2008 discharge: European Union Agency for Fundamental Rights FRA

PURPOSE: to present the Court of Auditor’s report on the annual accounts of the European Union Fundamental Rights Agency (FRA) for the financial year 2008.

CONTENT: in the Court’s opinion, the Agency’s Annual Accounts present fairly, in all material respects, its financial position as of 31 December 2008 and the results of its operations and its cash flows for the year then ended. The transactions underlying the annual accounts of the Agency for the financial year ended are, in all material respects, legal and regular.

The Court of Auditors report includes a detailed section on the Agency’s expenditure as well as an analysis of the expenditure in the accounts and the Agency’s replies.

·        The Court’s analysis of the accounts: the Court makes no comments on the budgetary and financial management. It does however make one remark about the Agency’s 2008 work programme. The objectives and indicators are not specific and measurable, which makes difficult to identify shortfalls and to assess achievements. In order to establish a genuinely activity based budget, the Agency should define precise objectives and establish relevant and measurable performance indicators.

·        The Agency’s reply: the Agency states that the 2009 Annual Work Programme defines S.M.A.R.T. objectives per activity and therefore the Activity Based Management approach has been improved. Moreover, mid-2009, the Agency started the implementation of an Activity Based Budget software that will provide clear indicators on the financial and human resources allocated.