The European Parliament,

–  having regard to the final annual accounts of the European Union Agency for Fundamental Rights for the financial year 2018,

–  having regard to the Court of Auditors’ annual report on EU agencies for the financial year 2018, together with the agencies’ replies(1),

–  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2018, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

–  having regard to the Council’s recommendation of 18 February 2020 on discharge to be given to the Agency in respect of the implementation of the budget for the financial year 2018 (05761/2020 – C9‑0035/2020),

–  having regard to Article 319 of the Treaty on the Functioning of the European Union,

–  having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002(3), and in particular Article 208 thereof,

–  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(4), and in particular Article 70 thereof,

–  having regard to Council Regulation (EC) No 168/2007 of 15 February 2007 establishing a European Union Agency for Fundamental Rights(5), and in particular Article 21 thereof,

–  having regard to Commission Delegated Regulation (EU) No 1271/2013 of 30 September 2013 on the framework financial regulation for the bodies referred to in Article 208 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council(6), and in particular Article 108 thereof,

–  having regard to Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(7), and in particular Article 105 thereof,

–  having regard to Rule 100 of and Annex V to its Rules of Procedure,

–  having regard to the opinion of the Committee on Civil Liberties, Justice and Home Affairs,

–  having regard to the report of the Committee on Budgetary Control (A9-0070/2020),

1.  Grants the Director of the European Union Agency for Fundamental Rights discharge in respect of the implementation of the Agency’s budget for the financial year 2018;

2.  Sets out its observations in the resolution below;

3.  Instructs its President to forward this decision, and the resolution forming an integral part of it, to the Director of the European Union Agency for Fundamental Rights, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

(1) OJ C 417, 11.12.2019, p. 1. (2) OJ C 417, 11.12.2019, p. 1. (3) OJ L 298, 26.10.2012, p. 1. (4) OJ L 193, 30.7.2018, p. 1. (5) OJ L 53, 22.2.2007, p. 1. (6) OJ L 328, 7.12.2013, p. 42. (7) OJ L 122, 10.5.2019, p. 1.

The European Parliament,

–  having regard to the final annual accounts of the European Union Agency for Fundamental Rights for the financial year 2018,

–  having regard to the Court of Auditors’ annual report on EU agencies for the financial year 2018, together with the agencies’ replies(1),

–  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2018, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

–  having regard to the Council’s recommendation of 18 February 2020 on discharge to be given to the Agency in respect of the implementation of the budget for the financial year 2018 (05761/2020 – C9‑0035/2020),

–  having regard to Article 319 of the Treaty on the Functioning of the European Union,

–  having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002(3), and in particular Article 208 thereof,

–  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(4), and in particular Article 70 thereof,

–  having regard to Council Regulation (EC) No 168/2007 of 15 February 2007 establishing a European Union Agency for Fundamental Rights(5), and in particular Article 21 thereof,

–  having regard to Commission Delegated Regulation (EU) No 1271/2013 of 30 September 2013 on the framework financial regulation for the bodies referred to in Article 208 of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council(6), and in particular Article 108 thereof,

–  having regard to Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(7), and in particular Article 105 thereof,

–  having regard to Rule 100 of and Annex V to its Rules of Procedure,

–  having regard to the opinion of the Committee on Civil Liberties, Justice and Home Affairs,

–  having regard to the report of the Committee on Budgetary Control (A9-0070/2020),

1.  Approves the closure of the accounts of the European Union Agency for Fundamental Rights for the financial year 2018;

2.  Instructs its President to forward this decision to the Director of the European Union Agency for Fundamental Rights, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

(1) OJ C 417, 11.12.2019, p. 1. (2) OJ C 417, 11.12.2019, p. 1. (3) OJ L 298, 26.10.2012, p. 1. (4) OJ L 193, 30.7.2018, p. 1. (5) OJ L 53, 22.2.2007, p. 1. (6) OJ L 328, 7.12.2013, p. 42. (7) OJ L 122, 10.5.2019, p. 1.

The European Parliament,

–  having regard to its decision on discharge in respect of the implementation of the budget of the European Union Agency for Fundamental Rights for the financial year 2018,

–  having regard to Rule 100 and Annex V to its Rules of Procedure,

–  having regard to the opinion of the Committee on Civil Liberties, Justice and Home Affairs,

–  having regard to the report of the Committee on Budgetary Control (A9-0070/2020),

A.  whereas, according to its statement of revenue and expenditure(1), the final budget of the European Union Agency for Fundamental Rights (the ‘Agency’) for the financial year 2018 was EUR 22 960 429, representing a slight increase of 0,47 % compared to 2017; whereas the Agency’s budget derives almost exclusively from the Union budget(2);

B.  whereas the Court of Auditors (the ‘Court’), in its report on the annual accounts of the Agency for the financial year 2018 (the ‘Court's report’), states that it has obtained reasonable assurances that the Agency’s annual accounts are reliable and that the underlying transactions are legal and regular;

Budget and financial management

1.  Notes with appreciation that budget monitoring efforts during the financial year 2018 resulted in a budget implementation rate of 100 %, the same rate as in 2017; notes that the payment appropriations execution rate was low at 76,20 %, but acknowledges that it represents a slight increase of 4,09 % compared to 2017;

2.  Notes that, according to the Court’s report, carry-overs of committed appropriations were high for operating expenditure, mainly due to the nature of the activities which include financing studies that span several months and often beyond year-end; notes that the Agency has introduced planning procedures to monitor the inevitable delays between the signing of contracts, deliveries and payments; notes that, according to the Agency’s reply, the deviation between the initial planned amount and the final amount carried over was around 10 %, within the margin of tolerance and that the old application for the monitoring of budget consumption has been replaced by a new one; calls on the Agency to improve its budget planning;

Performance

3.  Notes that the Agency uses 31 key performance indicators (KPIs) as part of its performance measurement framework to assess the results and impact of its activities, and 5 additional KPIs to enhance its budget management;

4.  Welcomes the Agency’s cooperation with other agencies, in particular the European Foundation for the Improvement of Living and Working Conditions (Eurofound), the European Border and Coast Guard Agency, the European Institute for Gender Equality, the European Union Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA), the European Union Agency for Criminal Justice Cooperation (Eurojust), and the European Asylum Support Office, to achieve common policy objectives; welcomes the fact that, in addition, the Agency regularly supports other Union agencies to reflect obligations stemming from the Charter of Fundamental Rights of the European Union (the Charter) in their work; deems it necessary that the Agency continue the development of strong ties with other relevant Union institutions; encourages the Agency to explore ways of sharing resources and staff on overlapping tasks among other agencies with similar activities;

5.  Notes that in 2018 a new operational unit was established to strengthen inter-departmental cooperation on projects and enhance capacity for real-time responses;

6.  Encourages the Agency to pursue the digitalisation of its services;

7.  Notes that Parliament requested the Agency to provide an expert opinion on the implementation of the Charter in the Union institutional framework by September 2018; notes that, under Regulation (EU) 2018/1240(3), the Agency was assigned a formal role in overseeing the criteria used to screen the applications of people who wish to enter the Union but do not require a visa and was provided with a mechanism to do so;

8.  Calls on the Commission to conduct a feasibility study in order to assess the possibility of, at the very least, setting up shared synergies with the European Institute for Gender Equality (EIGE), if not fully merging them; calls upon the Commission to evaluate two scenarios: the transfer of the Agency to the EIGE’s headquarters in Vilnius and the transfer of the EIGE’s headquarters to the Agency’s headquarters in Vienna; notes that such an act would mean sharing corporate and support services and the management of common premises, as well as shared ICT, telecommunications and internet-based infrastructure, thus saving huge amounts of money which would be used to fund both agencies further;

9.  welcomes the efforts made by the Agency to balance the geographical distribution of its recruitment of qualified candidates for various roles, keeping in mind the difficulties encountered in recruiting the right candidates for certain profiles;

10.  Affirms, with regard to the procurement of studies, that budgetary constraints should not lead to unsuccessful public procurement procedures; believes that the Agency’s commitment to considering conducting market research before launching calls for tenders to review, if necessary, the technical requirements and to reassess, if possible, the priority of the studies to be undertaken is a step in the right direction towards improving the success of tender procedures in the future;

11.  Encourages the Agency to intensify its cooperation with international organisations, such as the Council of Europe and the United Nations, in order to find and use synergies, whenever possible;

12.  Acknowledges the complex nature of the studies carried out by the Agency covering the law and practice of all Member States; highlights the value of those studies and opinions for the development of Union legal acts and the importance of adequate financial resources provided to the Agency to enable it to perform its duties better; welcomes the Agency’s continuous research and reporting on all types of discrimination within the Union, which contributes to improving inclusion strategies and related policies of the Union and the Member States; welcomes, in particular, the commitment of the Agency to the protection of vulnerable groups by conducting specific studies, such as the reports concerning the right to independent living of persons with disabilities, the social inclusion of young Roma and racial discrimination and racist crime against people of African descent; regrets the fact that the Agency’s current mandate limits its ability to act and to undertake studies in certain thematic areas; stresses the fact that the remit of the Agency should extend to all rights protected under the Charter, including issues of judicial and police cooperation in criminal matters, and believes that the Agency should be able to offer opinions on legislative proposals on its own initiative;

Staff policy

13.  Notes that on 31 December 2018 the establishment plan was 98,61 % executed, with 71 temporary agents appointed out of 72 temporary agents authorised under the Union budget (compared with 72 authorised posts in 2017); notes that, in addition, 31 contract agents and 8 seconded national experts worked for the Agency in 2018;

14.  Notes with approval the even gender balance among senior managers (three men and three women) and the satisfactory gender balance within the management board (28 men and 25 women);

Procurement

15.  Notes, in light of the related comments made by the discharge authority, that e-procurement tools have been compulsory only as of 2019 and that the Agency has introduced all e-procurement tools with the exception of e-submission, which was expected to be implemented in the fourth quarter of 2019; calls on the Agency to report to the discharge authority on the progress made in this regard by June 2020;

Prevention and management of conflicts of interests and transparency

16.  Welcomes the Agency’s existing measures, and its ongoing efforts in relation to securing transparency, in relation to the prevention and management of conflicts of interest, and in relation to whistle-blower protection; notes that there were a number of cases of potential and perceived conflicts of interest that were assessed and mitigated and that none were reported in 2018; notes with appreciation that the CVs and declarations of interest of members of the management board and executives are published on the Agency’s website;

17.  Notes with appreciation that, in light of the comments and observations made by the discharge authority and following the reorganisation in 2018, the accounting officer now reports directly to the director;

18.  Notes, in light of the comments made by the discharge authority with reference to the 2017 discharge related to the legal proceedings brought in recent years against the Agency concerning alleged irregular recruitment decisions, that the General Court dismissed both cases; acknowledges that the Agency is no longer in a contractual relationship with a former stand-by temporary judge of the Civil Service Tribunal and notes that it took several measures to mitigate any potential conflict of interest;

19.  Notes several ongoing legal procedures regarding violations of the Staff Regulations and violations of the right to good administration(4); stresses that the Agency should ensure that the requirements are met and emphasises that the Agency should lead by example in advising on and respecting fundamental rights; deplores the fact that such violations can have a detrimental effect on public opinion and on the Union’s reputation; regrets that such legal proceedings are costly for the Agency and waste taxpayer money;

Internal controls

20.  Notes with satisfaction that, following the successful implementation of the anti-fraud strategy adopted in December 2014 and the completion of the action plan over the course of 2015 and 2016, the Agency completed a revision of the anti-fraud strategy which was adopted at a meeting of the management board in December 2018 and complemented by a specific action plan;

21.  Notes that in 2018 the Internal Audit Service issued an audit report on ethics and governance which assessed the design and effective implementation of the Agency’s governance and control framework in the field of ethics and concluded that the governance and control framework were overall adequately designed;

Other comments

22.  Notes that the Agency is following up on the Commission activities of the ‘Groupe Interinstitutionnel de Management Environnemental’ (GIME) and that it expressed its interest in the 2019 survey in joining a coordinated approach of the GIME members as regards the actions that will result in the reduction of CO2 emissions;

23.  Calls on the Agency to focus on disseminating the results of its research to the public and to reach out to the public via social media and other media outlets;

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24.  Refers, for other observations of a cross-cutting nature accompanying its decision on discharge, to its resolution of 14 May 2020(5) on the performance, financial management and control of the agencies.

(1) OJ C 120, 29.3.2019, p. 197. (2) OJ C 120, 29.3.2019, p. 198. (3) Regulation (EU) 2018/1240 of the European Parliament and of the Council of 12 September 2018 establishing a European Travel Information and Authorisation System (ETIAS) and amending Regulations (EU) No 1077/2011, (EU) No 515/2014, (EU) 2016/399, (EU) 2016/1624 and (EU) 2017/2226 (OJ L 236, 19.9.2018, p. 1). (4) Case T-632/19 DD v FRA; Case T-703/19 DD v FRA; Case T-31/19 AF v FRA; Case C-601/19 P BP v FRA; Case C-699/19 P - BP v FRA; Case C-682/19 P - BP v FRA. (5) Texts adopted, P9_TA(2020)0121.