REVISED FINAL ANNUAL ACCOUNTS FOR THE FINANCIAL YEAR FINANCIAL STATEMENTS and REPORTS ON THE IMPLEMENTATION OF THE BUDGET

Transcription

1 The Hague, 13 September 2011 File no r1 ( v12B) REVISED FINAL ANNUAL ACCOUNTS FOR THE FINANCIAL YEAR 2010 FINANCIAL STATEMENTS and REPORTS ON THE IMPLEMENTATION OF THE BUDGET Page 1 of 34

2 C O N T E N T S 1. INTRODUCTION 1.1. Establishment of Europol as an entity of the Union / legal succession (page 3) 1.2. Status of the Europol Pension Fund (pages 3-4) 1.3. Certification letter from the Accounting Officer of Europol (pages 4-5) 2. ACCOUNTING PRINCIPLES AND METHODS (page 5) 3. FINANCIAL STATEMENTS 2010 The main elements of the financial statements are presented below as follows: 3.1. Balance Sheet (pages 6-7) 3.2. Economic Outturn (page 8) 3.3. Cash-flow table (page 9) 3.4. Statement of changes in capital (page 10) 3.5. Explanatory notes to the financial statements (pages 11-17) 4. BUDGET IMPLEMENTATION REPORTS 2010 The main elements of the budget implementation reports are presented below as follows: 4.1. Budget implementation 2010 (pages 18-23) 4.2. Appropriations carried over from 2010 to 2011 (pages 24-25) 4.3. Budgetary outturn 2010 (page 26) 4.4. Reconciliation between the budgetary outturn and economic outturn accounts (page 27) 4.5. Revenue 2010 (page 28) 4.6. List of transfers 2010 (pages 29-32) 4.7. Explanatory notes to the reports on the implementation of the 2010 budget (pages 33-34) Page 2 of 34

3 1. INTRODUCTION 1.1. Establishment of Europol as an entity of the Union / legal succession At its meeting of 6 April 2009 the Justice and Home Affairs (JHA) Council adopted the Council Decision (2009/371/JHA), bringing the European Police Office (Europol) into life as an agency of the European Union as from 1 st January 2010; replacing the provisions of the Convention based on Article K.3 of the Treaty on European Union, on the establishment of a European Police Office (Europol Convention). It should be borne in mind that, in accordance with Article 1(4) of the Europol Council Decision (ECD), the new Europol is the legal successor of Europol as set up by the Europol Convention. The Council Decision established Europol in a completely new governance context. Before the applicability of the Council Decision as of January 2010, Europol had operated as an inter-governmental entity, agreed in the Treaty on European Union of 7 February 1992 and regulated in the so called Europol Convention, based on Article K.3 of the Treaty on European Union (in force at the time). The re-establishment of Europol under the Council Decision brought a key advantage in the governance set-up of Europol. Europol s direct Member States funding was replaced by the financing mechanism via the general budget of the EU. Being financed from the EU budget meant the aspect of public accountability of Europol was strengthened. Under the Europol Convention, the Council acted as both the budgetary and discharge authority whereas these functions are now exercised also by the European Parliament (EP) (in accordance with Article 43 (10) of the ECD and Article 94 of the Financial Regulation (FR) applicable to Europol). In addition, as foreseen in Articles 287 and 319 of the Treaty on the Functioning of the European Union (TFEU), the European Court of Auditors (ECA) assists the EP and the Council in exercising their powers of control over the implementation of the budget by auditing the annual accounts, leading to a statement of assurance in relation to the reliability of Europol s accounts and the legality and regularity of the underlying transactions. The establishment of Europol as an EU agency meant also an overhaul of the accounting approach and the financial system for Europol. Under the legal status of the Europol Convention, Europol had exercised its financial transactions by making use of modified cashbased accounting. With the applicability of the ECD, accrual-based accounting was introduced, along side a new Financial Regulation (based on the Framework Financial Regulation) which came into force on 17 October With this in mind, Europol's revised final annual accounts for 2010 represent the first financial statements of the agency established by the Council Decision (2009/371/JHA) of 6 April 2009 and are therefore not considered comparable to the accounts 2009 discharged under the previous legal framework. Thus, comparative figures for the 2009 accounts are not included in the financial statements 2010 (and the reporting on budgetary implementation) Status of the Europol Pension Fund (EPF) Article 37, Appendix 6 of the Europol Staff Regulations (ESR), established under the Europol Convention, states that an independent provisional Fund shall be established, for the sole purpose of financing, and execution of the payments, under the Europol pension scheme. This Fund, as recently confirmed by the Council on 28 June 2011, is managed externally and adheres to rules as laid down by the Council by means of the Council Act of 12 March 1999, as amended by the Council Decision of 28 June Article 12b of said Council Decision foresees that Europol shall cover any shortfall in case the assets of the Europol Pension Fund are not sufficient. Consequently the financial health of the Europol Pension Fund has to be monitored regularly. This note to the revised final accounts of Europol 2010, therefore, is to disclose the financial health of the Europol Pension Fund (EPF) without this leading to monetary changes or consolidation entries in the Europol balance sheet at Page 3 of 34

4 The Annual Report 2010 of the EPF was audited by an independent private accountancy audit company in 2011 and was assessed to provide a true and fair view of the Fund s financial situation as at The Europol Pension Fund Management Board endorsed the Annual Report 2010 in April 2011 and then forwarded same to Europol s Management Board. As at the fund's coverage ratio, demonstrating the ability of the EPF to pay the total liabilities was 191%. The total available assets were reported at 17.8M whereas the total of the technical provision for pension liabilities amounted to 9.3M. Due to the transfer of Europol staff towards the EC staff regime, in accordance with Article 57 of the ECD, at the year end 2010, only 45 active contributors to the EPF remained, whereas at the end of 2009 this figure was over 400. The number of people awaiting the payment of their actuarial equivalent of retirement pension entitlement was 49, whereas the number of pensioners requiring a monthly payment of retirement pension was 12. All pension costs up to which were related to the aforementioned 3 different categories of Europol staff members are included in the technical provision for pension liabilities or under other accounts payable. The funding mainly stems from the employer and employee contribution to the EPF which is 16.5% and 8.25% respectively of the basic salary. The total employer contributions paid via the Europol budget during 2010 were approximately 3.5M. Other extra revenue was gained by the fund's portfolio investments, risk reinsurance policies or other smaller benefits (eg bank interest). Most of the assets of the Fund are held in bank accounts or invested in fixed-term deposits. During 2010 an additional amount of 2.6M was added to the accumulated free reserve (details can be found in the Annual Report 2010), amounting to 8.5M (rounded) as at The outlook for 2011, as provided by the EPF Management Board, indicates a further growth of the coverage ratio and free reserve. The assessment contained in the EPF Annual Report 2010 indicates that on 1 July 2015 the last contract of employment under the ESR will expire, then leading to a demographic population within the EPF which is limited to (deferred) pensioners only (if still present). With this in mind, on the way forward, it appears advisable to consider integrating the EPF into the annual accounts of Europol. In this context, however, it is important to note that Article 13 (1) of the Council Decision of 28 June 2011 (amending the rules on the EPF) describes that the fund has been established for an undetermined period. It may only be dissolved by unanimous decision of the Council. Such decision shall be taken on the basis of a proposal from the Management Board of Europol, submitted after hearing the Board (of the EPF). According to Standard No. 6 of the Institute for International Public Sector Accounting Standards (IPSAS) which defines the criteria for consolidated financial statements, a controlled entity should be excluded from consolidation when: (a) Control is intended to be temporary because the controlled entity is acquired and held exclusively with a view to its subsequent disposal in the near future Against this background Europol is not consolidating the EPF into the revised annual accounts for the financial year Certification letter from the Accounting Officer of Europol The annual accounts of the European Police Office (Europol) for the year 2010 have been prepared in accordance with the Financial Regulation applicable to the general budget of the European Union and the accounting rules adopted by the Commission s Accounting Officer, as are to be applied by all the institutions, agencies and joint undertakings. I acknowledge my responsibility for the preparation and presentation of the annual accounts of Europol in accordance with Article 61 of the Financial Regulation. Page 4 of 34

5 I have obtained from the Authorising Officer, who certified its reliability, all the information necessary for the production of the accounts that show Europol s assets and liabilities and the budgetary implementation. I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the accounts, I have a reasonable assurance that the accounts present a true and fair view of the financial position of Europol in all material aspects. Rebecca Topham Signed by the Accounting Officer on 13 September 2011 Accounting Officer - Europol 2. ACCOUNTING PRINCIPLES AND METHODS The Annual Accounts of the Office have been prepared in accordance with Articles inclusive of the Financial Regulation applicable to Europol as of 30 March 2010, in accordance with the generally accepted accounting principles specified in the detailed rules for implementing the general Financial Regulation, namely: (a) going concern basis; (b) prudence; (c) consistent accounting methods; (d) comparability of information; (e) materiality; (f) no netting; (g) reality over appearance; (h) accrual-based accounting. and according to the accounting rules and methods adopted by the Commission Accounting Officer (Article 85 of Europol s Financial Regulation) Page 5 of 34

6 3. FINANCIAL STATEMENTS Europol Public Information 3.1. Balance Sheet BALANCE SHEET - ASSETS NOTES (see page) Variation A. NON CURRENT ASSETS Intangible fixed assets ,125, ,125, Tangible fixed assets 13 6,337, ,337, Land and buildings Plant and equipment 78, , Computer hardware 5,769, ,769, Furniture and vehicles 370, , Other fixtures and fittings 120, , Leasing Tangible fixed assets under construction Investments Guarantee Fund Investments in associates Interest in joint ventures Other investments Loans Loans granted from the budget Loans granted from borrowed funds Term deposits over 12 months Long-term pre-financing Long-term pre-financing LT pre-financing with consolidated EU entities Long-term receivables Long-term receivables LT receivables with consolidated EU entities TOTAL NON CURRENT ASSETS 9,463, ,463, B. CURRENT ASSETS Stocks Short-term pre-financing , , Short-term pre-financing 150, , ST pre-financing with consolidated EU entities Short-term receivables 2,207, ,207, Current receivables 16 1,283, ,283, Term Deposits between 3 months & 1 year - - LT receivables falling due within a year Sundry receivables 16 47, , Other 876, , Accrued income , , Deferred charges , , Deferrals and Accruals with consolidated EU entities Short-term receivables with consolidated EU entities Short-term Investments Cash and cash equivalents 24,672, ,672, TOTAL CURRENT ASSETS 27,030, ,030, TOTAL 36,494, ,494, Page 6 of 34

7 BALANCE SHEET - LIABILITIES NOTES (see page) Variation A. Net capital 20,905, ,905, Reserves Accumulated surplus/deficit 17 6,154, ,154, Economic result of the year - profit+/loss ,751, ,751, B. Minority interest C. NON CURRENT LIABILITIES 1,116, ,116, Employee benefits Provisions for risks and charges , , Financial liabilities Borrowings Held-for-trading liabilities Other long-term liabilities 701, , Other long-term liabilities , , Other LT liabilities with consolidated EU entities Pre-financing received from consolidated EU entities Other LT liabilities from consolidated EU entities TOTAL A+B+C 22,022, ,022, D. CURRENT LIABILITIES 14,472, ,472, Provisions for risks and charges 17 2,225, ,225, Financial liabilities Borrowings falling due within the year Held-for-trading liabilities due within the year Other current financial liabilities Accounts payable 12,246, ,246, Current payables 17 2,833, ,833, Long-term liabilities falling due within the year Sundry payables 18 2,705, ,705, Other 4,055, ,055, Accrued charges 18 4,034, ,034, Deferred income 18 20, , Deferrals and accruals with consolidated EU entities Accounts payable with consolidated EU entities 18 2,652, ,652, Pre-financing received from consolidated EU 2,224, ,224, entities Other accounts payable against consolidated EU 427, , entities TOTAL D. CURRENT LIABILITIES 14,472, ,472, TOTAL 36,494, ,494, Page 7 of 34

8 3.2. Economic Outturn 2010 ECONOMIC OUTTURN ACCOUNT NOTES Variation Funds transferred from the Commission to other Institutions Contributions of EFTA countries belonging to the EEA Recovery of expenses Revenues from administrative operations 8,455, ,455, Other operating revenue 79,456, ,456, TOTAL OPERATING REVENUE 87,911, ,911, Administrative expenses -66,260, ,260, All Staff expenses -49,924, ,924, Fixed asset related expenses -3,523, ,523, Other administrative expenses -12,813, ,813, Operational expenses -6,897, ,897, Other operational expenses -6,897, ,897, TOTAL OPERATING EXPENSES - 73,157, ,157, SURPLUS/(DEFICIT) FROM OPER- 14,753, ,753, ATING ACTIVITIES Financial revenues Financial expenses -2, , Movement in pensions (- expense, revenue) Share of net surpluses or deficits of associates and joint ventures accounted for using the equity method SURPLUS/ (DEFICIT) FROM NON OPERATING ACTIVITIES -2, , SURPLUS/(DEFICIT) FROM ORDI- 14,751, ,751, NARY ACTIVITIES Minority interest Extraordinary gains (+) Extraordinary losses (-) SURPLUS/(DEFICIT) FROM EX- TRAORDINARY ITEMS ECONOMIC RESULT OF THE YEAR 14,751, ,751, Page 8 of 34

9 3.3. Cash-flow table 2010 (indirect method) Cash Flows from ordinary activities Surplus/(deficit) from ordinary activities 14,751, Operating activities Adjustments Amortization (intangible fixed assets) + 1,217, Depreciation (tangible fixed assets) + 2,263, Increase/(decrease) in Provisions for risks and liabilities 415, Increase/(decrease) in Value reduction for doubtful debts - - (Increase)/decrease in Stock - - (Increase)/decrease in Long term Pre-financing - - (Increase)/decrease in Short term Pre-financing -150, (Increase)/decrease in Long term Receivables - - (Increase)/decrease in Short term Receivables -2,207, (Increase)/decrease in Receivables related to consolidated EU entities - - Increase/(decrease) in Other Long term liabilities 2,927, Increase/(decrease) in Accounts payable 9,594, Increase/(decrease) in Liabilities related to consolidated EU entities 2,652, Other non-cash movements -1,780, Net cash Flow from operating activities 29,682, Cash Flows from investing activities Increase of tangible and intangible fixed assets (-) -5,056, Proceeds from tangible and intangible fixed assets (+) 46, Net cash flow from investing activities -5,010, Cash flow from CECA specific transactions (Increase)/decrease in Other Investments (281000) - - (Increase)/decrease in Long term Loans (290000) - - (Increase)/decrease in Short term Investments (501000) - - Increase/(decrease) in Long term Financial Liabilities (170000) - - Increase/(decrease) in Short term Financial Liabilities (430000) - - Other CECA - - Net Cash Flow from CECA specific transactions - - Increase/(decrease) in Employee benefits - - Net increase/(decrease) in cash and cash equivalents 24,672, Cash and cash equivalents at the beginning of the period - - Cash and cash equivalents at the end of the period 24,672, Page 9 of 34

10 3.4 Statement of changes in capital 2010 Capital Accumulated Surplus/Deficit Economic result of the year Capital (total) Balance as of 31 December Fair value movements Movement in Guarantee Fund reserve Allocation of the Economic Result of Previous Year Amounts credited to Member States Economic result of the year - 14,751, Other 6,154, Transfer of fixed assets as at Accrued charges as at Untaken leave as at ,934, ,693, , Balance as of 31 December ,154, ,751, ,905, Page 10 of 34

11 TANGIBLE 3.5 Explanatory notes to the financial statements 2010 BALANCE SHEET ASSETS A. Non-current assets A breakdown of the tangible and intangible assets is shown in the table below: Plant and equipment Computer hardware Furniture and vehicles Other fixtures and fittings Total Additions 27,179,62 3,546, , , ,708, Disposals -133, ,440, , , ,736, Transfer between , , , headings 1 Other changes 2 585,064,98 11,118, ,298, , ,578, Gross carrying amounts , ,748, ,264, , ,070, Depreciation -44, ,973, , , ,263, Disposals 132, ,405, , , ,690, Transfer between - 300, , headings 3 Other changes 4-488, ,712, , , ,461, Accumulated amortization and impairment Net carrying amounts -400, ,979, , , ,732, , ,769, , , ,337, In 2010 Europol had 20 disposal procedures. These disposal procedures can be divided into two categories: obsolete equipment - so no longer in use by Europol regularisation following the result of the inventory as at the end of The total acquisition value of all disposed items ( 1,736,739.32) resulted in a net write-off of 46, From this it can be concluded that a large portion of the disposed items were already fully depreciated. 1 Transferred to intangibles 2 Assets purchased prior to 2010 and during 2010 on carried forward commitments from Transferred to intangibles 4 Assets purchased prior to 2010 and during 2010 on carried forward commitments from 2009 Page 11 of 34

12 INTANGIBLE Computer software Other intangible fixed assets 5 Intangible fixed assets under Construction Total Additions 1,076, , , ,348, Transfer between 479, , headings 6 Other changes 7 4,985, ,985, Gross carrying amounts ,541, , , ,813, Amortization -1,217, ,217, Transfer between -301, , headings 8 Other changes 9-2,168, ,168, Accumulated amortization and impairment Net carrying amounts ,687, ,687, ,853, , , ,125, In accordance with Accounting Rule 6 regarding internally-developed intangible assets, Europol set its threshold at 200K. Taking this threshold into account there was one in-house project involved as at as follows: Project name: European Platform for Experts Description (ICT Work Plan 2010) Development of a generic technical platform that can be utilised for the development and hosting of all individual expert systems. In the first implementation, this initiative will deliver those components of the platform that are required by the specific expert systems included for development in the 2010 work plan. Status The system was successfully developed and released into production in October However the Closure report was approved by the Project Board on 19 January 2011 which will be used as the date when the project has been finalised and approved to be closed. Research and development cost Europol has used estimations based on this time-tracking system to divide the internal hours into these two phases. The system has given the information on worked hours per unit per project. The linking to a certain phase has been made based on the function of the unit concerned e.g. hours worked in C3 IT Solution and engineering unit has been recorded 5 Network between the current and new HQ. This will be expensed in Transferred to tangibles 7 Assets purchased prior to 2010 and during 2010 on carried forward commitments from Transferred to tangibles 9 Assets purchased prior to 2010 and during 2010 on carried forward commitments from 2009 Page 12 of 34

13 under development phase and hours worked in C4 Programmes and architecture unit has been recorded under a research phase. The result in the 2010 accounts is: Not capitalised cost Research cost Not capitalised development cost Cost of the year 165, ,238, The depreciation rates used were as follows: Asset type Depreciation rate Intangible fixed assets Software for personal computers and servers 25% Tangible fixed assets Buildings 4% Plant and equipment Scientific and laboratory equipment 25% Tools for industry and workshops 12.5% Lifting and mechanical handling equipment for public works, prospecting and mining 12.5% Control and transmission devices, motors, compression, vacuum and pumping equipment 12.5% Equipment for the supply and treatment of electric power 12,5%, 25% Specific electric equipment 25% Furniture and vehicles Office, laboratory and workshop furniture 10% Electrical office equipment, printing and mailing equipment 25% Print shop and post room equipment 12.5% Equipment and decorations for garden, kitchen, canteen, restaurant, crèche and school 12.5% Motorised outdoor equipment 25% Specific furniture and equipment for schools, crèches and childcare centres 25% Furniture for restaurant/cafeteria/bar area 10%, 12,5% Cash registers and card acceptor devices 25% Transport equipment (vehicles and accessories) 25% Computer hardware Computers, servers, accessories, data transfer equipment, printers, screens 25% Copying equipment, digitising and scanning equipment 25% Other fixtures and fittings Telecommunications equipment 25% Audiovisual equipment 25% Computer, scientific and general books, documentation Computer books, CDs, DVDs 33% Scientific books, general books, CDs, DVDs 25% Health, safety and protective equipment, medical equipment, 12.5% Medical and nursing equipment 25% Other 10% Page 13 of 34

14 B. Current assets An amount of 150K was paid out during 2010 to the company ICT Room as prefinancing for equipment to store the servers in the new HQ. This pre-financing has since been settled in The amount for current receivables can be broken down as follows: TYPE AMOUNT Open debtors prior to , Open debtors (customers) 29, Open debtors (member states) 418, Open debtors (non-member states) 5, VAT and other taxes 747, TOTAL 1,283, Regarding the sundry receivables of the 47,783.35, more than 80% relates to amounts receivable from Staff (open debit notes, salary and mission advances). A large proportion of the amount for accrued income ( 574K) relates to amounts expensed during 2010 but yet to be validated by the European Commission for three grants. The rest relates to debit notes prepared in 2011 relating to 2010, therefore increasing the revenue for 2010 in the economic outturn. Similarly the amount for deferred charges relates to credit notes paid in 2010 relating to The cash and cash equivalents relate only to bank accounts as follows: TYPE AMOUNT Europol current accounts 23,056, Unemployment Fund 1,453, Local staff pension Fund 162, TOTAL 24,672, Although it would appear that there was a large cash balance at the year end, it should be noted that Europol only called up and received its fourth subsidy from the Commission in December On top of this, just under 2M represents the cash surplus from contributions prior to 2010 which will be used to refund the member states. Without the fourth subsidy and 2M, the balance (on Europol s current accounts) would have been just over 5M (enough to finance the January 2011 salaries). Contingent Assets There are no contingent assets to be disclosed for Page 14 of 34

15 LIABILITIES A. Net capital The accumulated surplus is made up as follows: DESCRIPTION AMOUNT Value of fixed assets transferred from Europol under Convention 7,934, Adjustment for accrued charges as at ,693, Adjustment for untaken leave as at , TOTAL 6,154, The economic result of the year is the result shown on the economic outturn account i.e. revenue v- expenditure. C. Non-current liabilities The amount of 415K appearing in the provisions for risks and charges is the total estimation by Europol s legal advisors on 13 court cases involving ex-staff members where the judgement was made in the favour of the ex-staff member in 2009 and The other long-term liabilities are made up as follows: DESCRIPTION AMOUNT Unemployment fund liability towards staff , Local staff pension contribution 162, TOTAL 701, The difference between the amount shown above for the Unemployment fund liability and the bank account balance will be paid back to the member states pending a Europol Management Board decision. The amount shown for provisions for risks and charges is the net asset of the former Europol that will be paid back to member states 11. This amount also includes the surplus to be settled with the host state. The amount shown as current payables is made up as follows: DESCRIPTION AMOUNT Amounts payable - vendors 7,016, Amounts payable - member states 456, Amounts payable public bodies 6, Duplicate credit note regarding local staff taxes -92, Invoices / credit notes pending verification -4,553, TOTAL 2,833, Figure based on worst-case scenario 11 Will be paid back to member states no more than three months after the revised final accounts for 2010 have been sent out in accordance with Article 58(5) of the Europol Council Decision Page 15 of 34

16 The amount for sundry payables is made up as follows: DESCRIPTION AMOUNT Accrual for salary adjustment , Accrual for salary adjustment , Other salary-related 13 18, Fixed assets goods received 1,837, Social contributions re advance payments December 2010 salaries 78, TOTAL 2,705, Regarding the advance payments for the December salaries, normally advances are corrected in the following month. However as there were a lot of advances in December (amount material) the budget and related contributions were debited/credited in December Other accounts payable is made up as follows: DESCRIPTION AMOUNT Accrual for untaken leave as at ,089, Accrual for unpaid overtime as at , Accrued charges 14 2,930, Deferred income 15 20, TOTAL 4,055, The table below breaks down the amount shown for accounts payable with consolidated EU entities: DESCRIPTION AMOUNT Surplus from EC subsidy 1,150, Balance on pre-financing relating to grants 1,073, Accounts payable other Commission 213, Accounts payable other Translation Centre 105, Accounts payable other Council of the EU 108, TOTAL 2,652, Paid out in Amount due back to member states has been reduced 13 96% relates to the local staff holiday allowance which is paid out in Invoices (credit notes) received/paid in 2011 relating to Receivables during 2010 to be regularised in 2011 Page 16 of 34

17 Contingent liabilities The amount of the RAL (commitments against appropriations not yet consumed) was 22,996, Disclosure on related parties Highest grade description Grade Number of persons in this grade Former Europol salary grade (Director) Grade 1/1 1 Page 17 of 34

18 4. BUDGET IMPLEMENTATION REPORTS Budget implementation 2010 Title Chpt Art Item Heading Budget 2010 Commitments Payments Commitments rate Payments rate Payment appropriations to carry over to 2011 Art 10(4/7) Appropriation for staff expenditure not to be carried forward Art 10(2) Not used appropriation to lapse a b c d=b/a e=c/a f=b-c g=b-c h=a-b 1 STAFF 1 1 Staff in active employment Temporary staff holding a post provided for in the establishment plan 1100 Basic salaries 9,060,500 9,060,500 9,060, % 100.0% n.a Family allowances 1,100,000 1,100,000 1,098, % 99.9% n.a. 1, Expatriation and foreign-residence allowances 1,487,000 1,487,000 1,361, % 91.5% n.a. 125, Other staff 1110 Contract staff 2,673,000 2,673,000 2,666, % 99.8% n.a. 6, Seconded national experts (non-operational) n.a Employer's social security contributions for temporary agents 1120 Insurance against sickness 320, , , % 98.0% n.a. 6, Insurance against accidents and occupational 74,000 68,000 65, % 88.4% n.a. 2,620 6, Insurance against unemployment 120, , , % 98.7% n.a. 1, Miscellaneous allowances and grants for temporary agents 1130 Childbirth and death allowances and grants 5,550 4, % 17.9% n.a. 3,171 1, Travel expenses for annual leave 395, , , % 98.4% n.a. 6, Overtime, shiftwork and standby duty 1140 Overtime 2,500 2, % 0.0% n.a. 2, Shift work and standby duty 52,055 52,055 30, % 59.3% n.a. 21, Allowances and expenses on entering and leaving the service and on transfer 1150 Expenditure related to Recruitment 158, ,000 98, % 62.4% n.a. 59, Travel expenses on taking up duties and at end of 23,000 23,000 13, % 58.2% n.a. 9, Installation, resettlement and transfer allowances 100, ,000 90, % 91.0% n.a. 9, Removal expenses for temporary agents 55,000 55,000 46, % 85.4% n.a. 8, Temporary daily subsistence allowances for tem- 5,000 5,000 1, % 23.8% n.a. 3, Salary weightings 1160 Salary weightings 945, , , % 99.4% n.a. 5, Security Staff 1170 Contract staff (Security) n.a Salaries and allowances for Local Security Staff 1,007, , , % 88.3% n.a. 67,932 50, Security Missions 4,000 4,000 1, % 44.0% 2, Training for Security Staff 85,000 30,153 30, % 35.4% 53-54, Other expenditure for Security Staff 40,000 15, % 0.6% 15,681-24, Staff expenditure for continuation of staff contracts under the Europol Convention 1180 Europol Staff 27,570,000 27,570,000 27,539, % 99.9% n.a. 30, Local Staff 433, , , % 93.9% n.a. 26, Salary Adjustments n.a Unemployment allowance n.a Pensions under Europol convention 3,489,000 3,489,000 3,486, % 99.9% n.a. 2,473 - Chapter 1 1 Total 49,205,010 49,068,345 48,650, % 98.9% 17, , ,666 Page 18 of 34

19 Title Chpt Art Item Europol Public Information Heading Budget 2010 Commitments Payments Commitments rate Payments rate Payment appropriations to carry over to 2011 Art 10(4/7) Appropriation for staff expenditure not to be carried forward Art 10(2) Not used appropriation to lapse a b c d=b/a e=c/a f=b-c g=b-c h=a-b 1 2 Administrative Missions Administrative Missions 1200 Administrative Missions 247, , , % 65.1% 86, Chapter 1 2 Total 247, , , % 65.1% 86, Sociomedical infrastructure Restaurants and canteens 1300 Catering costs 607, , , % 88.0% 67,301-5, Restaurant equipment 162,500 6,044 3, % 2.1% 2, , Medical service 1310 Medical service 258, ,203 21, % 8.3% 232,811-4, Sports activities and social events 1320 Sports activities 45,000 45,000 45, % 100.0% Social events 60,000 51,782 14, % 25.0% 36,803-8, Staff Committee 1330 Staff Committee 10,000 6, % 0.4% 5,965-4, Special allowances and grants 1340 Special allowances and grants Other sociomedical expenditure 1350 Other sociomedical expenditure 5, ,000 Chapter 1 3 Total 1,148, , , % 53.9% 345, , Training Training of staff 1400 Training of staff 396, , , % 48.5% 189,892-14,242 Chapter 1 4 Total 396, , , % 48.5% 189,892-14, Other staff-related expenditure PMO Services 1500 PMO Translation and interpretation services PMO Management costs 120, ,481 24, % 20.4% 93,997-1, Supplementary clerical and interim services 1510 Supplementary clerical and interim services 90,000 87,984 81, % 90.4% 6,640-2, Other external services 1520 Other external services 74,000 69,500 48, % 65.7% 20,860-4,500 Chapter 1 5 Total 284, , , % 54.4% 121,496-8, Entertainment and representation expenses Entertainment and representation expenses 1600 General entertainment and representation ex- 133, ,740 59, % 45.0% 52,756-20,560 Chapter 1 6 Total 133, ,740 59, % 45.0% 52,756-20,560 TITLE 1 TOTAL 51,413,810 51,050,577 49,837, % 96.9% 814, , ,234 Page 19 of 34

20 Title Chpt Art Item 2 OTHER ADMINISTRATIVE EXPENDITURE Heading Budget 2010 Commitments Payments Commitments rate Payments rate Payment appropriations to carry over to 2011 Art 10(4/7) Appropriation for staff expenditure not to be carried forward Art 10(2) Not used appropriation to lapse a b c d=b/a e=c/a f=b-c g=b-c h=a-b 2 0 Rental of buildings and associated costs Rent 2000 Rent Insurance of building(s) 2010 Insurance of building(s) Water, gas, electricity and local taxes 2020 Water, gas, electricity and local taxes 557, , , % 83.5% 71,111-20, Cleaning and maintenance 2030 Cleaning and treatment of waste 317, , , % 78.5% 45,609-22, Maintenance, installations and alterations 216, , , % 73.1% 27,746-30, Security of buildings and persons 2040 Security equipment 104,000 77,020 42, % 41.1% 34,250-26, Security services Health and safety at work 34,050 29, % 0.8% 29,731-4, Other building related expenditure 2050 Other building related expenditure 1,045, , % 0.0% 990,392-55,308 Chapter 2 0 Total 2,274,850 2,114, , % 40.3% 1,198, , Administrative information technology Costs of administrative information technology equipment and related expenditure 2100 Purchase of administrative information technology 1,575,500 1,575,018 2, % 0.2% 1,572, Purchase of administrative software and licenses 101,500 99,988 37, % 36.7% 62,750-1, Maintenance and repair of administrative informa- 50,500 50, % 2.0% 49, Maintenance of administrative software and li- 287, , , % 64.5% 74,959-27, Administrative consultancy and studies 253, , , % 88.8% 24,690-3, Administrative system integration services 34,000 33,062 23, % 68.5% 9, Other administrative data processing expenditure Chapter 2 1 Total 2,302,000 2,268, , % 20.6% 1,793,729-33, Movable property and associated costs Technical equipment and installations 2200 Technical equipment and installations 119,950 92,237 12, % 10.6% 79,490-27, Furniture and other acquisitions 2210 Furniture and other acquisitions 3,039,350 3,018,617 13, % 0.4% 3,005,481-20, Transport equipment 2220 Purchases and long-term lease of transport 143,500 82,200 82, % 57.3% , Maintenance, repair and other expenditures of 32,350 32,345 24, % 74.3% 8, Car insurance 35,000 35,000 26, % 74.3% 8, Fuel 45,000 37,500 34, % 75.7% 3,422-7, Documentation and Open Sources 2230 Library expenses, purchase of books, subscriptions 35,000 34,931 20, % 58.1% 14, Open sources 290, , , % 52.9% 129,950-6,567 Chapter 2 2 Total 3,740,150 3,616, , % 9.8% 3,250, ,887 Page 20 of 34

21 Title Chpt Art Item Europol Public Information Heading Budget 2010 Commitments Payments Commitments rate Payments rate Payment appropriations to carry over to 2011 Art 10(4/7) Appropriation for staff expenditure not to be carried forward Art 10(2) Not used appropriation to lapse a b c d=b/a e=c/a f=b-c g=b-c h=a-b 2 3 Current administrative expenditure Stationery and office supplies 2300 Stationery and office supplies 76,500 76,500 66, % 86.4% 10, Financial charges 2310 Bank charges 8,450 8,000 1, % 22.9% 6, Exchange-rate losses Legal expenses and damages 2320 Legal expenses 80,000 71,650 13, % 17.0% 58,011-8, Damages and compensation 730, , % 0.0% 400, , Other administrative expenditure 2330 Miscellaneous insurance 34,500 31,935 26, % 75.4% 5,916-2, Uniforms and working clothes 3,000 2, % 0.0% 2, Administrative translation services 94,000 93,339 35, % 37.5% 58, Official publications, tender publications and re- 133, ,976 30, % 23.1% 102, External administrative expertise 92,000 78,216 15, % 17.3% 62,345-13, Administrative meetings 44,500 32,338 21, % 48.2% 10,896-12, Other expenditure 313, ,530 5, % 1.6% 308, Communication and information activities 2340 Communication and information activities Chapter 2 3 Total 1,609,500 1,240, , % 13.4% 1,024, , Postal charges and telecommunications Postal and delivery charges 2400 Postal and delivery charges 82,000 81,996 77, % 94.0% 4, Administrative Telecommunications 2410 Administrative Telecommunications subscriptions 315, , , % 75.8% 76, Purchase, installation and maintenance of admin Purchase, installation and maintenance of admin Chapter 2 4 Total 397, , , % 79.6% 81, Statutory expenditure Management Board 2500 Management Board Meetings 1,534,500 1,319, , % 53.2% 502, , Management Board Working Groups 74,500 40,818 38, % 52.0% 2,048-33, Management Board Secretariat 23,500 15,800 6, % 25.8% 9,735-7, Joint Supervisory Body 2510 Joint Supervisory Body Costs 559, , , % 64.3% 196,125-3, Appeals costs 5, , Internal auditor 2520 Internal auditor 15,000 10,005 4, % 32.6% 5,115-4, Auditing 2530 Auditing 47,000 34,454 29, % 62.1% 5,249-12,546 Chapter Total 2,258,600 1,975,976 1,254, % 55.6% 721, ,624 Page 21 of 34

22 Title Chpt Art Item Heading Budget 2010 Commitments Payments Commitments rate Payments rate Payment appropriations to carry over to 2011 Art 10(4/7) Appropriation for staff expenditure not to be carried forward Art 10(2) Not used appropriation to lapse a b c d=b/a e=c/a f=b-c g=b-c h=a-b 2 6 Art 58.4 Europol Council Decision Art 58.4 Europol Council Decision 2600 Member States contributions 6,744,291 6,744,291 5,857, % 86.9% 886, Host State contribution 109, ,267 76, % 70.1% 32, Grants 1,225,274 1,225, , % 42.4% 706, Community subsidy 485, , , % 55.5% 216, Chapter Total 8,564,610 8,564,610 6,723, % 78.5% 1,841, TITLE 2 TOTAL 21,146,710 20,177,673 10,266, % 48.5% 9,911, ,037 3 OPERATIONAL ACTIVITIES 3 0 Operations Expenditure for strategic and operational activities 3000 Meetings 302, , , % 42.0% 115,312-59, Translations 29,000 22,000 7, % 27.3% 14,095-7, Printing 18,500 18,500 11, % 63.4% 6, Missions 1,049,000 1,049, , % 68.2% 333, External expertise 31,900 24,742 8, % 25.3% 16,684-7, Expertise training for third parties 107,600 88,652 69, % 64.6% 19,143-18, Operational equipment 91,500 84,283 25, % 28.2% 58,497-7, Operational subsidies 384, , , % 66.9% 111,150-15, Operational training 240, , , % 60.6% 40,739-54, Liaison Bureaux outside the Netherlands 3010 Liaison Bureaux outside the Netherlands 63,250 62,500 3, % 5.3% 59, Chapter 3 0 Total 2,317,650 2,146,524 1,371, % 59.2% 775, , Operational information technology Operational information technology and related expenditure 3100 Purchase of operational information technology 4,540,000 4,538,724 1,806, % 39.8% 2,732,345-1, Purchase of operational software and licenses 1,597,600 1,595, , % 32.5% 1,076,360-1, Maintenance and repair of operational information 529, , , % 64.9% 180,539-5, Maintenance of operational software and licenses 3,277,400 3,254,099 1,459, % 44.5% 1,794,966-23, Operational consultancy and studies 965, , , % 79.2% 188,993-11, Operational system integration services 702, , , % 50.9% 343, Other operational information technology expendi- 31,000 30,249 21, % 70.6% 8, Chapter 3 1 Total 11,642,000 11,597,284 5,271, % 45.3% 6,325,355-44, Telecommunication costs for operational Telecommunication costs for operational activities 3200 Operational telecommunications subscriptions and 1,995,000 1,994, , % 29.9% 1,398, Purchase, installation and maintenance of opera- 3,366,000 3,365, , % 6.9% 3,134, Purchase, installation and maintenance of opera- 7,000 6,738 6, % 96.3% Chapter 3 2 Total 5,368,000 5,367, , % 15.5% 4,533, Page 22 of 34

23 Title Chpt Art Item Europol Public Information Heading Budget 2010 Commitments Payments Commitments rate Payments rate Payment appropriations to carry over to 2011 Art 10(4/7) Appropriation for staff expenditure not to be carried forward Art 10(2) Not used appropriation to lapse a b c d=b/a e=c/a f=b-c g=b-c h=a-b 3 3 Seconded National Experts (Operational) Seconded National Experts (Operational) 3300 Seconded National Experts (Operational) 600, , , % 93.6% 38, Chapter 3 3 Total 600, , , % 93.6% 38, Police Chiefs Task Force Police Chiefs Task Force 3400 Interpretation services and equipment PCTF Other expenditure PCTF 5,600 2,304 2, % 41.1% - - 3,296 Chapter 3 4 Total 6,000 2,304 2, % 38.4% - - 3, Heads of Europol National Units Heads of Europol National Units 3500 Interpretation services and equipment for HENU 63,000 61,394 47, % 74.8% 14,261-1, Other expenditure for HENU meetings 2,500 2, % 30.1% 1, Chapter 3 5 Total 65,500 63,894 47, % 73.1% 16,010-1, Operational expenditure related to subsidies Operational expenditure related to subsidies and grants 3600 Operational expenditure related to subsidies and 263, ,438 80, % 30.4% 183, Chapter 3 6 Total 263, ,438 80, % 30.4% 183, Title 3 TOTAL 20,262,588 20,040,628 8,168, % 40.3% 11,871, ,960 Total expenditure (Titles 1-3) 92,823,108 91,268,878 68,272, % 73.6% 22,597, ,554 1,554,231 Page 23 of 34

24 4.2 Appropriations carried over from 2010 to 2011 Item Heading Appropriations carried over to Security Missions 2, Training for Security Staff Other expenditure for Security Staff 15, Administrative Missions 86, Catering costs 67, Restaurant equipment 2, Medical service 232, Social events 36, Staff Committee 5, Training of staff 189, PMO Management costs 93, Supplementary clerical and interim services 6, Other external services 20, General entertainment and representation expenses 52, TOTAL TITLE 1 814, Water gas electricity and local taxes 71, Cleaning and treatment of waste 45, Maintenance installations and alterations 27, Security equipment 34, Health and safety at work 29, Other building related expenditure 990, Purchase of administrative information technology 1,572, Purchase of administrative software and licenses 62, Maintenance and repair of administrative information techn. equipment 49, Maintenance of administrative software and licenses 74, Administrative consultancy and studies 24, Administrative system integration services 9, Technical equipment and installations 79, Furniture and other acquisitions 3,005, Maintenance repair and other expenditures of transport equipment 8, Car insurance 8, Fuel 3, Library expenses purchase of books, subscriptions and periodicals 14, Open sources 129, Stationery and office supplies 10, Bank charges 6, Legal expenses 58, Damages and compensation 400, Miscellaneous insurance 5, Uniforms and working clothes 2, Administrative translation services 58, Official publications tender publications and reproduction of documents 102, External administrative expertise 62, Administrative meetings 10, Other expenditure 308, Postal and delivery charges 4, Administrative Telecommunications subscriptions and charges 76, Management Board Meetings 502, Management Board Working Groups 2, Management Board Secretariat 9, Joint Supervisory Body Costs 196, Internal auditor 5, Auditing 5, TOTAL TITLE 2 8,069, Page 24 of 34

25 Item Heading Appropriations carried over to Meetings 115, Translations 14, Printing 6, Missions 333, External expertise 16, Expertise training for third parties 19, Operational equipment 58, Operational subsidies 111, Operational training 40, Liaison Bureaux outside the Netherlands 59, Purchase of operational information technology equipment 2,732, Purchase of operational software and licenses 1,076, Maintenance and repair of operational information 180, Maintenance of operational software and licenses 1,794, Operational consultancy and studies 188, Operational system integration services 343, Other operational information technology expenditure 8, Operational telecommunications subscriptions and charges 1,398, Purchase installation and maintenance of operational telecom hardware 3,134, Purchase installation and maintenance of operation telecom software Seconded National Experts (Operational) 38, Interpretation services and equipment PCTF Other expenditure PCTF Interpretation services and equipment for HENU meetings 14, Other expenditure for HENU meetings 1, Operational expenditure related to subsidies and grants 183, TOTAL TITLE 3 11,871, TOTAL CARRY OVER OF APPROPRIATIONS 20,755, Item Headings Assigned budget on the basis Art 58.4 ECD carried over to Member States contributions 886, Host State contribution 32, Grants 706, Community subsidy 216, TOTAL CARRY OVER OF ASSIGNED EPENDITURE 1,841, TOTAL CARRY OVER OF PAYMENT APPROPRIATIONS 20,755, TOTAL CARRY OVER OF ASSIGNED EXPENDITURE 1,841, ,597, Page 25 of 34