EUROPEAN ANTI-FRAUD OFFICE (OLAF)

Transcription

1 EUROPEAN ANTI-FRAUD OFFICE (OLAF) Management Plan 1

2 Contents PART 1. MISSION STATEMENT... 3 PART 2. THIS YEAR S CHALLENGES... 4 PART 3. GENERAL OBJECTIVES OF THE POLICY... 6 PART 4. SPECIFIC OBJECTIVES FOR OPERATIONAL ABB ACTIVITIES ABB Activity: Fight against fraud Investigative and coordination activities Investigation support Fraud prevention and anti-fraud policy ABB activity: Promoting activities in the field of the protection of the European Union's financial interests (Hercule III) ABB Activity: Anti-fraud information system (AFIS) PART 5. HORIZONTAL ACTIVITIES Human resource management Sound financial management / legality and regularity of transactions Management of information and communication technologies (ICT) OLAF IT strategy Document management Internal Audit Internal control and risk management Anti-fraud ANNEX 1. COMMUNICATION STRATEGY ANNEX 2. THE INVESTIGATION POLICY PRIORITIES (IPPS) OF THE OFFICE

3 PART 1. MISSION STATEMENT The mission of the European Anti-Fraud Office is threefold: it protects the financial interests of the European Union (EU) by investigating fraud, corruption and any other illegal activities; it detects and investigates serious matters relating to the discharge of professional duties by members and staff of the EU institutions and bodies that could result in disciplinary or criminal proceedings; it supports the EU institutions, in particular the European Commission, in the development and implementation of anti-fraud legislation and policies. 3

4 PART 2. THIS YEAR S CHALLENGES A personal message from Giovanni Kessler Director-General of OLAF As OLAF celebrates 15 years of existence 1, it faces the challenges of a maturing organisation. The growing awareness and trust it enjoys is reflected by an increasing amount of incoming information. The result is a larger workload for OLAF investigators. In the Commission-wide context of diminishing resources, in OLAF will focus, more than ever, on its core investigative tasks. This is in order to protect the financial interests of the EU and detect serious professional misconduct in the EU institutions and bodies. In addition to its investigative activities, OLAF will continue to support the Commission in developing and implementing policies to prevent and detect fraud. It will also encourage the Member States to develop national anti-fraud strategies, covering the European funds allocated and spent under shared management, in order to achieve the highest level of protection possible for the EU s financial interests. On the regulatory side, may prove to be a crucial year for negotiations on the proposal to establish a European Public Prosecutor's Office (EPPO). OLAF will do its utmost to ensure that the EPPO is an independent and efficient body, which adds real value in the fight against fraud, corruption and any other illegal activities affecting the EU's financial interests. Furthermore, following the expected adoption of the amended Regulation (EC) No 515/97 on mutual assistance, which aims to improve the fight against customs fraud, OLAF will prepare the delegated and implementing acts necessary for its application. OLAF will also need to establish centralised databases, in the context of this amendment, as an additional tool for both the Commission and Member States in the fight against customs-related fraud. In order to further enhance its investigative activities, OLAF will continue to reinforce its cooperation with the EU institutions, bodies, agencies and offices, as well as with Member States and third countries. As a measure of improved cooperation, the Office intends to sign new administrative cooperation arrangements, and update existing ones, to make sure that they remain efficient and useful tools. Key performance indicators for The activities of the Office will revolve around the following key performance indicators: Average duration of selections; Average duration of investigations; 1 In

5 Percentage of investigations closed with recommendations; Implementation of the Strategy to step up the fight against cigarette smuggling and other forms of illicit trade in tobacco products; and Percentage of internal audit recommendations implemented without being overdue for more than 12 months. Efforts to ensure capacity to deliver on priorities In 2012, OLAF underwent a significant reorganisation. This contributed to a record number of investigations, a substantial increase of the number of recommendations and a decrease in the average duration of the investigations. In order to sustain these remarkable achievements, in an era of budgetary constraint, the Office needs to optimise the use of its main asset, i.e. its human capital. Results have already been achieved in this area through a further, more limited, reorganisation in 2014, aimed mainly at reducing costs and streamlining existing procedures. In summer 2014, OLAF adopted its first HR Strategic Plan. This document is based on an analysis of all HR processes, the results of staff surveys and proposals made by OLAF staff during a number of workshops. OLAF s HR Strategic Plan addresses the following challenges: an ageing population, the need for specific expertise and training, the management of absences, equal opportunities and staff commitment. In, OLAF plans to publish specialised competitions for fraud investigators, in order to replace departing staff members with equally qualified experts. There are many challenges ahead of us in. Nonetheless, I am confident that, with the support and dedication of OLAF's skilled and competent staff, we will deliver on our tasks and commitments with full quality and efficiency. 19 December

6 PART 3. GENERAL OBJECTIVES OF THE POLICY General objective 1: Protection of the financial interests of the EU and the reputation of its institutions by combating fraud, corruption and any other illegal activities by means of efficient investigations and coordination actions. Non programme-based Impact indicator 1.1: Percentage of investigations closed with recommendations Definition: In accordance with Article 11 of Regulation No 883/2013, on completion of an OLAF investigation, a Final Report shall be drawn up giving an account of the findings established and the conclusions of the investigation on the basis of which the Director-General may issue judicial, financial, disciplinary or administrative recommendations for action to be taken by the competent authorities of the Member States and/or responsible institutions, bodies, offices or agencies. Source of data: OLAF s Case Management System (CMS) January-October 2014: 58% At least 45 2 % 2013: 51% 2012: 32% Impact indicator 1.2: Results from the monitoring of the implementation of OLAF s recommendations Definition: OLAF collects information from its partners on the actions they have taken following recommendations made by the Office. OLAF applies this as a general indicator to measure the valueadded of anti-fraud action; however, taking actions (including the recovery of funds and judicial or disciplinary follow-up) following OLAF recommendations is the task of others (in particular EU institutions and Member States authorities). 2.a. Financial recommendations => amount of recoveries (as 2 years moving average) 2.b. Judicial recommendations => rate of indictment 2.c. Disciplinary recommendations => rate of administrative enquiries initiated Source of data: Annual reporting by OLAF s partners and stakeholders 2.a amount of recoveries (as 2 years moving A ratio of 2:1 or above between recoveries as a 2 In the MP 2014, the target for 2014 was at least 40% ; the target for 2016 was at least 50%. 6

7 average) Ratio 1.84:1 Recoveries Admin. budget result of OLAF s investigations and OLAF s administrative budget m 57.4m m 57.7m 2.b Rate of indictment following OLAF s judicial recommendations : 54% 2.c Rate of administrative enquiries initiated by EU disciplinary authorities following OLAF s disciplinary recommendations : 70% At least 50% for period At least 75% for the period General objective 2: Protection of the financial interests of the European Union against fraud, in cooperation with relevant stakeholders, by providing policy tools and support. programme-based (Hercule, AFIS) Non programme-based Impact indicator 2.1: Satisfaction by stakeholders with OLAF's support in the area of anti-fraud policy Definition: Level of satisfaction expressed by respondents, covering three categories of beneficiaries: (i) users of AFIS IT-applications, Hercule-funded conferences and training events; (ii) beneficiaries of Hercule-funded technical assistance; (iii) participants of conferences/training events organised by OLAF as well as of the AFCOS annual meeting. Source of data: Satisfaction surveys / feedback forms / evaluation forms 2014 N/A new indicator Milestone Insert in all satisfaction surveys / feedback forms / evaluation forms one standard question. Start reporting in AAR on the basis of responses received during the year % of respondents satisfied or very satisfied (scale to be determined). Planned evaluations: On the application of the Regulation 883/2013 (concerning investigations conducted by the European Anti-Fraud Office) by October

8 PART 4. SPECIFIC OBJECTIVES FOR OPERATIONAL ABB ACTIVITIES 4.1. ABB Activity: Fight against fraud ABB activity: Fight against fraud Operational expenditure Financial resources ( ) in commitment appropriations Administrative Total expenditure (managed by the service) Establishment plan posts Human resources Estimates of external personnel (in FTEs) Total Investigative and coordination activities This section sets specific objectives, indicators and targets for the selection of cases to be opened by OLAF, the conduct of investigations and coordination activities, as well as the implementation of recommendations issued by OLAF as a result of its investigative and coordination activities. Before opening an investigation, OLAF assesses if the case falls within its competency to act and establishes whether the information is sufficient to open an investigation or coordination case. The decision to open an investigation or not, always takes into account the principles of subsidiarity and proportionality, and the need for an efficient use of the Office's resources. The decision further takes into account the Investigation Policy Priorities (IPPs) of the Office (see Article 5 (1) Reg. 883/2013) setting out special sectorial priorities. The IPPs are determined on the basis of a risk assessment. They do not refer to any specific financial indicators but the financial impact is taken into consideration as part of the proportionality principle. 3 OLAF s IPPs for are attached to the present Management Plan as an annex. For any opening decision, the IPPs need to be taken into consideration and applied with the necessary degree of discretion. The opening and carrying out of an investigation is done by OLAF in full independence without instructions from any government, institution, body, office or agency See also European Parliament (European Parliament Resolution of 3 July 2013 on the Annual Report 2011 on the protection of the EU's Financial Interests Fight against fraud (A7-0197/2013 / P7-TA (2013) 0318), paragraph 12). See Article 17(3) of OLAF Regulation 883/

9 Relevant general objective: Protection of the financial interests of the EU and the reputation of its institutions by combating fraud, corruption and any other illegal activities by means of efficient investigations and coordination actions. Specific objective 1: Further improvement of the efficiency and effectiveness of Non-spending OLAF s investigations and coordination actions Speedy initial assessment of whether a case should be opened Result indicator 1.1: Average duration of selections 5 Source: CMS : 1.8 months No longer than 2 months. 2012: 1.4 months Result indicator 1.2: Percentage of selections closed whose duration is no longer than 2 months Source: CMS : 77% At least 75% 2012: 76% Shorter (duration of) investigations Result indicator 1.3: Average duration of investigations 6 Source: CMS Milestone : 17.5 months 2012: 17.3 months No longer than 20 months. No longer than 19 months. 5 Including both the items that resulted in an investigation or coordination case and those that did not. 6 This indicator does not include coordination cases. 9

10 Result indicator 1.4: Percentage of on-going investigations lasting more than 20 months (the milestone of average duration of investigations for ) Source: CMS ( ) : 32% <30% Main outputs in : Description Indicator Introduction of a Single Point of Entry, a management tool for the efficient handling of incoming information Speed of registration of incoming information and assignment of cases to selectors Implementation in Investigation support The Investigation Support Directorate in OLAF provides specialised services to support OLAF s investigation and coordination activities. The Directorate was restructured in January 2014 to reflect the need for a bettercoordinated action of OLAF's IT. In particular, specific emphasis has been put on future IT needs with the creation of a unit dedicated to "Information Systems Development", which is now reunited with the "Information Systems Infrastructure" unit in the same Directorate. Another unit monitors the efficiency, effectiveness and quality of the investigative process. Data-gathering and analysis, forensic acquisition, as well as other relevant tools and related technical assistance are provided from within this Directorate to OLAF investigative units and competent authorities in the Member States. The remaining units are responsible for legal advice, training and communication. 7 calculated as a five year average ( ) with respect of an average duration of 20 months. 10

11 Relevant general objective: Protection of the financial interests of the EU and the reputation of its institutions by combating fraud, corruption and any other illegal activities by means of efficient investigations and coordination actions. Specific objective 2: Provision of necessary training and tools to support OLAF's investigative activities Non-spending Train investigative staff Result indicator 2.1: Percentage of investigative staff participating in investigative training in relation to the total number of investigative staff Source: Syslog % 80% 8 Supply Information and Communication Technology (IT) tools Result indicator 2.2: Internal users degree of satisfaction with IT infrastructure and services Source: OLAF IT user satisfaction survey % 9 At least 90% Specific objective 3: Proactive engagement with external audiences and the media in order to comply with legal obligations, raise awareness of OLAF activities and foster deterrence Result Indicator 3.1: Timely replies to requests from the Ombudsman and the EDPS complaints 10 Source: CMS/Unit C.4 January October % 100% of replies within the timeframe foreseen by the relevant Regulations In 2013, the training needs were high, due to the 2012 reorganisation. Now that the operational training sector has been created and has trained the staff on the new investigative procedures, the target can be lowered. OLAF IT user satisfaction survey The requests included are individual complaints, requests by the EDPS and requests from the Ombudsman. 11

12 Result Indicator 3.2: Timely replies to requests on access to documents and personal data 11 Source: CMS/Unit C.4 January October % 100% of replies within the timeframe foreseen by the relevant Regulations Result Indicator 3.3: Number of press materials issued in a year 12 Source: OLAF website and other publications January October Main outputs in : See Annex on Communication Strategy Fraud prevention and anti-fraud policy OLAF is the lead service in the conception and development of a European Anti-Fraud Policy. It deals with all phases of fraud prevention and detection, from the conception of a policy, the implementation of existing and new policies, to the reporting on its progress and effectiveness. OLAF organises regular meetings of the Commission's Fraud Prevention and Detection Network with the Commission services and executive agencies and actively supports them in implementing the Commission's Anti-Fraud Strategy (CAFS). OLAF is also the Commission service responsible for the coordination of the anti-fraud activities in cooperation with Member States (in the framework of the Consultative Committee for the fight against fraud COCOLAF and its expert groups). The structure is also used to exchange best practices among Member States. Furthermore, OLAF Policy Directorate drafts new legislation, works with other Commission services to implement sectorial anti-fraud strategies, build contacts with the competent authorities in the EU Member States as well as with counterparts outside the European Union, to support OLAF s investigations and anti-fraud efforts. To this end, in 2013 the Commission adopted a Communication on Stepping up the fight The requests included are requests for access to documents, confirmatory applications for access to documents and requests on personal data. The figures take into account holding replies for requests falling under Regulation 1049/2001. OLAF press releases and/or memos, news items, OLAF senior management speeches published on OLAF website, and articles authored by OLAF senior management. 12

13 against cigarette smuggling and other forms of illicit trade in tobacco products and an accompanying Action Plan. The Annual Report to the Parliament and the Council adopted under Article 325(5) of the Treaty on the Functioning of the European Union (TFEU) and prepared in cooperation with Member States and the other Commission services, compiles the measures adopted to counter fraud and other illegal activities detrimental to the EU financial interests; describes the main results achieved at EU level; illustrates new initiatives launched by the Commission; and sets recommendations for strengthening the protection of the EU financial interests. Specific objectives and corresponding indicators in the field of fraud prevention and anti-fraud policy have been defined for three main areas: Development of anti-fraud policy and legislation in particular by reinforced engagement with the Member States; Relations with external partners; and Reduction of illicit trade in tobacco products. Development of anti-fraud policy and legislation in particular by reinforced engagement with the Member States Relevant general objective: Protection of the financial interests of the European Union against fraud, in cooperation with relevant stakeholders, by providing policy tools and support. Specific objective 4: Protection of the financial interests of Non programme-based the EU by developing anti-fraud policy and legislation Result indicator 4.1: Number of Member States committed to developing a national anti-fraud strategy with support from OLAF Definition: Regarding the funds under "shared management", sectoral EU regulations for the programming period impose an obligation on the Member States to put in place effective and proportionate anti-fraud measures taking into account the risks identified (e.g. for ESI Funds, Article (c) of the Regulation (EU) No 1303/2013). These anti-fraud measures should be ideally embedded in national antifraud strategies. Although there is no legal obligation for MSs to develop such strategy, they were encouraged to do so for an improved protection of EU funds. Source: OLAF/D Milestone MS At least 6 MS At least 15 MS Result indicator 4.2: Number of Member States complying with obligations for reporting of fraudulent irregularities Source: Programme Statement / DB : Anti-Fraud Information System see also Section 4.3, ABB Activity: AFIS 13

14 Definition: Legal bases for the reporting are: Regulations 1681/94, 1831/94, 1848/2006, 1828/2006, 498/2007 and provisions under adoption for the new MMF Source: AFIS/IMS modules 2013 Milestone Some Member States / Candidate Countries do not yet fully comply with their reporting obligations. Main outputs in : Member States have been trained and set up to use IMS new modules. All Member States comply with the reporting of fraudulent irregularities. Description Indicator PIF Directive Adoption Early Delegated and Implementing acts following adoption of amendments to Regulation 515/97 (expected beginning of ) Proposals for delegated and implementing acts Within the deadlines foreseen in the Regulation (once adopted) Delegated and implementing acts laying down the reporting provisions for all expenditure fields under shared management for the new MFF ( ) Annual Report (under Article 325(5) of TFEU) by the Commission to the EP and Council on the Protection of the EU s financial interests Adoption 1 st quarter Adoption by the Commission 3 rd quarter Relations with external partners Relations with external partners such as EU institutions and agencies, the Supervisory Committee of OLAF, the Member States as well as partners outside the EU are important for OLAF. Maintaining a good relationship with these partners is key to OLAF s carrying out its mission. Relevant general objective: Protection of the financial interests of the European Union against fraud, in cooperation with relevant stakeholders, by providing policy tools and support. Specific objective 5: Efficient relations with external partners Non programme-based such as the EU institutions and agencies, OLAF s Supervisory Committee, the Member States and partners outside the EU so that the overall strategy and activities of the Office are reinforced and better understood 14

15 Result indicator 5.1: Number of newly established and revised administrative cooperation arrangements (ACAs) Definition: Administrative cooperation arrangements set out practical details for the cooperation between OLAF and other entities, in particular in connection with investigations. Source: OLAF/D Main outputs in : Description Indicator Establish new working arrangements with Europol Revise working arrangements with the Supervisory Committee Organise Pilot Group meeting with African partners Signature By the end of Signature By the end of Meeting has taken place By the end of Organise meeting of COCOLAF Meeting has taken place By the end of Organise AFCOS COCOLAF subgroup meeting Meeting has taken place By the end of Organise AFCOS seminar AFCOS seminar has taken place By the end of Report on the key achievements of the Office in the OLAF Report 2014 Publication of the Report May Reduction of illicit trade in tobacco products It is estimated that the smuggling of tobacco products costs the EU and Member States annual losses of around EUR 10 billion a year in lost revenue from customs duties and taxes. The Commission presented in June 2013 a strategy paper on how to step up the fight against cigarette smuggling. This Strategy was accompanied by an Action Plan setting out a number of regulatory and other initiatives which would contribute to reducing the illicit trade in tobacco products. These documents were largely endorsed by the Council in December At this moment, many of the Commission's activities in this field are in fact related to the implementation of the Strategy and the Action Plan. 15

16 Relevant general objective: Protection of the financial interests of the European Union against fraud, in cooperation with relevant stakeholders, by providing policy tools and support. Specific objective 6: Reduction of illicit trade in tobacco Non-spending products Result indicator 6.1: Implementation of the Strategy to step of the fight against cigarette smuggling and other forms of illicit trade in tobacco products and its Action Plan Definition: The Action Plan contains 50 actions that must be completed either by a certain date, or in the short, mid- or long-term. Source: COM (2013) 324 final, SWD (2013) 193 final 2013 Milestone 2016 Council adopted Conclusions concerning the Communication in December Implementation of the actions planned for in the Action Plan. Initiation, and to the extent possible completion, of actions in accordance with the Action Plan by mid Result indicator 6.2: Increased coverage and use of IT tools to draw statistical information relating to illicit trade in cigarettes Definition: Expand coverage and use of IT tools on the illicit trade in cigarettes in order to promote use of IT applications by MS and OLAF and improve the availability of reliable statistics. Source: ToSMA, CigINFO 2014 Milestone 2016 ToSMA was launched in CigINFO: Number of entries: <2000 Main outputs in : Coverage of more than half of the qualifying seizures in ToSMA. Increase number of entries in CigINFO by 5%. Coverage of all qualifying seizures in ToSMA (100%). Increase number of entries in CigINFO by another 5%. Description Indicator Commission proposals for the Council Decisions necessary to conclude the FCTC-Protocol by the EU and its Member States 14. Adoption 3 rd quarter (FCTC Protocol Conclusion Decision) Workshop to promote accession to the FCTC Protocol in the Middle East and Central Asia Workshop organised with at least 10 countries 4 th quarter OLAF to assess the existing anticontraband and anti-counterfeit Assessment completed 2 nd quarter 14 Associated legislative proposals to amend the acquis as necessary to be adopted in

17 agreement set to expire in 2016 Eurobarometer Survey on public awareness about the effects of cigarette smuggling Organise at least one joint customs operation (JCO), focusing on tobacco products. Survey conducted By the end of JCO completed 4 th quarter A new laboratory facility for the analysis of seized cigarettes is established Facility established. Beginning of analysis of seizures in new laboratory. New laboratory facility up and running by the end of. 4.2 ABB activity: Promoting activities in the field of the protection of the European Union's financial interests (Hercule III) The general objective of the Hercule III Programme shall be to protect the financial interests of the Union thus enhancing the competitiveness of the Union s economy and ensuring the protection of the taxpayers money 15. The specific objective of the Programme shall be to prevent and combat fraud, corruption and any other illegal activities affecting the financial interests of the Union 16. The specific objective shall be measured through the four key performance indicators that are further elaborated below. The operational objectives 17 of the Programme are: to improve the prevention and investigation of fraud and other illegal activities beyond its currently reached levels by enhancing transnational and multidisciplinary cooperation; to increase the protection of the financial interests of the Union against fraud, facilitating the exchange of information, experiences and best practices, including staff exchanges; to strengthen the fight against fraud and other illegal activities providing technical and operational support to national investigation, and in particular customs and law enforcement, authorities; to limit the exposure of the financial interests of the Union to fraud, corruption, and other illegal activities compared to the level of exposure known today with a view to reducing the development of an illegal economy in key risk areas such as organised fraud, including cigarette smuggling and counterfeiting; 15 Article 3 of Regulation 250/2014 of 26 February 2014, OJ L 84 of 20 March Article 4 of Regulation 250/ Article 5 of Regulation 250/

18 to enhance the degree of development of the specific legal and judicial protection of the financial interests against fraud by promoting comparative law analysis. Actions under the Programme are aimed at the fight against cigarette smuggling and counterfeiting; an increased transnational cooperation and coordination at the Union level, between Member States' authorities, the Commission and OLAF (in particular to the effectiveness and efficiency of cross-border operations); as well as the provision of joint specialised training for staff of national and regional administrations and to other stakeholders. The programme creates savings deriving from the collective procurement of databases to be used by the stakeholders and from specialised training, such as digital forensics trainings for law enforcement staff. ABB activity: Promoting activities in the field of the protection of the European Union's financial interests (Hercule III) Financial resources ( ) in commitment appropriations Operational Administrative expenditure expenditure(managed by the service) Total Establishment plan posts Human resources Estimates of external personnel (in FTEs) Total Relevant general objective: Protection of the financial interests of the European Union against fraud, in cooperation with relevant stakeholders, by providing policy tools and support. Relevant general objective in the legal basis / Programme Statement: To protect the financial interest of the Union thus enhancing the competitiveness of the European economy and ensuring the protection of the taxpayers money. Specific objective 7: To prevent and combat fraud, corruption Spending programme and any other illegal activities affecting the Union's financial interests Result indicator 7.1: The number of cigarettes in the EU that were seized using equipment purchased under the Hercule III actions, expressed as percentage of the overall number of cigarettes seized within the Member States. Source: Final technical and implementation reports of beneficiaries and notifications sent by Member States to OLAF on cigarette seizures Milestone

19 N/A 1% Mid-term result: < % 5% Result indicator 7.2: The added value and effective use of co-financed technical equipment, expressed by the users of the equipment in their final technical report and final implementation report of the action (percentage users that considered the use of Hercule funded equipment added value to their activities). Source: Final technical and implementation reports of beneficiaries 2013 N/A Milestone s, milestones and targets for this indicator can only be provided once the Member States beneficiaries start reporting on the results under Article 13(3) of the Hercule III Regulation. Sufficient data for this indicator is expected to be available in Result indicator 7.3: The exchange of information among Member States on the results achieved with the technical material. Source: Final technical and implementation reports of beneficiaries on the action 2013 N/A Milestone s, milestones and targets for this indicator can only be provided once the Member States beneficiaries start reporting on the results under Article 13(3) of the Hercule III Regulation. Sufficient data for this indicator is expected to be available in Result indicator 7.4: The number and type of training activities funded under the Hercule III programme, including specialised training, and the satisfaction rate as expressed by the participants. Source: Final technical and implementation reports of beneficiaries % satisfaction rate 67% satisfaction rate 18 Regulation (EU) No 250/2014 of the European Parliament and of the Council establishing a programme to promote activities in the field of the protection of the financial interests of the EU (Hercule III programme) entered into force on 21 March The Financing Decision adopting the Annual Work Programme 2014 for the implementation of the Hercule III Programme was adopted on 26 May 2014 (C(2014)3391). The award of most of the grants is expected to take place in the beginning of, due to the large number of applications that were received and budgetary constraints as the result of a lack of payment appropriations. Information on seizures made with equipment funded under the previous programme gradually becomes available, but is still incomplete and insufficient to derive a reliable and representative indicator. 19

20 Main outputs in Description Indicator Technical Assistance (incl. IT support) Fraud awareness trainings, conferences and studies number number Planned evaluations: Mid-term evaluation of Hercule III is required under Article 13(2)(a) of Regulation 250/2014 for the end of ABB Activity: Anti-fraud information system (AFIS) AFIS is an umbrella term for a set of anti-fraud IT applications operated by the European Commission (OLAF) which create contacts with the competent authorities in the Member States. These ensure the timely and secure exchange of fraud-related information between national and EU competent administrations. The AFIS Project encompasses two major areas: Mutual Assistance in Customs Matters and Irregularities Management. AFIS supports Mutual Assistance in Customs Matters with the secure real-time information exchange system V-OCU (Virtual Operations Coordination Unit) used for Joint Customs Operations; secure web mail (MAB-Mail), specific information exchange modules and databases like MAB (Mutual Assistance Broker), CIS (Customs Information System) and FIDE (Customs Investigation Files Identification Database); and analysis tools like A-TIS (Anti-Fraud Transit Information System). The legal basis for AFIS' support of Mutual Assistance in Customs Matters is Council Regulation (EC) No 515/97 which is currently being reformed. The following indicators and outputs are based on the proposal of the European Commission for an amended Regulation. They have to be reviewed and revised once the amended Regulation is See previous footnote: the first Calls for Proposals were launched in the third week of June following the adoption of the Financing Decision 2014 for the Hercule III Programme. Idem. Under Hercule III, a limited number of Conferences and trainings could be procured and contracts for these events were concluded between the Commission and the organisers of the events. Information for the indicators, such as the percentage of satisfied participants, will only become available once the final reports will be transmitted to the Commission and after the Commission's services have been able to examine the final results. 20

21 adopted. AFIS also facilitates secure electronic communications tools for the Member States to fulfil their obligation to report irregularities detected in agricultural, structural, cohesion and fisheries funds as well as pre-accession aid. The IMS (Irregularities Management System) provides a secure electronic tool for the reporting, management and analysis of irregularities. The AFIS Portal is a single and common infrastructure for the delivery of the abovementioned services to more than registered end-users in more than competent services from Member States, partner third countries, international organisations, Commission services and other EU Institutions. The AFIS Portal enables substantial economies of scale and synergies in the development, maintenance and operations of such a wide and diverse set of IT services and tools. AFIS also provides the IT platform for Joint Customs Operations (JCOs). In 2014, 4 JCOs were carried out. Those led, inter alia, to 34 cases opened by Member States and 5 cases opened by OLAF. ABB activity: Anti-fraud information system (AFIS) Financial resources ( ) in commitment appropriations Operational Administrative Total expenditure expenditure (managed by the service) Establishment plan posts Human resources Estimates of external personnel (in FTEs) Total Relevant general objective in the Management Plan: Protection of the financial interests of the European Union against fraud, in cooperation with relevant stakeholders, by providing policy tools and support. Relevant general objective in the Programme Statement: To protect the financial interest of the Union thus enhancing the competitiveness of the European economy and ensuring the protection of the taxpayers money. Specific objective 8: To support Mutual Assistance in Customs Matters Spending programme through the provision of secure information exchange tools for Joint Operations and specific Customs anti-fraud information exchange modules and databases such as the Customs Information System Result indicator 8.1: Number of active customs fraud cases for which information is available in the Mutual Assistance databases Source: Council Regulation (EC) No 515/97 amended by Council Regulation (EC) No 766/2008, Regulation on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters, Council Decision 2009/917/JHA, Decision on the use of information technology for customs purposes 2013 Milestone

22 Result indicator 8.2: Number of Joint Customs Operations (JCOs) (including EU wide and regional operations) supported/year Source: Council Regulation (EC) No 515/97 amended by Council Regulation (EC) No 766/2008, Regulation on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters, Council Decision 2009/917/JHA, Decision on the use of information technology for customs purposes JCOs At least 4 JCOs Result indicator 8.3: Coverage of A-TIS (Anti-fraud transit information system) Source: Council Regulation (EC) No 515/97 amended by Council Regulation (EC) No 766/2008, Regulation on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters, Council Decision 2009/917/JHA, Decision on the use of information technology for customs purposes 2013 Milestone At the end of 2013, A-TIS held 16.5 million transit declarations ( /month) covering 70% of the transit regime Entry into force of the reform of Regulation 515/97 New repository of import declarations developed A-TIS to cover 100% of transit declarations Main outputs in description indicator target Reform of Regulation 515/97 Adoption by co-legislators and entry into force 1 st quarter (expected) 22

23 Specific objective 9: To facilitate secure electronic communication tools for the Member States to fulfil their obligation to report irregularities detected in agricultural, structural, cohesion and fisheries funds as well as preaccession aid Spending programme Result indicator 9.1: Availability of new irregularities reporting modules for the period 21 Source: Regulations 1681/94, 1831/94, 1848/2006, 1828/2006, 498/2007 and provisions under adoption for the new MMF , Council Decision 2009/917/JHA, Decision on the use of information technology for customs purposes 2013 Development of new single harmonised module was on-going. IMS system fully operational in all Member States and candidate countries with reporting and analysis tools. Main outputs in Description Indicator IMS Communication Number The indicator on the Number of Member States complying with obligations for reporting of fraudulent irregularities can be found under section of this management plan. 23

24 PART 5. HORIZONTAL ACTIVITIES ABB activity: Management of the European Anti-Fraud Office Financial resources ( ) in commitment appropriations Operational Administrative Total expenditure expenditure (managed by the service) Establishment plan posts Human resources Estimates of external personnel (in FTEs) Total Human resource management HR Strategic Plan OLAF adopted its first HR Strategic Plan in July It identifies the main HR challenges and the actions to put in place by OLAF s role in gaining and maintaining public trust in the European Union s capacity to protect taxpayers money from fraudsters is essential. OLAF s current structure reflects a clear focus on core investigative tasks and anti-fraud policy; the overhead is limited to a minimum. Any further reduction would have a negative impact on the core activities. Within the context of staff cuts applicable to the Commission services, OLAF is facing difficulties to cope with the increasing amount of incoming information and the number of investigations to open. Due to the ageing population and the termination of many temporary agent contracts, OLAF will face an important loss of expertise in the near future. It will be hardly compensated by internal mobility within the Commission services as OLAF is looking for very specific profiles. Investigative Units find it more and more difficult to recruit suitable candidates matching OLAF s job requirements. In addition, the available list of competition laureates does not cover OLAF needs anymore. Therefore, it is a matter of utmost importance to organise external AD competitions for fraud investigators. OLAF will continue to invest in the professionalisation of OLAF staff and in continuous learning and training. In the current situation of staff reduction, sick leave represents a loss of workforce which requires special attention. Several actions are foreseen in OLAF s HR Strategic Plan to monitor absences. OLAF s population is gender unbalanced. Some actions have been taken to tackle women underrepresentation in OLAF s middle management positions which led to an increase of 11% by the end of 2013 and to 30% in Nevertheless, AD female 24

25 population is still underrepresented and dedicated actions have been proposed in OLAF s HR Strategic Plan to improve the situation by OLAF offers good working conditions to staff. Following the outcome of two staff surveys, the teleworking procedure has been revised. Teleworking requests are assessed by the line managers against the compatibility with the needs of the service. Managers are required to closely monitor the outputs delivered during teleworking days. The staff surveys have pointed out the need to improve internal communication. Regular lunchtime debates are organised and guidelines on different topics are being developed within OLAF. Specific objective 10: Effective HR services to promote a high performing, balanced and stimulating working environment for all staff Result indicator 10.1: Vacancy rate Definition: Vacancies measure the capacity to use the job quotas allocated to the DGs. The following figures represent the percentage of unused job quotas and vacant posts (frozen job quotas included) on the first calendar day of the month in relation to the total available job quota of the DG (both operational and special job quotas and loans in all establishment plans). Source: Sysper HR Dashboard November 2014 (November 2014) OLAF : 4,7% (COMMISSION: 7.8%) Equal or lower than the Commission average at the end of Result indicator 10.2: Female representation in Senior and Middle Management and non-management Administrators Source: Sysper HR Dashboard November Officials only (excluding temporary agents) in activity. November 2014 Situation in OLAF: Senior management : 75% Middle Management : 30% AD non-management : 35.9% Increase female representation in AD nonmanagement 22 COM AD non-management target: 43 % - not achieved yet. Result indicator 10.3: Sick leave rate Definition: The annual sick leave rate, based on 365 days, is computed for officials, temporary agents and contract staff and includes the following types of absences: with and without medical certificate, medical visit outside place of employment, mandatory leave on health grounds and medical part time. It is calculated by dividing the number of sick leave days by the number of assignment days. 22 Commission targets for have not been defined yet. Further alignment to 2014 targets as set out in the Equal Opportunities Strategy of the European Commission (which does not set targets at DG level for Senior Management and other AD staff). 25

26 Source: Sysper HR Dashboard November 2014 First 6 months of 2014 OLAF: 5.1% COMMISSION: 4.3% Equal to or lower than the Commission average at the end of Result indicator 10.4: Staff engagement index Definition: Average of positive responses to 7 questions of DG HR annual staff survey Source: DG HR Annual Staff Survey 2014 Commission s staff engagement index in 2013 DG HR Staff Survey: 70.9% OLAF s staff engagement index in 2013 DG HR Staff Survey: 64% 23 Close to Commission average Result indicator 10.5: Local Overheads Definition: This indicator shows the proportion of jobs categorised as local overheads (with adjustments for inter-service contributions) in the Screening process. Overheads refer to administrative support (HR, document management, IT, logistics, etc.) and coordination (communication, publication, etc.) functions. Source: Annual Screening Exercise Screening Exercise 2014 OLAF : 8.6% DG Family : 9.8% Maintain overhead rate at equal or below DG Family average 5.2 Sound financial management / legality and regularity of transactions Specific objective 11: The resources of DG OLAF are managed according to the principle of sound financial management and its underlying transactions are legal and regular. Non-spending Result indicator 11.1: Percentage of budget execution (commitments) with respect to budget appropriations Source: ABAC budget system Budgetary year ,85%% > 98% Result indicator 11.2: Percentage of payments handled within the time limit (art. 92 1). Source: ABAC budget system 23 41% of OLAF staff participated in the 2013 DG HR Survey. 26

27 Budgetary year ,80% >90% 5.3 Management of information and communication technologies (ICT) OLAF IT strategy The mission of OLAF s units dealing with IT is to provide users with a modern, efficient, high-performing information technology and communications infrastructure. Special attention is given to security aspects and to the development of information systems in support of the mission of the Office 24. To support the investigation process as well as the general work of the Office, several complex IT systems are being maintained and developed in OLAF by different units. These units have six main areas of activity: investigation workflow management, IT infrastructure, logical and physical security, software development and maintenance, user support, and operational analysis and digital forensics. Furthermore, the units are responsible for the management of IT contracts and the life cycle of IT assets. To support OLAF's overall business objectives, the units dealing with IT have the following objectives: Short term objectives ( -2016) Improve OLAF's Management Information Systems Improve the provision of accurate/timely management information required for the daily management of active investigations, and to provide senior management with the relevant information to make sound strategic decisions. The primary IT tool used today is the Case Management System (CMS), to be replaced by the future OLAF Content Management (OCM) System. Develop and deploy OCM OCM will be a comprehensive tool developed to support OLAF investigative processes in an optimal manner. It is based on Documentum and xcp and will cover the document and case management needs of the office. Provide the tools for secure and efficient conduct of investigations Provide IT equipment and systems to enable efficient and secure investigation of fraud and other illegal activities by OLAF. This objective is achieved through the use of specialised systems to identify potential fraud, monitor investigations, assist OLAF investigators on the examination of possible electronic evidence and further on the implementation of an appropriate level of security (e.g. through the Core Business 24 See Part 1. 27

28 Information Systems (CBIS)) to ensure sensitive information is not compromised in any way. Operational Analysis and Digital Forensics Implement and support IT systems and tools that help OLAF in improving its operational analysis capacity to identify fraudulent practices and activities. This often involves the acquisition and/or collection of potential evidence from digital devices in a forensically sound manner, both during on-the-spot checks of economic operators and/or inspection of premises of EU institutions. It also involves the analysis of data from different sources (e.g. in collaboration with other DGs) within limits of national/eu laws. The support for operational analysis is a key factor in achieving OLAF's mission of combating fraud, improving existing detection and prevention policies or developing new methods of addressing newly identified risks or modus operandi. Medium term objectives ( ) Improve cooperation with External Partners Improve the sharing of information, where possible (e.g. in compliance with data protection rules), via secure communication channels with other organisations and EU institutions, such as Interpol, United Nations, etc. Special attention will be given to improving cooperation with Europol and Eurojust. The improved sharing of information is an essential factor in achieving OLAF's primary objectives of identifying and investigating fraudulent/illegal activities. Such cooperation comprises further the fields of digital forensics and operational analysis as it concerns aligning technical standards through provision of trainings and exchange of working methods. Provide the tools for EU Citizens to get in contact with OLAF Provide the tools/mechanisms for EU citizens to contact OLAF with their concerns, and information on potential fraudulent activity via the Fraud Notification System (FNS). Support the European Commission's Fraud Prevention Policy Support the creation, development and improvement of the European Commission's anti-fraud policies through leveraging the information already held in OLAF systems. A specific module to support fraud prevention policies has already been implemented and will be updated as needed. Long term objectives Improve efficiency of the internal administration Improve the efficiency of internal administrative activities so that most of the time and effort of OLAF staff can be spent directly on achieving the primary DG objectives. The aim of the IT is to improve the efficiency of administrative activities through initiatives such as the use of electronic workflows. Improve the maturity of the organisation Improve the delivery of IT solutions to OLAF users through achieving a greater level of maturity within the organisation. This includes the implementation of the relevant EU and internationally recognised standards within the organisation as well as continuous improvement of the key processes. 28