EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Europaudvalget 2016-17
EUU Alm.del Bilag 790
Offentligt

Eu r opol Pu blic I n for m a t ion

The Hague, 13 June 2017

File ref. 880022v5B

FI N AL AN N UAL ACCOUN TS

Fina ncia l St a t e m e nt s

Re por t s on t he I m ple m e nt a t ion of

t he Budge t

Fina ncia l Ye a r 2 0 1 6

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

These final account s have been prepar ed and signed off by t he Account ing Officer and

adopt ed by t he Ex ecut ive Direct or in accordance wit h Art icle 50 of t he Financial Regulat ion

( FR) applicable t o Eur opol.

The Account ing Officer of Eur opol shall send t hese final account s, t oget her wit h t he opinion

of t he Managem ent Board, t o t he Eur opean Parliam ent , nat ional parliam ent s, t he Council,

t he European Com m ission's Account ing Officer and t he European Court of Audit ors by 1 July

2017 in accordance wit h Art icle 60 of t he Eur opol Regulat ion and Art icle 99 of t he Financial

Regulat ion ( FR) applicable t o Eur opol.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Ta ble of Con t en t s

CERTI FI CATE ............................................................................................................ 4

I NTRODUCTI ON ........................................................................................................ 5

FI NANCI AL STATEMENTS ............................................................................................ 9

BALANCE SHEET ...................................................................................................10

STATEMENT OF FI NANCI AL PERFORMANCE ..............................................................11

CASH FLOW STATEMENT ........................................................................................12

STATEMENT OF CHANGES I N NET ASSETS ...............................................................13

NOTES TO THE FI NANCI AL STATEMENTS .................................................................14

10.

SI GNI FI CANT ACCOUNTI NG POLI CI ES .........................................................14

NOTES TO THE BALANCE SHEET .................................................................20

NOTES TO THE STATEMENT OF FI NANCI AL PERFORMANCE ............................30

NOTES TO THE CASH- FLOW STATEMENT .....................................................31

CONTI NGENT ASSETS AND LI ABI LI TI ES AND OTHER SI GNI FI CANT

DI SCLOSURES ..........................................................................................32

FI NANCI AL I NSTRUMENTS ..........................................................................32

CHANGES I N ACCOUNTI NG POLI CI ES ..........................................................34

RELATED PARTY DI SCLOSURE ....................................................................34

EVENTS AFTER THE BALANCE SHEET DATE ..................................................34

RECONCI LI ATI ON BETWEEN STATEMENT OF FI NANCI AL PERFORMANCE AND

BUDGET RESULT .......................................................................................35

REPORTS ON THE I MPLEMENTATI ON OF THE BUDGET ...................................................36

I NTRODUCTI ON and CONTENT ...................................................................................37

2.1.

2.1.1.

2.1.2.

2.1.3.

2.1.4.

2.1.5.

2.1.6.

2.1.7.

2.2.

Explanat ory not es on t he budget im plem ent at ion ..........................................38

Budget im plem ent at ion 2016 .................................................................38

Budget im plem ent at ion of assigned r ev enue and expendit ure ....................40

I m plem ent at ion of appr opriat ions carried forward from 2015 t o 2016 .........42

Appropriat ions car ried over from 2016 t o 2017 ........................................43

Rev enue 2016 ......................................................................................44

Budget t ransfers 2016 ..........................................................................45

Budget Result 2016 ..............................................................................45

Budget I m plem ent at ion Tables....................................................................47

Table 1: Budget im plem ent at ion 2016 ..................................................................47

Table 2: Budget im plem ent at ion of t he assigned r evenue and expendit ure ................49

Table 3: I m plem ent at ion of appropriat ions car ried for ward fr om 2015 t o 2016 ..........53

Table 4: Appropriat ions car ried ov er from 2016 t o 2017 .........................................54

Table 5: Rev enue 2016.......................................................................................55

Table 6: List of Transfer s 2016 ............................................................................56

Table 7: Budget r esult 2016 ................................................................................60

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

CERTI FI CATE

The final annual account s of Europol for t he y ear 2016 have been pr epared in accordance

wit h t he Financial Regulat ion applicable t o t he general budget of t he Eur opean Union and

t he account ing rules adopt ed by t he Eur opean Com m ission’s Account ing Officer, as ar e t o be

applied by all t he inst it ut ions, agencies and j oint undert akings, and in accordance wit h Tit le

I X of t he Financial Regulat ion applicable t o Europol.

I acknowledge m y r esponsibilit y for t he pr eparat ion and present at ion of t he final annual

account s of Eur opol in accordance wit h Art icle 68 of t he Financial Regulat ion applicable t o

t he general budget of t he Eur opean Union and wit h Art icle 99 of t he Financial Regulat ion

applicable t o Europol.

I have obt ained from t he Aut horising Officer, w ho cert ified it s reliabilit y, all t he inform at ion

necessary for t he product ion of t he final account s t hat show t he asset s and liabilit ies of

Eur opol and t he budget ary im plem ent at ion.

I her eby cert ify t hat based on t his inform at ion, and on such checks as I deem ed necessar y

t o sign off t he account s, I have a r easonable assurance t hat t he final account s present

fairly, in all m at erial aspect s, t he financial posit ion, t he r esult s of t he operat ions and t he

cash- flow of Europol.

Rebecca Topham

Account ing Officer

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

I N TROD UCTI ON

Ba sis for pr e pa r a t ion

As a general rule, all aspect s of t he final account s 2016 have been drawn up in accordance

wit h t he Financial Regulat ion applicable t o Europol adopt ed by Europol’s Managem ent Board

and wit h t he EC account ing rules and m et hods adopt ed by t he Eur opean Com m ission’s

Account ing Officer following t he principles of accrual- based account ing. The budget ary

im plem ent at ion report s are pr epar ed on t he basis of t he m odified cash- based account ing

principle.

The final account s of Eur opol include t he financial st at em ent s and t he budget ary

im plem ent at ion report s. They ar e drawn up by t he Account ing Officer in accordance wit h

Art icle 99 of t he Financial Regulat ion applicable t o Europol.

The financial st at em ent s com prise of t he balance sheet , st at em ent of financial perfor m ance,

cash- flow st at em ent and st at em ent of changes in net asset s. The not es t o t he financial

st at em ent s supplem ent and com m ent on t he inform at ion pr esent ed in t he st at em ent s.

The obj ect ive of t he financial st at em ent s is t o provide inform at ion about t he financial

posit ion, perform ance and cash- flows of Europol t o dem onst rat e t he account abilit y of t he

agency for t he r esour ces ent rust ed t o it .

Throughout t his docum ent , figures ar e rounded so t he sum of t he individual am ount s m ay

differ from t he t ot als.

Re por t in g e nt it y

Regulat ory cont ext

At it s m eet ing of 6 April 2009 t he Just ice and Hom e Affairs ( JHA) Council adopt ed t he

Council Decision ( 2009/ 371/ JHA) bringing Europol int o life as an agency of t he European

Union as from 1 Januar y 2010.

Eur opol’s m ission, vision and values are direct ly linked t o t he obj ect ive of Eur opol as laid

out in Art icle ( 88) of t he Tr eat y of t he European Union, i.e. “ t o support and st rengt hen

act ion by t he Mem ber St at es’ police aut horit ies and ot her law enfor cem ent services and

t heir m ut ual cooperat ion in prev ent ing and com bat ing serious crim e affect ing t wo or m or e

Mem ber St at es, t er r orism and form s of crim e which affect a com m on int erest cov ered by a

Union policy.”

Mission

Eur opol’s m ission is t o support it s Mem ber St at es in prevent ing and com bat ing all form s of

serious int ernat ional organised crim e and t err orism .

Vision

Eur opol’s vision is t o cont ribut e t o a safer Eur ope by providing a unique and evolving set of

operat ional product s and ser vices t o support law enfor cem ent aut horit ies in t he Mem ber

St at es.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Values

I n line wit h Europol’s vision and m ission, t he following organisat ional values guide t he

conduct , act ivit ies and goals of Eur opol:

•

Ser vice

I nt egrit y

Account abilit y

I nit iat ive

Team w or k

•

Nat ure of Europol’s w or k

Eur opol uses it s unique inform at ion capabilit ies and t he expert ise of it s st aff and t he Liaison

Bureaux com m unit y of Mem ber St at es and cooperat ion part ner s host ed at Eur opol t o

ident ify and t rack t he m ost danger ous crim inal and t err orist net w ork s in Europe. Law

enforcem ent aut horit ies in t he EU r ely on t his int elligence work and t he services of Eur opol’s

operat ional coordinat ion cent re and secure inform at ion net work. The Eur opean Cyber crim e

Cent r e ( EC3) at Eur opol has becom e t he focal point in t he EU’s fight against cybercrim e,

cont ribut ing t o an enhanced response t o online crim es. Fr om an overall perspect ive,

Eur opol’s work cont ribut es t o t he disrupt ion of crim inal and t errorist net work s, t o t he arr est

of t housands of danger ous crim inals, t o t he r ecov ery of m illions of eur o in crim inal

proceeds, and t o t he r escue from har m of hundreds of vict im s, including children t rafficked

for sexual exploit at ion. Eur opol also act s as a m aj or cent r e of expert ise in key fields of law

enforcem ent act ivit y and as a Eur opean cent re for st rat egic int elligence on organised crim e.

Key dev elopm ent s in t he financial year 2016

Count er t err orism

Eur ope faces t he m ost serious t err orist t hreat for over 10 years. The Paris at t acks of

January 2015 hav e m ar ked a shift t owards a br oader st rat egy of Jihadist t err orism , and t he

so called I slam ic St at e ( I S) in part icular, t o int im idat e West ern count ries, wit h successive

t er ror at t acks across Eur opean count ries. The t er rorist at t ack in Berlin/ Germ any in

Decem ber 2016 repr esent ed anot her t r agic t err orist incident . Against t his background, t he

2015 European Agenda on Securit y, com plet ed by t he European Com m ission’s

com m unicat ion of Sept em ber 2016 on t he Securit y Union, highlight ed priorit y areas of

part icular relevance for Eur opol.

Count er t er rorism aut horit ies in Europe have significant ly increased t heir effort s t o respond

t o t he elevat ed t er r orist t hreat . At EU lev el, t he Eur opean Count er Terr orism Cent r e ( ECTC)

was launched at Eur opol in January 2016, based on t he init iat ive of t he Just ice and Hom e

Affairs ( JHA) Council, including t he I nt ernet Refer ral Unit ( I RU) as a capabilit y which was

est ablished m id- 2015 wit h a view t o t ackling unprecedent ed levels of t er rorism propaganda

online. The est ablishm ent of t he ECTC r ecognises polit ical and operat ional consensus, for

t he first t im e in t he EU count er t err orism policy cont ext , t hat a cornerst one for cooperat ion

at EU level is needed, in order t o support nat ional count er t er rorism effort s. I n April 2016,

Eur opol was grant ed an am ending budget t o reinfor ce st aff at t he ECTC. The relat ed funding

enabled Eur opol t o st rengt hen it s work force wit h 25 addit ional Tem porar y Agent s, 5

addit ional Cont ract Agent s and 5 addit ional Seconded Nat ional Expert s.

Posit ive result s wer e achieved by t he end of 2016. Task For ce Frat ernit é at Europol,

est ablished t o support t he invest igat ions int o t he French and Belgian t error at t ack s,

facilit at ed an effect ive r esponse of r espect ive European count er t err orism aut horit ies, wit h a

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

prodigious dat a volum e of inform at ion shar ed for analysis purposes. The ECTC at Europol

also assist ed 127 ot her count er t er rorism invest igat ions in 2016 ( an alm ost 50 percent

increase com pared t o 2015 wit h 86 invest igat ions) , support ed by t he Joint Liaison Team

( JLT) of EU Mem ber St at es and t hird count ries at Eur opol.

From an ov erall perspect ive, inform at ion- sharing on count er t er rorism , across Eur opean

count ries, as w ell as t hrough and wit h Europol, reached an all- t im e high by t he end of 2016.

I n t he Eur opol I nform at ion Syst em ( EI S) , t her e w er e 7,884 ent ries of foreign t er rorist

fight ers ( cont ribut ed by 20 EU Mem ber St at es and 7 t hird part ies) by t he end of 2016 ( t he

dat a had m ore t han doubled com pared t o t he end of 2015, wit h 3,740 ent ries cont ribut ed

by 17 EU Mem ber St at es and 7 t hird part ies) . By t he end of 2016, Europol also held m ore

t han 10 t im es as m uch inform at ion on ‘person ent it ies’ in it s respect iv e analyt ical dat abase,

com pared wit h January 2015 when t he t er r or at t acks t ook place in Paris ( Charlie Hebdo

et c.) .

Facilit at ed illegal im m igrat ion

The increasing involvem ent of organised crim inal net works in facilit at ing illegal im m igrat ion

in recent t im es called for an enhanced and coordinat ed r esponse fr om European law

enforcem ent agencies. The 2015 Eur opean Agenda on Migrat ion provided t he overall

fram ework for a horizont al response acr oss EU Mem ber St at es.

Eur opol was t ask ed by t he JHA Council wit h st rengt hening it s capabilit ies and launched t he

Eur opean Migrant Sm uggling Cent re ( EMSC) in February 2016. During t he first year, t he

EMSC’s m igrant sm uggling specialist s and analyst s com pr ehensively support ed European

police and border cont rol aut horit ies in coor dinat ing highly com plex cr oss- border ant i-

sm uggling operat ions. The cent r e focuses on geographical crim inal hot spot s, and on

building a bet t er capabilit y acr oss t he EU t o fight organised people sm uggling net works

operat ing in t hem . Over t he last year , alm ost 12,000 operat ional m essages w ere subm it t ed

via Europol’s secur e com m unicat ion net work, represent ing a 34% incr ease com pared t o

2015. The operat ional m essages cont ained dat a on ov er 17,400 new suspect ed m igrant

sm ugglers and helped launch 2,057 new int ernat ional invest igat ions. Nearly a quart er of

t hese invest igat ions were r elat ed t o ident it y and/ or docum ent fr aud. I n addit ion, 22 print

shops or docum ent for gery fact ories w ere ident ified and dism ant led. An innovat ive syst em

of case m anagem ent has allowed t he EMSC t o closely support ov er 90 highly- com plex

m igrant sm uggling invest igat ions.

During 2016, Europol deployed it s first group of 10 guest officers in Sept em ber 2016 and an

addit ional group of 21 guest officers nearer t he end of t he y ear t o m igrat ion hot spot s.

Eur opol st aff was also regularly deployed t o support secondary secur it y checks. I n 2016,

4,823 per sons, 655 docum ent s and 719 m eans of com m unicat ion ( em ails, m obile devices,

et c.) were r efer r ed for secondary securit y check s by Eur opol in t he m igrat ion hot spot s.

Against t his background, Europol's operat ional delivery t o EU Mem ber St at es' law

enforcem ent aut horit ies and cooperat ion part ner s incr eased furt her t hroughout 2016,

cont inuing t he t rend of previous y ear s and dem onst rat ing t he growing dem and and t rust

t owards t he organisat ion as a key EU law enfor cem ent service pr ovider. As an exam ple,

searches in t he EI S m or e t han doubled in 2016 ( 1,436,838 com pared t o 633,639 by t he end

of 2015) , exceeding by far t he for ecast ed r esult s. A m ore det ailed account of Europol's

operat ional delivery is set out in t he Consolidat ed Annual Act ivit y Report ( CAAR) for 2016

which also cont ains t he assessm ent of t he Managem ent Board ( MB) of Europol.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

I m plem ent at ion of t he Delegat ion Agreem ent – Funding of operat ional act ions under t he EU

Policy Cycle priorit ies

I n line wit h guidance obt ained by t he Eur opean Com m ission, Eur opol report s separat ely on

t he im plem ent at ion of t he Delegat ion Agreem ent ( DA) for t he financial year 2016

. The DA

was concluded bet ween t he Eur opean Com m ission and Europol at t he end of 2014, wit h a

view t o funding, as of t he financial year 2015, act ivit ies of t he Oper at ional Act ion Plans

( OAPs) which are est ablished under t he priorit ies of t he EU Policy Cycle concerning t he fight

against serious and organised crim e. While t he ov erall financial value of t he t ransact ions of

t he DA are disclosed in t he annual account s of Eur opol, t he discharge account abilit y in

relat ion t o t he separat e report ing on t he im plem ent at ion of t he DA lies wit h t he European

Com m ission. Accordingly, t he assurance cert ificat e of t he Account ing Officer in t he annual

account s of Eur opol does not encom pass t he separat e report ing on t he im plem ent at ion of

t he DA.

REPORT PURSUANT TO ARTI CLE 21 ( 1) ( b) OF THE DELEGATI ON AGREEMENT FOR THE FI NANCI AL YEAR 2016 -

reference EDOC# 878866- v5B

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

FI N AN CI AL STATEM EN TS

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

BALAN CE SH EET

EUR

ASSETS

N ON - CURREN T ASSETS

I nt a ngible f ix e d a sse t s

Com put er soft ware

Under const ruct ion

Ta ngible f ix e d a sse t s

Land and buildings

Plant and equipm ent

Com put er hardwar e

Furnit ure and v ehicles

Ot her fixt ures and fit t ings

Asset s under financial lease

N on- cur r e nt r e ce iv a ble s a nd r e cove r a ble s

Long- t erm r eceivables

CURREN T ASSETS

Shor t - t e r m pr e - fina n cing

Short - t erm pr e- financing

Accrued charges on pr e- financing

Shor t - t e r m Re ce iv a ble s

Curr ent r eceivables

Sundry r eceivables

Ot her r eceivables:

Accrued incom e

Defer r ed charges

Receivables wit h consolidat ed EU ent it ies

Ca sh a n d ca sh e qu iva le nt s

TOTAL ASSETS

N ot e

2 .1 .

3 1 .1 2 .2 0 1 6

3 0 ,9 4 4 ,3 4 1

6 ,1 2 3 ,0 8 4

2,515,170

3,607,914

2 4 ,8 1 4 ,3 4 2

9,107,301

225,022

7,229,783

2,173,885

4,959,048

1,119,302

6 ,9 1 5

6,915

2 6 ,4 4 6 ,6 1 2

2 ,1 6 3 ,0 7 2

5,706,737

- 3,543,666

4 ,5 4 2 ,3 7 9

1,570,987

171,754

27,052

2,770,746

1,840

1 9 ,7 4 1 ,1 6 1

5 7 ,3 9 0 ,9 5 2

6 ,1 0 7 ,8 8 5

4,781,961

1,325,924

1 4 ,0 4 2 ,2 8 3

31,000

393,121

1 3 ,6 1 8 ,1 6 2

55,103

248,482

4,833,426

18,620

9,484

8,453,048

3 7 ,2 4 0 ,7 8 5

33,348,838

3,891,947

5 7 ,3 9 0 ,9 5 2

3 1 .1 2 .2 0 1 5

2 6 ,4 6 9 ,5 5 2

2 ,6 0 2 ,0 6 0

2,602,060

2 3 ,8 6 0 ,5 7 7

9,645,684

353,496

6,297,971

2,187,604

5,375,823

6 ,9 1 5

6,915

2 0 ,3 3 6 ,3 2 3

2 ,1 0 4 ,1 1 8

3,144,245

- 1,040,127

2 ,3 0 6 ,3 1 7

945,674

84,754

27,568

1,247,945

377

1 5 ,9 2 5 ,8 8 8

4 6 ,8 0 5 ,8 7 4

6 1 1 ,1 1 3

611,113

1 2 ,8 4 5 ,9 2 4

46,399

1 2 ,7 9 9 ,5 2 5

13,130

922,517

5,056,341

149,130

683

6,657,723

3 3 ,3 4 8 ,8 3 8

34,908,915

- 1,560,077

4 6 ,8 0 5 ,8 7 4

2 .1 .

2 .2 .

2 .3 .

2.4.

2.5.

2.6.

2.7.

2 .8 .

LI ABI LI TI ES

N ON - CURREN T LI ABI LI TI ES

Pensions and ot her em ployee benefit s

Provisions for risks and charges

Ot her liabilit ies

CURREN T LI ABI LI TI ES

Provisions for risks and charges

Financial liabilit ies

Pa y a ble s

Curr ent payables

Sundry payables

Ot her payables:

Accrued charges

Defer r ed incom e

Accrued charges wit h

consolidat ed EU ent it ies

Account s payable wit h consolidat ed EU ent it ies

N ET ASSETS

Accum ulat ed surplus/ deficit

Econom ic r esult of t he y ear

TOTAL LI ABI LI TI ES

2.9.

2.10.

2.11.

2.12.

2.13.

2.14.

2.15.

2.16.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

STATEM EN T OF FI N AN CI AL PERFORM AN CE

EUR

REVEN UE

N on- e x cha nge r e ve n ue

Eur opean Union Cont ribut ion

Ot her non- exchange r ev enue

Ex cha nge r e v e nu e

EXPEN D I TURE

Operat ional expendit ure

Adm inist rat ive expendit ure:

St aff

Fixed asset - relat ed

Ot her

Financial expendit ure

SURPLUS/ D EFI CI T FROM ORD I N ARY

ACTI VI TI ES

Ext raordinary gains

Ext raordinary losses

SURPLUS/ D EFI CI T FROM

EXTRAORD I N ARY I TEM S

ECON OM I C RESULT OF TH E YEAR

N ot e

3.1.

3 1 .1 2 .2 0 1 6

1 0 4 ,8 9 8 ,3 1 0

103,781,320

468,751

648,239

- 1 0 1 ,0 0 6 ,3 6 3

- 18,513,052

- 87,258,765

- 60,549,356

- 8,108,199

- 13,827,385

- 8,371

3 ,8 9 1 ,9 4 7

3 1 .1 2 .2 0 1 5

9 5 ,8 5 9 ,6 0 2

95,202,276

652,283

5,043

- 9 7 ,4 1 9 ,6 7 9

- 20,515,213

- 76,899,466

- 54,420,104

- 9,554,658

- 12,924,704

- 5,000

- 1 ,5 6 0 ,0 7 7

3.2.

I ncludes t he Delegat ion Agreem ent and Hot spot Grant Agreem ent .

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

CASH FLOW STATEM EN T

EUR

N ot e

Econom ic r esult of t he y ear

Ope r a t iona l a ct ivit ie s

Am ort isat ion ( int angible fixed asset s)

Depr eciat ion ( t angible fixed asset s)

I ncrease ( - ) / Decr ease in provisions for risks and

charges

I ncrease ( - ) / Decr ease in short - t erm pr e- financing

I ncrease ( - ) / Decr ease in short - t erm r eceivables

I ncrease ( - ) / Decr ease in receivables r elat ed t o

consolidat ed EU ent it ies

I ncrease( - ) / Decrease in ot her long- t erm liabilit ies

I ncrease ( - ) / Decr ease in account s payable

I ncrease ( - ) / Decr ease in liabilit ies r elat ed t o

consolidat ed EU ent it ies

Ot her non- cash m ov em ent s

N e t ca sh - f low f r om ope r a t iona l a ct ivit ie s

I nve st ing a ct ivit ie s

I ncrease ( - ) of t angible and int angible fixed asset s

Proceeds from t angible and int angible fixed asset s

N e t ca sh - f low f r om in ve st ing a ct ivit ie s

I ncr e a se / de cr e a se ( - ) in pe nsion a nd

e m ploye e be ne f it s lia bilit y

Net increase/ decr ease ( - ) in cash and cash

equivalent s

Cash and cash equivalent s at t he beginning of t he

year

Ca sh a n d ca sh e qu iva le nt s a t y e a r - e nd

3 1 .1 2 .2 0 1 6

3,891,947

1,596,489

6,496,410

- 15,399

- 58,954

- 2,234,598

- 1,464

714,811

- 976,687

1,795,324

4 .1 .

408,966

1 1 ,6 1 6 ,8 4 6

3 1 .1 2 .2 0 1 5

- 1,560,077

2,292,974

6,849,039

- 31,446

- 2,104,118

5,821

2,075

32,720

2,924,309

4,036,402

192,846

1 2 ,6 4 0 ,5 4 5

4 .2 .

4 .3 .

- 12,598,824

15,290

- 1 2 ,5 8 3 ,5 3 4

4 ,7 8 1 ,9 6 1

- 4,550,430

15,303

- 4 ,5 3 5 ,1 2 7

3,815,273

15,925,888

1 9 ,7 4 1 ,1 6 1

8,105,418

7,820,470

1 5 ,9 2 5 ,8 8 8

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

STATEM EN T OF CH AN GES I N N ET ASSETS

EUR

Accum ula t e d

Su r plu s/

D e ficit

Ba la nce a s a t 3 1 D e ce m be r

2015

Changes in account ing policies

Ba la nce a s a t 1 Ja n ua r y

2016

Allocat ion of t he econom ic result

of previous y ear

Econom ic r esult of t he y ear

2016

Ba la nce a s a t 3 1 D e ce m be r

2016

3 4 ,9 0 8 ,9 1 5

- 1,560,077

3 3 ,3 4 8 ,8 3 8

Econom ic

r e su lt of

the year

- 1 ,5 6 0 ,0 7 7

1,560,077

3,891,947

3 ,8 9 1 ,9 4 7

N e t Asse t s

( Tot a l)

3 3 ,3 4 8 ,8 3 8

3,891,947

3 7 ,2 4 0 ,7 8 5

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

N OTES TO TH E FI N AN CI AL STATEM EN TS

1 . SI GN I FI CAN T ACCOUN TI N G POLI CI ES

1 .1 .

Accou nt in g r u le s

These financial st at em ent s ar e prepared on t he basis of t he EU Account ing Rules as adopt ed

by t he Com m ission’s Account ing Officer which adapt t he I nt ernat ional Public Sect or

Account ing St andards ( I PSAS) and in som e cases t he I nt ernat ional Financial Report ing

St andards ( I FRS) t o t he specific environm ent of t he EU, while t he report s on t he

im plem ent at ion of t he budget cont inue t o be prim arily based on m ov em ent s of cash.

The account ing syst em of Eur opol com prises general account s and budget account s. These

account s are k ept in Euro on t he basis of t he calendar year . The budget account s give a

det ailed pict ure of t he im plem ent at ion of t he budget . They ar e based on t he m odified cash

account ing principle.

The general account s allow for t he preparat ion of t he financial

st at em ent s as t hey show all charges and incom e for t he financial year and ar e designed t o

est ablish t he financial posit ion in t he form of a balance sheet as at 31 Decem ber.

Eur opol’s financial st at em ent s have been drawn up using t he m et hods of pr eparat ion as set

out in t he account ing rules laid down by t he Eur opean Com m ission’s Account ing Officer.

1 .2 .

Accou nt in g pr in ciple s

The obj ect ives of t he financial st at em ent s ar e t o provide inform at ion about t he financial

posit ion, perform ance and cash flows of Eur opol t hat is useful t o a wide range of user s. For

a public sect or ent it y such as Eur opol, t he obj ect ives ar e m or e specifically t o provide

inform at ion useful for decision- m aking, and t o dem onst rat e t he account abilit y of t he ent it y

for t he resources ent rust ed t o it .

Art icle 95 of t he Financial Regulat ion applicable t o Eur opol set s out t he account ing principles

t o be applied in drawing up t he financial st at em ent s.

The ov erall considerat ions ( or account ing principles) t o be followed when preparing t he

financial st at em ent s ar e laid down in EU Account ing rule 2 and ar e t he sam e as t hose

described in I PSAS 1, t hat is:

Fa ir pr e sen t a t ion

Financial st at em ent s shall present fairly t he financial posit ion, financial perform ance and

cash flows of an ent it y. Fair present at ion requires t he fait hful represent at ion of t he effect s

of t ransact ions, ot her event s and condit ions in accordance wit h t he definit ions and

recognit ion crit eria for asset s, liabilit ies, revenue and expenses set out in EC Account ing

Rules. The applicat ion of EC Account ing Rules, wit h addit ional disclosures when necessar y,

is presum ed t o r esult in financial st at em ent s t hat achieve a fair pr esent at ion ( EU Account ing

Rule 2) .

This differs from cash- based account ing because of elem ent s such as carry forward com m it m ent s.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Accr u a l Ba sis

I n order t o m eet t heir obj ect ives, financial st at em ent s are prepar ed on t he accrual basis of

account ing. Under t his basis, t he effect s of t r ansact ions and ot her event s ar e r ecognised

when t hey occur ( and not as cash or it s equivalent is received or paid) and t hey ar e

recorded in t he account ing records and report ed in t he financial st at em ent s in t he periods t o

which t hey relat e ( EU Account ing Rule 2) .

Goin g conce r n ba sis

When pr eparing financial st at em ent s an assessm ent of an ent it y’s abilit y t o cont inue as a

going concern shall be m ade. Financial st at em ent s shall be prepar ed on a going concern

basis unless t her e is an int ent ion t o liquidat e t he ent it y or t o cease operat ing, or if t her e is

no r ealist ic alt ernat ive but t o do so. These financial st at em ent s have been pr epar ed in

accordance wit h t he going concern principle, which m eans t hat Eur opol is deem ed t o have

been est ablished for an indefinit e durat ion ( EU Account ing Rule 2) .

Consist e n cy of pr e se n t a t ion

According t o t his principle t he present at ion and classificat ion of it em s in t he financial

st at em ent s shall be ret ained from one period t o t he next ( EU Account ing Rule 2) .

Aggr e ga t ion

Each m at erial class of sim ilar it em s shall be present ed separat ely in t he financial

st at em ent s. I t em s of a dissim ilar nat ure or funct ion shall be present ed separat ely unless

t hey ar e im m at erial ( EU Account ing Rule 2) .

Offset t in g

Asset s and liabilit ies, and revenue and expenses, shall not be offset unless required or

perm it t ed by an EU Account ing rule ( EU Account ing Rule 2) .

Com pa r a t ive I nfor m a t ion

Except when an EU Account ing Rule perm it s or r equires ot her wise, com parat ive inform at ion

shall be disclosed in respect of t he pr evious period for all am ount s report ed in t he financial

st at em ent s. When t he present at ion or classificat ion of it em s in t he financial st at em ent s is

am ended, com parat ive am ount s shall be reclassified unless t he reclassificat ion is

im pract icable ( EU Account ing Rule 2) .

1 .3 .

Ba sis of pr e pa r a t ion

1 .3 .1 . Cur r e ncy a nd ba sis for conve r sion

Fun ct ion a l a n d r e por t in g cur r en cy

The financial st at em ent s ar e present ed in Euro, which is t he funct ional and report ing

curr ency of t he EU and of Europol ( Art icle 21 of t he Financial Regulat ion applicable t o

Eur opol) .

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Tr a nsa ct ions a n d ba la n ce s in for e ign cu r r e n cies

For eign currency t ransact ions are recorded using t he ex change rat es pr evailing at t he dat es

of t he t ransact ions.

For eign exchange gains and losses r esult ing from t he set t lem ent of foreign curr ency

t ransact ions or from t he t ranslat ion of m onet ary it em s in foreign curr ency int o Euro at t he

year- end are r ecognised in t he St at em ent of Financial Perform ance.

Ch ar t of Accoun t s

The chart of account s used by Eur opol follows t he st ruct ur e of t he chart of account s of t he

Eur opean Com m ission.

Use of est im a t e s

Preparat ion of t he financial st at em ent s in conform it y wit h generally- accept ed account ing

principles ( GAAP) r equires m anagem ent t o m ake est im at es and assum pt ions t hat affect

report ed am ount s pr esent ed and disclosed in t he Financial St at em ent s of Europol.

Significant est im at es and assum pt ions in t hese financial st at em ent s r equire j udgm ent and

are used for, but not lim it ed t o, accrued incom e and charges, provisions, cont ingent asset s

and liabilit ies. Act ual result s report ed in fut ure periods m ay be different from t hese

est im at es. Changes in est im at es ar e reflect ed in t he period in which t hey becom e known.

1 .4 .

Ba la n ce Sh e e t

Asset s ar e resources cont rolled by Europol as a result of past event s and from which fut ure

econom ic benefit s or service pot ent ial are expect ed t o flow.

1 .4 .1 . I nt a ngible f ix e d a sse t s

I nt angible asset s ar e ident ifiable non- m onet ary asset s wit hout physical subst ance. Acquired

com put er soft ware licences are st at ed at hist orical cost less accum ulat ed am ort isat ion and

im pairm ent losses. The asset s ar e am ort ised on a st raight - line basis ov er t heir est im at ed

useful lives. The est im at ed useful lives of int angible asset s depend on t heir specific

econom ic lifet im e or legal lifet im e det erm ined by an agr eem ent .

Curr ent ly Europol uses a 25% am ort isat ion rat e for it s int angible asset s.

Am ort isat ion is t he syst em at ic allocat ion of t he depr eciable am ount of an int angible asset

ov er it s useful life ( EU Account ing Rule 6) .

I nt ernally- generat ed int angible asset s ar e capit alised when t he relevant crit eria of t he EU

Account ing rules are m et . The cost s capit alisable include all direct ly at t ribut able cost s

necessary t o cr eat e, produce, and pr epar e t he asset t o be capable of operat ing in t he

m anner int ended by m anagem ent . Cost s associat ed wit h resear ch act ivit ies, non-

capit alisable developm ent cost s and m aint enance cost s are recognised as expenses as

incurred.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

1 .4 .2 . Ta ngible f ix e d a sse t s

All t angible fixed asset s ( propert y, plant and equipm ent ) are st at ed at hist orical cost less

accum ulat ed depr eciat ion and im pairm ent losses. Hist orical cost includes expendit ure t hat is

direct ly at t ribut able t o t he acquisit ion or const ruct ion of t he asset . Subsequent cost s ar e

included in t he asset ’s car rying am ount or recognised as a separat e asset , as appr opriat e,

only when it is probable t hat fut ure econom ic benefit s or service pot ent ial associat ed wit h

t he it em will flow t o Europol and it s cost can be m easur ed reliably. Repairs and m aint enance

cost s ar e charged t o t he St at em ent of Financial Perform ance during t he financial period in

which t hey are incurred.

Asset s under const ruct ion ar e not depreciat ed as t hese asset s ar e not yet av ailable for use.

Depr eciat ion is t he syst em at ic allocat ion of t he depr eciable am ount of an asset ov er it s

useful life ( EU Account ing Rule 7) .

The depr eciat ion is calculat ed using t he st raight - line m et hod. Please see not e 2.1. for t he

rat es.

Gains or losses on disposals ar e det erm ined by com paring proceeds less selling expenses

wit h t he car rying am ount of t he disposed asset and are included in t he St at em ent of

Financial Perform ance.

1 .4 .3 . Le a se s

Leases of t angible asset s, wher e Eur opol has ( subst ant ially) all t he risks and r ewards of

ownership, ar e classified as finance leases. Finance leases ar e capit alised at t he incept ion of

t he lease at t he lower of t he fair value of t he leased asset and t he present value of t he

m inim um lease paym ent s. Each lease paym ent is allocat ed bet ween t he liabilit y and finance

charges so as t o achieve a const ant rat e on t he finance balance out st anding. The rent al

obligat ions, net of finance charges, ar e included in ot her liabilit ies ( non- cur rent and

curr ent ) . The int erest elem ent of t he finance cost is charged t o t he St at em ent of Financial

Per form ance ov er t he lease period so as t o pr oduce a const ant periodic int erest rat e on t he

rem aining balance of t he liabilit y for each period. The asset s held under finance leases are

depr eciat ed over t he short er of t he asset s' useful life and t he lease t er m .

Leases where t he lessor r et ains a significant port ion of t he risks and rewards inher ent t o

ownership are classified as oper at ing leases. Paym ent s m ade under operat ing leases ar e

recognised as an expense in t he St at em ent of Financial Perform ance on a st raight - line basis

ov er t he period of t he lease. As at t he year- end 2016, Europol has no operat ing leases.

1 .4 .4 . Pr e - f in a ncing a m ount s

The init ial recognit ion of pre- financing is based on t he original am ount received or given.

Subsequent recognit ion is based on t he original am ount received or given, less eligible

expenses, including est im at ed am ount s wher e necessary , incurred during t he period ( EU

Account ing Rule 3) .

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

1 .4 .5 . Re ce iva ble s

Receivables are carried at t he original am ount less writ e- down for im pairm ent . A writ e-

down for im pairm ent of r eceivables is est ablished when t here is obj ect ive evidence t hat

Eur opol will not be able t o collect all am ount s due according t o t he original t erm s of

receivables. The am ount of t he writ e- down is t he differ ence bet ween t he asset ’s car rying

am ount and t he r ecov erable am ount . The am ount of t he writ e- down is recognised in t he

St at em ent of Financial Per form ance.

See not e 1.4.10 below concerning t he t reat m ent of accrued incom e at y ear- end.

1 .4 .6 . Ca sh a n d ca sh e qu iva le nt s

Cash and cash equivalent s ar e financial inst rum ent s and classified as available for sale

financial asset s. They include cash at hand and deposit s held at call wit h banks.

1 .4 .7 . Pe nsion s a n d ot he r e m ploy e e be ne f it s

The St aff Regulat ions of Officials of t he Eur opean Com m unit ies pr ovide for various em ployee

benefit s ( r et irem ent pensions, invalidit y pensions, survivors’ pensions, m edical insurance)

for st aff in ser vice, invalided st aff and r et ired st aff.

Each y ear of service per for m ed by EC em ployees ent it les t hem t o various benefit s ( sickness,

ret irem ent , et c.) . These benefit s, which t hey will receive aft er a period of act ivit y, const it ut e

a com m it m ent on t he part of t he Eur opean Com m unit ies which m ust be ent ered in t he

account s. The ar rival of new st aff, t he r et irem ent of serving st aff, and changes in int erest

rat es or in m ort alit y t ables are all fact ors or assum pt ions t hat have a direct influence on t he

valuat ion of t hose com m it m ent s. The com m it m ent s are const ant ly changing and m ust be

valued at t he close of each r eport ing period.

The principle underlying all t he det ailed requirem ent s of t he applicable account ing rule is

t hat t he cost of pr oviding em ployee benefit s should be recognised in t he period in which t he

benefit is earned by t he em ployee, rat her t han when it is paid or payable. The principal

obj ect ives of post - em ploym ent account ing are t o m easure t he cost associat ed wit h

em ployees’ benefit s and t o r ecognise t hat cost ov er t he em ploy ees’ r espect ive ser vice

periods. The periodic cost s of post - em ploym ent plans have t o be assigned properly t o t he

periods in which t he r elat ed econom ic benefit s ar e r eceived by t he em ploy ers incurring

t hese cost s.

1 .4 .8 . Pr ovisions

Provisions are recognised when Eur opol has a present legal or const ruct ive obligat ion

t owards t hird part ies as a r esult of past ev ent s, it is m ore likely t han not t hat an out flow of

resources will be required t o set t le t he obligat ion, and t he am ount can be reliably

est im at ed. The am ount of t he pr ovision is t he best est im at e of t he expendit ure expect ed t o

be r equired t o set t le t he present obligat ion at t he report ing dat e.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

1 .4 .9 . Pa y a ble s

A significant am ount of t he payables ar e not relat ed t o t he pur chase of goods or ser vices –

inst ead t hey ar e unpaid cost claim s from beneficiaries of grant s or ot her EU funding. They

are recorded as payables for t he request ed am ount when t he cost claim is received. Upon

verificat ion and accept ance of t he eligible cost s, t he payables are valued at t he accept ed

and eligible am ount .

Payables arising from t he purchase of goods and services ar e r ecognised at invoice

recept ion for t he original am ount and corr esponding expenses ar e ent er ed in t he account s

when t he supplies or services ar e deliver ed and accept ed by Eur opol.

1 .4 .1 0 .

Accr ue d a nd de f e r r e d incom e a nd cha r ge s

According t o t he EU Account ing rules, t ransact ions and ev ent s are recognised in t he

financial st at em ent s in t he period t o which t hey relat e. At t he end of t he account ing period,

accrued expenses are r ecognised based on an est im at ed am ount of t he t ransfer obligat ion

of t he period. The calculat ion of accrued ex penses is done in accordance wit h det ailed

operat ional and pract ical guidelines which aim at ensuring t hat t he financial st at em ent s

reflect a t rue and fair view.

Rev enue is also account ed for in t he period t o which it relat es. At t he year- end, if an invoice

is not yet issued but t he service has been render ed/ goods have been delivered by Eur opol

or a cont ract ual agreem ent exist s, accrued incom e is r ecognised in t he financial st at em ent s.

I n addit ion, at t he y ear- end, if an invoice is issued but t he services have not y et been

render ed or t he goods supplied have not yet been deliver ed, t he r ev enue or charges will be

defer red and r ecognised in t he subsequent account ing period.

1 .5 .

St a t e m e n t of Fin a ncia l Pe r for m a n ce

Rev enue and expendit ure are account ed for in accordance wit h t he principle of accrual-

based account ing.

1 .5 .1 . Re ve n ue

Rev enue is t he gross inflow of econom ic benefit s or service pot ent ial during t he report ing

period when t hose inflows r esult in an increase in net asset s.

Non- ex change revenue m akes up t he vast m aj orit y of Eur opol’s r ev enue and includes

m ainly t he EU subsidy and own r esour ce am ount s.

Exchange r ev enue is rev enue fr om fees, m ission reim bursem ent s, gains from fixed asset

disposals, bank cr edit int er est and ex change rat e conv er sion gains.

1 .5 .2 . Ex pe ndit ur e

Expenses ar e decreases in econom ic benefit s or ser vice pot ent ial during t he report ing period

in t he form of out flows or consum pt ion of asset s or incurr ence of liabilit ies t hat result in

decreases in net asset s. Dist ribut ions of t he r esult of t he y ear are not considered as

expenses.

According t o t he principle of accrual- based account ing, t he financial st at em ent s t ake

account of expendit ure relat ing t o t he r eport ing period, wit hout t aking int o considerat ion t he

paym ent dat e; m eaning when t he goods or ser v ices ar e delivered/ pr ovided.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

1 .6 .

Cont in gen t Asse t s a n d Lia bilit ie s

1 .6 .1 . Cont inge nt a sse t s

A cont ingent asset is a possible asset t hat arises fr om past ev ent s and of which t he

exist ence will be confirm ed only by t he occurr ence or non- occurr ence of one or m ore

uncert ain fut ure ev ent s not wholly wit hin t he cont r ol of Eur opol. I t is not r ecognised

because t he am ount of t he obligat ion cannot be m easured wit h sufficient reliabilit y. A

cont ingent asset is disclosed when an inflow of econom ic benefit s or ser vice pot ent ial is

probable.

1 .6 .2 . Cont inge nt lia bilit ie s

A cont ingent liabilit y is a possible obligat ion t hat arises from past ev ent s and of which t he

exist ence will be confirm ed only by t he occurr ence or non- occurr ence of one or m ore

uncert ain fut ure ev ent s not wholly wit hin t he cont rol of Eur opol; or a pr esent obligat ion t hat

arises fr om past event s but is not recognised because: it is not probable t hat an out flow of

resources em bodying econom ic benefit s or ser vice pot ent ial will be r equired t o set t le t he

obligat ion or, in t he rare circum st ances where t he am ount of t he obligat ion cannot be

m easur ed wit h sufficient reliabilit y.

2 . N OTES TO TH E BALAN CE SH EET

N ON - CURREN T ASSETS

2 .1 .

I n t a n gible a n d t a n gible fix e d a sse t s

During 2016 Europol’s fixed asset s increased by € 8.8M. The Host St at e car ried out a

num ber of addit ional work s wit hin t he Europol Headquart er s in order t o m eet t he business

dem ands of t he organisat ion. These w or ks w er e ex ecut ed by cont ract ors for t he Host St at e,

which in t urn invoiced Europol. The t ot al am ount delivered in 2016 and fulfilling t he

recognit ion crit eria for fixed asset s as defined in Account ing Rule 7 am ount ed t o € 1.27M

com pared t o € 411K in 2015.

I n 2016 Europol finalised 4 disposal procedur es involving 457 fixed asset s. These disposal

procedur es result ed in a writ e- off of € 15,282 and a gain of € 4,947. These disposals can be

found cat egorised as follows:

Asse t cla ss

Buildings

Com put er hardwar e

Ot her Fixt ures and Fit t ings

Furnit ure and v ehicles

Re a son for disposa l

Obsolescence

N o of it e m s

447

I n accordance wit h Account ing Rule 6 regar ding int ernally- generat ed int angible asset s,

Eur opol set it s t hr eshold at € 200K.

Ther e w ere a t ot al of 9 I CT developm ent proj ect s run in 2016. From t his t ot al, 8 proj ect s

reached or were est im at ed t o reach t he t hreshold set for capit alisat ion. Two proj ect s w er e

finalised and r eleased in 2016 and t he ot her six w er e scheduled t o be finalised in 2017 and

2018. The lat t er ar e classed as I nt angible asset s under const ruct ion ( see t able on page 23) .

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Resear ch and developm ent cost s

Eur opol used it s t im e- t racking syst em as a basis for it s calculat ions. I n t he t im e- t racking

syst em , each st aff m em ber and ext ernal consult ant t hat worked wit hin t he proj ect recorded

t he hours wit h a link t o t he t ask perform ed. The t ask s w er e split int o t wo phases; r esearch

and dev elopm ent . I n addit ion, t he t asks wit hin t he dev elopm ent phase were split int o t wo

cat egories depending on t heir nat ure. This was done in accordance w it h Account ing rule 6;

cost direct ly qualified for capit alisat ion and cost expensed for t he given year. For t he

calculat ion of Eur opol em ployee cost s t he av er age st aff cost s per cat egory provided by t he

Eur opean Com m ission wer e t aken as a basis.

The result s:

N on- ca pit a lise d cost

One p r oj e ct

Cost of t he y ear

43,687

Re se a r ch cost

N on- ca pit a lise d

de ve lopm e nt

cost

I n - house I CT pr oj e ct s ca pit a lise d a s a t

3 1 .1 2 .2 0 1 6

Tw o p r oj e ct s

Cost of t he y ear

Re se a r ch cost

Ca pit a lise d

de ve lopm e nt

cost

1,222,960

Pr oj e ct s un de r con st r uct ion a s a t 3 1 .1 2 .2 0 1 6

Six pr oj e ct s

Cost of t he y ear

Re se a r ch cost

To be ca pit a lise d

de ve lopm e nt

cost

3,607,914

Leasing

Leases of t angible asset s, wher e Eur opol has ( subst ant ially) all t he risks and r ewards of

ownership, are classified as finance leases. Finance leases ar e capit alised at t he lease’s

com m encem ent at t he lower of t he fair value of t he leased asset and t he pr esent value of

t he m inim um lease pay m ent s. The int erest elem ent of t he finance lease paym ent is charged

t o expendit ure ov er t he period of t he lease at a const ant periodic rat e in relat ion t o t he

balance out st anding. The r ent al obligat ions, net of finance charges, ar e included in financial

liabilit ies ( non- current and current ) . The int erest elem ent of t he finance cost is charged t o

t he St at em ent of Financial Perfor m ance over t he lease period so as t o pr oduce a const ant

periodic int erest rat e on t he rem aining balance of t he liabilit y for each period. The asset s

held under finance leases ar e depr eciat ed ov er t he short er of t he asset 's useful life and t he

lease t erm .

I n 2016 Europol opt ed for a finance lease t o purchase t hree I T- ser ver st orage upgrades.

The am ount s payable under t hese finance leases ar e disclosed ( in accordance wit h EU

Account ing Rule 8) as follows:

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Am ount s payable under

finance leases

Minim um lease

paym ent s

€

140,456.32

Fut ure finance

charges

€

- 9,416.04

Present value of m inim um

lease paym ent s

€

131,040.28

2015

Wit hin one y ear

( curr ent port ion)

The lease t erm is five y ear s and t he borr owing rat e 3% for all upgrades.

Depr eciat ion

The depr eciat ion rat es used by Europol can be found in t he t able below :

St r a ight lin e de pr e cia t ion

rate

25%

12.5%

25%

10%

12.5%

25%

Type of a sse t

I nt angible ( com put er soft war e)

Leasehold im prov em ent s ( com put er hardware)

Buildings

Plant and equipm ent

Com put er hardwar e

Vehicles

Furnit ure

Kit chen, cafet eria equipm ent

Telecom m unicat ion and audio- visual equipm ent

Det ails of t he int angible and t angible fixed asset s can be found on t he next t wo pages.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

I n t a n gible fix e d a sse t s

Ye a r 2 0 1 6

Gr oss ca r r y in g a m ou nt s

0 1 .0 1 .2 0 1 6

Addit ions

Disposals

Gr oss ca r r y in g a m ou nt s

3 1 .1 2 .2 0 1 6

Accum ula t e d a m or t iz a t ion

a nd im pa ir m e nt 0 1 .0 1 .2 0 1 6

Am ort izat ion

Disposals

Accum ula t e d a m or t iz a t ion

a nd im pa ir m e nt 3 1 .1 2 .2 0 1 6

N e t ca r r y ing a m ou nt s

3 1 .1 2 .2 0 1 6

I nt e r n a lly- ge n e r a t e d

Com put e r Soft w a r e

2 ,1 8 5 ,8 3 9

1,222,960

3 ,4 0 8 ,7 9 8

Ot he r Com put e r

Soft w a r e

1 3 ,7 4 3 ,8 2 0

286,640

1 4 ,0 3 0 ,4 6 0

Tot a l Com put e r

Soft w a r e

1 5 ,9 2 9 ,6 5 8

1,509,599

1 7 ,4 3 9 ,2 5 8

I nt a ngible a sse t s

unde r const r uct ion

3,607,914

3 ,6 0 7 ,9 1 4

Tot a l

1 5 ,9 2 9 ,6 5 8

5,117,513

2 1 ,0 4 7 ,1 7 1

1 3 ,3 2 7 ,5 9 8

1,596,489

1 4 ,9 2 4 ,0 8 7

6 ,1 2 3 ,0 8 4

- 2 ,0 5 6 ,2 1 9

- 155,098

- 2 ,2 1 1 ,3 1 7

1 ,1 9 7 ,4 8 1

- 1 1 ,2 7 1 ,3 7 9

- 1,441,391

- 1 2 ,7 1 2 ,7 7 1

1 ,3 1 7 ,6 8 9

- 1 3 ,3 2 7 ,5 9 8

- 1,596,489

- 1 4 ,9 2 4 ,0 8 7

2 ,5 1 5 ,1 7 0

3 ,6 0 7 ,9 1 4

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Ta n gible fix e d a sset s

Unde r

Fin a nce

Le a se

1,310,403

1 ,3 1 0 ,4 0 3

Ye a r 2 0 1 6

Gr oss ca r r y in g a m ou nt s

0 1 .0 1 .2 0 1 6

Addit ions

Disposals

Ot her changes

Gr oss ca r r y in g a m ou nt s

3 1 .1 2 .2 0 1 6

Accum ula t e d de pr e cia t ion

a nd im pa ir m e nt

0 1 .0 1 .2 0 1 6

Depr eciat ion

Disposals

Ot her changes

Accum ula t e d de pr e cia t ion

a nd im pa ir m e nt

3 1 .1 2 .2 0 1 6

N e t ca r r y ing a m ou nt s

3 1 .1 2 .2 0 1 6

Buildings

Pla nt a nd

Equipm e nt

9 4 7 ,7 8 4

5,625

- 20,556

9 3 2 ,8 5 2

Com pu t e r

ha r dw a r e

2 7 ,6 5 3 ,1 9 6

4,402,350

- 404,337

3 1 ,6 5 1 ,2 0 8

Fur n it u r e a n d

ve hicle s

4 ,8 1 6 ,0 5 9

469,086

- 29,016

5 ,2 5 6 ,1 2 8

Ot he r Fix t u r e s

a nd Fit t in gs

1 4 ,7 9 7 ,4 2 7

1,293,848

- 3,214

1 6 ,0 8 8 ,0 6 1

Tot a l

1 1 ,7 6 1 ,7 2 6

- 2,152

1 1 ,7 5 9 ,5 7 4

5 9 ,9 7 6 ,1 9 0

7,481,311

- 438,719

- 20,556

6 6 ,9 9 8 ,2 2 6

- 2 ,1 1 6 ,0 4 2

- 536,633

402

- 2 ,6 5 2 ,2 7 3

9 ,1 0 7 ,3 0 1

- 5 9 4 ,2 8 8

- 118,253

4,711

- 7 0 7 ,8 3 0

2 2 5 ,0 2 2

- 2 1 ,3 5 5 ,2 2 5

- 3,470,537

404,337

- 2 4 ,4 2 1 ,4 2 5

7 ,2 2 9 ,7 8 3

- 2 ,6 2 8 ,4 5 5

- 469,264

15,476

- 3 ,0 8 2 ,2 4 3

2 ,1 7 3 ,8 8 5

- 9 ,4 2 1 ,6 0 4

- 1,710,622

3,214

- 1 1 ,1 2 9 ,0 1 3

4 ,9 5 9 ,0 4 8

- 191,101

- 1 9 1 ,1 0 1

1 ,1 1 9 ,3 0 2

3 6 ,1 1 5 ,6 1 4

- 6,496,410

423,429

4,711

4 2 ,1 8 3 ,8 8 5

2 4 ,8 1 4 ,3 4 2

Adj ust m ent of overst at em ent from 2015.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

2 .2 .

Lon g- t e r m r e ce iva ble s

The t ot al am ount r elat es t o a guarant ee/ deposit paid for Eur opol’s post al services.

CURREN T ASSETS

2 .3 .

Sh or t - t e r m Pr e - fin an cin g

The t ot al am ount relat es t o pr e- financing paid out from t he pre- financing received in

respect of t he Delegat ion Agr eem ent m inus t he am ount of est im at ed expendit ure

during 2016 ( accrued charges) .

2 .4 .

Cur r en t r ece iva ble s

3 1 .1 2 .2 0 1 6

203,814

698,485

14,087

3,026

651,575

1 ,5 7 0 ,9 8 7

3 1 .1 2 .2 0 1 5

278,521

34,506

5,518

300

626,829

9 4 5 ,6 7 4

Open debt ors ( cust om er s)

Open debt ors ( m em ber st at es)

Open debt ors ( non- m em ber st at es)

Open debt ors ( ot her)

VAT and ot her t ax es

Tot a l

Eur opol pays t he invoices from local suppliers wit h VAT and claim s t he VAT refund

from t he Host St at e on a quart erly basis.

2 .5 .

Su n dr y r e ce iva ble s

3 1 .1 2 .2 0 1 6

114,884

56,870

1 7 1 ,7 5 4

3 1 .1 2 .2 0 1 5

66,115

18,639

8 4 ,7 5 4

St aff – salary and m ission advances

Ot her – Expendit ure t o be allocat ed

Tot a l

2 .6 .

Ot h er

3 1 .1 2 .2 0 1 6

27,052

2,770,746

2 ,7 9 7 ,7 9 8

3 1 .1 2 .2 0 1 5

27,568

1,247,945

1 ,2 7 5 ,5 1 3

Accrued incom e

Defer r ed charges

Tot a l

The am ount for

a ccr ue d incom e

r elat es t o am ount s r ecov erable by Europol r elat ing

t o reim bursem ent s and t he out com e of one lit igat ion case from 2016, but t he debt s

t owards Europol will only be recognised in t he budget ( rev enue) 2017. Sim ilarly t he

am ount for

de fe r r e d cha r ge s

relat es t o invoices paid by Eur opol t o suppliers in

2016, but r elat ing t o a period in 2017 ( or bey ond) .

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

2 .7 .

Sh or t - t e r m r e ce iva ble s w it h consolida t e d e n t it ie s

This am ount involves t w o ent it ies:

Direct orat e General from t he European Com m ission

Eur opean Police College ( CEPOL)

Bot h t ransact ions ar e st aff- r elat ed.

2 .8 .

Ca sh a n d ca sh e qu iva le n t s

These relat e only t o bank account s as follows:

3 1 .1 2 .2 0 1 6

Eur opol cur rent account

Short - t erm deposit s

Local st aff Pension Fund

Tot a l

14,772,504

4,560,015

408,642

1 9 ,7 4 1 ,1 6 1

3 1 .1 2 .2 0 1 5

15,287,376

372,988

1 5 ,9 2 5 ,8 8 8

These bank account s ar e held wit h I NG ( The Net herlands) .

N ON - CURREN T LI ABI LI TI ES

2 .9 .

Pe n sion s a n d ot h er e m ploye e be n e fit s

Hist oric elem ent s

I n Oct ober 2015, t he Council of t he European Union decided

t o dissolve t he Eur opol

Pension Fund as of 1 January 2016 and t o consider Europol as t he legal successor of

t he fund in respect of all cont ract s concluded by , liabilit ies incum bent on and

propert y acquired by t he fund, and of claim s of t he fund t owards t hird part ies. I n

pract ice all t he fund's asset s and liabilit ies upon t he closure of t he fund were

t ransfer red t o Eur opol.

The asset s obt ained ar e consider ed as Planned Asset s; t he liabilit ies inherit ed are

her eaft er r efer red t o as Defined Benefit Obligat ions. Due t o t he link wit h ext ernal

assigned rev enue ( budget fund source R0) t he Planned Asset s can only be used by

Eur opol t o m ake paym ent s relat ed t o t he Defined Benefit Obligat ion. Under t he

Defined Benefit Obligat ion Europol also recognises t he surpluses t o be paid t o:

a) Mem ber St at es pursuant t o t he principles upon which Art icle 58( 5) of t he Europol

Decision was based;

b) Europol as a rem ainder of t he subsidies paid t o Europol from t he general budget

of t he European Union; and

c) Form er act ive part icipant s of t he fund or t heir lawful heirs.

Planned Asset s for t he Defined Benefit Obligat ion. See point 2.9.

See not es under point 2.10. below.

Council Decision ( EU) 2015/ 1889 on t he dissolut ion of t he Europol Pension Fund as published in OJEU

L/ 276, 21.10.2015 pages 60-64.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Effect s on t he financial result 2016

a) Previous r eport ing periods of t he fund

I n 2016 an inconsist ency was discov er ed t hat affect ed t he fund’s Closing Report as

at 31.12.2015 for an am ount of € 135,824. This am ount was t her efor e charged

against t he Europol Budget 2016 ( fund sour ce I C4) generat ed by t he incom e as a

result of t he surplus m ent ioned under b) abov e.

Furt herm or e at t he t im e of closure t he fund had a claim t owards Europol for an

am ount of € 35,230. As t his claim also had t o be part of t he Planned Asset s

available t o cov er t he Defined Benefit Obligat ions, t his am ount was also charged

against t he Europol Budget 2016 ( fund sour ce I C4) generat ed by t he incom e as a

result of t he surplus m ent ioned under b) abov e.

b) I n- house act uarial reassessm ent

At t he y ear- end 2016 Europol m ade an in- house act uarial assessm ent of t he Defined

Benefit Obligat ion, result ing in a growt h of t he residual Defined Benefit Obligat ion

2016 by € 50,774 t o € 4,781,961. This increase in Defined Benefit Obligat ions 2016

t riggered a cov erage r at io of 98.94% wher eas 100% is required. I n order t o

supplem ent t he m issing 1.06% Europol charged € 50,774 t o it s St at em ent of

Financial Perform ance 2016 as an accrued char ge.

The t ot al accum ulat ed effect on t he financial result of Eur opol due t o t he abov e

corr ect ions was € 221,828. This am ount ( aside fr om a sm all difference of € 118) is

t he difference bet w een t he t ot al Defined Benefit Obligat ions and t he Planned Asset s

( see point 2.8. abov e) .

Pot ent ial effect on t he financial result 2017

I t is im port ant t o not e is t hat pursuant t o Art icle 4 ( b) of t he Council Decision, form er

act ive part icipant s of t he fund ( or t heir lawful heirs) have unt il Oct ober 2017, being

t wo y ears aft er publicat ion of t he Council Decision, t o com m unicat e t heir beneficiary

det ails t o Eur opol. I f not pr ovided or found by Eur opol by t his dat e, t he rem aining

port ion of t he relat ed Planned Asset s shall becom e ot her incom e for Eur opol. At

31.12.2016 t he am ount was € 178,253.

The t able below sum m arises t he t ot al Defined Benefit Obligat ions:

3 1 .1 2 .2 0 1 6

3,307,424

1,296,284

178,253

4 ,7 8 1 ,9 6 1

3 1 .1 2 .2 0 1 5

Pension Liabilit ies payable

Surplus t o Mem ber St at es

Surplus t o form er part icipant s ( or lawful heirs)

Tot a l

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

2 .1 0 . Ot h er lon g- t e r m lia bilit ie s

3 1 .1 2 .2 0 1 6

Unem ploym ent fund liabilit y t owards

st aff

Local st aff pension cont ribut ion

Leasing liabilit y on com put er hardw ar e

Tot a l

408,642

917,282

1 ,3 2 5 ,9 2 4

3 1 .1 2 .2 0 1 5

238,125

372,988

6 1 1 ,1 1 3

Local St aff m em ber s r ecruit ed prior t o 2010, and st ill having an em ploym ent cont ract

aft er 2010, are ent it led t o a defined benefit old age pension accrual under Dut ch

labour law pursuant t o t he applicable pension schem e charact erist ics. The pr em ium

paym ent s needed t her et o ar e provided t o a t hird part y who assures t he liabilit ies

accrued by obt aining t he r equired asset s t her et o periodically. Mont hly t he em ployer

and em ployee cont ribut ions are set aside on a ring- fenced bank account wit h t he

sole purpose t o finance t he pr em ium s t o be paid t o t he t hird part y . I n 2014 a t ender

procedur e t o secur e a new service pr ovider as from 2015 onwards failed m eaning no

fees hav e been set t led in relat ion t o t he em ploym ent periods beyond 01.01.2015.

This m akes Europol liable t o cov er t he pension right s relat ed t o 2015 and 2016. An

int ernal worst case act uarial calculat ion est ablished t he pension cost in relat ion t o

2015 and 2016 t o be € 168K. Since t he int ernal calculat ion is considerable lower

t han t he available bank balance, no ext ernal act uarial calculat ion was deem ed

necessary t o pr ovide an ext ernal assurance on t he financial healt h of t he bank

balance.

The differ ence bet ween t he am ount shown abov e for t he leasing liabilit y and t he t ot al

am ount shown as a financial lease in t he t angible fixed asset s t able on page 22 is t he

calculat ion for t he short - t erm leasing liabilit y ( see point 2.12. below) .

2 .1 1 . Pr ovisions for r isk s a n d ch a r ges ( sh or t - t e r m )

Une m ploym e nt

fund lia bilit y

t ow a r ds st a f f

27,399

- 27,399

Provision

Balance at t he beginning of t he y ear

Addit ions

Ut ilised

Unused

Transferr ed t o non- cur r ent

Tot a l a s a t 3 1 .1 2 .2 0 1 6

Lit iga t ion ca se s

19,000

14,000

- 2,000

31,000

The provision for t he lit igat ion cases pr ovides for t he applicant s’ legal cost s involving

four open cases. The pr ovision for t he Unem ploym ent fund liabilit y t owards st aff was

fully ut ilised due t o t he fund being dissolved in 2016.

The Unem ploym ent Fund, under Europol’s form er st aff regulat ion, was dissolved in 2016.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

CURREN T LI ABI LI TI ES

2 .1 2 . Cur r en t Fin a n cia l Lia bilit ie s

The t ot al am ount r elat es t o t he short - t erm leasing liabilit y on com put er hardwar e.

2 .1 3 . Cur r en t pa ya ble s

3 1 .1 2 .2 0 1 6

1,182,974

35,838

- 1,163,708

5 5 ,1 0 3

3 1 .1 2 .2 0 1 5

1,360,095

6,544

- 1,353,509

1 3 ,1 3 0

Am ount s payable - v endors

Am ount s payable - Mem ber St at es

I nv oices / credit not es pending verificat ion

Tot a l

2 .1 4 . Su n dr y pa ya ble s

3 1 .1 2 .2 0 1 6

242,185

6,297

2 4 8 ,4 8 2

3 1 .1 2 .2 0 1 5

410,295

12,222

500,000

9 2 2 ,5 1 7

Fixed asset s – goods received

Pre- financing received from Mem ber St at es re

UMF2

Grant

Grant agreem ent wit h EUI PO

Ret r oact ive salary adj ust m ent paym ent t o ex- st aff

Tot a l

2 .1 5 . Ot h er a ccoun t s pa ya ble

3 1 .1 2 .2 0 1 6

3,818,298

9,484

1,015,127

18,620

4 ,8 6 1 ,5 2 9

3 1 .1 2 .2 0 1 5

4,078,151

683

978,190

149,130

5 ,2 0 6 ,1 5 4

Accrued charges

Accrued charges wit h consolidat ed ent it ies

Accrual for unt aken annual leave at y ear- end

Defer r ed incom e

Tot a l

According t o t he EU St aff Regulat ion, Annex V: Leav e, Art icle 4, if t he per son at t he

t im e of leaving t he service has not used t heir annual leave, t hey shall be paid

com pensat ion equal t o one t hirt iet h of t heir m ont hly rem unerat ion for each leave day

due t o t hem . Ther efor e t he calculat ion ( based on average salary rat es) for unt aken

annual leave has been r ecognised as an accrued charge.

Fixed asset s received, but not yet invoiced.

This am ount was reim bursed t o Mem ber St at es in 2016.

Reclassed in 2016 as account s payable wit h consolidat ed EU ent it ies ( not e 2.16.)

I nvoices paid in 2017 relat ing t o goods/ services delivered in 2016 and expensed ( not capit alised) .

Receipt s 2016 t o be put to budget 2017.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

2 .1 6 . Accou nt s pa ya ble w it h consolida t e d EU e n t it ies

3 1 .1 2 .2 0 1 6

1,868,249

5,456,334

395,969

717,107

15,388

8 ,4 5 3 ,0 4 8

3 1 .1 2 .2 0 1 5

897,850

5,759,873

6 ,6 5 7 ,7 2 3

Surplus from EC subsidy

Balance on pr e- financing received for t he

Delegat ion Agreem ent

Balance on pr e- financing received for t he

Hot spot Grant

Grant agreem ent s wit h EUI PO

Account s payable Com m ission - ot her

Tot a l

The grant agr eem ent s wit h t he EU I nt ellect ual Propert y Office ( EUI PO) ar e for t he

fight against int ellect ual propert y right s infringem ent s.

3 . N OTES TO TH E STATEM EN T OF FI N AN CI AL PERFORM AN CE

The m ain explanat ions for t he am ount s under r ev enue and expendit ure can be found

in t he report s on t he im plem ent at ion of t he budget ( see pages 37 t o 44) . The

differences bet ween t he St at em ent of Financial Perform ance and t he budget result

t he can be found in t he reconciliat ion on page 34. Ther efore t hese not es only

cont ain supplem ent ary inform at ion.

3 .1 .

Re ven u e

According t o EU Account ing Rules, all revenue should be split bet ween t hat fr om

exchange t ransact ions and t hat from non- ex change t ransact ions.

The am ount for ex change t ransact ions r elat es m ainly t o t he reim bursem ent of

m ission cost s, speak er s’ fees and gains on for eign exchange t ransact ions.

The m ain am ount for non- ex change t ransact ions r elat es t o t he EC Subsidy. Ot her

non- exchange t ransact ions include VAT refunds, credit int erest on bank account s et c.

3 .2 .

Ope r a t iona l

Ex pen dit ur e

One of t he large differ ences bet w een t he operat ional cost s det ailed in t he budget

result and t hose in t he St at em ent of Financial perform ance is due t o t he capit alised

and expect ed t o be capit alised ( under const ruct ion) cost s of t he I nt ernally- generat ed

int angible asset s which t ot alled j ust over € 2M.

St a ff

These expenses cont ain personnel- relat ed ex penses such as salaries, allowances,

social securit y cont ribut ions and ot her w elfare expenses.

Alm ost all ( aside from four st aff wit h a local cont ract ) salary calculat ions giving t he

t ot al st aff expenses included in t he St at em ent of financial perform ance of t he Agency

are ext ernalized t o t he Office for adm inist rat ion and paym ent of individual

This is t he budget result from 2016 ( see page 58 below) .

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

ent it lem ent s ( also known as t he Paym ast er 's Office - PMO) which is a cent ral office of

t he European Com m ission audit ed by t he Eur opean Court of Audit ors.

One of t he large differ ences bet w een t he st aff cost s det ailed in t he budget r esult and

t hose in t he St at em ent of Financial perfor m ance is due t o t he capit alised and

expect ed t o be capit alised ( under const ruct ion) cost s of t he I nt ernally- generat ed

int angible asset s which t ot alled € 2.8M. Anot her large differ ence relat es t o t he

adj ust m ent for t he em ploy ee benefit liabilit y ( see point 2.9. abov e) .

Fix e d a sse t - r e la t e d

These expenses cont ain t he charged depr eciat ion of t angible and am ort isat ion of

int angible fixed asset s and any am ount s w rit t en- off.

Ot he r

These ot her adm inist rat ive expenses include t he rent al and m aint enance of buildings

and insurance cost s.

Fin a ncia l e x pe n se s

These relat e t o bank and cr edit card charges.

4 . N OTES TO TH E CASH - FLOW STATEM EN T

Cashflow inform at ion is used t o provide a basis for assessing t he abilit y of Europol t o

generat e cash and cash equivalent s, and it s needs t o ut ilise t hose cash flows.

The cash flow st at em ent is prepar ed using t he indirect m et hod. This m eans t hat t he

econom ic r esult of t he financial year ( St at em ent of Financial Perform ance) is

adj ust ed for t he effect s of t ransact ions of a non- cash nat ur e, any defer rals or

accruals of past or fut ur e operat ing cash r eceipt s or paym ent s, and it em s of r ev enue

or expense associat ed wit h invest ing cash flows.

The cash flow st at em ent present ed report s cash flows during t he period classified by

operat ing and invest ing act ivit ies.

4 .1 .

Ope r a t in g a ct ivit ie s

Operat ing act ivit ies are t he act ivit ies of Eur opol t hat are not invest ing act ivit ies.

These ar e t he m aj orit y of t he act ivit ies perform ed. Ot her changes under t his act ivit y

relat e t o t he ot her change for t angible fixed asset s ( see t able on page 24) and t he

financial liabilit y for t he short - t erm finance lease ( see point 2.12. abov e) .

4 .2 .

I n vest in g a ct ivit ie s

I nv est ing act ivit ies are t he acquisit ion and disposal of int angible and t angible fixed

asset s and of ot her invest m ent s which are not included in cash equivalent s. The

obj ect ive is t o show t he r eal invest m ent s m ade by Europol.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

4 .3 .

Em ploye e be n e fit s

This relat es t o t he incr ease in em ployee benefit s ( see point 2.9. above) .

5 . CON TI N GEN T ASSETS AN D LI ABI LI TI ES AN D OTH ER

SI GN I FI CAN T D I SCLOSURES

5 .1 .

Cont in gen t Asse t s

Ther e w ere no cont ingent asset s as at 31 Decem ber 2016.

5 .2 .

Cont in gen t Lia bilit ie s

The t ot al am ount disclosed as cont ingent liabilit ies is € 110K and relat es t o four

out st anding lit igat ion cases.

Tw o of t hese cases relat e t o dam ages and legal

expenses incurr ed dur ing proceedings ( € 30K) and t he ot her t wo relat e t o

com pensat ion for t he abnorm al durat ion of t he procedur e ( € 80K) . However for all

cases t he likelihood of t he liabilit y m at erialising is low.

5 .3 .

Ot h er sign ifica n t disclosu r es

Se r v ice s- in- k ind

5 .3 .1 .

I n accordance wit h EC Account ing rule 17, Eur opol discloses it s free use of t he office

building ( including parking facilit ies) during t he year offered by t he Host St at e. The

est im at ed am ount for t he year 2016 was € 12.5M. This ser vice- in- kind is, in

principle, offered unt il t he end of February 2031 ( 20- year lease agreem ent fr om

2011) .

5 .3 .2 .

Re m a in ing n e t RAL ( Re st e à Liqu ide r )

The t ot al am ount of budget com m it m ent s carried forward t o 2017 aft er deduct ing all

eligible 2016 expenses am ount ed t o € 5,376,177.

5 .3 .3 .

Ot he r cont r a ct u a l com m it m e nt s

Eur opol’s cont ract ual obligat ions as at 31.12.2016 not covered by t he RAL ( see

abov e) t ot als € 2,883,855. This calculat ion consider s cont ract s up t o t he earliest

dat e possible t o end t he cont ract and possible penalt y cost s.

6 . FI N AN CI AL I N STRUM EN TS

Financial inst rum ent s com prise of cash, cur rent receivables/ recoverables, cur rent

payables and am ount s due t o and from consolidat ed ent it ies. Financial inst rum ent s

give rise t o risks such as cr edit , liquidit y and m arket ( int erest rat es and for eign

curr ency exchange) .

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Cr e dit r isk

Credit risk is t he risk of loss due t o a debt or's/ bor row er's non- paym ent of a loan or

ot her line of credit ( eit her t he principal am ount , accrued int erest or bot h) or ot her

failure t o m eet a cont ract ual obligat ion. The default event s include a delay in

repaym ent s, r est ruct uring of bor rower repaym ent s and bankrupt cy.

The t able below provides for t he credit qualit y of Europol’s financial asset s t hat ar e

neit her past due or im paired:

Re ce iva ble s w it h

Thir d pa r t ie s

including

a ccr ua ls &

de fe r r a ls

3 ,1 9 7 ,3 9 4

3,197,394

3 1 D e ce m be r 2 0 1 6

M e m be r

St a t e s

Consolida

ted

e nt it ie s

1 ,8 4 0

1,840

Ba nk

a ccou nt s

Count e r pa r t ie s w it h

e x t e r n a l cr e dit r a t ing

Prim e and high grade

Upper m edium grade

Count e r pa r t ie s w it hout

e x t e r n a l cr e dit r a t ing

Debt ors who nev er

default ed

1 ,3 5 0 ,0 6 0

1,254,846

271

1 5 ,1 8 1 ,1 4 6

15,181,146

Liqu idit y r isk

Liquidit y risk arises from t he ongoing financial obligat ions, including set t lem ent of

payables.

Eur opol m anages liquidit y risk by m onit oring for ecast s and act ual cash flows.

The t able below shows Eur opol’s liabilit ies ( payables)

cont ract ual m at urit y as at 31.12.2016:

3 1 D e ce m be r 2 0 1 6

Payables wit h t hird part ies

Payables wit h consolidat ed ent it ies

Tot a l lia bilit ie s

t hat

had a rem aining

< 1 ye a r

303,585

8,453,048

8 ,7 5 6 ,6 3 3

M a r k e t r isk

I nt er est rat e ris

Eur opol does not bor r ow any m oney; as a consequence it is not exposed t o int erest

rat e risk. I t has, howev er , earned int erest on balances it holds on it s banks account s.

Eur opol ret ains t his int erest , in accordance wit h Art icle 58 of t he Financial Regulat ion

applicable t o Europol, by way of an Am ending Budget .

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

For eign currency risk

Curr ency risk is t he risk t hat Eur opol’s operat ions or it s invest m ent s' value will be

affect ed by changes in exchange rat es. This risk arises from t he change in price of

one cur rency against anot her .

Most financial asset s and liabilit ies ar e in Eur o, so in t hese cases Europol has no

for eign curr ency risk.

As at 31.12.2016, Eur opol had no asset s or liabilit ies exposed in curr encies ot her

t han t he Eur o.

7 . CH AN GES I N ACCOUN TI N G POLI CI ES

Ther e hav e been no changes in account ing policies for t he financial year 2016.

8 . RELATED PARTY D I SCLOSURE

I n accordance wit h EU Account ing Rule 15, Eur opol discloses it s r elat ed part ies as it s

key m anagem ent per sonnel. Key m anagem ent personnel are t he direct orat e

m em bers ( t op m anagem ent ) of Eur opol. The t ot al rem uner at ion of t he direct orat e

m em bers and t he num ber of individiuals, on a full- t im e equivalent basis, are

provided for in t he t able below:

Posit ion

Direct or

Deput y Direct or

Gr a de

AD15

AD14

AD13

Tot a l r e m un e r a t ion 2 0 1 6

N um be r of

I ndividu a ls

Tot a l

r e m u ne r a t ion

227,638

153,369

347,607

7 2 8 ,6 1 4

9 . EVEN TS AFTER TH E BALAN CE SH EET D ATE

At t he dat e t hese account s wer e signed, no m at erial issue cam e t o t he at t ent ion of

t he Account ing officer of Europol or was report ed t o her t hat would require a

separat e disclosur e under t hat sect ion.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

10.

RECON CI LI ATI ON BETW EEN STATEM EN T OF

FI N AN CI AL PERFORM AN CE AN D BUD GET RESULT

D e scr ipt ion

Econom ic r esult ( St at em ent of Financial Perfor m ance)

Accruals/ defer rals r ev er sed fr om 2015

Accruals/ defer rals 2016

Unpaid invoices at 31.12.2016

Depr eciat ion and am ort isat ion of fixed asset s

Provisions ( im pact of t he y ear)

Value reduct ions ( im pact of t he y ear)

Uncashed recovery orders issued in 2016

Paym ent s m ade fr om carry forward 2015

I nt ernally- generat ed fixed asset s

Fixed Asset cor rect ions

Ot her general ledger corr ect ions

Cor r ect ions pr evious y ears

Adj ust m ent t o r ecognise em ployee benefit liabilit y

Asset acquisit ions ( excluding unpaid am ount s)

Open pre- financing paid in 2016

Open pre- financing received in 2016

Cashed recovery orders issued before 2016

Cashed balance sheet r ecov ery order s issued in 2016

Paym ent appropriat ions car ried forward t o 2017

Cancellat ion of unused paym ent appr opriat ions fr om 2015

Adj ust m ent for 2015 carry forward appropriat ions assigned r ev enue

Paym ent s 2016 in St at em ent of Financial Perfor m ance 2015

VAT cor rect ions

Tot a l = Bu dge t r e su lt 2 0 1 6

Am ou nt

3,891,947

- 4,940,884

5,381,079

68,566

8,092,175

12,000

73,062

- 52,469

8,840,969

- 4,830,873

- 341,684

56,960

- 638

4,781,961

- 6,335,516

- 3,024,215

2,376,001

292,224

267,795

- 18,977,641

1,612,811

4,677,757

- 52,884

- 254

1 ,8 6 8 ,2 4 9

This is t he t ot al am ount capitalised in 2016 and considered under const ruct ion.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

REPORTS ON TH E I M PLEM EN TATI ON OF

TH E BUD GET

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

I N TROD UCTI ON

This report pr ovides t he inform at ion of t he 2016 budget im plem ent at ion. The budget

has been im plem ent ed in accordance wit h t he Financial Regulat ion following t he

budget ary principles.

CON TEN T

The m ain elem ent s of t he r eport on t he im plem ent at ion of t he 2016 Budget ar e:

2 .1

Ex pla n a t or y n ot e s on t h e bu dge t im ple m e n t a t ion

2.1.1

2.1.2

2.1.3

2.1.4

2.1.5

2.1.6

2.1.7

Budget im plem ent at ion 2016

Budget

im plem ent at ion

expendit ure

t he

assigned

rev enue

and

I m plem ent at ion of appr opriat ions carried forward from 2015 t o

2016

Appropriat ions car ried forward fr om 2016 t o 2017

Rev enue 2016

Budget t ransfers 2016

Budget r esult 2016

2 .2

Bu dge t im ple m e n t at ion t a ble s

Table 1: Budget im plem ent at ion 2016

Table 2: Budget im plem ent at ion of t he assigned r evenue and

expendit ure

Table 3: I m plem ent at ion of appropriat ions car ried for ward fr om 2015

t o 2016

Table 4: Appropriat ions car ried ov er from 2016 t o 2017

Table 5: Rev enue 2016

Table 6: List of budget Transfers 2016

Table 7: Budget r esult 2016

Final Annual Account s of Europol 2016

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Eu r opol Pu blic I n for m a t ion

2 .1 .

Ex pla n a t or y n ot e s on t h e bu dge t im ple m e n t a t ion

I n t his sect ion explanat ory not es ar e provided for t he im plem ent at ion of t he 2016

Budget . The t ables cont aining t he am ount s for t hese not es ar e provided in t he next

sect ion ( Tables 1–7) . Throughout t hese not es, fund sources for t he differ ent t ypes of

appropriat ions are m ent ioned. The definit ions for which are as follows:

Fund Sou r ce

Code

Conce pt

I nit ial Budget

Refunds

Refunds car ried ov er

Aut om at ic carr y for ward

Refunds

Pr e se nt a t ion in t he r e por t s

Adopt ed budget for 2016

I nt ernal Assigned revenue

Carried forward fr om 2015 t o

Ot her Ext ernal Assigned

The Europol budget 2016 am ount ing t o € 100.24M and was adopt ed by t he Eur opol

Managem ent Board in Decem ber 2015. The budget under fund source C1 was

am ended by € 2.03M in t ot al t o reinforce st aff at t he European Count er- Ter rorism

Cent r e ( ECTC) and for t he bank int erest received on t he Europol’s bank account . The

t ot al adopt ed budget excluding ext ernal assigned revenue was € 102.27M. I n

addit ion € 2M was added under fund sour ce R0 for ext ernal assigned r ev enue.

Am endm ent s w er e m ade for grant s for secondary securit y check s at hot spot s

( € 1.5M) and for t he fight against I nt ellect ual Propert y Right s infringem ent s

( € 0.5M) .

2 .1 .1 .

Budge t im ple m e nt a t ion 2 0 1 6 ( fun d sour ce C1 )

I n order t o m easure t he budget perform ance, sev eral key perfor m ance indicat ors

( KPI s) direct ly linked t o t he Eur opol Work Plan 2016 were set at t he beginning of t he

year, following recom m endat ions fr om Eur opean Com m ission and t he Eur opean

Court of Audit ors ( ECA) .

Budget perform ance was m easured for t he overall budget based on t he

im plem ent at ion of t he budget ( com m it m ent s and paym ent s) . The t ar get set for t he

com m it m ent im plem ent at ion rat e was at least 95% and for t he paym ent

im plem ent at ion rat e it was r ecom m ended at least 90% of t he budget at t he end of

t he year in order t o secure a r easonable carr y forward t o 2017. The t arget s for t he

paym ent im plem ent at ion rat es per Tit le were at least 90% for Tit le 1, 80% for Tit le 2

and 70% for Tit le 3. I n addit ion t he cancellat ion of t he carr y forward com m it m ent s

from 2015 should not exceed 5% .

The final out com e of t he KPI s for 2016 was as follows:

•

The im plem ent at ion of com m it m ent appropriat ions ( refer r ed t o in t his report

under Sect ion 2.2 ‘Expendit ure ( C1 – curr ent y ear) ’) was 99.8% and t her efor e

well above t he t arget of 95% .

•

The ov erall paym ent rat e was j ust abov e t he t arget of 90% and cam e t o

91.2% . I n line wit h t he expect at ion, t he pay m ent rat e for Tit le 1 and Tit le 3

was above t arget ( 99.1% and 81.6% respect ively) while t he paym ent rat e for

Tit le 2 ( 60.6% ) was below t arget . The r eason for not achieving t he t arget for

Tit le 2 ( Adm inist rat ive expendit ure) is m ainly due t o t he st ruct ur e of t he

Final Annual Account s of Europol 2016

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Eu r opol Pu blic I n for m a t ion

expendit ure and t he lengt hy process which is necessary before ( sub- )

cont ract ors and t he Host St at e can invoice service- level- agreem ent act ivit ies

relat ed t o m aint enance and addit ional work t o Europol’s Headquart ers.

•

The t arget for t he cancellat ion of t he car ry forward com m it m ent s fr om 2015

( Sect ion 2.4 Carr y for ward fr om 2015 t o 2016 ( C8) ) was not reached as t he

cancelled car ry forward am ount ed t o 15.4% . A t ot al of € 1.6M was not used

and is incorporat ed in t he final budget result .

Tit le 1 – St aff relat ed ex pendit ure

The im plem ent at ion rat e of com m it m ent s for Tit le 1 was 100% and t he paym ent r at e

cam e t o 99.1% . The budget under Tit le 1 was am ended by € 1.8M m ainly for t he

addit ional st aff reinfor cing ECTC.

A num ber of t ransfer s fr om ot her Tit les ( am ount ing t o € 1.1M) w ere m ade t o Chapt er

11 ( St aff in act ive em ploym ent ) t o cov er t he short age in t he budget r elat ed t o t he

ret roact ive salary increase ( + 3.3% ) and t he incr ease of t he w eight ing coefficient for

t he Net herlands fr om 7.8% t o 8% .

The budget was fully com m it t ed and 0.9% of t he budget under Tit le 1 was carried

for ward t o 2017 m ainly for st aff expendit ure ( e.g. recruit m ent s, m edical and t raining

expenses) and expendit ure r elat ed t o ext ernal services ( e.g. cat ering, confer ence

and m ov e services) .

Tit le 2 – Ot her adm inist rat ive expendit ure

The im plem ent at ion rat e for com m it m ent s for Tit le 2 cam e t o 99.8% and t he

paym ent r at e cam e t o 60.6% .

A large part of t he building expendit ure relat ed t o t he long- t erm replacem ent plan

and prevent ive m aint enance will only be invoiced ( and t herefor e spent ) in 2017.

Ot her building- relat ed expendit ure is t radit ionally slower as it requires involvem ent

of ( sub- ) cont r act ors and t he Host St at e before invoicing. I n addit ion, a t ransfer was

m ade lat e in t he year t o place order s for furnit ure ( for t he new st aff result ing from

t he am ending budget 2016) . The r elat ed invoices will only be received and t he

budget t her efor e spent in 2017.

The com m it m ent

im plem ent at ion

rat e for

t he adm inist rat ive I CT and

t elecom m unicat ion cost s was 100% . The com m it m ent s relat e m ost ly t o on- going

running net work and t elecom m unicat ion expendit ure ( Call cent re ser vices, Accrual

Based Account ing syst em fees, int ernet websit e host ing, et c.) as well as soft war e

m aint enance and consult ancy ser vices for t he I CT adm inist rat ive sy st em s ( Facilit y

Managem ent I nform at ion Syst em , Hum an Resources Sy st em , I nt egrat ed Resources

I nform at ion Syst em , et c.) .

For t he r est of t his Tit le, t he m aj orit y of t he budget was im plem ent ed for annual

st at ut ory expendit ure ( Managem ent Board, including working groups and Joint

Supervisory Body) wit h a high com m it m ent im plem ent at ion rat e ( 99.2% ) .

During t he year t he budget under Tit le 2 was incr eased by € 430K. This was m ainly a

result of m oving funds from Tit le 3 t o Tit le 2 for I CT expendit ure due t o changes in

Final Annual Account s of Europol 2016

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Eu r opol Pu blic I n for m a t ion

t he I CT Work Plan. Savings found wit hin Tit le 2 wer e used for building- relat ed

expendit ure ( e.g. higher cost for a new serv ice cont ract wit h t he Host St at e and

expendit ure relat ed t o t he st rat egic housing roadm ap) .

An am ount of € 3.5M was car ried forward, r epr esent ing 39.2% of t he budget under

Tit le 2. Out of t he car ried forward am ount , 67.4% was for facilit ies- relat ed

expendit ure, 17.8% for adm inist rat ive I CT and t he rem aining 14.7% was for ot her

adm inist rat ive expendit ure ( including st at ut ory expendit ure) .

Tit le 3 – Operat ional act ivit ies

The overall com m it m ent im plem ent at ion rat e under Tit le 3 cam e t o 99.2% and t he

paym ent r at e w as 81.6% .

The im plem ent at ion of Chapt er 30 – Oper at ions was v ery m uch affect ed by t he lat e

receipt of t he grant from t he I SF Police 2015 em ergency fund for secondary securit y

checks at hot spot s. All expenses incurr ed since Mar ch 2016 needed t o be t em porarily

charged against t he regular budget for as long as no addit ional funding was cashed.

When, at t he end of Nov em ber 2016, t he pre- financing am ount of € 1.2M was

cashed expendit ure was corr ect ed t o t he specific budget it em for t he grant and t he

am ount s under t he r egular budget becam e available again. The r eleased budget

under Chapt er 30 am ount ing t o € 222K r em ained unspent .

The im plem ent at ion of t he operat ional I CT and operat ional t elecom m unicat ion cost s

was 100% and t he pay m ent rat e 77.1% .

The im plem ent at ion in t he ot her chapt ers under Tit le 3 ( Seconded Nat ional Expert s,

Eur opean Police Chiefs Conv ent ion and Heads of Europol Nat ional Unit s) was very

high and bot h rat es ( com m it m ent s and paym ent s) reached 100% .

The budget for Seconded Nat ional Expert s was am ended for an addit ional € 200K for

new expert s wit hin ECTC and was fully consum ed. I n t he second half of t he year a

num ber of budget t ransfers w er e execut ed, m ainly from t he operat ional t o t he

adm inist rat ive I CT budget , due t o changes in t he I CT Wor k Plan. Also som e t ransfers

wer e needed t o incr ease t he budget in areas where t he expendit ure for hot spot s

m ainly occur red.

An am ount of € 4.9M w as carried forward, repr esent ing 17.6% of t he budget in Tit le

3. Out of t he carried forward am ount , 88% r elat ed t o operat ional infor m at ion and

t elecom m unicat ion cost s. The r em aining 12% r elat ed t o t he ot her operat ional

act ivit ies in Chapt er 30.

2 .1 .2 . Budge t im ple m e nt a t ion of a ssigne d r e v e nue a nd e x pe ndit u r e

( fun d sour ce s C4 , C5 , R0 )

Wit h regard t o t he im plem ent at ion of int ernal assigned r ev enue, t her e is a dist inct ion

bet ween t he funds t hat wer e est ablished in 2016 ( fund source C4) and t he funds

car ried forward ( fund source C5) :

C4: During t he year 2016 an ov erall am ount of € 1.25M was est ablished and cashed.

The m aj orit y of funds, am ount ing t o € 677K wer e r ecov ered fr om t he dissolut ion of

t he Eur opol Pension and Unem ploym ent Funds. Ot her refunds r elat e t o I CT and t o

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

ot her operat ional act ivit ies ( refunds for m eet ings, m issions, operat ional subsidies,

et c.) .

Of t he new appropriat ions 18.2% w ere com m it t ed and 15.5% spent . The available

budget ( am ount ing t o € 1.02M) was carried ov er ( t o fund source C5) and open

com m it m ent s ( am ount ing t o € 32.9K) wer e carried forward aut om at ically t o fund

sour ce C8.

C5: The assigned r ev enue appropriat ions carried for ward fr om 2015 am ount ed

t o € 522K which derived fr om various r efunds. During t he year 2016 alm ost all funds

wer e com m it t ed ( 99.9% ) . A t ot al of 64.3% of all com m it m ent appropriat ions were

paid, am ount ing t o € 336K. The rem aining out st anding appropriat ions ( € 186.3K)

wer e car ried forward t o 2017 for furt her im plem ent at ion.

R0: The ext ernal assigned r ev enue included in t he budget ary account s am ount ed t o

€ 18M. This r elat ed t o four different agreem ent s for which t he im plem ent at ion of t wo

had already st art ed in 2015 and cont inued int o 2017:

•

€ 9.56M was t ransfer r ed t o Eur opol t o t he budget line 1184 - Pensions under

Eur opol conv ent ion from t he r em ainder of t he Europol Pension Fund ( EPF) .

The Fund was closed and t he EPF’s asset s and liabilit ies were fully int egrat ed

in Europol’s financial adm inist rat ion. A t ot al com m it m ent of € 4.9M was t ak en

and € 4.8M paid. The r em aining open budget and open com m it m ent s

am ount ing t o € 4.7M w as carried forward t o 2017.

€ 9M for a Delegat ion Agreem ent wit h t he European Com m ission ( Direct orat e

General Migrat ion and Hom e Affairs) which ent rust ed Europol wit h support

t asks during a port ion of t he policy cycle 2015- 2017. This was included under

Chapt er 36. I t concerned European Mult idisciplinary Plat form against Crim inal

Threat s ( EMPACT) act ivit ies priorit ised by JHA Council and as laid down in t he

Operat ional Act ion Plans which had been im plem ent ed since 2015. An am ount

of € 3.66M was carried forward from 2015. I n addit ion t he Delegat ion

Agreem ent w as am ended during 2016 and an addit ional am ount of € 2M was

received from t he Eur opean Com m ission. Furt herm ore, € 0.3M previously paid

out as pr e- financing t o Mem ber St at es was reim bursed t o Eur opol and

becam e available again for new com m it m ent s. Ov erall alm ost € 6M was

available for im plem ent at ion in t he year 2016. By t he end of t he y ear a t ot al

of € 5M was com m it t ed and € 3M ( or 51.1% ) was paid. An am ount of € 2.9M

was car ried forward t o 2017.

Also under Chapt er 36 € 1.5M was r eceived for t he grant agr eem ent fr om t he

I SF Police 2015 em ergency fund for secondary securit y checks at hot spot s. An

am ount of j ust over € 1.1M ( 73.6% ) was paid and t he r em aining € 396K was

car ried forward t o 2017.

Under Chapt er 37 € 500K was car ried for ward from 2015 for a grant

agreem ent wit h t he European Union I nt ellect ual Propert y Office ( EUI PO) for

t he fight against I nt ellect ual Propert y Right s infringem ent s. I n Decem ber

2016 anot her agr eem ent was signed for an am ount of € 500K ( so in t ot al €

1M was r eceived) . 72.2% of t he appropriat ions were com m it t ed and 28.3%

paid. The r em ainder of € 717K was car ried forw ard t o 2017.

•

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

2 .1 .3 . I m ple m e nt a t ion of a ppr op r ia t ions ca r r ie d for w a r d f r om 2 0 1 5 t o

2016

The car ry for ward t o 2016 cam e t o a t ot al of € 10.45M t o cov er exist ing

com m it m ent s. The m aj orit y of t his was carried for ward fr om com m it m ent s t aken

under fund source C1 ( € 10.3M, r epr esent ing 10.8% of t he 2015 budget ) . An am ount

of € 174K was carried forward from t he appropriat ions arising from int ernal assigned

revenue ( fund sources C4 and C5) .

The final im plem ent at ion rat e of t he carr y for w ard was 84.6% at t he end of t he y ear,

which was 3.2% lower t han in 2015. A t ot al of € 1.6M was not used and was t hus

incorporat ed in t he final budget r esult . Out of t he € 1.6M not used:

•

€ 55K relat ed t o Tit le 1, which was 9% of t he car ried forward am ount under

Tit le 1 ( € 629K)

€ 267K relat ed t o Tit le 2, which was 6% of t he carried forward am ount under

Tit le 2 ( €4.2M)

€ 1.3M relat ed t o Tit le 3, which was 23% of t he carried forward am ount

under Tit le 3 ( €5.48M)

The largest un- used am ount s r elat ed t o:

•

An am ount of € 111K rem ained unspent for const ruct ion work s r elat ed t o

funct ional and t echnical im provem ent s for t he operat ional room s wit hin

Eur opol’s headquart ers. When t he com m it m ent s wer e t ak en at t he end of

2015 t he original order was placed wit h t he Host St at e for an am ount of

€ 1.53M, whereas t he act ual expendit ure t urned out t o be lower t han

envisaged.

The Eur opol Analysis Syst em € 445K r em ained unspent . During 2016 it

t ranspired t hat t he supplier could not deliver t o t he full ext ent of t he original

order placed. As a consequence a set t lem ent agreem ent was r eached and

€ 424K was not spent . I n addit ion m ore t han € 21K rem ained unspent as

wor k did not m at erialise as init ially for eseen and ordered.

An am ount of € 255K r em ained unspent for v arious ot her I CT consult ancies

for which t he final invoices received t urned out lower t han t he am ount s and

hours originally planned.

The TESTA net work for which € 362K rem ained unspent . The m aj orit y of t his

( € 227K) was a consequence of t he delayed m igrat ion from t he original t o t he

new supplier. As a consequence t he com m it m ent s for t he new supplier were

not fully used.

•

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

2 .1 .4 . Appr opr ia t ions ca r r ie d ove r fr om 2 0 1 6 t o 2 0 1 7

Ar t icle 1 4 .5 of t h e Fina ncia l Re gula t ion a pplica ble t o Eu r opol - Ca r r y- ov e r of

a ppr opr ia t ions ( f und sour ce s C1 t o C8 )

Non- differ ent iat ed appropriat ions corr esponding t o obligat ions duly cont ract ed at t he

end of t he financial year shall be carried ov er aut om at ically t o t he following financial

year only.

Paym ent appr opriat ions t o cover exist ing com m it m ent s am ount ing t o € 8.98M was

car ried forward. This r epr esent ed 9% of t he ov erall budget ( € 102.3M) and was

nearly € 1.5M less t han in t he pr evious y ear . Out of t he € 8.98M car ried- over:

•

€ 588K concerned Tit le 1 ( St aff) , which was 0.9% of t he Tit le 1 budget

( € 65.46M) .

€ 3.47M concerned Tit le 2 ( Adm inist rat ive Expendit ure) , which was 39.2% of

t he Tit le 2 budget ( € 8.87M) .

€ 4.92M concerned Tit le 3 ( Operat ional Expendit ure) , which was 17.6% of t he

Tit le 3 budget ( € 27.95M) .

Ar t icle 1 5 of t h e Fin a ncia l Re gu la t ion a pplica ble t o Eur opol - Ca r r y- ov e r of

int e r n a l a ssign e d r e v e nue

Pa ym e nt a ppr opr ia t ions ( fu nd sou r ce s C5 / C4 t o C8 )

The paym ent appropriat ions ( open com m it m ent s) available at 31 Decem ber 2016

arising from assigned r ev enue and not fully paid shall be car ried over aut om at ically

for one y ear only ( t o fund sour ce C8) .

•

A part of t he assigned revenue appr opriat ions under fund sour ce C4 which

derived from v arious r efunds had been com m it t ed but not paid. The am ount

of pay m ent appr opriat ions of € 33K r elat es t o operat ional I CT is car ried

for ward t o 2017 t o fund source C8 for final paym ent s in 2017.

An am ount of € 186K paym ent s appr opriat ions ( open com m it m ent s) not fully

paid under fund source C5 is carried for ward t o fund sour ce C8 for fut ure

paym ent s.

•

Com m it m e nt a ppr opr ia t ion s ( fun d sou r ce s C5 / C4 t o C5 )

The appr opriat ions available at 31 Decem ber 2016 arising from assigned revenue

shall be car ried over aut om at ically for one year, wit h t he except ion of ext ernal

assigned rev enue which m ay be used unt il t he t im e t he proj ect is carried out . A t ot al

am ount of € 1.02M was car ried forward as follows:

•

A t ot al of € 1.02M was collect ed up unt il t he end of Decem ber and not

com m it t ed under fund source C4. The am ount was carried forward t o fund

sour ce C5 for com m it m ent s in 2017.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

•

A rem aining am ount of € 201 was not com m it t ed under fund sour ce C5. This

am ount r em ains under fund source C5.

Ar t icle 1 5 FR Ca r r y- ove r of e x t e r n a l a ssign e d r e ve nu e ( R0 t o R0 )

The unspent appr opriat ions for ext ernal assigned revenue shall be car ried over

aut om at ically. An am ount of € 4.16M was car ried over fr om 2015. I n addit ion

€ 13.87M was r eceived in 2016. All unused rev enue am ount ing t o € 8.76M was

car ried ov er t o 2017. Out of t he € 8.76M carried- over:

•

€ 4.7M concerned t he assigned r ev enue relat ed t o t he Eur opol Pension Fund

and t he Unem ploym ent Fund under Chapt er 11.

€ 2.9M concerned t he im plem ent at ion of t he Delegat ion Agreem ent for t he

EMPACT act ivit ies under Chapt er 36.

€ 396K relat ed t o t he secondar y securit y check at hot spot s under Chapt er 36.

€ 717K relat ed t o t he grant agr eem ent for t he fight against I nt ellect ual

Propert y Right s infringem ent s under Chapt er 37.

2 .1 .5 .

Re v e n u e 2 0 1 6

The r ev enue of Europol was alm ost fully cov er ed by t he Com m unit y subsidy,

am ount ing t o € 102.27M in 2016. Out of t hat t ot al, € 1.1M relat ed t o t he Subsidy for

t he European School.

I n April 2016 t he European Parliam ent adopt ed t he Am ending Budget No.1 t o t he

general budget for 2016. This result ed in t he reinfor cem ent of st affing levels of t he

Eur opean Count er- Terr orism Cent r e in Europol by adding € 2M and 35 post s ( 25

Tem porary Agent s, 5 Cont ract Agent s and 5 Seconded Nat ional Expert s) . I n

Nov em ber t he budget was am ended for t he bank int erest received in accordance

wit h Art icle 58 of t he Financial Regulat ion applicable t o Eur opol ( € 33K) .

An out st anding am ount ( € 34K) of int ernal assigned rev enue from 2015 was car ried

ov er t o 2016. During t he year 2016 ot her int ernal assigned rev enue am ount ing t o

€ 1.28M was est ablished and 96% of t his was cashed. Besides various refunds from

operat ional and I CT ex pendit ure am ount ing t o € 301K, an am ount of € 678K result s

from t he dissolut ion of t he Europol Pension Fund and t he rem ainder of t he

Unem ploym ent Fund and € 268K was for liquidat ed dam ages fr om a set t lem ent

agreem ent wit h t he new TESTA supplier.

Wit h refer ence t o t he ext ernal assigned revenue, an am ount of € 14M was

est ablished and alm ost fully cashed. Out of t he € 14M ext ernal assigned revenue:

•

€ 9.56M was for t he int egrat ion of t he Eur opol Pension Fund,

€ 2.46M was for t he EMPACT Delegat ion Agreem ent ,

€ 1.5M relat ed t o t he gr ant agreem ent for hot spot s,

€ 500K relat ed t o t he fight against int ellect ual propert y right infringem ent s.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

This revenue was linked t o expendit ure budget it em s where it will be re- used for

fut ure expendit ure in t he new budget ary y ear ( 2017) . Out st anding recov ery orders

am ount ing t o € 213K wer e car ried ov er t o 2017 for fut ur e cashing.

2 .1 .6 .

Budge t t r a nsf e r s 2 0 1 6

Throughout t he year a t ot al num ber of 48 t ransfers wer e m ade for a t ot al am ount of

alm ost € 4.96M ( or 4.9% of t he budget ) .

Ov erall t he budget under Tit le 1 ( + € 498K) and Tit le 2 ( + € 430K) was increased by

t ransfer s fr om Tit le 3 ( - € 928K) . I n addit ion, am ending budget s t ot alling € 2.03M

wer e added of which € 1.83M was added t o Tit le 1 and € 0.2M t o Tit le 3. Addit ional

am ending budget s wer e obt ained for ext ernal assigned rev enue am ount ing t o €2M

under Tit le 3.

The budget 2016 was drawn up wit hout m argins and cont ingencies. The budget

im plem ent at ion was carefully m onit ored t hroughout t he year and all depart m ent s

wer e encouraged t o ident ify opport unit ies t o r educe cost s for t heir planned act ivit ies

by applying efficiency savings or re- priorit ising in order t o support t he salary increase

( + 3.3% ) and t he w eight ing coefficient increase for t he Net herlands from 7.8% t o 8%

t hat needed t o be im plem ent ed at t he end of t he year. Also, for part icular needs

concerning t he service level agreem ent for t he Eur opol headquart er s and t he office

environm ent , t ransfer s wer e m ade t o cont inue wit h t he necessar y m aint enance and

wor kspace init iat ives in t he area of facilit ies. Furt herm or e, a num ber of t ransfer s

wit hin t he I CT budget it em s w ere m ade in order t o adj ust t he budget allocat ion t o

t he lat est dev elopm ent s wit hin t he I CT Work Plan.

I n addit ion, som e t ransfer s were necessary t o t ake int o account differ ences bet w een

t he planning and t he im plem ent at ion of t he budget due t o urgent sit uat ions in

cert ain crim e areas ( e.g. act ivit ies relat ed t o t he hot spot s) . Due t o t he lat e cashing

of t he pr e- financing am ount of t he grant agr eem ent , sev eral t ransfers were done in

order t o t em porarily cov er grant expendit ure under t he r egular budget . These

t ransfer s wer e t hen rev er sed when t he pre- financing was received, cor rect ions m ade

and t he r egular budget was available again.

All t ransfers w er e decided by t he Direct or in accordance wit h Art icle 27( 1) of t he

Financial Regulat ion applicable t o Europol.

2 .1 .7 .

Budge t Re su lt 2 0 1 6

The ov erall budget result ( surplus) for t he financial year 2016 was € 1.868M, br ok en

down as follows:

•

An am ount of € 253K of t he 2016 budget was not com m it t ed and lapsed. The

m aj orit y of t he unused budget was wit hin Oper at ions ( Chapt er 30) . This was

m ainly a result of t he lat e receipt of t he gr ant from t he I SF Police 2015

em ergency fund for t he secondar y securit y checks at hot spot s. All expenses

incurred since March 2016 needed t o be t em porarily charged against t he

regular budget for as long as no addit ional funding was cashed. When at t he

end of Novem ber 2016 t he pr e- financing am ount of € 1.2M was cashed,

expendit ure was corr ect ed t o t he specific budget it em for t he grant and t he

am ount s under t he regular budget becam e available again.

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

•

An am ount of € 1.6M of appr opriat ions carried forward from 2015 t o 2016

wer e not used and t her efor e lapsed.

The exchange rat e difference was € 1.4K ( gain) .

•

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

2 .2 .

Bu dge t I m ple m e n t a t ion Ta ble s

Ta ble 1 : Bu dge t im ple m e n t a t ion 2 0 1 6

PA Ca r r ie d

Ove r t o

2017

= ( 2) -( 3)

95,590

170,940

78,634

227,973

14,889

5 8 8 ,0 2 7

2,132,334

619,434

226,235

46,009

306,866

141,473

3 ,4 7 2 ,3 5 1

Ra t e

Ca r r ie d

Ove r

( 2)

19%

34%

26%

46%

32%

30%

18%

71%

18%

39%

Cha pt e r

D e scr ipt ion

St aff in act ive

em ploym ent

Sociom edical

infrast ruct ure

Training

Ot her st aff- r elat ed

expendit ure

Ent ert ainm ent and

represent at ion

expenses

Tot a l Tit le 1

Rent al of buildings and

associat ed cost s

Adm inist rat ive

inform at ion t echnology

Movable pr opert y and

associat ed cost s

Curr ent adm inist rat ive

expendit ure

Post al charges and

t elecom m unicat ions

St at ut ory expendit ure

Tot a l Tit le 2

Fin a l Budge t

( 1)

60,719,591

908,922

229,324

3,539,105

58,342

6 5 ,4 5 5 ,2 8 4

4,657,300

1,962,650

766,800

249,900

434,000

796,000

8 ,8 6 6 ,6 5 0

Com m it t e d

( 2)

60,719,591

908,921

229,324

3,539,105

55,994

6 5 ,4 5 2 ,9 3 5

4,657,029

1,957,661

763,096

246,530

431,587

789,480

8 ,8 4 5 ,3 8 2

Ra t e

Com m it t e d

= ( 2) / ( 1)

100%

96%

100%

99%

100%

CA N ot

Use d

= ( 1) -( 2)

( 1)

( 2,348)

( 2 ,3 4 9 )

( 271)

( 4,989)

( 3,704)

( 3,370)

( 2,413)

( 6,520)

( 2 1 ,2 6 8 )

Pa id

( 3)

60,624,001

737,981

150,690

3,311,132

41,105

6 4 ,8 6 4 ,9 0 9

2,524,695

1,338,227

536,861

200,521

124,721

648,008

5 ,3 7 3 ,0 3 1

Ra t e Pa id

= ( 3) / ( 1)

100%

81%

66%

94%

70%

99%

54%

68%

70%

80%

29%

81%

61%

A- 11

A- 13

A- 14

A- 15

A- 16

A- 20

A- 21

A- 22

A- 23

A- 24

A- 25

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Cha pt e r

B3- 0

B3- 1

B3- 2

B3- 3

B3- 4

B3- 5

D e scr ipt ion

Operat ions

Operat ional

inform at ion t echnology

Telecom m unicat ion

cost s for operat ional

act ivit ies

Seconded Nat ional

Expert s ( Operat ional)

EPCC

Heads of Eur opol

Nat ional Unit s

Tot a l Tit le 3

Tot a l

Fin a l Budge t

( 1)

5,928,550

18,059,300

777,000

2,900,000

208,000

80,000

2 7 ,9 5 2 ,8 5 0

1 0 2 ,2 7 4 ,7 8 4

Com m it t e d

( 2)

5,706,646

18,053,617

775,798

2,900,000

207,461

79,366

2 7 ,7 2 2 ,8 8 8

1 0 2 ,0 2 1 ,2 0 5

Ra t e

Com m it t e d

= ( 2) / ( 1)

96%

100%

99%

100%

CA N ot

Use d

= ( 1) -( 2)

( 221,904)

( 5,683)

( 1,202)

( 539)

( 634)

( 2 2 9 ,9 6 2 )

( 2 5 3 ,5 7 9 )

Pa id

( 3)

5,115,139

13,846,228

670,868

2,888,709

207,461

79,366

2 2 ,8 0 7 ,7 7 0

9 3 ,0 4 5 ,7 1 0

Ra t e Pa id

= ( 3) / ( 1)

86%

77%

86%

100%

99%

82%

91%

PA Ca r r ie d

Ove r t o

2017

= ( 2) -( 3)

591,508

4,207,389

104,931

11,291

4 ,9 1 5 ,1 1 8

8 ,9 7 5 ,4 9 5

Ra t e

Ca r r ie d

Ove r

( 2)

10%

23%

14%

18%

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Ta ble 2 : Bu dge t im ple m e n t a t ion of t h e a ssign e d r eve nu e a n d e x pen dit u r e

C4 – I n t e r n a l r e venu e a n d e x pen dit u r e

Cha pt e r

A- 11

D e scr ipt ion

St aff in act ive em ploym ent

Tot a l Tit le 1

Adm inist rat ive inform at ion

t echnology

Curr ent adm inist rat ive

expendit ure

Tot a l Tit le 2

Operat ions

Operat ional inform at ion

t echnology

Telecom m unicat ion cost s for

operat ional act ivit ies

EPCC

Tot a l Tit le 3

Tot a l

Re ve n u e

Ca sh e d

( 1)

695,606

6 9 5 ,6 0 6

63,843

16,783

8 0 ,6 2 7

115,051

330,394

4,871

19,588

4 6 9 ,9 0 4

1 ,2 4 6 ,1 3 7

Com m it t e d

( 2)

186,527

1 8 6 ,5 2 7

32,888

7,108

3 9 ,9 9 6

2 2 6 ,5 2 3

Ra t e Com m it t e d

= ( 2) / ( 1)

27%

10%

36%

18%

Pa id

( 3)

186,527

1 8 6 ,5 2 7

7,108

7 ,1 0 8

1 9 3 ,6 3 6

Ra t e

Pa id

= ( 3) / ( 1)

27%

36%

16%

CA Ca r r ie d

Ove r t o 2 0 1 7

= ( 1) -( 2)

509,078

5 0 9 ,0 7 8

63,843

16,783

8 0 ,6 2 7

115,051

297,506

4,871

12,480

4 2 9 ,9 0 8

1 ,0 1 9 ,6 1 3

PA Ca r r ie d

Ove r t o 2 0 1 7

= ( 2) -( 3)

32,888

3 2 ,8 8 8

A- 21

A- 23

B3- 0

B3- 1

B3- 2

B3- 4

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

C5 - Assign e d r even ue a ppr opr ia t ion s ca r r ie d for w a r d fr om 2 0 1 5

Cha pt e r

A- 11

A- 15

A- 16

D e scr ipt ion

St aff in act ive em ploym ent

Ot her st aff- r elat ed expendit ure

Ent ert ainm ent and

represent at ion expenses

Tot a l Tit le 1

Adm inist rat ive inform at ion

t echnology

Movable pr opert y and

associat ed cost s

Curr ent adm inist rat ive

expendit ure

Post al charges and

t elecom m unicat ions

Tot a l Tit le 2

Operat ions

Operat ional inform at ion

t echnology

Telecom m unicat ion cost s for

operat ional act ivit ies

Heads of Eur opol Nat ional Unit s

Tot a l Tit le 3

Tot a l

Ca r r ie d

Ove r

( 1)

43,020

121

26,362

6 9 ,5 0 3

197,306

700

59,076

26,934

2 8 4 ,0 1 6

49,262

69,126

49,916

178

1 6 8 ,4 8 2

5 2 2 ,0 0 1

Com m it t e d

( 2)

43,020

121

26,362

6 9 ,5 0 3

197,306

700

59,076

26,934

2 8 4 ,0 1 6

49,061

69,126

49,916

178

1 6 8 ,2 8 1

5 2 1 ,8 0 0

Ra t e Com m it t e d

= ( 2) / ( 1)

100%

Pa id

( 3)

43,020

121

23,922

6 7 ,0 6 3

40,320

48,926

11,117

1 0 0 ,3 6 3

49,061

69,126

49,916

178

1 6 8 ,2 8 1

3 3 5 ,7 0 8

Ra t e

Pa id

= ( 3) / ( 1)

100%

91%

96%

20%

83%

41%

35%

100%

64%

CA Ca r r ie d

Ove r t o 2 0 1 7

= ( 1) -( 2)

201

PA Ca r r ie d

Ove r t o 2 0 1 7

= ( 2) -( 3)

2,440

2 ,4 4 0

156,986

700

10,150

15,817

1 8 3 ,6 5 3

1 8 6 ,0 9 3

A- 21

A- 22

A- 23

A- 24

B3- 0

B3- 1

B3- 2

B3- 5

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

R0 – Ex t e r n a l a ssign e d r e venu e a n d e x pe n dit ur e

Ca r r ie d

Ove r t o

2017

= ( 1) -( 2)

4,606,304

4 ,6 0 6 ,3 0 4

1,338,111

278,114

1 ,6 1 6 ,2 2 5

6 ,2 2 2 ,5 2 9

Ca r r ie d

Ove r t o

2017

= ( 2) -( 3)

124,882

1 2 4 ,8 8 2

1,976,947

438,992

2 ,4 1 5 ,9 3 9

2 ,5 4 0 ,8 2 2

Cha pt e r

D e scr ipt ion

Re ve n u e

Ca sh e d

( 1)

9,555,786

9 ,5 5 5 ,7 8 6

7,469,497

1,000,000

8 ,4 6 9 ,4 9 7

1 8 ,0 2 5 ,2 8 3

Com m it t e d

( 2)

4,949,482

4 ,9 4 9 ,4 8 2

6,131,387

721,886

6 ,8 5 3 ,2 7 2

1 1 ,8 0 2 ,7 5 4

Ra t e

Com m it t e d

= ( 2) / ( 1)

52%

82%

72%

81%

65%

Pa id

( 3)

4,824,600

4 ,8 2 4 ,6 0 0

4,154,440

282,893

4 ,4 3 7 ,3 3 3

9 ,2 6 1 ,9 3 3

Ra t e

Pa id

= ( 3) / ( 1)

50%

56%

28%

52%

51%

1 1

St aff in act ive em ploym ent

Tot a l Tit le 1

Operat ional expendit ure r elat ed t o

subsidies and grant s

Operat ional expendit ure r elat ed t o

research and dev elopm ent pr oj ect s

Tot a l Tit le 3

Tot a l

3 6

3 7

Br e a k dow n of R0 :

R0 – Ex t e r n a l a ssign e d r e venu e a n d e x pe n dit ur e – pu blishe d

Ca r r ie d

Ove r t o

2017

= ( 1) -( 2)

345,000

278,114

6 2 3 ,1 1 4

Ca r r ie d

Ove r t o

2017

= ( 2) -( 3)

50,969

438,992

4 8 9 ,9 6 1

Cha pt e r

D e scr ipt ion

Re ve n ue

Ca sh e d

( 1)

1,500,000

1,000,000

2 ,5 0 0 ,0 0 0

Com m it t e d

( 2)

Ra t e

Com m it t e d

= ( 2) / ( 1)

77%

72%

75%

Pa id

( 3)

Ra t e

Pa id

= ( 3) / ( 1)

74%

28%

55%

3 6

3 7

Operat ional expendit ure r elat ed t o

subsidies and grant s

Operat ional expendit ure r elat ed t o

research and dev elopm ent pr oj ect s

Tot a l Tit le 3

Tot a l

1,155,000

721,886

1 ,8 7 6 ,8 8 6

1,104,031

282,893

1 ,3 8 6 ,9 2 4

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

R0 – Ex t e r n a l a ssign e d r e venu e a n d e x pe n dit ur e – Rin g- fen ce d for Pen sion Fun d a n d EM PACT D e le ga t ion Agr e e m e nt

( n ot pu blish e d)

Ca r r ie d

Ove r t o

2017

= ( 1) -( 2)

4,606,304

4 ,6 0 6 ,3 0 4

993,111

9 9 3 ,1 1 1

5 ,5 9 9 ,4 1 4

6 ,2 2 2 ,5 2 9

Ca r r ie d

Ove r t o

2017

= ( 2) -( 3)

124,882

1 2 4 ,8 8 2

1,925,978

1 ,9 2 5 ,9 7 8

2 ,0 5 0 ,8 6 0

2 ,5 4 0 ,8 2 2

Cha pt e r

D e scr ipt ion

Re ve n u e

Ca sh e d

( 1)

9,555,786

9 ,5 5 5 ,7 8 6

5,969,497

5 ,9 6 9 ,4 9 7

1 5 ,5 2 5 ,2 8 3

1 8 ,0 2 5 ,2 8 3

Com m it t e d

( 2)

4,949,482

4 ,9 4 9 ,4 8 2

4,976,387

4 ,9 7 6 ,3 8 7

9 ,9 2 5 ,8 6 9

Ra t e

Com m it t e d

= ( 2) / ( 1)

52%

83%

64%

65%

Pa id

( 3)

4,824,600

4 ,8 2 4 ,6 0 0

3,050,409

3 ,0 5 0 ,4 0 9

7 ,8 7 5 ,0 0 9

9 ,2 6 1 ,9 3 3

Ra t e

Pa id

= ( 3) / ( 1)

50%

51%

1 1

3 6

St aff in act ive em ploym ent

Tot a l Tit le 1

Operat ional expendit ure r elat ed t o

subsidies and grant s

Tot a l Tit le 3

Tot a l

Tot a l R0

1 1 ,8 0 2 ,7 5 4

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Ta ble 3 : I m ple m e n t a t ion of a ppr opr ia t ion s ca r r ie d for w a r d fr om 2 0 1 5 t o 2 0 1 6

Cha pt e r

D e scr ipt ion

St aff in act ive em ploym ent

Adm inist rat ive Missions

Sociom edical infrast ruct ure

Training

Ot her st aff- r elat ed expendit ure

Ent ert ainm ent and r epr esent at ion expenses

Tot a l Tit le 1

Rent al of buildings and associat ed cost s

Adm inist rat ive inform at ion t echnology

Movable pr opert y and associat ed cost s

Curr ent adm inist rat ive expendit ure

Post al charges and t elecom m unicat ions

St at ut ory expendit ure

Tot a l Tit le 2

Operat ions

Operat ional inform at ion t echnology

Telecom m unicat ion cost s for operat ional act ivit ies

Seconded Nat ional Expert s ( Operat ional)

EPCC

Heads of Eur opol Nat ional Unit s

Tot a l Tit le 3

Tot a l

Ca r r ie d For w a r d

( 1)

100,026

185,396

126,042

202,784

14,785

6 2 9 ,0 3 4

3,115,074

641,650

180,011

36,922

99,549

160,680

4 ,2 3 3 ,8 8 7

344,506

4,449,017

794,832

1,602

484

419

5 ,5 9 0 ,8 5 9

1 0 ,4 5 3 ,7 8 0 .2 5

Pa id

( 2)

100,026

164,300

103,876

196,096

9,362

5 7 3 ,6 5 9

2,993,648

562,020

175,718

31,674

70,770

133,444

3 ,9 6 7 ,2 7 3

296,584

3,604,804

397,526

703

419

4 ,3 0 0 ,0 3 6

8 ,8 4 0 ,9 6 8 .9 0

Ra t e Pa id

= ( 2) / ( 1)

100%

89%

82%

97%

63%

91%

96%

88%

98%

86%

71%

83%

94%

86%

81%

50%

44%

100%

77%

85%

PA N ot Use d

= ( 1) -( 2)

21,096

22,166

6,688

5,423

5 5 ,3 7 4

121,426

79,630

4,294

5,248

28,779

27,236

2 6 6 ,6 1 4

47,922

844,213

397,306

898

484

1 ,2 9 0 ,8 2 3

1 ,6 1 2 ,8 1 1

Ra t e PA N ot Use d

( 3)

11%

18%

37%

12%

14%

29%

17%

14%

19%

50%

56%

100%

23%

15%

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Ta ble 4 : Appr opr ia t ion s ca r r ie d over fr om 2 0 1 6 t o 2 0 1 7

Fund Sou r ce

Se n de r

Fund Sou r ce

Re ce ive r

Ca r r y Ove r of Com m it m e n t

App r op r ia t ions

1,019,613

201

6,222,529

7 ,2 4 2 ,3 4 3

Ca r r y Ove r of Pa ym e nt

App r op r ia t ions

8,975,495

32,888

186,093

2,540,822

1 1 ,7 3 5 ,2 9 7

D e scr ipt ion

Paym ent Appropriat ions Curr ent

Budget

Paym ent Appropriat ions arising from

int ernal assigned rev enue

Com m it m ent Appropriat ions arising

from int ernal assigned rev enue

Paym ent Appropriat ions arising from

int ernal assigned rev enue

Com m it m ent Appropriat ions arising

from int ernal assigned rev enue

Paym ent Appropriat ions arising from

ext ernal assigned revenue

Tot a l

8 ,9 7 5 ,4 9 5

3 2 ,8 8 8

1 ,0 1 9 ,6 1 3

1 8 6 ,0 9 3

201

8 ,7 6 3 ,3 5 1

1 8 ,9 7 7 ,6 4 1

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Ta ble 5 : Re ve nu e 2 0 1 6

I tem

9000

9001

9200

9201

9010

9200

H e a ding

Regular subsidy from t he Com m unit y

Subsidy for Eur opean School

Ot her r ev enue ( I C1) Am ending Budget

Ot her r ev enue ( I C11)

Ot her r ev enue ( I C41)

Ot her r ev enue ( I C4)

Proceeds of t axat ion of st aff ( I C4)

Ot her subsidies and grant s ( I R1)

Ot her r ev enue ( I R1)

Tot a l r e ve n ue

Est a blishe d Re ve nue

101,142,000

1,100,000

32,784

420

34,215

1,282,280

148

4,455,947

9,555,786

1 1 7 ,6 0 3 ,5 8 0

Ca sh e d Re ve n u e 2 0 1 6

101,142,000

1,100,000

32,784

420

16,177

1,229,812

148

4,313,742

9,555,786

1 1 7 ,3 9 0 ,8 6 9

Out st a nding a m ount

18,037

52,469

142,205

2 1 2 ,7 1 1

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Ta ble 6 : List of Tr an sfe r s 2 0 1 6

Budge t

Line

1100

1101

1102

1110

1120

1121

1122

1130

1131

1141

1150

1151

1152

1153

1154

1160

1181

1300

1310

1320

1321

1400

1501

D e scr ipt ion

Basic salaries

Fam ily allowances

Expat riat ion and for eign- residence allowances

Cont ract st aff

I nsurance against sickness

I nsurance against accident s and occupat ional disease

I nsurance against unem ploym ent

Childbirt h and deat h allowances and grant s

Trav el expenses for annual leave

Shift work and st andby dut y

Expendit ure relat ed t o Recruit m ent

Trav el expenses on t aking up dut ies and at end of

cont ract

I nst allat ion, reset t lem ent and t ransfer allowances for

t em porar y agent s

Rem oval expenses for t em porar y agent s

Tem porary daily subsist ence allowances for t em porary

agent s

Salary weight ings

Local St aff

Cat ering cost s

Medical service

Sport s act ivit ies

Social event s

Training of st aff

PMO Managem ent cost s

I nit ia l

Budge t

34,300,000

4,256,000

5,224,000

6,450,000

1,213,000

180,000

444,000

6,500

750,000

225,000

414,000

50,000

456,000

190,000

200,000

3,011,000

415,000

430,000

518,000

20,000

23,000

325,000

330,000

Am e nding

Budge t

1,582,784

250,000

Tr a n sfe r s

( 1,578,506)

553,246

254,218

1,421,181

( 19,413)

( 3,868)

12,035

( 1,146)

( 6,568)

( 841)

33,600

( 841)

( 25,623)

61,384

196,059

150,110

17,724

( 36,607)

( 44,099)

( 1,372)

( 95,676)

10,000

Fin a l Budge t

34,304,278

4,809,246

5,478,218

8,121,181

1,193,587

176,132

456,035

5,354

218,432

49,159

447,600

49,159

430,377

251,384

396,059

3,161,110

432,724

393,393

473,901

20,000

21,628

229,324

340,000

Act u a l

Com m it t e d

34,304,278

4,809,246

5,478,218

8,121,181

1,193,587

176,132

456,035

5,354

218,432

49,159

447,600

49,159

430,377

251,384

396,059

3,161,110

432,724

393,393

473,901

20,000

21,627

229,324

340,000

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Budge t

Line

1510

1520

1530

1600

Tit le 1

2000

2010

2020

2030

2040

2042

2050

2100

2104

2105

2200

2210

2221

2222

2223

2230

2231

2300

2310

D e scr ipt ion

Supplem ent ary clerical and int erim services

Ot her ext ernal ser vices

Eur opean School

General ent ert ainm ent and represent at ion expenses

STAFF

Rent

I nsurance of building( s)

Wat er, gas, elect ricit y and local t axes

Cleaning and t reat m ent of wast e

Securit y equipm ent and m aint enance of securit y

inst allat ions

Healt h and safet y at w ork

Ot her building relat ed expendit ure

Adm inist rat ive purchase and m aint enance of HW and

Adm inist rat ive I CT consult ancy

Adm inist rat ive I CT Ext ernal Service Pr ovision

Technical equipm ent and inst allat ions

Furnit ure and ot her acquisit ions

Maint enance, r epair and ot her expendit ures of

t ransport equipm ent

Car insurance

Fuel

Library expenses, purchase of books, subscript ions t o

newspaper s and periodicals

Open sources

St at ionery and office supplies

Bank charges

I nit ia l

Budge t

340,000

1,340,000

1,946,000

68,000

6 3 ,1 2 4 ,5 0 0

250,000

39,000

587,500

410,000

50,000

10,000

2,725,000

707,000

126,500

689,000

14,000

321,000

30,000

20,000

25,000

40,000

310,000

65,000

5,000

Am e nding

Budge t

1 ,8 3 2 ,7 8 4

Tr a n sfe r s

( 28,000)

( 293,790)

( 105,105)

( 9,658)

4 9 8 ,0 0 0

( 1,548)

( 2,642)

( 164,500)

28,000

( 7,400)

( 5,800)

739,690

370,000

( 31,850)

102,000

( 5,300)

15,000

17,000

( 3,500)

( 6,000)

( 10,400)

( 6,100)

4,000

Fin a l Budge t

312,000

1,046,211

1,840,895

58,342

6 5 ,4 5 5 ,2 8 4

248,452

36,358

423,000

438,000

42,600

4,200

3,464,690

1,077,000

94,650

791,000

8,700

336,000

47,000

16,500

19,000

40,000

299,600

58,900

9,000

Act u a l

Com m it t e d

312,000

1,046,211

1,840,895

55,994

6 5 ,4 5 2 ,9 3 5

248,452

36,358

422,963

438,000

42,373

4,193

3,464,690

1,072,872

93,900

790,888

8,156

333,417

47,000

16,131

19,000

40,000

299,392

58,888

9,000

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Budge t

Line

2320

2321

2330

2331

2332

2334

2335

2336

2400

2410

2500

2501

2502

2510

2520

Tot a l 2

3000

3001

3002

3003

3004

3005

3006

3007

3008

3010

3100

D e scr ipt ion

Legal expenses

Dam ages and com pensat ion

Miscellaneous insurance

Uniform s and w or king clot hes

Adm inist rat ive t ranslat ion ser vices

Ext ernal adm inist rat ive expert ise

Adm inist rat ive m eet ings

Ot her expendit ure

Post al and delivery char ges

Adm inist rat ive Telecom m unicat ions cost s

Managem ent Board Meet ings

Managem ent Board Wor king Groups

Managem ent Board Secret ariat

Joint Supervisory Body Cost s

I nt ernal audit or

OTH ER AD M I N I STRATI VE EXPEN D I TURE

Meet ings

Translat ions

Print ing

Missions

Ext ernal expert ise

Expert ise t raining for t hird part ies

Operat ional equipm ent

Operat ional subsidies

Operat ional t raining

Liaison Bureaux out side t he Net herlands

Operat ional purchase and m aint enance of HW and SW

I nit ia l

Budge t

35,000

32,000

23,500

6,000

207,000

25,000

45,000

90,000

464,000

595,000

85,000

5,000

390,000

10,000

8 ,4 3 6 ,5 0 0

2,107,000

10,500

70,000

2,091,500

297,000

396,000

125,000

150,000

467,700

62,000

12,306,000

Am e nding

Budge t

Tr a n sfe r s

( 3,500)

2,100

10,000

14,000

9,500

( 181,100)

( 10,500)

( 32,000)

( 20,000)

( 100,000)

( 147,000)

( 41,000)

( 96,000)

( 5,000)

4 3 0 ,1 5 0

169,300

( 8,050)

350,000

( 69,400)

( 154,600)

( 17,500)

( 35,000)

( 82,900)

( 244,000)

Fin a l Budge t

31,500

2,100

42,000

37,500

15,500

25,900

14,500

13,000

70,000

364,000

448,000

44,000

5,000

294,000

5,000

8 ,8 6 6 ,6 5 0

2,276,300

2,450

70,000

2,441,500

227,600

241,400

107,500

115,000

384,800

62,000

12,062,000

Act u a l

Com m it t e d

31,379

2,067

42,000

37,483

14,307

25,382

13,570

12,454

70,000

361,587

447,389

43,800

4,076

290,738

3,478

8 ,8 4 5 ,3 8 2

2,133,126

2,450

68,172

2,441,500

224,091

229,975

90,543

83,051

373,282

60,457

12,062,000

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Budge t

Line

3105

3200

3300

3400

3500

Tit le 3

TOTAL

D e scr ipt ion

Operat ional I CT Ext ernal Service Provision

Operat ional t elecom m unicat ions cost s

Seconded Nat ional Expert s ( Operat ional)

EPCC

Heads of Eur opol Nat ional Unit s

OPERATI ON AL ACTI V I TI ES

I nit ia l

Budge t

6,488,300

1,140,000

2,700,000

170,000

100,000

2 8 ,6 8 1 ,0 0 0

1 0 0 ,2 4 2 ,0 0 0

Am e nding

Budge t

200,000

2 0 0 ,0 0 0

2 ,0 3 2 ,7 8 4

Tr a n sfe r s

( 491,000)

( 363,000)

38,000

( 20,000)

( 9 2 8 ,1 5 0 )

Fin a l Budge t

5,997,300

777,000

2,900,000

208,000

80,000

2 7 ,9 5 2 ,8 5 0

1 0 2 ,2 7 4 ,7 8 4

Act u a l

Com m it t e d

5,991,617

775,798

2,900,000

207,461

79,366

2 7 ,7 2 2 ,8 8 8

1 0 2 ,0 2 1 ,2 0 5

Am e n din g bu dge t ( pu blish e d) for e x t er n a l a ssigne d r e venu e

Budge t

Line

B3- 600

B3- 700

Tit le 3

TOTAL

D e scr ipt ion

Operat ional expendit ure r elat ed t o subsidies and grant s

Operat ional expendit ure r elat ed t o r esearch and dev elopm ent pr oj ect s

OPERATI ON AL ACTI V I TI ES

I nit ia l

Budge t

Am e nding

Budge t

1,500,000

500,000

2 ,0 0 0 ,0 0 0

Tr a n sfe r s

Fin a l

Budge t

1,500,000

500,000

2 ,0 0 0 ,0 0 0

Act u a l

Com m it t e d

1,104,031

350,000

1 ,4 5 4 ,0 3 1

Final Annual Account s of Europol 2016

EUU, Alm.del - 2016-17 - Bilag 790: Europol økonomisk redegørelse for 2016

Eu r opol Pu blic I n for m a t ion

Ta ble 7 : Bu dge t r e su lt 2 0 1 6

2016

REVEN UE

Union cont ribut ion, cashed

Ot her r ev enue, cashed

TOTAL REVEN UE ( a )

EXPEN D I TURE

Budge t Tit le 1 : St a ff

Paym ent s cur r ent year

Appropriat ions car ried over t o next year

Budge t Tit le 2 : Adm in ist r a t ive

Paym ent s cur r ent year

Appropriat ions car ried over t o next year

Budge t Tit le 3 : Ope r a t ion a l

Paym ent s cur r ent year

Appropriat ions car ried over t o next year

TOTAL EXPEN D I TURE ( b)

RESULT FOR TH E FI N AN CI AL YEAR BEFORE SPECI AL

I TEM S ( a - b)

Cancellat ion of unused paym ent appr opriat ions car ried over

from t he previous y ear

Adj ust m ent for car ry- ov er fr om t he pr evious year –

assigned r evenue

Exchange rat e differences

BUD GET RESULT 2 0 1 6

27,420,493

9,410,279

1 2 1 ,8 1 4 ,6 2 7

( 4 ,4 2 3 ,7 5 8 )

1,612,811

4,677,757

1,439

1 ,8 6 8 ,2 4 9

24,342,104

9,915,097

1 0 3 ,1 5 8 ,5 1 4

( 1 0 4 ,4 6 9 )

700,502

303,136

( 1,318)

8 9 7 ,8 5 0

5,473,394

3,736,630

6,068,532

4,517,903

69,943,099

5,830,731

57,616,341

698,537

102,242,000

15,148,869

1 1 7 ,3 9 0 ,8 6 9

94,860,000

8,194,044

1 0 3 ,0 5 4 ,0 4 4

2015

Final Annual Account s of Europol 2016