the timely execution of its budget. Performance : Parliament requested that Eurojust communicate the results and impact its work has on European citizens in an accessible way, mainly through its website.

It also made a series of observations on transfers, procurement and recruitment procedures as well as comments on internal controls.

Lastly, Parliament acknowledged Eurojust's arrangements for the prevention and management of conflicts of interests. It called on Eurojust to inform the discharge authority of its intention to review its arrangements on the basis of the Commission's Guidelines on the Prevention and Management of Conflict of Interest in EU Decentralised Agencies.

The Committee on Budgetary Control adopted the report by Petri SARVAMAA (EPP, FI) on discharge in respect of the implementation of the budget of Eurojust for the financial year 2012, and called on the European Parliament to grant the Administrative Director of Eurojust discharge in respect of the implementation of Eurojust’s budget for the financial year 2012 .

Noting that the Court of Auditors stated that it had obtained reasonable assurances that the annual accounts of Eurojust for the financial year 2012 are reliable, and that the underlying transactions are legal and regular, Members approved the closure of Eurojust’s accounts. They made, however, a number of recommendations that needed to be taken into account when the discharge is granted, in addition to the general recommendations that appear in the draft resolution on performance, financial management and control of EU agencies.

· Financing, budget and financial management : Members recalled that the budget of Eurojust for the financial year 2012 was EUR 33.33 million.

· Legality and regularity of operations : Members were concerned that a framework contract for security services was signed in 2008 and amended in 2009, and that the amended formula to calculate prices progressively increased them by 22 %, whereas the original framework contract had provided for a maximum increase of 4 %. They expressed concern that such a significant increase may undermine the transparency and fairness of the initial procurement procedure and distort competition.

· Rate of implementation and carryovers : they acknowledged that the Court of Auditors' annual audit had found no notable issues as regards the level of carry-overs in 2012, and commended Eurojust for adhering to the principle of annuality and for the timely execution of its budget.

Members also made a series of observations on t ransfers , p rocurement and recruitment procedures as well as comments on internal controls .

Lastly, they asked Eurojust to strengthen transparency and prevent conflicts of interests, as well as make publicly available the Declarations of Interests of certain members.

Having examined the revenue and expenditure accounts for the financial year 2012 and the balance sheet at 31 December 2012 of Eurojust, as well as the Court of Auditors' report on the annual accounts of Eurojust for the financial year 2012, accompanied by Eurojust's replies to the Court's observations, the Council recommends the European Parliament to give a discharge to the Administrative Director of Eurojust in respect of the implementation of the budget for the financial year 2012.

The observations in the Court of Auditors' report in relation to the financial year 2012 call for some comments by the Council, which may be summarised as follows:

in general, the Council welcomes the Court's opinion that, in all material respects, Eurojust's annual accounts present fairly its financial position as at 31 December 2012 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of Eurojust's Financial Regulation and the accounting rules adopted by the Commission's accounting officer, and that the underlying transactions for that financial year are legal and regular. Procurement procedures : the Council calls on Eurojust to ensure that the principles of transparency and fairness are applied to all procurement procedures. While taking into consideration Eurojust's comments, the Council considers that any distortion of competition should be avoided and calls on Eurojust to take measures in this direction. Recruitment procedures : the Council takes note of the improvements reported by the Court regarding Eurojust's recruitment procedures and encourages Eurojust to continue to address the remaining weaknesses in this area.

PURPOSE: presentation of the EU Court of Auditors’ report on the annual accounts of EUROJUST for the financial year 2012, together with the Eurojust’s replies.

CONTENT: in accordance with the tasks conferred on the Court of Auditors by the Treaty on the Functioning of the European Union, the Court presents to the European Parliament and to the Council, in the context of the discharge procedure, a Statement of Assurance as to the reliability of the annual accounts of each institution, body or agency of the EU, and the legality and regularity of the transactions underlying them, on the basis of an independent external audit.

This audit concerned, amongst others, the annual accounts of EUROJUST.

In the Court’s opinion, EUROJUST’s Annual Accounts fairly present, in all material respects, its financial position as of 31 December 2012 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its financial rules and the accounting rules adopted by the Commission’s accounting officer.

The Court also considers that the transactions underlying the annual accounts of EUROJUST for the financial year ended 31 December 2012 are, in all material respects, legal and regular .

The report confirms that the resources made available to EUROJUST in 2012 amounted to EUR 33.3 million.

The report also makes a series of observations on the budgetary and financial management of EUROJUST, accompanied by the latter’s response. The main observations may be summarised as follows:

The Court’s observations :

legality of transactions: a framework contract for security services was signed in 2008 and amended in 2009. The amended formula to calculate prices increased them progressively up to 22 %, whereas the original framework contract had provided for a maximum increase of 4 %. The total price increase above the 4 % ceiling amounted to some 440 000 euro for the 2008 to 2012 period, of which some 68 000 euro were paid in 2012. Such a significant increase may undermine the transparency and fairness of the initial procurement procedure and distort competition. recruitment procedures: the Court noted that there is room to improve the transparency of recruitment procedures.

Eurojust’s replies :

legality of transactions: Eurojust accepts the fact that retroactive price increases above what is agreed in the contract could undermine the transparency and fairness of the initial procurement procedure and distort competition. The increase in the case at hand was based on changes in the Dutch Collective Labour Agreement and thus would have affected all other competitors offering their services on the territory of the Netherlands equally.

Lastly, the Court of Auditors’ report contains a summary of the Eurojust’s activities in 2012 . This is focused on the following:

organisation of coordination meetings; 1533 cases dealt with in the areas of fraud, drug trafficking, terrorism, murder, trafficking in human beings.