Committee of the Regions Annual Activity Report for 2013 MARCH 2014 COR-2014-02183-04-00-NB-REF …/… EN -1- TABLE OF CONTENTS INTRODUCTION ................................................................................................................................................ 2 1. POLITICAL ACHIEVEMENTS ............................................................................................................... 3 2. IMPLEMENTATION OF THE MANAGEMENT PLAN PER SERVICE ........................................... 5 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 SECRETARIATS OF THE POLITICAL GROUPS ........................................................................................... 5 DIRECTORATE FOR CONSULTATIVE WORKS (DCW) ............................................................................ 16 DIRECTORATE FOR HORIZONTAL POLICIES AND NETWORKS (DIR E)................................................... 20 DIRECTORATE FOR REGISTRY AND SERVICES TO MEMBERS (DIR B) ................................................... 24 DIRECTORATE FOR COMMUNICATION, PRESS AND EVENTS (DIR D) .................................................... 28 DIRECTORATE FOR ADMINISTRATION AND FINANCE (DIR A) .............................................................. 32 INTERNAL AUDIT SERVICE (IAS) ......................................................................................................... 35 DIRECTORATE FOR TRANSLATION (DIR G) .......................................................................................... 38 DIRECTORATE FOR LOGISTICS (DIR F) ................................................................................................. 39 3. INTERNAL MANAGEMENT AND CONTROL SYSTEMS, AUDIT AND FOLLOW-UP OF RECOMMENDATIONS BY FINANCIAL CONTROL BODIES ................................................................ 44 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 INHERENT NATURE AND CHARACTERISTICS OF THE COR RISK ENVIRONMENT ..................................... 44 INTERNAL CONTROL SYSTEM ............................................................................................................... 44 FINANCIAL CIRCUITS AND EXECUTION ................................................................................................. 45 BUDGET EXECUTION MONITORING ....................................................................................................... 46 VERIFICATION ...................................................................................................................................... 46 EX-POST CONTROL ............................................................................................................................... 47 EXCEPTION REPORTS............................................................................................................................ 48 OVERALL ASSESSMENT OF THE COSTS AND BENEFITS OF CONTROLS .................................................... 49 INTERNAL AUDIT FUNCTION ................................................................................................................. 50 FOLLOW-UP OF RECOMMENDATIONS BY ECA AND OF DISCHARGE QUESTIONS .................................... 50 4. ISSUES PERTAINING TO THE DECLARATION OF ASSURANCE ............................................... 53 5. THE DECLARATION OF ASSURANCE .............................................................................................. 54 Annex 1: Financial resources Annex 2: Declarations of the Authorising Officers by sub-delegation (table of names and date of signature) Annex 3: Transfers of appropriations Annex 4: Negotiated procedures Annex 5: Report on compliance of the time limits suspension Annex 6: Provisional annual accounts and financial reports Annex 7: Human resources COR-2014-02183-04-00-NB-REF …/… -2- INTRODUCTION This annual report of the Authorising Officer by Delegation (the Secretary-General of the Committee of the Regions) is established on the basis of the Financial Regulation (art. 66.9 of the FR 2012), the internal rules on the implementation of the budget and the Charter of tasks and responsibilities of the Committee's authorising officer by delegation. As required by the above provisions, the annual report covers the activities of the institution (the objectives and main achievements of the year under review), as well as the budget execution within the parameters of the control environment established by the authorising officer by delegation. The report also contains a declaration, signed by the authorising officer by delegation, on the application of the principle of sound financial management in the use of the resources and the legality and regularity of the underlying transactions in 2013. Part 1 of the report is a brief summary of the political achievements of the institution in 2013. Part 2 presents the main achievements and activities compared against the objectives set up in the 2013 Management Plan, which is a tool used to identify and prioritise goals and objectives and serves as a basis to evaluate final results and achievements. Part 3 reports on internal management and control systems. It outlines the characteristics of the Committee of the Regions (CoR) risk environment and gives a detailed description of internal control systems, such as verification, internal control standards and financial exceptions. In addition, the chapter reports on actions taken on the comments and recommendations from the various supervisory bodies: recommendations made in connection with the budgetary discharge, the reports of the Court of Auditors as well as the internal audits. Part 4 contains comments made by the authorising officer by delegation on the management system he has put in place. Finally, Part 5 is the declaration by the authorising officer by delegation. COR-2014-02183-04-00-NB-REF …/… -3- 1. POLITICAL ACHIEVEMENTS The Committee's mission consists first and foremost of its involvement in the EU decision-making process and policy-orientation debates, as a consultative body, thus ensuring that the concerns and interests of local and regional authorities are effectively taken on board in the framing and implementation of EU law and policies. Two main instruments contribute to this objective: the adoption of the CoR Opinions, and the structured co-operation with the other institutions and associations of local and regional authorities. The Committee's activities and actions, as well as the annual work programme of its commissions, are defined on the basis of the overall political strategy of the CoR, set out in the resolution on the political priorities. The Committee met six times in Plenary Session in 2013 and two extraordinary Bureau meetings were organised in Dublin and Vilnius marking the EU Presidencies of Ireland and Lithuania.The Committee adopted in total 73 opinions prepared in the specialised commissions and 7 resolutions. The networks and platforms (Europe 2020 Monitoring, Subsidiarity Monitoring, European Grouping of Territorial Cooperation, etc.) provided supplementary input to these documents. Deliver on Europe 2020 The central theme of President Valcárcel's presidency is the support to Europe 2020, the European growth strategy. The territorial dialogue with President Van Rompuy held on 22 March 2013 was organised in that perspective. Together with the outcome of several conferences on the flagship initiatives and public consultations, this will lead up to a political declaration at the 6th European Summit of Regions and Cities (Athens, 8 March 2014), contributing to the midterm review of the Europe 2020 strategy. The Open Days 2013 were held under the topic "Europe's Regions and Cities Taking off for 2020". Ensure the better investment role of LRA Following up on its previous opinions on the new Multi-annual Financial Framework (MFF) and related sectorial programmes, the Committee of the Regions closely followed the negotiations on the EU budget 2014-2020 and the new rules for structural funds. Efforts were made to ensure that new funding mechanisms will enable effective investment at local and regional levels. Engage with citizens and debate Europe The Committee of the Regions continued its cooperation with the other institutions in the context of the European Year of Citizens 2013. In this context, the fourth edition of EuroPCom brought together communication managers and senior experts from local, regional, national and European authorities, in particular on the upcoming European elections in 2014. The Vice-president of the European Parliament, Othmar Karas, presented the EP information campaign towards the 2014 elections to the CoR Bureau. The CoR also decided on and implemented its approach to the new instrument of European Citizens' Initiatives. Develop the territorial dimension of EU external relations In 2013, the CoR continued its dialogue on territorial policies in the context of the European Neighbourhood Policy, Enlargement Policy and Development Cooperation, e.g. through the EuroCOR-2014-02183-04-00-NB-REF …/… -4Mediterranean Regional and Local Assembly (ARLEM), the Conference of Regional and Local Authorities for the Eastern Partnership (CORLEAP), Joint Consultative Committees (JCCs) and Working Groups (WGs). Moreover, the CoR facilitated the capacity building of local and regional authorities in candidate and potential candidate countries through cooperating with the European Commission in the Local Administration Facility (LAF). The annual CORLEAP meeting took place on 3 September in Vilnius. The political debate was very much dominated by the events in Ukraine. In the framework of ARLEM, meetings were organised in Brussels, Bethlehem and Rabat. A strong CoR in a new Europe The president launched a reflection on the CoR's 20th anniversary in 2014 which shall feed into the interinstitutional debate on the future of Europe and its governance culminating in the European Summit of November 2014. The family of political groups in the CoR was enlarged with the constitution of the European Conservative and Reformist Group (ECR). The CoR stepped up its efforts to improve its impact in the EU decision making with restricted budgetary means. In this context, a policy on resource efficient multilingualism was adopted in July 2013 and a political and administrative cooperation agreement with the European Parliament was negotiated for signature in early 2014. COR-2014-02183-04-00-NB-REF …/… -5- 2. IMPLEMENTATION OF THE MANAGEMENT PLAN PER SERVICE This chapter presents the implementation of the Management Plan per service. The table below shows the staff of the Committee of the Regions in 20131. Type Establishment plan Contract agents (1) Interim personnel (2) External contract staff Seconded national experts Other outside personnel (medical doctor) Total AD 324 1 AST 213 29 0 9 1 335 18 0 0 260 Total 537 30 2 18 9 1 597,0 (1) Contract agent replacing absent staff (e.g. maternity leave) are not included. (2) Interim staff replacing an official/agent are not included. 2.1 Secretariats of the Political Groups 2.1.1 PES Group Objective 1: Strengthen PES Group's impact on the CoR political activities In order to increase political cohesion within the PES Group and consequently to strengthen the PES Group's impact on CoR political activities, PES Bureau meetings were held in conjunction with each ordinary plenary session, in advance of CoR Bureau meetings (30 January, 7 April, 29 May, 2 July, 10 October and 27 November 2013). There were regular PES Group meetings before each CoR plenary session (six sessions during the year: 31 January, 11 April, 30 May, 3 July, 7 October and 28 November 2013). The main aim of PES Group meetings was to discuss topical issues, to adopt common positions on key political issues and to prepare for plenary session debates and votes. Where permitted by the agenda, the President invited a guest of honour for an exchange of views on a topical issue. Before each CoR commission meeting during 2013, PES coordination meetings were held. In the case of commission meetings held away from Brussels, a preparatory PES meeting was held whenever logistically possible. Concerning the meetings organised by the PES Group on specific topics, the following events were organised: - A seminar on "EU and regional separatism" in Brussels on 14 May 2013; - A seminar on the "social way out of the Crisis" in Rotterdam on 10 June 2013; - The PES extraordinary Group meeting organised in Fraukirchen (Burgenland/Austria) on 13 September 2013, on "renewable energies"; - A seminar on "Corporate Social Responsibility", organised by the PES Group on 9 October within the framework of Open Days 2013; - A debate on EU migration policy in Brussels on 11 December 2013. 1 This table does not include vacant posts to be filled following the 2013 screening exercise and returned to the Budgetary Authority. COR-2014-02183-04-00-NB-REF …/… -6Objective 2: Strengthen the CoR's impact on the EU decision-making process In order to strengthen the CoR's impact on the EU decision-making process, the PES Group has reinforced its strategy on the follow-up of opinions as well as on its contacts at inter-institutional level and with national parties, especially on opinions drafted by PES rapporteurs. In terms of consultative works, a total of 21 opinions drafted by PES rapporteurs were adopted by CoR plenary sessions in 2013. A number of major political issues were covered by these opinions, which put forward concrete legislative amendments, taken on board in the relevant EP reports. - Relations with the European Parliament: On 3 February, the PES Secretariat invited the S&D Secretariat and assistants in the European Parliament to a session of information on the PES activities within the CoR. On 6 February, Mrs Vitouch attended a round table organised in Strasbourg by Mr Ivan Catalin, European Parliament shadow rapporteur from the S&D Group on the European capitals of Culture. On 6 June, two members of the PES Group, Mr Rossi and Mr Illedits, were invited to intervene in a S&D conference on the Social dimension of the EMU. On 4 October, the PES Group co-organised a conference on the "youth vote" with Mrs Claudette Baldacchino, Maltese MEP. On 16 October, a TV debate on cohesion policy was organised by the PES Group and the S&D Group, with Mr Costa and Mrs Bresso representing the Group at this important event. On 5 December, the PES Group co-organised a conference with the S&D Group on "Roma integration". In addition, throughout the year, MEPs were invited to PES meetings in order to exchange views on topics dealt with by the two institutions. - Relations with the Party of European Socialists (PES) In 2013, the PES Group took part in the meetings of different PES organs and working groups, namely the Coordination Team, the Presidency, the Executive, the Leaders, PES Women, the Youth Employment Working Group, a round table on the European elections 2014 with NGOs, as well as the Working Group on environment, climate change and energy (1st October 2013), in which Neil Swannick represented the PES Group. In addition, the PES Group sent a CoR delegation at the PES Council, which took place in Sofia (Bulgaria) on 21 June 2013. - Relations with the national parties On 20 February, Mr Friedrich represented the PES Group in a conference organised by the Italian PD in Lombardia on the future of Europe. On 25 February, Mr Jensen participated in a debate on renewable energies organised by the Labour Party in Malta. - Relations with the Young European Socialist (YES) Yoomi Renström represented the PES Group in the annual summer camp of the European Young Socialists in July 2013. COR-2014-02183-04-00-NB-REF …/… -7Objective 3: Increase the PES Group's monitoring of CoR administrative and budgetary affairs The participation rate of PES members in the Commission for financial and administrative affairs (CFAA) was 100% in 2013. The three full members participated in all meetings. The same observation can be made for the meetings of the Political Monitoring Group between the European Economic and Social Committee and the Committee of the Regions. This shows clearly the commitment of PES members to budgetary issues and CoR internal management. PES members were also very active in the framework of the negotiations with the European Parliament in view of the signature of the cooperation agreement between the two institutions and the EESC. Concerning the revision of the rules for the reimbursement of travel and meeting expenses, the working group composed by CoR members, staff of the Political Groups and the administration met at several occasions but the final document could not be adopted in 2013. It is expected to be adopted by the Bureau in April 2014. In 2013, PES rapporteurs within CFAA continued the monitoring of the administration in the framework of their specific portfolios. Mr Swietalski followed closely the implementation of the budget on studies, Mr Wilcox finalised the creation of an audit committee in the CoR and Mr Bihary, as rapporteur on multilingualism, participated as much as possible in the negotiations with the European Parliament. Mr Bihary was also a member of the selection panel for the new Director for translation. Objective 4: Development of PES Communication strategy The PES Group has adopted a communication strategy which proposed to slowly move from a paper communication towards and electronic one. One of the major activities which have increased the hits on the PES website is the annual photo competition. Exceptionally, in 2013, for the European Year for citizenship but also in a view of the 2014 European elections, the PES Group has organised a music competition which aims at revisiting the European Anthem. This competition is still on-going. Thanks to these two initiatives, in 2013, there were 61,127 hits on the PES Website , which represents an increase of 70.84 % in comparison to 2012 (35,781). In terms of visitors' groups, the PES Group welcomed around 45 groups which represent approximately 1,250 visitors. Objective 5: Complete the integration of Croatian members within the PES Group and forge links with elected representatives from candidate and applicant countries In 2013, the PES Group was not able to obtain the appropriate rapporteurships for the Croatian members of the PES Group. An effort will be made in 2014 to identify a topic of interest for our new members. Nevertheless, all Croatian members were invited to all PES activities in order to share their experience. COR-2014-02183-04-00-NB-REF …/… -8Human resources of the PES Group Secretariat Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total 2.1.2 AD 7 AST 4 Total 11 7 4 11 EPP Group Objective 1: Reinforce the role and impact of the EPP group As planned in 2013, under the presidency of Michael Schneider, the EPP Group held regular meetings prior to the CoR Bureau (30 January, 7 April, 29 May, 2 July, 10 October and 27 November 2013), Plenary Sessions (31 January, 11 April, 30 May, 3 July, 7 October and 28 November 2013) and CoR Commission meetings so as to prepare the work and coordinate the position of the EPP. The main aim of EPP Group meetings was to discuss topical issues, to adopt common positions on key political issues and to prepare for plenary session debates and votes. In addition, the EPP Group organised the following extraordinary activities dedicated to specific topics: - Group meeting in Dublin, during the Irish Presidency and with the participation of the Irish Prime Minister, and the Minister for European Affairs on "Entrepreneurship and youth employment", 28 February 2013 - Seminar in Kaunas, during the Lithuanian Presidency, on European Energy Security: Towards a future with secure and affordable energy for all", 18 October 2013 - Group meeting on "New paths for the Committee of the Regions' role in the EU", in Brussels on 10 December 2013. EPP CoR members also took active part in CoR seminars, both as speakers or chairing sessions. They participated in other key political debates, such as those with the Commissioners and Council Presidencies during the CoR plenary sessions. The position of EPP CoR members was well articulated also in its own resolutions and declarations, and in the CoR opinions and political resolutions. A total of 31 opinions drafted by EPP rapporteurs were adopted by CoR plenary sessions in 2013. A number of major political issues were covered by these opinions, which put forward concrete legislative amendments, taken on board in the relevant EP reports, ranging from the transport or environmental field, to justice and home affairs, and cohesion policy. Objective 2: Strengthen co-operation with other institutions and EPP Party In order to strengthen the CoR's impact on the EU decision-making process, the EPP Group has reinforced its strategy on the follow-up of opinions as well as on its contacts at inter-institutional level, especially on opinions drafted by its rapporteurs. COR-2014-02183-04-00-NB-REF …/… -9- Relations with the European Parliament: Bilateral meetings were regularly organised between EPP rapporteurs of the CoR and their counterparts in the European Parliament. In addition, throughout the year, MEPs were invited to EPP meetings in order to exchange views on topics dealt with by the two institutions. Particular attention can be drawn to the following: On 19 February 2013, Georgy Gemesi, rapporteur on 'strengthening EU citizens' rights' was invited to speak in the context of the European Parliament hearing on EU citizenship. On 3 June 2013, Michael Schneider took part in the 18th Summit of Chairmen of EPP Parliamentary Groups, dedicated in particular to "the Multiannual Financial Framework and Own Resources". With the TRAN Committee (Transport and Tourism) in the EP, EPP-CoR rapporteurs were invited to deliver their views on Connecting Europe Facility and on the Rail package. On 17 December 2013, a bilateral meeting took place between EPP-CoR President Schneider and EPP-EP President Daul. - Relations with the European People's Party In 2013, the EPP Group took part in the meetings of different EPP organs and working groups, notably the Political Assembly, and the working groups on "European Policy", "Economic and Social Policy" and "Climate Change and Energy". The Group also invited the Party's spokesperson to address its Group meeting in July 2013 on the preparations for the European elections, and to seek cooperation and coordination for the campaign. EPP Vice-President Lucinda Creighton launched jointly with President Schneider the EPP-CoR book of essays on "EU Citizenship in 2020: What role for regions and cities?" on 13 November (see Objective 3). Cooperation is ongoing on a joint Summit of EPP Mayors agreed in 2013, and due to take place ahead of the European elections, in Poznan on 25 April 2014. - Relations with the Young European People's Party (YEPP) and with the European Senior Citizen's Union (ESCU) President Schneider met with the newly elected President of YEPP, Kostantinos Kyranakis, after which the latter was invited to address the EPP-CoR Group meeting on 8 October 2013. The objective is to find new ways of further collaboration and to deepen commitment and involvement of young people, and notably work jointly around the theme 'YEPP goes local'. EPP 1st Vice-President Michel Lebrun attended the VIII Congress of European Senior Citizen's Union (ESCU) on 7 November 2013. Objective 3: Promote and improve visibility of EPP-CoR Members’ work In 2013, the EPP launched a new audio-visual communication project, its "Monthly Horizon" which highlights opinions to be adopted, guests invited to the EPP Group meeting and any relevant highprofile speakers at Plenary. In this way, the EPP Group aims to provide its members and public with a better insight into its work. This adds to the EPP paper newsletter "The REPPorter" which was published in 6 issues in 2013, prior to each of the CoR's plenary sessions. The EPP's activity on the social media was also intensified, notably via its Twitter and Facebook accounts, with 778 followers and 1,130 likes respectively. The EPP website has continued to be updated and relooked to make it more attractive. In terms of visitors' groups, the EPP Group welcomed several groups of elected representatives from the EU and its neighbourhood. COR-2014-02183-04-00-NB-REF …/… - 10 The annual EPP-CoR University for local and regional media was held on 5-7 November 2013, bringing together 65 local and regional media representatives in networking, brainstorming and information activities. This programme is part of the EPP's efforts to support local and regional media in treating European affairs, as well as to profile the work of the CoR and its elected local and regional representatives. Linked to the European Year of Citizens, the EPP also ran an illustration competition from April to July 2013 on the theme of "being a European Citizen: how do you see it", which served to illustrate its published book of essays at the close of the European Year, in November 2013. Covering views from its 30 Masters students participating in the EPP-CoR 2012 Study Visit programme, the book is entitled "EU Citizenship in 2020: What role for regions and cities?". Objective 4: Contribute to the running performance of the CoR, its Administration and budget Under the leadership of the EPP, work on the revision of the CoR Rules of procedure was steered efficiently throughout 2013 (adoption in January 2014 Plenary session). This included improvements for the functioning and political leadership of the CoR, such as changes proposed for a smoother running of work in the Directorate for Consultative Works, the formalisation of the Conference of Presidents as a CoR body, and for increasing transparency and information on decisions taken. In terms of budgetary and administrative matters the EPP has in particular developed a strategic policy orientation for human resources in the CoR – both with a medium and long-term perspective (rapporteur Arnoldas Abramavicius). Under the EPP leadership of the Commission for Financial and Administrative Affairs (CFAA), its recommendations to the Bureau have been secured, and the annual budgetary exercise has run smoothly, included via bilateral meetings with the European Parliament rapporteur. The participation rate of EPP members in CFAA was 100% in 2013. The same observation can be made for the meetings of the Political Monitoring Group between the EESC and the CoR. This shows the clear commitment of EPP members to budgetary issues and to CoR internal management. EPP members have also contributed to the preparation and negotiation of the cooperation agreement with the European Parliament, both in its administrative and political branches, including bilateral meetings with MEPs. Objective 5: Integration of new members in the EPP group and in the work of the CoR In 2013, the EPP Group integrated Croatian members into CoR activities, notably by appointing a member to a Joint Committee with FYROM in which a post had become vacant. The same was the case for several other members who joined the CoR and the EPP in 2013, and were given the possibility to integrate several other CoR bodies under the EPP quota. This includes the Ad-hoc Commission on Budget, the election observation pool, and the contact group with the Congress of the Council of Europe. This will continue to be the trend in 2014, including efforts to also involve new members in the process of drafting opinions. COR-2014-02183-04-00-NB-REF …/… - 11 Human resources of the EPP Group Secretariat Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total 2.1.3 AD 7 AST 4 Total 11 7 4 11 ALDE Group Objective 1: Propose ideas and solutions for Europe, EU legislation, and local and regional democracy Seminars: 15 May ALDE Annual Seminar on “The Absorption of EU funds – opportunities and bottlenecks” in Iaşi, Romania with 2 guest speakers: Daniel Chiţoiu, Deputy Prime Minister of Romania; Maria Grapini, Delegate Minister for SMEs and Business. 30 May Group meeting debate in Brussels on the future Cohesion Policy with 2 invited guest speakers: Kent Johansson, MEP and former President of ALDE-CoR; Jean-Marie Beaupuy, former ALDE coordinator of the EP's Committee on Regional Development. 21 June Extraordinary group meeting in Dresden, Germany with the topic of Business support and economic development with 6 guest speakers: Michael Theurer, MEP and Chair of the Budgetary Control Committee; Peter Nothnagel, Managing Director of the Saxony Economic Development Corporation (Wirtschaftsförderung Sachsen); Dr Dirk Orlamünder, Director General of the Saxon Ministry for Economic Affairs, Labour and Transport; Jan Ilík, Ministerial Counsellor of the Czech Ministry of Transport; Jörg Uhlig, PTV Group; Bernd Sablotny, Director General of the Saxon Ministry for Economic Affairs, Labour and Transport. 7-10 October ALDE Open Doors Seminar entitled "Investing in the future: Meeting Climate & Energy Challenges with innovative Financial Instruments" with 3 speakers: Bogna Filipiuk-Olteanu, Policy Officer, Financial Instruments and International Financial Institutions, DG Regional and Urban Policy, European Commission; Frank Lee, Head of Holding Funds and Advisory, Northern Europe, JESSICA and Investment Funds, European Investment Bank; Alex Conway, European Programmes Director, European Programmes Management Unit, Greater London Authority. 30 November Two Seminars in London: 1. What will Europe look like in 2020? With 2 guest speakers: Kent Johansson, Member of the European Parliament, ITRE ALDE Shadow Rapporteur Horizon 2020 and Joeri De Blauwer, EU 2020 Coordinator, Flanders in Action; 2. Innovative entrepreneurship – "How can we bridge the gender gap?" With 4 invited guest speakers: Birgitta Ohlsson, Minister for European Affairs in the Swedish Goverment; Flo Clucas, President of ALDE Party Gender Equality Network; Silvana Koch- Mehrin, MEP and Isabella Lenarduzzi, Owner and Managing Director of JUMP. COR-2014-02183-04-00-NB-REF …/… - 12 4 December Extraordinary Group Meeting in Brussels with the topics of Subsidiarity in practice: how to determine the right level of government with 4 guest speakers: Françoise Dupuis, President of the Parliament of the Brussels Capital Region; Hilde Vissers, Head of unit of the Service for information and education of the Assembly of the Flemish Community Commission; Britt Lundeberg, Speaker of Aland; Martine Taelman (Group President, Open Vld). Speeches: Between 1 and 3 delivered at each plenary Opinions with ALDE rapporteurs: All approved by CoR plenary Objective 2: Ensure participation of ALDE members in the work of the CoR and provide support for them ahead of statutory meetings The ALDE Group produced briefings for meetings of: ALDE Group, CoR Bureau, CIVEX Commission, NAT Commission, ENVE Commission, COTER Commission, EDUC Commission, ECOS Commission, Plenary Session, CoR Conference of Presidents, Joint Consultative Committees (JCCs) and Working Groups (WGs), ARLEM, CORLEAP, BUDG Commission, Ad Hoc Commission on the Rules of Procedures, and other ad hoc meetings. Objective 3: Help to ensure that the CoR's messages are reflected in the EU legislative process ALDE Rapporteur BAKER, Paula O'DONOGHUE, Paul BEISSEL, Simone O'LOUGHLIN, Fiona TOPE, Graham POTOCNICK, Andreja MARTIKAINEN, Ossi VAN DER SANDE, Rogier DE VEY MESTDAGH, Piet CoR Opinion Shipment of waste Integrated coastal management Long-term Investment Funds Rethinking Education EU Regulatory Fitness Directive on Gender Equality Fund for European Aid for the most deprived A Bioeconomy for Europe Making the internal energy market work No. amendments proposed to EP 3 6 7 12 13 15 18 21 22 ALDE-CoR rapporteurs/coordinators meeting with MEPS COR-2014-02183-04-00-NB-REF …/… - 13 9 January 31 January 19 February 25 February 20 March 27 March 11 April 25 April 25 April 30 May 19 June 16 July 25 June Rogier VAN DER SANDE with Paolo Bartolozzi: A bio economy for Europe. Ossi MARTIKAINEN with Emer Costello and office of Marian Harkin: Fund for European Aid for the most deprived. Andreja POTOCNIK with Cecilia Wikström and Silvana Koch- Mehrin: improving the gender balance. Fiona O'LOUGHLIN with Hannu Takkula's assistant: Rethinking education. Rogier VAN DER SANDE with Riika Manner: A bio economy for Europe. Piet DE VEY MESTDAGH with Claude Thurmes: internal energy market. Piet DE VEY MESTDAGH with Toine Manders, Jens Rohde and Antonio Fernando Correia de Campos: internal energy market. Piet DE VEY MESTDAGH with Jerzy Buzek: internal energy market. Piet DE VEY MESTDAGH with Judith A Merkies: internal energy market. Andreja POTOCNIK with Evelyn Regner: improving gender balance. Paul O'DONOGHUE with Gesine Meissner and assistant of Isabelle Thomas: maritime spatial planning and integrated coastal management. Graham TOPE with Rebecca Taylor: EU Regulatory Fitness. Romeo STAVARACHE with Oldřich Vlasak: Urban-rural partnership. Objective 4: Contribute to organisation of CoR work and efficient running of the Administration ALDE did not exceed the total budgetary amount allocated to it for 2013 and tabled amendments in the revision of the Rules of Procedure to strengthen the role of members within the CoR, and the accountability of Administration. Objective 5: Increase the profile of the CoR towards specifically targeted stakeholders Events: 5 February – IInd edition of meeting with liberal councillors from Brussels communes. Lower turnout than anticipated: the time selected clashed with agendas of Brussels councillors. 4 December – IIIrd edition of LeaDeRs Awards successfully organised. Higher rate of budget execution achieved. Lower number of nominations due to higher number of election campaigns and party congresses. Publications/Newspaper articles 4 issues of ALDE newsletter; press releases after every plenary session Human resources of the ALDE Group Secretariat Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total COR-2014-02183-04-00-NB-REF AD 4 AST 2 Total 6 4 2 6 …/… - 14 2.1.4 EA Group Objective 1: Enhance the Political Identity of the European Alliance group and of the CoR in EU institutions, Regional and Local Authorities and Political Groups And Objective 2: Achieve goals as defined by the EA group, organise group meetings, achieve 'rapporteur' positions in key policy areas In order to enhance the groups positioning and identity the EA group organised a number of high profile events including: EA Group meeting: Developing EU Policies for the Sustainability of Rural Areas On 30 September 2013 the EA group, on the invitation of Mr Povilas Žagunis, Mayor of Panevėžys district municipality in Lithuania, held a very successful meeting whose central topic was the European policy towards the sustainability of rural areas. This included a very informative study visit and the press coverage of the event was excellent including media coverage in particular the main national news. The Panevėžys declarationwas agreed and widely circulated in the EU institutions. EA Bureau Study Visit: The workings of local and city administrations of Flanders and its EU priorities, Mechelen On the invitation of Mr Marc Hendrickx, EA member and 1st 'schepen' (alderman) of Mechelen, EA bureau members participated in a 'study' visit to discuss the workings of local and city administrations in Flanders and its EU priorities. The event took place the day before the CoR bureau meeting on 9 April. This meeting gave a very interesting insight and understanding of City administrations in Flanders and the EU. Open days' workshop: "Creative tourism development: creating jobs across Europe's regions". The European Alliance group hosted a 'full house' workshop on creating jobs through creative tourism on 8 October during this 2013 'Open Days for Regions and Cities'. This included speakers from the European Commission and from different regions across Europe. EA Bureau Study Visit: National Assembly for Wales On 9 December members of the European Alliance group bureau held a series of meetings in the National Assembly for Wales. The meeting focused on the work of the Assembly in EU policies. Members also met with representatives of Plaid Cymru and discussed the priorities of Plaid Cymru vis-à-vis the European Union. The delegation held meetings with the Deputy Presiding Officer and members of the Constitutional and Legislative Committee as well as a cross party delegation to discuss Wales and the European Union. The meetings were held upon an invitation of Assembly Member Rhodri Glyn Thomas. In 2013 the EA Group held its regular meetings alongside the CoR Bureau, plenary sessions and CoR commissions. The EA group organised the following projects under the Political and Information budget (budget line 264: 99.7% of budget allocated used): EA / CoR Secondary Schools Competition 2013 COR-2014-02183-04-00-NB-REF …/… - 15 Once again the EA Group held a very successful Secondary Schools competition where 24 students, 12 teachers/parents and 6 journalists took part on the two-day event in Brussels from 2 to 4 July 2013. The organisation of the competition went as originally planned. Primary Schools Art Competition 2013 'My Region, My Traditions' The 2013 theme focussed on “My region, My traditions” and aimed at introducing the European Union and its cultural diversity to children through drawing and to tackle themes like cultural diversity, regional identity, European traditions, geography and history. Art included Music, Dance, Folklore, Food, Culture and Sport, as well as other traditions seen through the eyes of the children. The winning artworks were converted into postcards as well as exhibited in the Committee of the Regions. Objective 3: Ensure members are fully briefed on issues of importance to them in the context of CoR work; ensure that members have the opportunity to fully participate and influence the decision making process. Link with European Alliance Group political priorities. Members of the EA group were active in contributing to CoR / EU policy development and undertook the following opinions in 2013: Plenary date 2013 Subject 31 January – 1 Creating greater synergies between EU, February 2013 national and subnational budgets Blue growth: opportunities for marine and maritime sustainable growth 11-12 April 2013 Synergies between private investment and public funding at local and regional levels 3-4 July 2013 Clean power for transport 7-9 October 2013 Sustainability of rural areas Long-term financing of the EU economy perspective on shale/tight gas and oil (unconventional hydrocarbons) European Strategy on Plastic Waste in the Environment 28-29 November State aid for fisheries and aquaculture 2013 EA Rapporteur Rhodri Glyn Thomas, AM Adam Banaszak Rhodri Glyn Thomas, AM Saima Kalev Jerzy Zająkała Uno Silberg Brian Meaney Linda Gillham Rhodri Glyn Thomas Objective 4: Increase the profile of the Institution among specifically targeted stakeholders. Link with European Alliance Group political priorities. EA group members regularly participated as speakers at high-profile EU events organised by the European Commission, European Parliament and Council meetings in 2013. A full list is available from the secretariat. The EA group members also increased the number of meetings with the European Commission and the European Parliament given the increased number of opinions and events by the group and its members. COR-2014-02183-04-00-NB-REF …/… - 16 o Publications and Internet Newsletters were published on 5 occasions over the year, generally just before each plenary session. One special edition newsletter was also published. EA members had numerous articles published in the European Parliament magazine and the Regional Review. The EA Group is a regular contributor to the CoR's magazine. 2013 was a very successful year as regards press articles in newspapers, radio and TV coverage. The website was updated on a weekly basis. Human resources of the EA Group Secretariat Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total 2.1.5 AD 2 AST 2 Total 4 2 2 4 ECR Group The CoR European Conservatives and Reformists (ECR) Group was formed in April 2013 when the CoR President was officially notified in line with the Rules of Procedure. The Group has been establishing itself. Its political activities and its use of resources were yet limitedin 2013. Human resources of the ECR Group Secretariat Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total AD AST 1 Total 1 1 1 2 1 1 2.2 Directorate for Consultative Works (DCW) Objective 1: Provide timely and clearly defined support for the work of all CoR rapporteurs and other CoR commissions members DCW was responsible for preparing 73 opinions, providing 68 policy analyses for opinions; organising 28 Stakeholder consultations for rapporteurs; writing 278 briefings and memos for rapporteurs and other members and organising in total 37 events. All those activities were carried out in due time. Many briefings and memos needed to be prepared within a very short timeframe, and DCW coped with this pressure very well. In total, the DCW produced 359 briefings, speeches and notes (177 for the President, 67 for the Secretary General and 115 other notes and speeches). COR-2014-02183-04-00-NB-REF …/… - 17 Objective 2: Provide smooth organisation of all commission meetings and other events including CORLEAP as one of the thematic priorities, ensuring that members receive relevant information in time and are informed of the results of these meetings In 2013, all 39 meetings of the standing commissions, ad-hoc commissions, Joint Consultative Committees (JCCs), Working Groups (WGs) and CORLEAP were properly organised and no issues were reported. DCW is responsible for ensuring that all documents are submitted to members within the deadlines set by the Rules of Procedures, for enabling members to discuss and for reporting on and analysing the discussions. Objective 3: Contribute to the smooth running of CoR Plenary Sessions The objective was implemented successfully: for all opinions DCW prepared voting guidelines and harmonised them further. All preparatory meetings with the Secretary General were organised to prepare well for Plenary debates. Objective 4: Establish coherent procedures for follow-up activities for all opinions and impact evaluation for all policy areas DCW concentrated on enhancing the usability of the political planning documents for each opinion: the Rolling Planning Charts (RPC). The charts are published on the DCW team site with specific access rights for everyone in the CoR. DCW created 73 RPC's; i.e. one for each opinion. The quality of the charts remains high throughout and is being used in the creation of the Annual Impact Report 2013 as well as the present report. Objective 5: Further increase involvement of European Parliament and the Council in activities related to CoR opinions DCW continued to involve the other institutions in its work. The involvement ranged from meetings to seminars and representing the CoR's President in the various events. The indicators' value is as follows: 24 participations of MEPs in CoR commission meetings (the target was 30), 16 participations of CoR members in EP committee meetings (the target was 5), 53 bilateral meetings between CoR and EP rapporteurs (the target was 20), 15 bilateral meetings between CoR and Council representatives (the target was 5). These figures show a slight increase in comparison to last year; it is a good sign that more than 100 exchanges took place between CoR members and political representatives of other Institutions. Objectives by Service: Unit C1 (Coordination of Consultative Works, Follow-up of opinions, Structured Dialogue and Stakeholder Consultations) Unit C1 has continued to improve the reporting of the follow-up of opinions, which has the highest priority for the DCW and the CoR as a whole. The use of Planning Charts in commission secretariats and the preparation of follow-up documents in commission meetings have been further developed. Follow-up documents are presented in every commission meeting for information to members, COR-2014-02183-04-00-NB-REF …/… - 18 showing the most recent interinstitutional development related to CoR opinions. During the last quarter of 2013, C1 concentrated on the definition and kick-off of a web-based planning tool for opinions. Pending IT Steering Committee decisions, this may be rolled out during 2014. Moreover, C1 has also worked on a new concept for Stakeholder consultations which will come into effect in 2014. This new concept is aimed at giving more precise and more targeted support to rapporteurs. There were no Structured Dialogues in 2013, because all planned events had to be cancelled due to the unavailability of either the CoR representative or the European Commissioner. Unit C2 (NAT and ENVE commissions) The NAT Commission organised a number of high-level events related to its remits: - Spring study visit in the Netherlands, on how innovation transforms European landscapes - External meeting in Kaunas, on rural development - Workshop with DG ENTR on coastal and maritime tourism - Workshop on aquaculture during the Open Days - Joint EP event on the milk market - Co-organised conference "The EU and its rural areas: a cumbersome legacy in the 21st century? European policies for rural areas, keys to the 21st century" Mr. René Souchon (FR/PES), chair of the NAT commission was appointed as a CoR representative in the High Level Steering Board for the agricultural EIP to present the CoR views on the matter. The ENVE commission continued to work on the CoR's involvement in the UN negotiations on climate change: CoR Vice-President Mrs Bresso and Rapporteur Neil Swannick attended the 19th Conference of the Parties of the United Nations Framework Convention on Climate Change (COP19 UNFCCC), both as speakers. The ENVE secretariat also organised the participation of CoR representatives in various conferences and meetings. Rapporteur Ilmar Reepalu participated in the meeting of the jury for the European Green Capital Award 2015. ENVE co-organised with the European Commission 2 sessions of EU Green Week 2014, as part of the 1st meeting of the CoR/EC Technical Platform for co-operation on the Environment, and one workshop at OPEN DAYS 2014, as the 2nd meeting of the CoR/EC Technical Platform for co-operation on the Environment. Unit C3 (ECOS, COTER, BUDG) The BUDG commission has successfully elaborated for the first time an opinion on the annual EU Budget procedure with the opinion on the 2014 EU Budget, which will be followed up in 2014 by an opinion on the 2015 EU budget. For the new multiannual financial framework (MFF) 2014-2020, concluded in June 2013, the CoR succeeded in conveying a number of key political messages. The COTER commission concentrated its work on the Cohesion policy package 2014-2020, including a joint meeting with the EP REGI Committee on "Cohesion policy 2014-2020 – From programming to implementation, main challenges ahead" on 17 December. An external seminar on "European territorial cooperation as a driver of regional development" was held on 19 April 2013 in Porto (Portugal). Another focus was on transport policy, in particular the 4th railway package and the future EU ports policy, on which an external event on "The contribution of European ports to the COR-2014-02183-04-00-NB-REF …/… - 19 implementation of the Europe 2020 strategy" was held on 11 and 12 July 2013 in Dunkerque (France), with the participation of two Ministers from France and Belgium, as speakers. The ECOS commission continued its close cooperation with the European Parliament giving a particular focus to legislative dossiers. ECOS commission organised a seminar on Competitive and sustainable automotive industry in the regions, which was held in Graz (Austria), 28 June 2013, with participation of two MEPSs. The EER secretariat of CoR continued and deepened its partnership with the European Commission and EU level stakeholders such as UEAPME, Eurochambres and Social Economy Europe. The ECOS Commission Chair and other ECOS members were also active in the CoR Open Days as well as six out of seven CoR flagship conferences related to the Europe 2020 strategy and its midterm review. Finally, the ECOS commission also maintained its active involvement in the high-level group Cars 2020 (the follow-up to the high-level group Cars 21) by systematically providing input via the working groups, the Sherpa meetings and the biannual meetings of the high-level group. Unit C4 (EDUC, CIVEX, Working Groups, Joint Consultative Commmittees) The EDUC commission organised various events and conferences: - Study visit with the Joint Research Centre on innovation, Sevilla (Spain), 25 October 2013, - Conference "Pioneering Europe 2020 Smart Regions" in Espoo (Finland) on 26 April 2013 - Participation of the EDUC chair in the LT Presidency conference "Ready for Tomorrow? Culture as an Agent for Social and Economic Transformation" (Vilnius, 1 October), and in the Commission/JRC High Level Roundtable on "Promoting European CCIs for the benefit of the wider society" (Brussels, 24 October). The EDUC commission and its members participated and substantially contributed to the series of CoR Conferences on the Europe 2020 strategy and its flagship initiatives organised in view of the next mid-term review of the Europe 2020 strategy. The CIVEX commission prioritized the 2013 as the European Year for Citizens, through 3 opinions, the opening conference on 22 January 2013 and EP hearing on 19 February 2013, and also through the continued cooperation with the Fundamental Rights Agency (FRA), e.g. the annual dialogue on fundamental rights within a CIVEX meeting and the participation in the FRA annual conference. Another focus was on the division of powers within the EU, devolution, decentralisation and fiscal decentralisation, with major opinions and also the launch of a CoR website on the division of powers, providing a snap-shot of the articulation of competences at national and subnational (local and regional) levels in EU-28 and the enlargement countries. The results of a corresponding study were extensively used in the debate of internal and external EU policies with CORLEAP (one of the three priority areas for activity in 2013 and the subject of a conference organised in May 2013) and the WGs and JCCs (JCC Montenegro devoted a session of its meeting of 4 December 2013 to this topic). Within the area of election observation the CoR sent 3 members to the elections of the Assembly of Aldermen of the City of Yerevan in May 2013 and 4 members participated in the election observation mission together with the Congress in the Former Yugoslav Republic of Macedonia (FYROM). COR-2014-02183-04-00-NB-REF …/… - 20 Since one of the objectives was to create more synergies between the various activities in the enlargement area, rapporteurs of the Congress took part in Civex meetings. In addition, the work of the JCCs and WGs was presented and debated in Civex, thus preparing the annual enlargement opinion. Within the Turkish process of a constitutional reform, the WG on Turkey debated in Yenimahalle district of Ankara the "Decentralisation process" in Turkey. The WG on the Western Balkans organised two meetings. The first one was in June in Novi Sad (Serbia) on the positioning of Serbian local authorities, supporting subnational government in the candidature process, focussing on the role of cities and regions in promoting human rights and the protection of minorities. The second meeting of the WG in Brussels presented model of subnational cooperation formats in EU affairs to Bosnian counterparts. The JCC with FYROM organised a meeting in Brussels focussing on "the experience of local and regional authorities in the EU countries in using structural and cohesion funds: transposing lessons to the Pre-Accession funds". The JCC with Montenegro had two meetings which discussed respectively the topic of environmental protection, with a focus on waste management at the local level, and fiscal decentralisation. The JCC members also adopted a joint report on "Increasing absorption capacity of EU pre-Accession funds and improving administrative capacity at the local level in Montenegro". CORLEAP had developed an action plan 2012-2013 with the aim to have an impact on the Vilnius Summit 2013 of Heads of State and Government of the European Union and the EAP, an objective which has been fully met. CORLEAP has developed a close cooperation with its partners, the Congress, Euronest and the Civil Society Forum. Human resources of Directorate C Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total AD 31 AST 19 2 33 Total 50 0 2 19 52 2.3 Directorate for Horizontal Policies and Networks (Dir E) Objective 1: Supporting the implementation of the political priorities of the mandate in a proactive and forwards looking way Unit E1 ("Forward Planning, Studies and Academic Networks") developed, co-ordinated and updated the 11 existing strategic planning timelines that feed into the discussions of the in-house InterService Group (ISG). Unit E1 fully executed the budget allocated for studies to support CoR consultative activities and networks (376,225.04 €). Two calls for tenders for multiple framework contracts were completed. 20 specific contracts/order forms were signed to support the activities of COR-2014-02183-04-00-NB-REF …/… - 21 the CoR commissions/networks/bodies and the completed studies were published on the CoR website. The unit commissioned two prospective reports on the Europe 2020 Mid-term review process and three foresight analyses on the CoR's future at the horizon 2025 in preparation of the CoR's 20th anniversary and coordinated the CoR secretariat contributions to the debates preparing the President's report and CoR resolution on the CoR's 20th anniversary. Unit E1 organised a "Multilevel Governance Monitoring Working Group", set of MLG Fact Sheets and a compilation of MLG Best Practices which were communicated to the Commission services. The CoR Europe 2020 monitoring platform team in Unit E2 ("Subsidiarity Network, Europe 2020 Platform, Covenant of Mayors, European Grouping of Territorial Cooperation") has been involved with regard to the Europe 2020 mid-term-assessment in contributing to 7 flagship initiative conferences, surveys; several workshops and a broad consultation with more than 1,000 respondents and several external studies. This resulted in 2013 in a Bureau Declaration on the AGS and the 4th Monitoring Report on Europe 2020, as well as the 2013 Territorial Dialogue with Council President van Rompuy and Commissioner Hahn and the study on the Regional Performance Indicator. The subsidiarity monitoring team has undertaken several consultations of the network and the expert group, and compiled relevant reports. It has analysed all CoR opinions systematically against the obligation of references to the subsidiarity principle, and has proposed several amendments on subsidiarity concerns. In December, the CoR organised the 6th Subsidiarity Conference in Berlin. On Impact Assessment (IA) the unit organised several workshops and organised the first pilot territorial IA workshop in association with ESPON. The EGTC Platform has provided evidence about the cross-border dimension in selected opinions, and actively participated in an external CIVEX seminar. It has also co-organised a seminar on the participation of citizens of border regions in operational programmes and has commissioned a study for the ‘EGTC Monitoring Report 2012’. Mid 2013, the EER responsibility was transferred from Directorate C (ECOS Secretariat) to the unit and key activities included the organisation of a workshop during the Open Days, the facilitation of networking activities among awarded EER regions, and the launch of the EER 2015 edition at the SME Assembly in Vilnius in November. In the course of 2013, the Euro-Mediterranean Regional and Local Assembly (ARLEM) coordinated by unit E3 ("ARLEM, Decentralised cooperation, Contact group with Council of Europe") held one Plenary Session and, one Bureau meeting in Brussels and an enlarged Bureau meeting in Barcelona, Spain, two SUDEV commission meetings in Brussels and in Bethlehem, Palestine, and one ECOTER commission meeting in Rabat, Morocco. ARLEM prepared the annual report on the territorial dimension of the Union for the Mediterranean, a thematic report on sustainable urban mobility and a thematic report on a cohesion policy for the Mediterranean. The ARLEM secretariat continued work on a pilot project to be proposed for labelling to the UfM which focuses on capacity building in urban development. The ARLEM secretariat has also commissioned a study to prepare a map of the process of decentralisation and regionalisation in the countries to the East and South of the Mediterranean. On 9-10 April 2013, the CoR organised together with the European Commission the Third Assises of Decentralised Cooperation for Development. An OPEN DAYS workshop with the participation of the EC, UNDP and UN Habitat was organised to highlight the role of local and regional authorities in the post-2015 global development agenda. During the European Development Days, the CoR coCOR-2014-02183-04-00-NB-REF …/… - 22 organised two workshops on the post-2015 development agenda. The European Portal of Decentralised Cooperation was promoted at various stakeholders, including at ARLEM and CORLEAP meetings. Objective 2: Coordinate and strengthen the inter-institutional relations of the CoR Unit E1 ("Forward Planning, Studies and Academic Networks") supported the cooperation with the Lithuanian and Hellenic Presidencies. It organised preparatory meetings and produced analyses, policy documents and speeches on inter-institutional issues. The unit established cooperation with the OECD and the EIB in sub-national finances and financial instruments and multilevel governance monitoring. The Unit facilitated the participation of the CoR in ESAC (European Statistical Advisory Committee) and participated in the annual Eurostat Working Party on regional statistics and also published a monthly statistical bulletin. In Unit E2 ("Subsidiarity Network, Europe 2020 Platform, Covenant of Mayors, European Grouping of Territorial Cooperation"), the CoR Europe 2020 monitoring platform team engaged in substantial contacts and exchanges with the Council, Parliament and Commission, as well as with all territorial associations and sectorial associations, key experts and think tanks working on Europe 2020. Contacts were especially strengthened with the European Commission and the European Parliament on impact assessment and subsidiarity aspects of EU initiatives, including in the prelegislative phase. The CoR has been invited to three trilogues on the EGTC Regulation revision. The EGTC platform team has successfully managed the EGTC Register, included 10 new EGTCs in the Register in 2013, and notified new groupings to the EU institutions. Cooperation with DG Enlargement continued via the inclusion of EGTCs in most of the TAIEX-LAF workshops held at the CoR. As part of the work of Unit E3 ("ARLEM, Decentralised cooperation, Contact group with Council of Europe"), ARLEM has further strengthened its relations with the Union for the Mediterranean (UfM), through the signing of a Declaration of Intent in 2013. In various UfM Ministerial Conferences, ARLEM members presented the views of local and regional authorities on strengthening the Role of Women in Society, Transport and Energy. The Parliamentary Assembly of the UfM (PA-UfM) granted ARLEM observer status and a rapporteur of a PA-UfM commission took part in an ARLEM meeting in 2013. At its 2013 plenary session, ARLEM granted observer status to the EESC. In May 2013, the CoR supported the organisation of the international donors conference for Mali set up by the EC and the EEAS. The inter-institutional relations of the CoR with the international organisations were strengthened through the renewal of the Memorandum of Understanding with UN Habitat in October 2013, in view of co-operation prospects regarding the Third United Nations Conference on Housing and Sustainable Urban Development in 2016. The CoR also signed a Memorandum of Understanding with the Council of Local Communities of the West African Economic and Monetary Union (CCT-UEMOA) in April 2013. In May 2013, the Presidents of the CoR and the Congress of Local and Regional authorities met to set political guidelines and thematic priorities and the Contact Group held one meeting in December 2013 in Paris. The process of establishing the Network of Local and Regional Authorities for Integration was re-launched and the CoR contributed to the European Forum on Integration held in November 2013. COR-2014-02183-04-00-NB-REF …/… - 23 Objective 3: Foster the co-operation and communication with local and regional authorities and other partners As part of its cooperation with Academia and Think Tanks, Unit E1 organised 5 seminars (2 in the framework of the Open Days) and networking events, featuring approximately 20 speakers, including 6 CoR members and representatives from the rest of the EU institutions. The Unit also contributed to strengthening the partnership with Chinese LRAs via the EU-China Mayors' Forum and Regional Dialogue (held in Beijing). Unit E2 carried out targeted consultations on each of the Europe 2020 Flagship conferences; it also conducted a consultation and prepared a report on the participation of local/regional authorities in Partnership Agreements and in the NRPs. The unit provided support to the promotion of the Covenant of Mayors and carried out several consultations involving its subsidiarity monitoring network, its REGPEX members and the Subsidiarity Expert Group. The EGTC Platform deepened its cooperation with target associations and other entities. In October, the CoR launched a bi-annual EGTC award. In 2013 Unit E3 was responsible that ARLEM enhanced its communication tools by publishing the bilingual ARLEM newsletter. The ARLEM co-president held bilateral talks with the Association of Local Authorities of Israel (Tel Aviv, June 2013) and several local authorities in Palestine (West Bank, June 2013). ARLEM convened a meeting with European territorial associations and in November 2013, ARLEM members participated in the high-level Covenant of Mayors Forum in Istanbul and in Dunkirk France. The Third Assises of Decentralised Cooperation was carried out based on an efficient and fruitful cooperation with the DG DEVCO, with territorial associations, think tanks and other stakeholders. For the preparation of the contribution to the European Development Days 2015, the CoR closely co-operated both with UNDP and the Diputació de Barcelona. The European Portal of Decentralised Cooperation was promoted to various stakeholders, including at ARLEM and CORLEAP meetings. Objective 4: Increase the efficiency of the CoR administration by improving internal governance, co-ordination, co-operation, IT solutions and human resource development Together with the DCW and the SG Cabinet, Unit E1 implemented the CoR roadmap on the preparation of the CoR contribution to the EC annual Work programme. It coordinated the drafting of the CoR July resolution on the upcoming 2013 EC Work Programme and the Directorate's contribution to the CoR November resolution on the CoR priorities for 2014 in view on the 2014 EC Work Programme. Unit E2 has strengthened the co-operation with the Europe 2020 Steering Committee and the Subsidiarity Steering Group. 2013 has been the most intensive year of exchange and cooperation with the political coordinators and CoR members, based on substantial in-depth policy discussions, participation in events and joint communication measures towards the EU institutions. The websites of the EGTC Platform, REGPEX, and Europe 2020 were revised and the EGTC Platform has been active in social networks. Unit E3 with regard to ARLEM is in constant contact with other units and directorates within the CoR working on European Neighbourhood Policy and regularly updates the political groups on its COR-2014-02183-04-00-NB-REF …/… - 24 work. ARLEM Secretariat has drawn up a Vademecum of its procedures and clarification of tasks distribution and synergies between the different sectors of activities in the Directorate. An enhanced version of the European Portal of Decentralised Cooperation was prepared. Human resources of Directorate E Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total AD 24 AST 12 2 2 26 Total 36 2 2 14 40 2.4 Directorate for Registry and Services to Members (Dir B) Objective 1: To contribute actively to the accession of Croatia by adapting the Rules of Procedure to the future functioning of the constituent bodies of the CoR In 2013, Directorate B took the necessary steps to adapt the CoR's Rules of Procedure to the accession of Croatia to the EU and to update its linguistic policy as from July 1 st, 2013 (integration of Croatian into operational workflows, update of the language rotation system, assessment of the capacity of interpretation booths in all external meetings rooms at the EP and EC). Moreover, beyond the scope of the above-mentioned enlargement, the Directorate continued to advise members on the useful changes to be incorporated into the Rules of Procedure (new procedures regarding the follow-up of opinions, the impact of opinions, positions in the form of a letter, tabling and processing amendments, etc.) in order to improve the functioning of the Committee's bodies, to clarify and to specify the applicable legal provisions. Objective 2: To avoid legal difficulties, complaints and disputes and, if not possible, to provide an appropriate solution and Objective 3: To strengthen synergies on legal issues and to improve visibility on legal matters The Legal Service fulfilled all the 2013 objectives in terms of advising CoR authorities, preparing decisions and regulations and defending the institutions in trials in front of the Courts. The Legal Service continued to advise CoR members, management and staff on a wide range of legal matters, thereby contributing to the positive results achieved by other services. The Legal Service has dealt with 361 consultations, most of which related to EU legislation, political issues, cooperation with EU institutions and other bodies and entities, calls for tenders, contracts, data protection issues and staff matters. In terms of the number of consultations received, this represents a decrease of 9.75% compared to 2012, balanced by the increased complexity of the matters dealt with (macroeconomic conditionality in cohesion funds; ad hoc commission for the revision of the rules of procedure; disputed claims; selection procedure for the staff; etc.). COR-2014-02183-04-00-NB-REF …/… - 25 Objective 4: To provide adequate and efficient internal services (transportation of goods or persons, distribution of internal and external mails, taking charge of visitors) The Internal Services Department finalised the rationalisation of distribution methods for mail (the "Pigeonholes" project extended to the remaining parts of the JDE building), searched for the best synergies between all sectors (ushers' job descriptions revised) and reorganised the department accordingly (new organisation chart as from 15 January 2014). The replacement of service cars was done according to the service needs and in the framework of the CoR EMAS certification policy. The management of reception desk at the JDE building has proven to be very difficult due to budget and human resources cuts. This issue will represent a major risk in 2014 as it will be impossible to provide the usual level of service to Members and visitors. Objective 5: To provide all the technical, financial and logistical resources necessary for the organisation of meetings and other events according to the CoR strategic planning in and outside Brussels, including interpretation services following the CoR Linguistic Policy The Meetings Service provided a regular and efficient level of service with 4,025 meetings organised in 2013, out of which 20% of meetings with interpretation, 6 Plenary Sessions, 360 meetings outside Brussels, 22 missions for Meetings Ushers and about 9,500 incoming emails handled by the coordination sector. A new inter institutional agreement (SLA) has been signed with the SCIC allowing for more flexible deadlines for interpretation requests. Therefore, the unused rate of the interpretation services requested during 2013 has decreased to 2.51% (from 3.23% in 2012), which totalled 185 slots of net cancellation2. Due to the fact that the call for tender for a new maintenance contract for audio-visual installations was unsuccessful, the Meetings Service had to adapt its Maintenance Strategy by conducting smaller projects in cooperation with the EESC (Modero, webstreaming and streaming solutions, etc.). A new Decision of the Secretary General on catering and drinks for internal meetings has led to a significant reduction of costs (- 20% of consumption in 2013 compared to 2012). The Internal services department has been closely involved in the Intranet and Sharepoint projects with the aim to developing a transport and meetings request management tool and a central activitybased planning tool, as well as a team site taking daily mobility of staff into account. Objective 6: To plan, organise and manage Bureau meetings and Plenary Sessions in accordance with CoR political priorities in respect of the EU institutional calendar and the CoR Strategic EU Calendar During 2013, the Registry unit organised 6 Bureau meetings in Brussels, 2 external Bureau meetings (in Dublin (IE) and in Vilnius (LT)) and 6 Plenary Sessions. The unit also contributed to the organisation of the OPEN DAYS opening session and launched the preparations for the 6th Summit of Europe's Regions and Cities in Athens in 2014. 2 These figures do not include the interpretation services provided by the EP in November and December 2013 COR-2014-02183-04-00-NB-REF …/… - 26 The online electronic registration system for Bureau meetings and Plenary Sessions has continued to be effectively used in 2013, thus avoiding problems caused by traditional means of transmission of attendance forms. Objective 7: To contribute actively to the implementation of the CoR Improvement Plan within the remit of the Directorate, providing interservices coordination and cooperation With regard to the promotion of videoconferencing facilities (Lync Project), Directorate B purchased the hardware for the President's Cabinet and drafted a strategy for the future. Objective 8: To render an efficient service to the Members with an expedient and correct flow of information concerning CoR activities and concerning their rights, obligations and the working procedures of the Committee During 2013, the Registry handled 78 new nominations and 73 changes of mandate, out of which 34 resignations, 34 losses of mandate, and 5 cases involving a "swap" of mandates (from full Member to alternate Member and vice versa). In 2013, the Registry also started sending out "thank you" letters to all the outgoing members that either resigned or lost their mandate throughout the year. The Registry was also responsible for issuing 54 new laissez-passer to the CoR members and actively participated in the inter-institutional working group for the establishment of the future secured laissez-passer. It also established the meetings calendar for 2014. Following consultations with other CoR services, the Registry updated and redrafted the Handbook for Members taking into account the latest improvements to the CoR's works. The Handbook was translated into all EU languages and a new graphic design was created for this latest edition of the document. It was largely distributed at the October plenary session and at the same time made available in electronic version on Members' Portal. Objective 9: To oversee the preparation and production of the documents related to the plenary sessions and Bureau meetings, to provide for their quality control and assess an adequate follow-up In 2013, the Registry aimed at offering Members increased and easier access to documents. The use of electronic distribution of documents was reinforced, thus considerably minimising paper consumption in an eco-management (EMAS) spirit. The Unit handled 395 documents which were translated and then made available online to CoR Members, in all the EU official languages (except Irish), both on TOAD and on the Members' portal. At the six Plenary Sessions held in 2013, 80 documents were adopted, out of which 73 opinions and 7 resolutions. At the end of each Bureau meeting and Plenary Session, a follow-up to the main decisions of the Bureau, a summary of decisions and a set of minutes were drawn up. The Unit formally dispatched the opinions and resolutions adopted at the various Plenary Sessions to the EU institutions and other concerned authorities. Finally, the Registry ensured the publication of the documents adopted by the CoR in the Official Journal. In the field of coordination of translation, the Registry finished the inventory of all the types of documents sent to translation and on the basis of this inventory a set of proposals was presented to and accepted by the CoR Bureau in order to rationalise translation requests and reduce the workload of translation services. Further measures were examined for the standardisation of some types of COR-2014-02183-04-00-NB-REF …/… - 27 standard documents. Due to these measures, the role of the contact point verifying compliance with the rules has become essential for the efficient management of translation requests. Objective 10: To professionally assist the national delegations, the interregional groups and other representatives of Europe's local and regional authorities and to facilitate cooperation with regional offices in Brussels In 2013, the Registry organised 8 meetings with the national coordinators and a meeting between the CoR President and the Presidents of national delegations (November 2013). The Registry updated the database of regional or local representation offices in Brussels, as well as the list of offices published on the CoR website. The Registry also organised 6 preparatory meetings with the regional offices, one before each Plenary Session. The Registry also assisted the secretariats of the 10 CoR's interregional groups and ensured that meeting rooms and, when possible interpretation (14 times), were available for the 17 interregional groups meetings which took place on the CoR premises during 2013. In 2013, the Registry continued to keep up-to-date the calendar of local and regional elections to be held in the European Union in the coming years. Objective 11: To establish the CoR Documentation Centre In 2013, a draft project for the creation of the CoR Documentation Centre has been communicated to the Secretary General. The Documentation Centre would be dedicated to local and regional issues as well as multilevel governance issues and would offer the CoR members and the European citizens a wide range of documentation on the matter (specialised books and magazines but also archives). The first steps of this project have been taken at the end of the year. The staff of the CoR’s library and archives services moved together to the same space in order to enable a better cooperation in the framework of the new Documentation Centre. The Intranet and Internet websites of the Documentation Centre have been created and online access to the collections of the Centre has been implemented. The implementation of the project will continue in 2014 with the aim of creating a network with libraries of the European institutions but also at local and regional level. Objective 12: ICT strategy for the CoR and coordinate the planning and execution of ICT developments, supporting the efficiency of political and administrative activities at the CoR In 2013, 2 meetings of the ICT Steering Committee took place, the first one in June to assess the midterm progress of the ongoing IT projects, and the second one in November to take stock of the IT work completed in 2013 and to agree on the IT priorities for 2014. The end of 2013 was marked by the launch of the new CoR Intranet site (myCor). The project has been taken up by Directorate B in the beginning of 2013 as an additional task to its responsibilities. The new intranet, long-awaited since several years, was delivered to the staff in due time and in respect of the CoR's planning, budget and needs. MyCoR is widely recognized as a good product replacing the old intranet and it contributes to improve day-to-day work and internal communication. In the communications area, website development has continued in 2013 with a special focus on Members' visibility and follow-up of opinions. Along with the coordination of the ongoing IT work, the Registry was involved in the dialogue with the Joint Services about the revision of the IT governance, partly triggered by the conclusions of the audit on IT performance. The aim in 2014 is to COR-2014-02183-04-00-NB-REF …/… - 28 present a proposal for a revised governance structure, with re-defined procedures for planning and reporting, and to make progress concerning the consolidation of a multiannual ICT strategy. Objective 13: To implement a revised regulation on the refund of meeting and travel expenses of members and other categories of participants to CoR activities and meetings In 2013, Directorate for Registry and Services to Members worked on draft proposals for the revision of the regulations concerning the reimbursement of travel costs and the payment of flat-rate allowances for members and alternate members, for experts of rapporteurs and guest speakers and for other contributors to the CoR activities. The proposals have been presented to the CFAA Members during their meeting of 22 January 2014 and are expected to be adopted during the CFAA meeting of 19 March 2014. Objective 14: To implement a paperless reimbursement system for the refund of travel and meeting expenses of members and other participants In 2013, the Financial cell successfully tested the new paperless system for the reimbursement of Members attending the CFAA meeting of September 2013. The new system was also positively tested by the central financial verification unit at the end of 2013. Further steps will be taken in 2014 to ensure the progressive implementation of the paperless system in the first three months of 2014 and the full implementation of the paperless reimbursement of Members from the adoption of the new regulation on the reimbursement of Members on. Objective 15: To install and implement a budgetary monitoring tool in AGORA Due to the workload of the IT service, this objective has been delayed. The first steps to develop the monitoring tool have been taken in December 2013 through a meeting between Directorate B and the IT development team. A working group has been setup and the aim is to ensure the implementation of the tool before the start of the book year 2015. Human resources of Directorate B Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total AD 15 AST 34 12 Total 49 12 1 1 46 63 1 16 2.5 Directorate for Communication, Press and Events (Dir D) Objective 1: Support CoR and its members in the media - Promotion via audio-visual channels Around 500 journalists attended events organised by the CoR COR-2014-02183-04-00-NB-REF …/… - 29 Press briefings organised on a regular basis around the plenaries + 8 thematic press conferences. Press books done on special events with more than 300 articles (OPEN DAYS, Croatia accession, external Bureau meeting, EU2020 conferences, special visits of the president, etc.) Over 100 press releases sent to the press and more than 100 highlights published on the web site. Some 20 articles were edited and published in the name of CoR members into the main EU media (like Europolitique, The Parliament Magazine, The Guardian, etc.) More than 170 videos have been produced and uploaded on Youtube (140 in 2012). Some promotional videos supporting CoR activities (OPEN DAYS, Local Events, EuroPCom) were also produced and distributed via social media. The CoR has supported on the spot more than 25 regional TV requests for its events (20 in 2012), including the organisation of more than 10 interviews or debates on TV studio just during the OPEN DAYS. More than 35 ad hoc audio-visual products have been sent to external organisations and regional TV chains. Objective 2: Enable the new website to become a platform for decentralised communication All the 28 websites already active and all linguistic versions online and mainstreamed under the pillar "Europe in my Region", with country and regions focused presentations. Currently: 40,000 visits per month (52,000 in 2012); the decrease is due to a more qualitative approach for counting visits, with the exclusion of "robots". 35% of visitors come more than once a month. The number of visitors is stable but the number of pages viewed by each visitor increased. New functionalities were developed like the thematic "policies pillar", the Media centre, the follow-up of opinions and a better visibility for the members' profile. Objective 3: Promote the CoR using social media Stronger presence on YouTube, Flickr and Twitter. 5000 followers on the CoRs' institutional Twitter account (1,100 in 2012) and on average 50 tweets per month since launching account, with pick moments during key debates and important events. Continuation of good quality web streaming on the CoR website. Objective 4: Develop decentralised communication with and within the EU's regions "Europe in my Region" Web section was further developed as a main tool for the decentralised communication. In the context of the OPEN DAYS 2013, 397 local events, of which 170 under the heading of the European Cooperation Day were held between September and October under the Europe in my region/city" brand involving 26 EU Member States, six non-EU countries and a total of 90,000 participants. 12 nationally-targeted e-newsletters are edited in 9 linguistic versions, targeted on 10 countries. They are directly distributed on the ground by partners to their readers/members (+/- 100,000 addressees). The objective of editing new e-newsletters is still under evaluation, pending the interest and the availability of other national partners in additional countries. COR-2014-02183-04-00-NB-REF …/… - 30 More partnerships were put in place with other national delegations and national/regional/local associations, representation offices of European Commission and European Parliament and Europe Direct Information Centres (EDICs) relay. A special chapter on the Inter Institutional contribution to the European Elections 2014 was launched. Joint actions at national level were also promoted, through the participation of the CoR in the most relevant national and regional events, as the national assemblies of LRAs. Objective 5: Conceive publications to promote the image of the institution and the work of its members A new procedure for producing publications has been adopted and it entered into force at the end of the year. This procedure aims to improve the planning procedure and strengthen the link of the publications with the CoR political priorities. A number of measures have been taken during the year to increase the number of electronic publications and reduce the paper production: Two E-books have been edited; QR codes have been created for making available the main CoR publications on mobile devices; The Info Point has been rebranded as an interactive communications hub, called iPoint, through the use of smart technologies, as downloadable brochures, page-turning technology and interactive YouTube playlist poster; Five general publications produced 18 thematic brochures Two EU Presidency-related publications produced and distributed in collaboration with the national associations Five Newsletters/magazines produced (Regions and Cities of Europe) in English. Political groups newsletters and other publications produced (EPP – Six newsletters, one booklet & one brochure, PES – Six newsletters & 1 booklet, ALDE – Six newsletters, EA – five newsletters & one brochure, ECR – one newsletter) Database of CoR's contacts: implementation of the audit conclusions and recommendations. Objective 6: Europe's regions and cities supporting Europe 2020 - Europe's growth strategy Between December 2012 and November 2013, the CoR organised a series of seven conferences – one per flagship initiative of the Europe 2020 strategy – under the headline "Regions and cities supporting Europe 2020 - Europe's growth strategy". In the same context, an eighth event was held together with the European Investment Bank on 13 May 2013 on "Investing in Europe's regions and cities" and on the state of sub-national public finances. A total of 1,441 participants and 134 high-level and expert speakers were counted in the seven flagship conferences. More than 5 journalists per conference have been counted. Objective 7: The European Year of Citizens 2013 and European elections 2014 COR-2014-02183-04-00-NB-REF …/… - 31 EU passport: free hand-out in A6 format including statistical information on EU regions and EU citizens' rights in all official languages; 55,000 copies distributed in 2013 to visitors groups, conferences, the EP info point and upon request by Europe Info Centres etc. in 20+ member states. European Citizens' Initiative: conference on 9 April, jointly organised with the EESC and addressed by EESC President Nilsson, CoR first Vice-President Bresso and Commissioner Šefčovič. Inter-institutional Open Day: held on 4 May, the traditional Open Doors Day provided an opportunity to explain the institutional role of the CoR and its political groups to over 2,600 visitors and to foster inter-institutional cooperation. 39 regions and cities from all over Europe welcomed visitors to their stands inside the CoR building. EuroPCom 2014 on EP elections: More than 650 communication managers and senior experts from local, regional, national and European authorities gathered in Brussels on 16 and 17 October 2013 for the fourth EuroPCom conference, entitled "[S]electing Europe". They spent two days sharing strategic insights and practical experience concerning recent communication challenges. 77 experts spoke at 18 sessions, workshops and lectures on the upcoming European elections in 2014 and, more generally, on the role and position of public communicators in an election period. Study on the role of regional and local authorities in EU communication in general and with regard to the 2014 EP elections in particular. Objective 8: Deliver key CoR events in 2013: getting the institution's messages across The 11th European Week of Regions and Cities-OPEN DAYS in October, including 34 seminars held on CoR premises: 600 speakers (20% elected politicians), 10,000 page views/month, 193 journalists, 300 articles; The 4th European Conference on Public Communication (EuroPCom) in October:500 pages views/week; Other events the CoR co-organised and hosted; Exhibitions of artistic works from different regions and countries. Objective 9: The "Meeting Place of Europe's Regions and Cities": reinforce the quality and impact of events held in the Jacques Delors building 13 co-organised events were attended by about 10,000 participants and about 660 speakers, including about 150 CoR members. As regards hosted events held in 2013, about 8,000 participants and 750 speakers including 26 CoR members attended in 2013. The total number of visitors to exhibitions is estimated at 2,500 annually. In November 2013, the CoR also contributed to an inter-institutional exhibition on the issue of 'urbanisation' in Beijing, which accompanied the EU-China Summit and its Urbanisation Forum and was viewed by 5,000 visitors. Objective 10: Welcome visitors groups to the CoR' Citizens' Auditorium About 16,000 visitors from over 50 countries came to the CoR organised in 568 groups. 30% of visits being priority visits and multiplier visits. Results of visitors' surveys: positive to very positive. COR-2014-02183-04-00-NB-REF …/… - 32 Human resources of Directorate D Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total AD 17 AST 22 7 Total 39 7 1 2 29 49 2 19 2.6 Directorate for Administration and Finance (Dir A) Objective 1: Ensure sound and regular management of financial resources in the institution The Draft Budget 2014 for the institution was prepared, deliberated upon at the Plenary session and sent to the EC, the EP and the Council. It was adopted in November 2013. The First Draft Budget 2015 was compiled in December 2013. Monthly budget execution reports have been submitted throughout 2013. Two budget midterm reviews have been undertaken and the related re-allocations of appropriations have been executed following deliberations by the Budget authority, when needed. A first overall reference to internal multi-annual budgeting has been developed and introduced in the Commission for Financial and Administrative (CFAA) document for the 2015 budget by linking the yearly budget process to the Multiannual Financial Framework (MFF) ceiling developments. About 7,800 salary payments were initiated and authorised for staff in 13 'monthly runs'. The last run was a retroactive refund of the pension contribution, with effect on 1/07/2012. Salary-related IT applications were tested. Financial reporting was carried out during the year. Financial management reports covering the financial year 2012 were submitted to the European Commission and to the European Court of Auditors on 1 March 2013 (provisional) and 1 July 2013 (final). No observations have been received from the Court with regard to the information given. The development of the project CAF 30 has been continued in 2013 whereby costs are allocated to political activities. The project was presented during the CFAA meeting of November 2013 and will be further worked out and implemented in 2014. The budget planning side of the project was put in place and a first allocation of budget lines involved using the CAF 30 approach was presented during the CFAA of January 2014. A simplified version of the CAF 29 financial fiche was implemented on a trial basis resulting in a fiche being included in a CFAA document and in a document for the Bureau in 2014. A central system was to be developed for identifying and monitoring IT expenditures and communication expenditures. For IT expenditure, more detailed monitoring is ensured by the IT steering group. The revision in 2014 of the EESC/CoR cooperation agreement should provide the necessary base for establishing an improved monitoring system between the Joint and Own services. For Communication expenditure, more detailed monitoring was carried out in the framework of the CFAA meetings, establishment of the reserves in 2013 budget and CAF 30 project. COR-2014-02183-04-00-NB-REF …/… - 33 Result and/or impact indicator(s): Latest known result: Acceptance of the CoR's 2014 budget by the Final budget adopted, Budget authority +0.3% Acceptance of 2013 external transfers by the 9 out of 113 Budget authority % of commitment execution 97%4 % of payments execution 89.2%2 % of payments paid in the deadline 90% Target for 2013: Achieved 100% 98% 90% 90% Objective 2: Prepare and report on CFAA-meetings All foreseen CFAA-meetings have been prepared and reported upon as foreseen. Objective 3: Optimise the use of human resources in the view of the upcoming Multi-annual Financial Framework including an annual tax between 1.5 and 2.5% arriving at 10% tax / efficiency initiative gains in 5 years, develop a human resources policy adapted to the institution’s priorities, provide a modern and flexible working environment and offer a highquality service to staff on HR aspects, notably in the areas of career and staff development In the context of the budgetary austerity, the CoR had to return 1% of its resources to the budgetary authority (5 posts) by the 31/12/2013 and a new internal taxation exercise of 1% has been introduced on an annual basis. On the basis of a screening exercise organised in view to identify the human resources needed to implement the current political and administrative priorities, 11 posts have been reallocated in order to reinforce the core business services (mainly directorates C and E). In 2013, the Committee continued to improve its human resources management software by introducing several new modules of SysPer2, related especially to the career and time management. Preparatory works have also been pursued and intensified in view of the ulterior deployment of the modules regarding individual rights, family composition, etc. A new Business Object (BO) environment has been created and the migration of a large part of BO reports related to SysPer2 modules has been completed. The digitalisation of the individual files has also been initiated in 2013 and is progressing. In the context of the entry in force of new Staff regulations as from 01/01/2014, a comprehensive review of the internal HR regulatory framework was conducted, requiring the redrafting, negotiation and adoption of around 20 internal decisions. 9 revised decisions were adopted in 2013; additional decisions are expected to be adopted early 2014, upon completion of the social dialogue. The HR-related pages of the Intranet have been revamped correspondingly. Upon completion of the internal implementation of the revised Staff Regulation, further changes to the regulatory framework 3 4 Two pending salary indexation related transfers rejected by Council in December (political decision, INF10 and DEC1). The payment and commitment execution rates are slightly below the target due to the somewhat lower execution of staff salaries related items (chapter 12). The latter is mainly caused by higher vacancy rates throughout 2013 that, in turn mainly was a result of an attempt to accumulate the necessary means to be able to deal with the pending 2011 salary indexation. As no new Council decision regarding the pending 2011 salary indexation was adopted in 2013 and the Council did not support the CoR attempt to frontload the accumulated means into 2014 budget (Transfers INF 10/2013 and DEC 1/2013); the appropriations meant to be used to solve the pending salary indexation issues were returned back to the EU budget at the end of 2013. COR-2014-02183-04-00-NB-REF …/… - 34 in place will be made, for instance in the area of training (so as to better focus language training efforts on most needed languages). In the area of training, a general tendency is emerging whereby more focused, tailor-made courses are in demand, which has led to a significant increase in the number of short term training actions. Consequently the number of training days per staff member has decreased to 7.34 days (from 8.5 days in 2012). Yet, almost all staff members (93%) have participated in at least one training action in 2013. During the course of the year the CoR has introduced e-learning language courses, which may offer a valuable alternative to time-consuming classroom courses. Also substantial progress has been made on the development of a general competency framework for staff. A first draft competency framework has been developed and should be finalised in the course of 2014. Throughout 2013, the career guidance service offered by the Mobility Cell has been further developed and integrated in the overall CoR human resources policy. This resulted in the successful internal transfer of 10 staff members (the target was 8). In terms of working conditions, 2013 was characterised by a substantial increase in part-time work and teleworking requests. 47 colleagues were selected for structural teleworking in 2014. The revision of the related regulatory framework and the introduction of the Sysper2 time management module also created the opportunity to simplify and modernise working methods and paved the way for an all-electronic workflow for working time arrangements. As a next step, a possible reorganisation of the delegation of AIPN powers will be explored. In view of enhancing inter-institutional synergies and cooperation, a revised SLA has been concluded with the PMO in 2013 allowing for outsourcing of additional files such as establishment of pension rights and management of pensions, invalidity allowances and relating family allowances. A feasibility study on different approaches as regards day care and child care facilities was conducted and concluded that the existing system, characterised by inter-institutional collaboration with the European Commission, should be maintained and further consolidated. The reflection on strengthening the middle management structures has been postponed at a later stage. With an occupation rate of 93.7% (data from 31/12/2013), the recurrent objective of meeting recruitment needs was reached. As far as the career development is concerned, implementation of the specific procedures (2012 appraisal, 2013 promotion, attestation and certification) has been fully accomplished within deadlines. Objective 4: Ensure effective internal control environment and monitor the implementation of the Financial Regulation. The work of the Verification Service is reported on in Chapter 3. The implementation of corrective measures has resulted in a sharp decrease of the number of exception reports from 144 in 2012 to 82 in 2013 (43% overall). In particular, the electronic workflow for authorisations via Agora decreased the number of Dir. B derogations by half and full staffing coupled with improved follow-up in Dir. D decreased the number of exceptions by 73%. COR-2014-02183-04-00-NB-REF …/… - 35 Two new exercises were introduced to reinforce the CoR internal control environment, consisting in an assessment of compliance with and effectiveness of the Internal Control Standards (ICS). More details are to be found in Chapter 3. Most actions from the ICS rolling plan were completed. However, the work on sensitive functions was suspended until 2014 in the wake of the cooperation agreement with the European Parliament and the related changes in staffing and organisation. Preparatory work was conducted in 2013 to reinforce public procurement procedures through the establishment of a Procurement Quality Assurance Group in 2014. Objective 5: Coordinate the management planning and reporting cycle, by defining the objectives of Directorates in alignment with budget planning, monitoring and reporting the achievement of objectives through key performance indicators. For the first time, the Management Plan established by the end of 2013 stretches over two years, 2014-2015, making one step towards aligning the strategic planning of the CoR operations and their budgeting. There is now more consistency between the planning of actions, the preparation of budget requests and the human resources allocation. Objective 6: Carry out horizontal administrative function in an efficient and transparent way. With a lower missions budget each year for the same programme of missions, budget monitoring was even more precise than in the past years. Frontloading and end-of-year transfers should result in optimum consumption in spite of the difficulties caused by an amount put in reserve. Due to the deterioration of the quality of the service provided by the travel agency, it was decided to enforce the penalties system foreseen in the contract. This generated revenues of about 12.000 EUR from June to December 2013. The call for tender procedure led by the European Commission for the new contract with the travel agency was successfully conducted. Missions reimbursement files were treated for 99.8% within the time limit (the target was 95%). Human resources of Directorate A Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (medical doctor) Total AD 19 1 20 AST 47 1 Total 66 1 48 1 68 2.7 Internal Audit Service (IAS) The mission of the CoR internal audit is to advise the Authorising officer by delegation on risks by providing independent opinions on the quality of management and control systems and by issuing recommendations for improving operations' execution as to ensure their regularity and their compliance with the principle of sound financial management. COR-2014-02183-04-00-NB-REF …/… - 36 - Objective 1: Give the Authorising officer by delegation assurance on managerial and control systems adequacy in the framework of his declaration for 2012 and for the preparation of 2013, with particular references to the area already audited Thanks to the 2013 audit programme and as planned, the first 6 risky activities are fully controlled by audits whilst all activities have been audited for their main process. The delivering of 2013 audit programme is the following: Action 1: The audit on the adequacy of the statutory rights definition system is still ongoing and will be finalised in 2014 on the basis of recommendations from the recently created Audit Committee (see Chapter 3). Action 2: The audit on the performance of IT projects for internal applications has been approved by the Secretary General and proposes 15 recommendations related to the analysis and the revision of the IT governance process, the establishment of the 3-years IT master plan, the establishment or the improvement of the procedures for the planning and the execution of the IT projects, including added controls for the quality of the planning process, the justification of sound financial management and the source of funding. A detailed action plan is being designed by the audited service. Action 3: The audit on the performance of external written communication has been approved by the Secretary General and suggests a set of 18 recommendations. They refer to improving quality control on planning and reporting documents, checklists, contract management and ex post verifications. Action 4: The contradictory procedure on the audit on the legality and regularity of budget management in Joint Services has been delayed due to the necessity to perform additional in-depth analysis not planned and the request to give priority to the audit on performance of IT projects. Action 5: The audit on performance of seminars and conferences aims to ensure that the control systems in place allow selecting the seminars and the conferences which directly contribute to the CoR core objectives in compliance with the principle of sound financial management. This audit is at the stage of data collection and process analysis. Action 6: As planned in the audit work programme 2013, in-depth advice on adequacy of planning and management of procurements is being finalised in order to address risks related to the current decentralisation of this process in a context of low workload in this field. Action 7: The annual internal report art. 86.3 has been delivered on 5 March in order to take into account the results communicated by the audited services in regards with the global action plan. Action 8: Opinion on the control systems has been provided to the Authorising Officer by delegation in the framework of his annual declaration. COR-2014-02183-04-00-NB-REF …/… - 37 Action 9: Regarding ad-hoc advice, it should be noted that the IAS delivered opinions on the annual declaration, administrative priorities, budget savings, impact assessments orientation, human resources strategy, contract renewals, IT governance and ICS self-assessment. Objective 2: Support the audited sectors in implementing audit recommendations within a period of 12 months. As two audits were approved by the Secretary General at the end of 2013 and beginning of 2014 respectively, no audit follow-up was undertaken for these new audits. In order to facilitate the implementation of audit recommendations, IAS has offered its support to the services audited for establishing a detailed action plan. However, as mentioned last year, in order to achieve the implementation of all remaining open recommendations as stressed by the European Parliament in its decision of 10 May 2012, revision of the actions plans of the three audits follow-up (application of internal control standards, the adequacy of financial circuits and the adequacy of the budget planning system) has been undertaken. As a result, a global action plan has been established, which consists of 8 main actions that require amongst others the reinforcement of the planning procedure ensuring full coherence between the draft budget and the management plan, the improvement of the budget monitoring and reporting ensuring full coherence with the planning procedure, the reinforcement of supervision at political and administrative level, the revision of subdelegations as well as implementation of all internal control standards related to management of human resources and evaluation of activities. These 8 actions were subdivided into 29 actions, the majority of which are fully closed with a few still ongoing. As a result, the identified risks have been mitigated to a reasonable level. Objective 3: Establish an annual audit program focused on the main Institutions risks As in previous years, the internal audit programme 2013 was defined on the basis of the risk analysis established by activity and updated by audit findings and materialisation of risks during execution. These two documents were delivered by end of November 2013 as requested by the internal audit charter. Human resources of IAS Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total COR-2014-02183-04-00-NB-REF AD 2 AST 2 Total 4 2 2 4 …/… - 38 2.8 Directorate for Translation (Dir G) The Directorate for Translation has achieved its main objectives for 2013, as set in the Management plan 2013, by continuing to provide quality translations on time and to implement the Translation Quality Guidelines. Results for each objective were as follows: Objective 1: To guarantee high productivity and a high quality level of service for both Committees Indicator Annual productivity per non-pivot translator Rate of respect of deadlines* 2013 1 417 pages 86.9% Target Min. 1 400 pages Min. 98% 2012 1 601 pages 93.3% * The figure corresponding to compliance with deadlines is below target due to a transition from individual language responsibility to collective responsibility, as agreed at inter institutional level. Previously, this statistic was based on each language unit delivering on time (a production-centred view) whereas it is now based on all languages being available (a client-centred view). Also, the migration to a new computer-aided translation (CAT) tool and the creation of a new Croatian unit largely contributed to the reduction in the proportion of documents delivered on time. Objective 2: To manage translation workload, improve working methods and optimise human and financial resources management Indicator % of translators using SDL Trados Studio % of budget line 1420 used % of budget line 2622 used 2013 99.1% 93.9% 99.2% Target 100% 100% 100% 2012 n/a 89.7% 88.7% Translation demand fell by 19.1 % compared to 2012, and by 10.2% compared to 2011. This drop is partly cyclical (the approaching end of the legislative period) and partly due to measures aimed at reducing translation demand. SDL Trados Studio 2011, a new translation tool, was implemented in 2013 following an inter institutional call for tenders. All translation units were migrated to the new software between March and August 2013. The Directorate for Translation of the Committees was the first translation service of the EU institutions to complete the migration. Many processes linked to the new software have been automated through an application developed within the directorate. Active participation in language and thematic training actions was ensured to optimise translation capacity. The series of Translation Masterclasses for translators was continued to keep on improving translators' knowledge of subject areas soon to be discussed at the Committees. Directorate for Translation staff also provided a variety of additional services outside the realm of the directorate's core business, including internal training, linguistic support to the CoR president's private office, and other ad hoc linguistic assistance tasks. The new document numbering system aimed at improving the links between different versions of documents was fully implemented. A preliminary technical check was introduced for nearly all documents, ensuring that they are properly formatted and are compatible with the translation tool before they are sent in translation (thereby reducing problems during translation and post-formatting tasks). COR-2014-02183-04-00-NB-REF …/… - 39 Proposals were submitted for better translation demand management at the Committees. Objective 3: To ensure the good functioning of the code of conduct on translation provided for in the technical provisions implementing the Cooperation Agreement in the field of translation Indicator 2013 Target % of translations receiving deadlines shorter 8% for CoR < 15% than those laid out in the Code for conduct documents 2012 n/a The percentage of documents for which modifications were received stood at 24.2% in 2013. In terms of target pages modified, the figure was 7.6%. Objective 4: To create synergies in the framework of interinstitutional cooperation in the field of translation Active cooperation in ICTI (Interinstitutional Committee for Translation and Interpretation) and its bodies was ensured. Active participation in relevant EPSO selection boards was ensured, as well as in discussions on changes to EPSO's selection methods. The Directorate maintained a high level of information exchange with the other EU institutions in the context of the migration to the new translation tool and was called upon to present its experiences at several inter institutional meetings. Active participation in language-specific cooperation was ensured. Translations in 16 languages were provided for the Annex on Regions of the Interinstitutional Style Guide, on request of the Publications' Office. Risks did not materialise. Human resources of Directorate for Translation (CoR staff only) Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total AD 169 AST 36 Total 205 169 36 205 2.9 Directorate for Logistics (Dir F) Objective DL1: Provide modern and effective management of the buildings of the Committees and improve the service to their occupants - Renovation of a number of the older lifts in the JDE (increase of the reliability and energy efficiency). Replacement of windows + frames + roofs' renovation in the BvS. Ref.KAPI01 COR-2014-02183-04-00-NB-REF …/… - 40 - - Upgrade of the cooling systems in JDE and BvS. Number of requests to the helpdesk reduced to 3,117 calls in 2013 (3,330 in 2012). Ref. KAPI02 Efficiency of the helpdesk increased to 84% (% of interventions successfully handled within a set time) compared to 80% in 2012. Replacement of old, non-ergonomic, depreciated furniture continued in 2013. 2,234 requests by the removal service for the installations and removals for plenary sessions, internal moves, new recruitments, etc, (+/- the number of requests in 2012). Following the ergonomics audit, adaptation of the existing furniture or supply of the necessary equipment to improve the comfort of staff. Monthly reports made available to the Safety service and the Human Resources department. Continued collaboration of the Infrastructure unit with the other institutions in the interinstitutional working group ILISWG in order to exchange best practices between institutions. Signature of new framework contracts for removal services, office supplies and the renovation of the wooden floors in the JDE building. Participation in interinstitutional calls for tender: supply of furniture, insurance of buildings. Objective DL2: Environmental management according to the commitment of the committees to EMAS Following the EMAS and ISO-14001 certifications obtained by the Committees in 2011, a second follow-up audit was completed by the external auditor in 2013. The auditor's report was extremely positive, highlighting especially the motivation and involvement of staff, the efforts made regarding internal communication via the EMAS contact points and the fact that environmental legislation is known and applied by the different services. Objective DL7: Provide the level of administrative and financial support necessary to ensure efficient catering services (NB: The Catering service is now integrated into the Infrastructure unit.) - - The results of the satisfaction survey 2012 show that overall satisfaction of customers improved significantly compared to the survey of 2010; an action plan has been prepared for the areas where further improvements are needed New database (managed by contractor) for requesting/recording interventions was set up, resulting in improved response to requests and shorter deadlines Continuation of implementation of the programme for replacement of electrical appliances at the end of their life-cycle in the restaurants and cafeterias of the Committees. Statistical summary: for the first time since 2010 the overall number of visitors at all points of sale decreased slightly (-6%), due mainly to the closure of the B68 Cafeteria (-44%) for several months following a fire; the visits to the restaurant again increased (by 8%). Objective DL3: Provide information systems, IT infrastructure and user support services, according to the best practice of IT management. Support the Committees' activities in 4 priority domains A - Information Systems 1. Political Work COR-2014-02183-04-00-NB-REF …/… - 41 - Approval workflows for all meetings and expert nominations are now entirely automated for both Committees. - Budget forecasting has been introduced for the CoR. - Phoenix has been adapted for the new financial statute (entered into force 1st January 2014). - Continuous improvements have been made on Members Portal in cooperation with the CoR Registry; - A new version of the Platform for decentralised cooperation (Atlas) has been implemented with new features (Bourse) and technical integration with the other CoR Platforms (reuse of components). A clickable map interface has been implemented for the Subsidiarity Platform. 2. Document Management The project concerning the new repository of documents and the new search engines is finalised. "Mercury", a prototype replacement of Adonis, has been prepared to manage incoming and outgoing mail. Support has been provided to the implementation of the new Computer Aided Translation tool (Studio). The IT unit has participated in the inter-institutional program to rationalise the document exchange between EU institutions and a first version of the program will be deployed early 2014. 3. Communication The CoR Political Group websites were improved (including the set-up of a web site for the new ECR group). A standard Contact Management tool has been installed and will be deployed during 2014. The CoR Intranet has been rebuilt and integrated in the same technical platform as the EESC Intranet, the CoR Political Group Web sites and the CoR Common Consultative Platform. 4. Human Resources & Finance Sysper2 is progressively replacing Centurio. B - IT Infrastructure provides services in the areas of Data Centre, Office Automation, Telecommunications and IT Security. The following were the main projects carried out during 2013: - Migration to the new Office Automation environment based on Windows 7 and Office 2010; - Configuration and testing of automated site recovery software; - Deployment of advanced security software to protect against emerging security threats. C - IT User Support Services provide user support, manage user relations, user logistics and user policies. Throughout 2013, all of their services were continuously adapted to the changing needs of the Committees (e.g. providing support for teleworking). Indicators: KAPI21: The availability of the IT Infrastructure without planned downtime exceeded 99.99%, as in 2012. KAPI22: There was an average of 197 IT user support requests per helpdesk staff (average per month) with a peak of 283 in January (175 and 172 respectively in 2012). KAPI23: Key service performance indicators such as the Helpdesk reaction time (99% of calls answered within 30 seconds), the number of incidents closed within 1 hour (54%) and ongoing user satisfaction (95%) were maintained at the same high level as in 2012. KAPI25: the IT "cost per user" indicator was about 5,250 € (5,436 € in 2012). Objective DL4: Production of Committee working documents; preparation of meeting files, dispatch of documents by courier service, postal services and by electronic means; printing of publications and of supporting material for the different meetings/conferences COR-2014-02183-04-00-NB-REF …/… - 42 - - - - Copy service produced 151,704 copies per full-time employee (average per month) compared to 171,264 in 2012. Ref. KAPI11 Mailing room ensured 957 mailings transmissions per full-time employee (average per month) compared to 1,083 in 2012, comprising of Committees working and official administrative documents, publications, invitations. Ref.KAPI13 Electronic sending of CoR documents was assured. Distribution assumed responsibility for preparing dossiers for all CoR meetings and conferences. 904 files for Members were distributed per full-time employee (average per month) compared to 986 in 2012. This represents a total of 20,975 dossiers (+/- same number as in 2012) for 128 meetings for the CoR. A significant proportion was produced in 23 languages. Ref.KAPI14 Printshop printed 239,432 print runs per full-time employee (average/month) and realised 603 printjobs per full-time employee at copyshop (average/month) compared to respectively 310,074 and 574 in 2012. Ref.KAPI12+ KAPI15 Specific dossiers o The new gluing machine was delivered and installed in March 2013. o Following a call for tender for "express mail", a new contract was signed with the company DHL and two new calls for tender were launched ("copyshop" and "paper purchase"). For national and international postal services, the Committees used the new interinstitutional OIB contract with the Belgian Post. o Two EMAS working groups continued to look at paper consumption. Objective DL5: Rigorous management within the DL in the areas of financial and contractual management, as well as planning and reporting of activities - - Rigorous implementation and monitoring of the 2013 budget in collaboration with the financial actors within and outside of the DL, based especially on quarterly reviews of expenditure plans and coordination of transfers of appropriations. Budget execution at the end of the year for the CoR was 99.70% (the target was 95%). Management of 13 EESC/CoR procurement procedures, of which 7 were concluded in 2013 with the award of 5 contracts and 6 will be concluded in 2014. Implication in the management on behalf of the EESC/CoR of several interinstitutional procedures of which 5 were concluded in 2013. Objective DL6: The guarantee of a modern, effective and efficient security/safety service for the Committees - Reporting mechanism related to fire detection, intrusion risks and access control problems: measurable results are being produced by using soft as Entelec and Nedap - Statistics on the provision of security guard services: measurable results are being produced by using soft as Login and Nedap. - Implementation of the contrat de maintenance technique et réparations beginning of 2013. - Gardiennage: decrease of the number of penalties to G4S - the Security Workshop (optimisation of the tasks of the security guards in relation to security of people and property in the Committees) held in 2013 led to the launch of a "risk analysis" Call for tender. COR-2014-02183-04-00-NB-REF …/… - 43 - Safety: installation of a registry and management system of incidents at work. Reorganization of the EPI teams (First Intervention Team). Human resources of Directorate for Logistics (CoR staff only) Type Establishment plan Contract agents External contract staff Seconded national experts Other outside personnel (specify) Total COR-2014-02183-04-00-NB-REF AD 8 AST 20 6 Total 28 6 16 8 26 50 …/… - 44 - 3. INTERNAL MANAGEMENT AND CONTROL SYSTEMS, AUDIT AND FOLLOW-UP OF RECOMMENDATIONS BY FINANCIAL CONTROL BODIES 3.1 Inherent nature and characteristics of the CoR risk environment The CoR annual Management Plan describes the actions which the CoR implements in order to reach its political objectives. The Management Plan is tied to the availability of resources. All budget lines are tied to actions and all the actions are tied to the human resources available. The Management Plan is accompanied by a Risk Assessment exercise for each objective and each action. Based on these analyses managers are required to manage their risks and report at the moment of the midterm review whether risks have materialised and which corrective measures have been put in place. The final results of actions are reported in the Annual Activity Report and the Declaration of Assurance of the Authorising Officer by Delegation. Given that the CoR has no operational credits, its financial and political risks are predominantly tied to its administrative expenditure and mainly concern the area of non-respect of the regulatory environment. Early 2013 a risk analysis was performed by the managers according to an accepted general methodology. They were asked to propose corrective measures if a combination of medium and high likelihood of risk and a possible high impact was associated with an action planned for 2013. Such risks were identified, together with the mitigating measures, in the area of financial management (e.g. payment delays, budget execution and monitoring) as well as in operational and organisational matters (e.g. IT applications, tasks fragmented among different CoR services). Necessary mitigating measures, such as training in financial management, have been put in place. Given the political character of the Institution and the size of the budget, any resource inappropriately spent would indeed constitute a risk. To mitigate this risk, the CoR deploys a central verification service which verifies all transactions, with "zero tolerance" towards inappropriate resource spending. 3.2 Internal control system The General Administration Unit launched two exercises in 2013 to assess to what extent the CoR complied with the 16 Internal Control Standards (ICS) and to what extent their implementation was effective: a) A compliance and effectiveness exercise consisting of a survey designed to evaluate compliance with and effectiveness of the basic internal control requirements, filled in by each Internal Control correspondent (at least one person per Directorate); and b) A self-assessment exercise consisting of questionnaires filled in anonymously by two groups of staff (39 administrators or assistants and 21 Heads of Unit or Directors responded). Based on the results of both exercises it can be concluded that the CoR is in general compliant with the requirements of each of the 16 Internal Control Standards (ICS) applicable in the European institutions. It was decided to focus on improving the effectiveness of the following ICS in 2014: No 6 risk management process: Measures will be developed to further integrate risk management into the regular management process. COR-2014-02183-04-00-NB-REF …/… - 45 3.3 No 7 operational structures: Following the Bureau decision early 2013 not to relocate a number of Heads of Unit with sensitive functions, the Administration will develop a new proposal in 2014. No 10 business continuity: To remedy the issue of Business continuity in case of "force majeure" or other serious interruptions, there should be another try in 2014 to conduct the meeting of the Crisis Management team, together with an appointment of responsibilities. No 11 document management: A large project to improve document management has been launched jointly with the EESC and has been progressing according to plan. In 2014, the "Repository of documents and search engine" will be deployed, the "Workflows for mail management" will be developed and the "Long-term archiving" will be prepared. The implementation activities, divided in three steps, will continue until 2016. No 12 information and communication: Better dissemination of information could contribute to better compliance for many of the ICS. The further development of the internal communication strategy will foster the awareness of the staff about the political mission and objectives of the CoR Financial circuits and execution The CoR applies a coherent system of budget planning, execution and monitoring. The Management Plan instructions for 2013 required that every budget line be linked to an action defined in the Management Plan. Budget requests are examined by the Directorate for Administration and Finance and the requesting service.The final draft budget, established in line with the political priorities, is approved by the Commission of Financial and Administrative Affairs (CFAA), submitted to the Bureau for decision and to the Plenary Session for adoption. In this way, expenditure is tied to the multi-annual planned objectives, actions and political priorities of the CoR presidencies. All financial circuits in the CoR are established respecting the following compulsory principles and rules: o Segregation of duties of initiation and verification of an operation o Qualified centralised ex-ante verification service o Sufficient skills and competences of the actors (delegations are only given if the necessary obligatory training has been followed) Expenditure is executed by Authorising Officers sub-delegated to that function by the Authorising Officer by Delegation (AOD). Individual nominations are made by updating the general decision which guarantees full coherence of delegations given and ABAC accesses granted. Mandatory and non-mandatory training is available to all financial agents. The central independent verification service examines ex ante all commitments and payments except: (i) certain expenses (e.g. IT, restaurant, print shop) in the Directorate for Logistics as agreed in the rules laid down in the Cooperation Agreement with the EESC and (ii) in the case of a simplified workflow for recurrent expenditure of a repetitive nature like coffee services in meeting rooms and mission expenditure where ex ante verification would have little or no added value. COR-2014-02183-04-00-NB-REF …/… - 46 Overall budget consumption is monitored by a special budget monitoring tool "Budget Watch" which allows the detection at an early stage of possible over- and under-spending. The monthly reports based on this tool contribute to raising awareness of the developments in the payment execution rates and annual amounts carried over in C8. 3.4 Budget execution monitoring The monitoring of the CoR budget execution is carried out on several levels: a) The analytical tool for monitoring the budget execution, "Budget Watch" is used to monitor daily the execution (commitments and payments) of all budget lines and sub-line for c1, c4, c5, c8 and c9 appropriations. Based on this tool monthly budget execution notes are prepared and circulated to all financial actors of the Institution; b) Execution of the overall budget and execution of politically important budget lines is regularly monitored by the CoR Committee for Financial and Administrative Affairs (5 meetings per year); c) Detailed calculation of estimated execution of salaries' related budget lines, covering approximately 55% of the CoR total budget, is carried out each month; d) Regular monitoring of the execution is carried out by operational services for budget lines falling under their responsibility and management; e) A mid-year budget execution review is carried out each summer for all CoR budget lines. This contributes not only to optimise the budget execution, but also to better prepare for the reallocation of resources (if and where needed), usually in the form of internal or external credit transfers, in the second half of the year. 3.5 Verification Every budgetary or legal commitment as well as every payment is subject to ex ante verification within the CoR, except a few particular legal commitments subject to a simplified approval workflow pursuant to Art.27, paragraph 5 of the internal rules for budget implementation. Apart from salaries, which are verified on the basis of a structured and agreed sampling method, each transaction is subject to an ex ante control in conformity with Art.66 FR, i.e. without sampling, with an average treatment time of 3.5 working days. The verification service has also a counselling role and is in a permanent dialogue with financial actors with a view to constantly improving financial management. Verifiers take part in the procurement procedures, namely in opening and evaluation committees, as observers (10 cases in 2013). Since Decision n° 008/2011 on the internal rules for the implementation of the general budget of the European Union came into force on 1 September 2011, the verification service is no longer in charge of the operational verification of CoR commitments, payments and other budgetary transactions except for the area of statutory rights. The operational aspects of these operations are checked directly by the authorising officer by sub delegation or, under his/her responsibility and according to his/her instructions, by a staff member who is subject to the Staff Regulations and is not the initiating agent nor subordinate to the initiating agent. COR-2014-02183-04-00-NB-REF …/… - 47 The monthly number of transactions verified by the service slightly decreased in 2013 compared to 2012 (1,131 files per month in 2013 compared with 1,197 in 2012). There are two types of a file refusal by the verification service: 1. Refusal for correction (code SC): the transaction will be corrected afterwards by initiating agents before being resubmitted to verifying agents. 2. Final refusal (code SR): the financial transaction is subject to a financial derogation. Service instruction 003/2012, which entered into force in July 2012, defines the procedure to be followed in order to ensure that each financial exception identified during the treatment of a file is justified and authorised at the appropriate level before the transaction is approved; the file with the exception report is now refused in the formal sense using the code SR (Refusal). In 2013, the combined rate of files returned for correction (SC) and budgetary transactions for which the verifying officer used the code SR has not changed significantly (4.6% in 2013, 4.9% in 2012). As shown in the table below, 4.07% of transactions were refused for correction (SC) and 0.53% of transactions were definitively refused (SR) in 2013. Number of transactions verified in 2013 13563 Number of transactions refused then corrected (SC) 552 Percentage of transactions refused then corrected 4.07% Number of transactions refused (SR) 72 Percentage of transactions refused 0.53% The number of transactions refused for correction includes for example requests for information, missing file references, wrong or missing check-lists, incomplete files, miscellaneous mistakes on refunds and wrong bank accounts. The majority of the errors are formal. 3.6 Ex-post control An ex-post control exercise was carried out in 2013 using the same methodology since 2007. The purpose of the exercise is for each manager to (1) verify by different staff than the initial one from within the same entity, a sample of files covering a wide range of financial, administrative or operational matters and (2), based on the findings, propose and implement measures that would lead to structural improvements. In 2013, this exercise was executed by all Directorates except for one. No major issues were identified. However, in the final report to the Secretary-General, a number of suggestions have been made in order to further improve daily management, such as the revision of the Missions guide for staff going on missions and fine-tuning of operational management procedures in the Directorate for Communication. The Directorate for Logistics did not carry out this exercise, reasoning that the Cooperation Agreement foresees some specific controls which it considers to be sufficient, and that both committees should have a harmonised approach. This will be addressed in the context of the new Cooperation Agreement. COR-2014-02183-04-00-NB-REF …/… - 48 3.7 Exception reports For reporting purposes, an exception occurs when there is non-compliance either with the provisions of the Financial Regulation and its Rules of Application (such an exception is called a Derogation) or with the Committee's internal rules and procedures (Exception). Derogations are systematically financial exceptions, while exceptions may be financial (either of a financial nature or with financial consequences) or administrative. Financial exceptions The overall number of financial exceptions reports decreased by 43% compared to 2012 (from 144 to 82), with significant reductions for Directorates B "Registry and Services to Members" (40%) and D "Communication, Press and Events" (74%), mainly due to a better monitoring and follow-up. In particular, more widespread acceptance of the electronic workflow for authorisations of Members' participation in meetings via Agora brought down the number of derogations reported by Dir. B from 88 to 42 and full staffing coupled with improved follow-up of presence of journalists in Dir. D resulted in a decrease from 27 to 7 reports. The table below details the yearly totals since the CoR started reporting financial exceptions in 2008. Type/Year 2008 2009 2010 2011 2012 2013 Derogations 52 66 53 118 121 60 Exceptions 101 81 60 32 23 22 153 147 113 150 144 82 Total Total number of financial exception reports 2008-2013 The CoR maintains a central register of exceptions recording all instances of overriding of controls or deviations from established processes and procedures. The reporting on exceptions is an important element of assurance for the AOD when drafting his declaration. By categorising the exceptions and analysing their origins, the register can be used as a compliance tool, concentrating corrective measures where they are most needed. The implementation of such measures shows clear results with regard to legal and budgetary commitments in the detailed breakdown of the derogations for the years 2012-2013: Derogations No legal commitment Annuality Principle No or insufficient budgetary commitment No ex-ante verification (FR Art. 66§5) Late payment Procurement rules/Contract management Single Signature 2012 81 16 15 0 5 3 1 2013 31 16 9 2 0 1 1 Although the highest number of reports (29 out of the 31 in the 'No legal commitment' category) is still linked to the reimbursements of members, speakers and experts, increased awareness achieved through coaching of staff will contribute to a sustained decrease, as staff initiating the transactions adopts a more proactive approach. COR-2014-02183-04-00-NB-REF …/… - 49 Every authorising officer by sub-delegation (AOSD) has to report to the AOD on financial exceptions (derogations and exceptions) and remedial measures when presenting his/her declaration of assurance for the budget lines for which he/she is responsible. For the 2013 exercise all AOSDs have signed their individual declarations of assurance except for one who left the CoR without signing a declaration; however, no exception was recorded under his name and another AOSD for those budget lines, also being his hierarchical superior, signed the declaration. The declarations have been checked against the central database of derogations and exceptions. Administrative exceptions During 2013, a new service instruction for reporting Administrative Exceptions was approved. As a result, 2 administrative exception reports were filed in 2013, both related to non-compliance with internal procedures without any financial impact. 3.8 Overall assessment of the costs and benefits of controls The budget of the CoR is a purely administrative budget for a political assembly. With regard to risks and loss, the CoR not only seeks to minimise financial loss but also to mitigate reputational risks when deploying controls. Therefore, the costs and benefits of controls cannot be appreciated merely in monetary terms but need also to be considered from a political angle. Specifically, the benefits of controls which cannot be quantified in the context of the CoR concern deterrent effects and compliance with regulatory provisions. The CoR has estimated the overall costs of controls in terms of the cost of all staff involved in control activities to EUR 1.7 M. In relation to the total amount paid during 2013 of EUR 86.87 M, less than 2% was thus dedicated to control. However, since quantitative data of the volume and amounts of errors that have been prevented (ex-ante) or detected (ex-post) is not available, it is not possible to quantify the related benefits other than what can be deduced from the exception reports (cf. point 3.7 above), and thus to determine the cost-effectiveness of controls by comparing costs with benefits. For procurements, the cost-effectiveness of the CoR's controls is leveraged through enhanced cooperation with the EESC and participation in inter-institutional procedures coordinated by larger EU institutions such as the Commission and the Parliament. Consequently, many procurement procedures conducted internally are managed by the Directorate for Logistics for the benefit of both Committees, whereas higher value framework contracts are often concluded by other institutions on the CoR's behalf. As such, most procedures conducted by CoR services to cover specific needs are for contracts below EUR 15 000, which are reviewed ex-ante by the Verification Service (see Annex 4 for details). The Legal Service only intervenes in a few cases to verify procedures for contracts above EUR 60 000. As procurement procedures follow regulatory requirements which cannot be curtailed, the necessity of these controls is undeniable. Given that: ex-post controls did not identify any major issues (c.f. point 3.6 above) 82 financial exceptions were detected prior to validation of the expenditure (c.f. point 3.7 above) there are no ongoing litigations related to procurement decisions, and COR-2014-02183-04-00-NB-REF …/… - 50 that no indications of fraud were detected and signalled to OLAF, the CoR considers its controls to be as cost-effective as reasonably possible. 3.9 Internal audit function A summary of the activities conducted by the Internal Audit Service is provided in section 2.7. In order to reinforce the internal audit function, an Audit Committee composed of 5 members of the CoR Commission of Financial and Administrative Affairs and 1 external expert has been set up. The role and responsibilities of the Audit Committee are to: a) Keep itself informed about inter alia the management and control practices of the CoR including the managerial risk assessment and managerial risk management practices as in place by the Authorising Officer by delegation (AoD). b) Express an opinion on the annual work programme and the Annual Audit Report of the Internal Auditor of the CoR. c) Ensure an independent functioning of the Internal Audit Service. d) Keep itself informed on the work of the Internal Auditor of the CoR with a view to ensure that he/she carries out his/her functions effectively, efficiently and in accordance with the internal rules and the audit charter. e) Monitor the implementation of internal and external audit recommendations accepted by the AoD outlined in internal and external audit reports as well as actions taken with regard to discharge reports. 3.10 Follow-up of recommendations by ECA and of discharge questions Unit A1 holds a register of recommendations made by the ECA and the discharge authority. The European Court of Auditors' Annual report covering the financial year 2012 (2013/C 331/01) is positive and does not include any recommendations for the CoR, like it was already not the case the year before. With regard to the different remarks by the discharge authority, the following observations can be made. The numbers mentioned below refer to the Draft5 Report on discharge in respect of the implementation of the general budget of the European Union for the financial year 2012, Section VII – Committee of the Regions (COM(2013)0570 – C7-0279/2013 – 2013/2202(DEC)). Points 1, 2, 3, 4, 7, 11, 14, 15, 16 and 17 are remarks which do not require any response by the Committee. Information related to points 8 and 9 is provided in the report of Directorate for Administration & Finance; information related to point 12 is provided in the report of the Directorate for Members services & Registry to be found in Chapter 1 of the present report. 5 The final report is not available at the time of drafting of this document. COR-2014-02183-04-00-NB-REF …/… - 51 5. [The European Parliament] "Welcomes the projects on the internal organisation of the Committee, which set out the objectives of cooperation between services and the development of synergies in common activities and joint actions; welcomes, with regard to last year’s recommendations, the information provided and asks to be continually updated on the projects and to be informed on the budgetary consequences of the measures taken" Further to the information provided in the Annual Activity Report for 2012, it should be noted that the improvement projects for the administration are gradually introduced into the regular management system. They are difficult to single out but are part of the Management Plan. An important work has been done in the area of CAF projects 29 and 30 on the costing of political activities. This will allow CFAA and the Bureau to take their decisions in a more informed way. 6. "Takes note of the information provided on the energy used from renewable sources; regrets, however, that those sources of energy continue to have a very low share of the total consumption of energy, especially in new buildings; calls for further action to incorporate more energy solutions from renewable sources" The Committees buy 100% green electricity for all of their buildings. This means that the share of energy coming from the renewable sources amounts to 65% of the Committees' total energy consumption. The remaining 35% comes from gas, which is used for heating the buildings. As regards their own production of electricity, even if the Committees increased substantially the number of solar panels (for which they do not have the budget), this would result in a very low percentage of total consumption. This is why the Committees are studying the installation of a cogeneration installation in order to reduce their environmental footprint. Thanks to cogeneration, or Combined Heat and Power (CHP), it would be possible to make better use of the fuel we use, saving something around 20 percent of the buildings energy consumption. It has to be noted that most of the Committees' buildings are not new and are at least 20 years old although some have been renovated to a greater or lesser extent but with at that time minor attention to environmental issues. 10. "Requests clarifications on the Committee's 2012 audit programme, in particular on risky activities and the corresponding action plan to prevent them" In order to elaborate its annual audit programme, the IAS undertakes a risk analysis based on the twenty main activities of the CoR. For each activity, the risks are estimated according to the complexity of the related processes, the number of entities involved, the extent of the impact should risks materialise and the quality of control systems based on previous audit results. The activities are classified in descending order of risk in order to ensure that the top most risky activities are fully audited. Thanks to the 2012 audit programme, the first three risky activities are fully controlled by audits and all twenty activities are controlled at least for their main process. Action plans are defined by the IAS in its audit reports. The follow-up procedure requires that the implementation of audit recommendations is controlled within 12 months after the approval the related audit report. 13. "Calls on the Committee to cooperate with other institutions to come up with a unified methodology of presenting the translation costs in order to simplify the analysis and comparison of the costs" COR-2014-02183-04-00-NB-REF …/… - 52 The Committee has been participating in an ongoing Key Interinstitutional Activity and Performance Indicators (KIAPIs) exercise together with the translation services of the European Parliament, the European Commission and the Council, since its launch in 2011. In this context, a common methodology has been agreed to calculate and compare translation costs and other indicators. The Committee is implementing the common agreed methodology to calculate all indicators. However, as the European Parliament has been using estimates to calculate the number of pages translated instead of applying the common methodology directly (with consequences on the cost per translated page indicator), the figures have not yet been made public. COR-2014-02183-04-00-NB-REF …/… - 53 - 4. ISSUES PERTAINING TO THE DECLARATION OF ASSURANCE As reported in Chapter 3, the Directorate for Logistics did not carry out the ex-post control, referring to the Cooperation Agreement as a reason. The Cooperation Agreement between EESC and CoR foresees a harmonisation of internal control at high level. This issue will be taken up during the revision of the Cooperation Agreement, which has to be finalised before the end of 2014. In the meantime and after having examined the issue, the Directorate for Logistics has committed itself to a full implementation of the ex-post exercise in 2014. COR-2014-02183-04-00-NB-REF …/… - 54 - 5. THE DECLARATION OF ASSURANCE I, Gerhard Stahl, Secretary-General of the Committee of the Regions, in my capacity as authorising officer by delegation, Declare that the information contained in this report gives a true and fair view. State that I have reasonable assurance that the resources assigned to the activities described in this report have been used for their intended purpose and in accordance with the principles of sound financial management, and that the control procedures put in place give the necessary guarantees concerning the legality and regularity of the underlying transactions. This reasonable assurance is based on my own judgement and on the information at my disposal, such as the individual declarations of the authorising officers by sub-delegation based on detailed financial execution information and their reporting on exceptions and derogations, the management reporting based on the internal control system that has been established, the results of the self-assessment, expost controls and the work of the internal audit capability for years prior to the year of this declaration. Confirm that I am not aware of anything not reported here which could harm the interests of the institution. Done in Brussels, On 28/03/2014 Signed Gerhard STAHL COR-2014-02183-04-00-NB-REF