(PMO) Management Plan 2019 Office for Administration and Payment of individual entitlements

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Ref. Ares(2019)259374 - 17/01/2019

  Management Plan 2019

Office for Administration and
    Payment of individual
         entitlements
            (PMO)
2
Contents

INTRODUCTION ............................................................................................................ 2
PART 1. MAIN OUTPUTS FOR THE YEAR ........................................................................... 2
PART 2. MAIN ORGANISATIONAL MANAGEMENT OUTPUTS FOR THE YEAR ................................... 2
      Annex 1. Tables ..................................................................................................... 2
INTRODUCTION

As elaborated in the Strategic Plan1, the mission of the PMO is to provide a high quality
and user friendly service to current and former staff of the European Commission and
many of the other EU institutions and agencies. It does so by promptly and accurately
establishing and paying entitlements and claims, providing clear and relevant information
and ensuring efficient and effective controls. The PMO ensures the:

       establishment of individual financial rights for staff, pensioners and rights holders;
       payment of salaries, pensions and related entitlements;
       reimbursement of health, mission and expert claims;
       delivery of EU laissez-passer and handling of third-county visas for staff.

The activities of the PMO are highly dependent on Information Technology (IT) Systems.
Roadmaps with milestones and increased investment in order to achieve certain
functionalities are agreed for most projects. In 2019, the priority will be to deliver on the
developments of various IT projects as planned to be able to transition to service mode
in 2020. It will also be important to reach agreement with the HR Family on medium
term developments for shared projects.         Significant progress will be made in the
preparation of the Next Pay Application, following steps alreadly taken last year.

In 2019 the adaptation of "MiPS" will be completed following the adoption of the new
"Guide to missions and authorised travel" and will be extended tothe Council and several
Agencies. The roll-out of AGM (Advanced Gateway to EU Meetings) will continue to all
DGs and agencies. Sysper-Pensions will provide in 2019 several of its modalities on line
for former staff. The scope will be enlarged in order to incorporate unemployment as
well.

PMO continues to expand on its offer of services to other European bodies. In 2019, it
will integrate all Sysper functions under the responsability of PMO for the European
Council. With regard to service level agreements, the new form of the SLA has been sent
to agencies following adoption of the new charge-back methodology. The new SLAs with
the Institutions will be finalised in early 2019

In the Joint Sickness Insurance Scheme (JSIS), the health screening programme
developed last year will come into action in 2019 after a modification of the General
Implementing Rules. As regards the three Settlements Offices in Brussels, Ispra and
Luxembourg, the “One JSIS” initiative ensures a stronger co-ordination across the offices
so that all members receive the same treatment, regardless of their geographic location.
Centres of excellence have been established for the different functions of the JSIS. A
virtual single entry point in the front office provides information to beneficiaries and the
handling of hospital direct billing requests.

1
    Strategic     Plan     2016-2020,      PMO,     Ref.    Ares(2016)1120301   -   04/03/2016,
    http://ec.europa.eu/atwork/synthesis/amp/doc/pmo_sp_2016-2020_en.pdf

                                                    4
In 2019, the PMO will continue to invest in improving the quality of oral, written and
face-to-face communication with its clients, aiming for clear non-technical messages,
with particular attention devoted to sensitive or complex cases.

With the implementation of the new Data Protection Regulation replacing the Regulation
N° 45/20012 and the Implementation of the new IT Security Risk Management
Methodology, PMO will actively work on keeping high standards of security and privacy,
due to the sensitivity of the data processed by its information systems and its staff.

Finally, the exit of the UK from the European Union in 2019 will have an impact on the
work of several units in PMO, which will have to react very rapidly to changes in the
determination of rights and obligations.

2
    Regulation (EU) 2018/1725 Oof the European Parliament and of the Council of 23 October 2018 on the
      protection of natural persons with regard to the processing of personal data by the Union institutions, bodies,
      offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and
      Decision No 1247/2002/EC

                                                              5
PART 1. MAIN OUTPUTS FOR THE YEAR

To achieve the goals set out in the Strategic Plan, the PMO will continue to focus in 2019
on its following specific objectives:

       to ensure at all times the correct and timely handling of all types of transactions
       to offer high quality customer service
       to deepen synergies with institutions and agencies

1. Ensuring at all times the correct and timely handling of all types of transactions

The PMO ensures the correct and timely handling of payments of salary, pension and
related entitlements, as well as reimbursement of claims for medical expenses, missions
and expenses incurred by experts attending meetings.

In 2019, the aim is to maintain and in some few areas further improve efficiency in terms
of the speed with which files are treated. In most cases, PMO's efficiency targets are
being achieved.

In 2018, PMO started working with DGs HR, BUDG, DIGIT, and ESTAT, to map the data it
holds for different populations (active and non-active staff, those in the Commission,
other Institutions and agencies). The aim was to establish data needs, to identify
instances of multiple entry of the same data in different systems, and to propose options
for improvement. This diagnosis contributed to a Data Governance Programme involving
the HR Family, including PMO, DG HR and EPSO, which will continue in 2019.

As detailed in Part 2, the internal control structures of the PMO continue to work well,
with fine tuning when necessary. In 2018, the new Guide to missions and authorised
travel gave rise to a new control strategy which was adopted in November and will be
followed by a targeted communication and training sessions on the new rules in 2019.
The control strategy for the JSIS will be reviewed and documented better in 2019, in
response to a forthcoming IAS Audit.

 General objective: To help achieve the overall political objectives, the
 Commission will effectively and efficiently manage and safeguard assets and
 resources, and attract and develop the best talents.
Specific objectives (all non-spending)
Correct establishment, calculation and payment of entitlements and
reimbursements
             Output                                   Indicator                         Target
Coordination with DGs HR, BUDG,       Mapping of data held                              ongoing
DIGIT and ESTAT on data quality       Recurring coordination meetings
                                      Implementation of action plan
Improving speed of treatment for      Decrease backlog level to a standard level    End 2019
transfer in of pension rights files   (3,000 files)

2. Offering high quality customer service

Staff satisfaction with the quality of PMO's services has improved significantly since the
Strategic Plan was adopted in 2016. In 2018, a majority (59%) of respondents to the
survey of satisfaction with the offices were satisfied with PMO services, compared to 45%
                                                 6
in 2015. In addition to such surveys, PMO has developed a tool to capture staff feedback
in PMO Contact and the results are positive (approximately 80% satisfied). The PMO
continues to monitor feedback and in 2019 will take further initiatives to generate more
qualitative feedback which can assist in further improving its services.

Improved efficiency of IT systems and a strengthened focus on the quality of
communication, as outlined below, will also facilitate further client satisfaction in 2019.

With regard to AGM, the roadmap for 2019 includes significant developments which will
link up with other systems (e.g., WebDOR, the SG Register of Comitology and expert
groups, the e-Expert system of RTD, Payment Factory to link with ABAC). This will
facilitate the management of expert meetings across the Commission.

As regards the JSIS, priorities for 2019 to improve the quality of the service provided will
be

-   To develop a JSIS mobile application (e-RCAM);
-   To launch the new Health Screening Programme as soon as the new legal base is
    translated into the GIBs;
-   To establish a new convention with networks of hospitals/health centres;
-   To further improve co-ordination of the three Settlements Offices through the “One
    JSIS” initiative and further make use of the centres of excellence for the various
    functions in the different offices; and
-   To modernise the accounting and reporting tools.

General objective: To help achieve the overall political objectives, the
Commission will effectively and efficiently manage and safeguard assets and
resources, and attract and develop the best talents.

Specific objectives (non-spending)

Provide prompt, good quality and relevant information and ensure
high quality client services across the board
        Output                              Indicator                          Target
PMO satisfaction          Analysis of feedback on PMO'services Q4          +59%
survey                    2018
Satisfaction with PMO     Analysis of "smileys"                            +75%
Contact
Informing about the       Information campaign (e.g. MyIntracomm,          All year round
new Guide to missions     MiPS, Mission News, tutorials, videos,
and authorised travel     presentations and training)
        Output                              Indicator                          Target
Ensuring successful       Implementation of the SMP ticketing system       The new
migration to the Staff    (for staff and for HR specialists) in order to   ticketing system
Matters Portal            replace PMO Contact.                             Q1 2019
(the information portal                                                    PMO contact
is in production since                                                     phase out Q1
September 2017).                                                           2019

                                                  7
3. Deepening synergies with Institutions, Agencies and other bodies

The PMO was established in November 2002 as the paymaster's office of the European
Commission. Over the years PMO has provided ever more services to different European
Institutions and agencies. For example, JSIS covers all active and retired staff from all
Institutions and agencies and pensions are paid to all pensioners. Other services
(establishment of rights of staff, calculating the payroll and pensions, management of
accidents and occupational diseases, the determination of entitlements linked to
termination of service, expert reimbursements, etc.) are provided depending on the
needs of the institution/agency concerned.

The PMO provides services for the 29.400 staff of the Commission, 19.000 staff of 9
Institutions and bodies3 other than the Commission and approximately 10.800 staff of
the 49 agencies4 and 2 other bodies5 as well as 24.500 pensioners.

These services are based on Service Level Agreements (SLAs). The SLAs are subject to
the prior approval of the Management Board supervising PMO's activities. The revenue
from the charge-back of services for PMO is estimated at EUR 8 million for 2018
(excluding revenues charged internally to other Commission Services), while Institutions
generally pay for PMO services through the transfer of posts.

In 2019, the PMO will continue the extension of the provision of services to other
Institutions and bodies who wish to use its services. Discussions are ongoing with several
Institutions and agencies for "Sysper-Rights", "MiPS" for the management of mission and
authorised travel claims and the transcode6 for the payroll engine "NAP" (Nouvelle
Application Paie).

Following an IAS audit, the PMO reviewed its charge-back methodology and by end 2018
it has finalised the development and publication of a list of services and their prices, clear
documentation of the charge-back methodology and a revision of the SLAs. Presentations
were made to Agencies and other Institutions to explain the new modalities and the new
SLAs have started being concluded with the clients. Agencies will already be covered by
these new modalities in 2019, while it will apply to Institutions from 2020 with a
transition period until 2022.     PMO cooperates with central Commission services to
ensure that all SLAs fully comply with the relevant legal framework (including the
Financial Regulation) and that costs incurred by the PMO are appropriately charged to
other institutions and agencies.

In 2019 and future years, the PMO will continue to offer every year a two-day training in
Brussels for agencies and interested colleagues of other DGs and Institutions to exchange
experience and respond to questions and organise regularly specific trainings for other
Institutions and Agencies concerning rights at the end of contract.

3
    Institutions: European Parliament, Council of the European Union, Court of Justice of the European Union,
    European Court of Auditors; External policy body: European External Action Service; Consultative bodies:
    European Economic and Social Committee, European Committee of Regions; Other bodies: European
    Ombudsman, European Data Protection Supervisor.

4
    Decentralised organisations (agencies), Executive agencies, one Euratom body and other organisations.

5
    University of Florence, European Schools

6
    Automated process to transfer the Human Resources Management Systems data to the Payroll engine

                                                         8
The PMO develops its IT tools with synergies with the other institutions, agencies and
bodies in mind. In 2019, the PMO will continue to improve the Sysper-Rights system for
both active and former staff, having regard to the increasing number of EU Institutions
and bodies expected to join Sysper in the coming years. It will complete the transcode
Sysper-NAP (automatic transfer of data) for the Commission, the EEAS and the Executive
Agencies by adding new transcodes, jointly with DG HR and DG DIGIT for entitlements
which are not yet automated and for other Institutions and some non-executive agencies
when they start using Sysper.

Finally, in 2019, PMO will create a Task Force to manage the end of the European
Parliament term as well as the implications of Brexit; these developments will lead to end
of contracts for some MEPs’ assistants and contract and temporary agents attached to
the political groups of the Parliament. The Task Force will manage the unemployment
benefits for these staff.

 General objective: To help achieve the overall political objectives, the
 Commission will effectively and efficiently manage and safeguard assets and
 resources, and attract and develop the best talents.

                                                                   Non programme-based

Specific objectives (all non-spending)

             Output                                  Indicator                     Target
Training for new SLAs                                                 Throughout
                                    2 day training
                                                                         2019
Achievement of the IT strategy: complete the planned developments in due time

IT Transcoding                      Preparation for new clients                  Completion
                                                                                    for all
                                    Number of clients transcoded                 institutions
                                                                                     and
                                                                                  agencies

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PART 2. MAIN ORGANISATIONAL MANAGEMENT OUTPUTS FOR THE YEAR

A. Human resource management

PMO is committed to supporting female representation in middle management with a
current representation of 33%. The new College decision SEC(2017)359 adopted a
renewed approach to its commitment to reach at least 40% female managers by the end
of 2019. PMO's target is one female appointment to head of unit by the end of 2019. To
this end, PMO participated with one of its eligible staff in the first edition of the Female
Talent Development Programme developed by DG HR. PMO is actively encouraging its
eligible female staff to participate in the recently launched second edition.

The new Commission staff survey was launched in mid-November 2018 and its results in
2019 will feed into reflections on PMO’s follow-up action. The previous staff survey
(2016) showed a staff engagement index which is stable and slightly increasing (59% in
2014, 60% in 2016). In this context and following the move of PMO staff in Brussels to a
collaborative workspace, the OIB launched a specific staff survey in November 2017. The
results were presented during a lunchtime conference organised jointly by PMO and OIB,
and were also published on “My PMO”. The survey allowed OIB to propose medium and
long-term measures to improve the comfort of PMO staff: e.g. work underway on
kitchenettes and conviviality areas to improve acoustics and ability to concentrate and
work on adjusting the temperature of the office spaces. The use of laptops, replacing
computers, is another means to improve mobility.

Regarding staff well-being, the 2016 staff survey showed a satisfaction rate of 47%. The
context for PMO evolved during 2018. On the one hand, a new Commission Fit@work
policy was implemented with a multi-annual health and well-being programme for 2017-
2020. On the other hand, PMO moved to a collaborative space. PMO and OIB will
continue in 2019 to offer a wide range of activities in their shared well-being room and
PMO events are organised regularly. In early 2019, PMO is organising an “away day” for
all staff to focus on their achievements and reflect on what makes a positive work
environment.

PMO also organises with DG HR workshops on situations of psychosocial risks at work.
Two such worshops have already been organised in Brussels for specific PMO staff (the
JSIS team dealing with Handicap and very serious illnesses and the survivor pension
team). Feeback from the staff has been positive for this new training programme and
further sessions will be organised in 2019.

The main outputs for 2019 will be:

       Continue to participate in the simplification process within the HR delivery model
        while ensuring business continuity and quality of service in the three PMO sites
        (Brussels, Luxemburg and Ispra);
       Continue to improve working conditions;
       Follow up of the communication training programme to further improve oral and
        written communication, responding to the needs of PMO’s clients and
        programming trainings in the Luxembourg and Ispra sites.
       Follow up of the workshops on psychosocial risk prevention, possible extension to
        all PMO sites and staff based on needs and interest.
       Ensure the well being of the PMO staff which will feed through to better service to
        our clients.

                                               10
In addition, PMO will support communication to staff on corporate HR priorities by
publishing available information on its internet and through targeted communications,
when appropriate.
Objective: The DG deploys effectively its resources in support of the delivery of
the Commission priorities and core business, has a competent and engaged
workforce, which is driven by an effective and gender-balanced management
and which can deploy its full potential within supportive and healthy working
conditions.
Main outputs in 2019:
Output                 Indicator                    Target
                                                         PMO is offering all types of
Reinforce PMO’s           HR reports on working          working conditions laid down on
working conditions        conditions and staff           the relevant GIP's as long as the
policy                    satisfaction survey            interest and continuity of service
                                                         is ensured. PMO intends to
                                                         maintain the same output: no
                                                         refusal, except in exceptional
                                                         cases where the interest and
                                                         continuity of service is not
                                                         ensured.

Encourage female          Number of female appointed     One appointment by end 2019
appointment at middle     to middle-management
management level          positions

Develop a local           Actions implemented in the     The joint well being room shared
fit@work programme        Commission fit@work            by OIB and PMO allows both
targeted to PMO’s         programme                      offices to offer a wider range of
needs                                                    activities to staff.
                          Well-being satisfaction rate
                          (based on 2018 staff survey
                          results)
Develop a                 Number of planned actions      Implementation of a Learning
communication             timely implemented             and Development strategy and a
training programme to                                    tailor-made programme for PMO
better serve PMO’s                                       staff involved in a client service.
clients
Action plan as follow-    Approval of action plan by     by end of Q2 2019
up of the Staff Opinion   PMO Director
Survey 2018

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The following table shows the total human resources available within the Office as of
01/12/2018 (including the OLAF Supervisory Committee Secretariat – 8 posts).

                                                                                     (Posts)
 ABB Activity              Officials and           Contractual           Other                 Total
                         temporary staff             agents             external
                                                                       personnel

                                       (1)                     (2)
  Administration                160                    427                   25                612

(1)
      160 job quotas available in Sysper on 01/12/2018: 35 AD and 123 AST posts and 2 SC.
(2)
      Total of 427 contractual agents in 01/12/2018.

B. Financial Management: Internal control and Risk management

In 2018, the PMO implemented the new Communication on the Revision of the Internal
Control Framework. This lead to further fine tuning in the indicators used. Also in 2018,
the adaptation of the mission rules to the new Guide to missions and authorised travel
resulted in a review in the relevant control strategy.

Following a cost-benefit analysis, the PMO decided in mid 2017 to take over from DG HR
the administrative and legal management of its public procurement procedures. PMO will
continue to develop its in-house capacity to manage these procedures. For 2019 the PMO
plans to launch three tenders and to finalise the process for one tender launched during
the second half of 2018.

The PMO will improve its accounting reporting for hospital invoices paid under direct
billing agreements where weaknesses have been found in the cash based reports during
the year. This will allow for better planning of resources.

The PMO will continue to manage the budget and support the procedures of the OLAF
Supervisory Committee.

The tables in annex show the scope of PMO's operational expenditures, available financial
resources and key figures for its activity. The specific outputs for 2019 are detailed
below.

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Objective 1: Effective and reliable internal control system giving the necessary
guarantees concerning the legality and the regularity of the underlying
transactions.
Main outputs in 2019:
Output                       Indicator                          Target
Maintain effectiveness       Error rate                         < 1%
and reliability of
controls in place to
ensure the legality and
regularity of the            Execution of the ex-post           100% of the planned controls
underlying                   control plan                       executed
transactions.

Objective 2: Effective and reliable internal control system in line with sound
financial management.
Main outputs in 2019:
Output                       Indicator                          Target
Financial transactions:      All financial transactions are     100 %
continue to ensure all       initiated and validated within
financial transactions       the deadlines
are     initiated     and
validated within the
deadlines.
Budgetary       situation:   %   of   budget    execution       > 99 %
monitor on a monthly         (payments) with respect to
basis the budgetary          budget appropriations.
execution       of     the
operational budget
Implementation of the        Completion status of the           Focus on identified indicators for
new Internal Control         implementation        of    the    IC    effectiveness   for    each
Framework (ICF)              revised    internal      control   principle.
                             framework
Internal control: Risk-      Degree of revised internal         3 to be revised in 2019 for:
differentiated & cost-       control strategies adopted         settlement offices to revise ex
effective      internal      documented                  and    post     strategy     for    more
control systems              implemented         in      the    efficiency;   Revision    of  the
                             operational units.                 strategy of the ex ante controls
                                                                dealing with pension payments
                             Review status of the control       defined in 2017 and definition of
                             systems to differentiate the       a strategy of ex post controls
                             frequency       and/or   the       based on the results of the ex
                             intensity of controls              ante controls and the new tools
                                                                put in place; revision following
                                                                internal reorganisation.

                                                    13
Objective 3: Minimisation of the risk of fraud through application of effective
anti-fraud measures, integrated in all activities of the DG, based on the DG's
anti-fraud strategy (AFS) aimed at the prevention, detection and reparation of
fraud.
Main outputs in 2019:
Output                     Indicator                       Target
Increased level of anti-   Number of sessions              Sessions of information
fraud awareness            conducted on anti-fraud         conducted by OLAF will be
through development                                        organised in PMO and for PMO
of in house training                                       (as the one made in October
session in collaboration                                   2017 during the Training Days)
with OLAF

Implement new anti-        % of implementation of
fraud strategy             actions planned for 2019 in     100%
                           the PMO anti-fraud strategy

Increase cooperation       Number of                       Ad hoc meetings. Further
with IDOC+ Specific        meetings/trainings with IDOC    training sessions to be
Training for PMO                                           conducted
conducted by IDOC

Complete a working         Percentage of OLAF and
methodology with           IDOC final case reports         Existence of a methodology
IDOC/OLAF.                 transmitted for which follow-   which is applied
                           up has been established

Follow-up of OLAF and                                      100% followed-up
IDOC cases

Output                     Indicator                       Target

JSIS specific:

- Follow up of potential   Percentage of potential fraud   100% followed up
fraud cases concerning     attempts being successfully
the reimbursement of       followed up (analysis,
medical and accident       clarification requests, IDOC/
insurance expenses.        OLAF notification if deemed
(cases identified via      necessary)
ex-ante and ex-post
controls and through
the daily processing of
reimbursement
requests)

C. Better Regulation

N/A for PMO

                                                14
D. Information management aspects

Data Protection

The PMO developed an awareness campaign with videos, training and messages
addressed to all staff in 2018, as the new Data Protection Regulation for EU institutions
and bodies, repealing the current Regulation No 45/2001, entered into force in December
2018. All PMO units will receive training in 2019, taking into account each of their
operational specificities and the obligations arising from the new legislation. The PMO
also reviewed all its notifications to ensure that all its processing operations were
documented.

With regard to cybersecurity, a presentation has been made at management level and is
now under schedule for all PMO Units, to be finalised in 2019.

Document management and information management

The implementation of the paperless process continues, with the integration of PMO
information systems in HAN (Hermes, Ares, NomCom). The integration of "Payment
Factory" was completed in 2018.

The PMO will continue to extend the use of the Ares e-signatory. In 2019, an awareness
campaign will be developed, targeting mainly managers.

The PMO will analyse the possibility of developing an information management strategy.
This possibility will depend on the new rules for personal data protection, issued in 2018.

Objective: Information and knowledge in the PMO is shared and reusable by
other DGs. Important documents are registered, filed and retrievable.
Main outputs in 2019:
Output                   Indicator                        Target
Awareness raising        Training offered                 throughout 2019
around the new
personal data            % of staff informed              100%
protection rules
(issued in 2018)
Further improve the      Number of registered             50% (2017: 36%)
paperless process, to    documents with a fully
reduce errors caused     approved e-signatory (no
by circulation and to    paper circulation in parallel)
reduce paper storage,
especially in            % of staff awareness             All managers aware
collaborative space
settings
Analysis to see          Analysis performed               Q4 2018
whether an
information
management strategy
can be developed

E. External communication activities

N/A for PMO

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F. Example(s) of initiatives to improve economy and efficiency of financial and
non-financial activities of the DG

PMO plans to undertake several initiatives to improve the efficiency and/or economy of
its operations. Some examples are outlined below.

   1. Improve services through IT tools

To achieve its objectives, the PMO relies heavily on its IT systems. In 2018, the HR
Family IT Steering Committee was reconvened in response to an IAS audit on IT
programme and project management. Work has started to agree on a medium term
vision on IT across the HR family.

In 2019, progress will continue in the implementation of PMO IT systems:
      PMO became system owner on 1 October 2017 of the new IT tool for management
       and reimbursement of experts "AGM" (Advanced Gateway to EU Meetings). The
       plan is to on-board DGs and agencies in 2019. The aim is to reimburse 100% of
       the claims via AGM by the end of 2019 and phase out the old IT tool, APEX.

      For active staff, the PMO will widen the possibility for agents to declare more
       family events online (e.g. "divorce declaration"). A prototype is already available;
       further reflection is ongoing.

      For pensioners, the first module of the front office of "Sysper-Pensions", launched
       in November 2017, now includes fiscal certificates, optout for the paper version of
       documents and a mass printing facility. Additional features are planned in 2019.
       Due to the enlargement of the scope, Sysper-Pensions will become Sysper Post-
       activity to integrate all rights at the end of contract including unemployment.
       This will guarantee more security (including data protection) and more client-
       orientation (front office).

      For JSIS, the PMO will create a virtual single entry point in the front office for
       information to beneficiaries and handling of direct billing requests. In addition, it
       will improve the content and structure of the website "Staff Matters Portal" and
       will continue its efforts to clarify and consolidate rules and procedures for
       reimbursement. With regard to the treatment of invoicing from hospitals in direct
       billing and its book-keeping reporting, PMO is progressing in determining a
       procurement procedure for an on-line integration.

      For the management of missions and authorised travel, "MiPS" will be adapted to
       finalise the implementation of the new Guide to missions and authorised travel
       and prepare the deployment of the application in the Council and in several
       Agencies.

      Reflections are ongoing involving all actors on the replacement of the ageing pay
       calculation engine ("NAP").

   2. Streamlining processes

The management of pensioners’ files in the Sysper-Pensions application and the
automatic transfer of data to the JSIS will avoid manual data registration for health
insurance purposes and reduce the related risk of error.

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The integration of Sysper and PABS (Post Activity Business Suite) IT tools will help better
manage the process for the management of pensions and improve security. The goal is
to phase-out the older IT system (FIXPEN) and the multiple MS ACCESS applications as
they present a high level of obsolescence and vulnerability.

A presentation of Sysper-Pensions was made to the AIACE7 Ambassadors in 2018.
Further presentations are foreseen in 2019 during the meetings of the national sections
of the AIACE to provide training and awareness raising for their representatives. At these
meetings, PMO also assists pensioners with hands-on support as regards their EU-login
to facilitate their online contacts with the PMO.

Regarding the payments of entitlements (salaries), PMO will implement Sysper-Rights
system transcodes for payments of non-transcoded entitlements (e.g. maternity pay
files, pension contribution proportional to the activity, structural part time). The
automated flow of information generated will increase efficiency and effectiveness and
decrease significantly the risk of errors linked to manual encoding. Some human
resources will be deployed to other tasks.

JSIS successfully migrated to a new IT system in 2018 without disruption in its
production (from Assmal 1 financial module to Assmal 2). This was the result of intensive
testing and co-operation with DG DIGIT, which in turn led to a smooth transition with no
consequences for beneficiaries. A consultancy assignment with the IAS was finalised and
an action plan for accounting improvements was drawn up. Some of the proposals are
currently already being tested and are foreseen to be put in production for the beginning
of 2019. Within the same development, the payment module for hospital invoices has
been re-designed and simplified, resulting in accelerating payments (of invoices to
hospitals) and tarifications (recovery of the part pertaining to the member). A last
module, verifying members' visits to a hospital before proceeding to payments, still
needs to be finalised (currently under test).

In addition, a new application within Assmal has been launched to gradually move away
from a paperbased management of the accident and professional sickness insurance
scheme.

       3. Continued improvements of internal control methodologies

With regard to the Joint Sickness Insurance Scheme (JSIS), reimbursing sickness and
accident insurance expenses, PMO is taking the following initiatives:

-     As detailed in Part 1, further strengthening coordination between the three settlement
      offices for medical expenses with the aim of improving quality. In particular, the PMO
      has create a virtual single entry point in the front office for information to
      beneficiaries and handling of direct billing requests. It also specialises through
      excellence centres for operations of a more technical nature.
-     Looking into the new IT module to improve the direct billing workflow with the
      hospitals. It will optimize the use of resources and will lead to a more transparent,
      user-friendly and timely process. For example, it will allow early involvement of the
      JSIS beneficiary in the checking of the invoice. Controls in the system will insure
      flexibility and reactivity to new or increased level of risk for particular categories of
      invoices.

7
    AIACE: International Association of Former Officials of the European Communities

                                                          17
In 2019, the PMO will also revise the JSIS control strategy to respond to an IAS audit
which is currently being finalised.

Annex 1. Tables

The table below gives, based on the 2018 voted budget and PMO’s own budget, the
scope of the PMO's operational expenditure and shows how the PMO's available financial
resources are distributed:
                                                         (Payment appropriations in EUR million, rounded figures)

                Activity                          Payment for         Administrative               Total
                                                  operational          expenditure
                                                   activities         (DG managed)

                                     (1)
Members of the Commission                            15,3                                          15,3

                                     (2)
Officials and temporary staff                      2.736,1                                       2.736,1

Pensions(3)                                        1.905,0                                       1.905,0

                              (2)
Contract staff and SNEs                             356,2                                         356,2

                        (2)
Missions/Meetings                                   109,3                                         109,3

Legal claims, interests and others                    1,8                                           1,8

Expenditures for the mandate of                                                                     0,2
the OLAF Supervisory Committee                        0,2

                  (4)
Personnel PMO                                                               35,1                   35,1

Operating PMO                                                               7,3                     7,3

IT Developments PMO                                                         8,9                     8,9

  Total (of financial resources                    5.123,9                 51,3                  5.175,2
     managed by the PMO)

PM: Unemployment              fund         (off      17,7                                          17,7
budget) (3)

PM: Sickness Insurance Scheme                       322,7                                         322,7
(off budget)(3)

                                                                 source: 2018 voted budget and PMO’s own budget
  (1)
      including special advisers, missions and representation costs
  (2)
      European Commission, excluding PMO
  (3)
      for all Institutions and agencies
  (4)
      includes the Secretariat of the OLAF Supervisory Committee

                                                            18
Key figures for Activity                                                    Volume

                Determining and paying individual rights and expenses              Activity Indicator    2018 Results        2018 Forecast 2019 Forecast
                                                                                      (Number of)       as at 01/12/18       (per 2018 MP)

        1   Determination of individual rights                                Staff members managed               37,656         38,000          41,000

        2   Calculation, payment and accounting of salaries (per month)       Salaries                            43,990         42,500          47,000

        3   Calculation, payment and accounting of pensions (per month)       Pensions                            24,979         24,500          25,759

                                                                              Files closed                2,891 (mgt Tfin
        4   Management of inward transfer pension files                                                                           4,000           3,800
                                                                                                                wkf new)

                                                                              Treated files                                    275 to be
        5   Management and payment of severance grants                                                                181                           275
                                                                                                                                    paid

                                                                              Treated files                                    460 to be
        6   Management and payment of outward transfer pension files                                                  375                           460
                                                                                                                                    paid

                                                                              Treated files                670 files open
        7   Management and payment of unemployment benefit                                                570 files closed        1,450           2,6008

        8   Management and payment of medical claims of JSIS beneficiaries    Reimbursements                   2,634,816       3,000,000       3,100,000

        9   Payment of cost claims linked to accident declared by staff       Reimbursements                       1,696          2,000           2,000

       10   Management and payment of missions/authorised travelexpenditure   Reimbursements                     120,942        140,000         145,000

       11   Management of requests for visa                                   Visas                                3,137          3,700           3,900

       12   Management of requests for laissez-passer                         Laissez-passer                       1,610          3,000           2,550

8
    Forecast including Brexit and APA
27,892 APEX2
        13     Management and payment of expert expenditure                                           Reimbursements                           23,657 payments       65,000      65,000
                                                                                                                                                          AGM

                                                                                                      Number   of           SNE       files                              N.A.
        14     Management and payment of SNEs (per month)                                             managed9                                              623    (changed        630
                                                                                                                                                                   indicator)

        15     Management of insurance claims for non-statutory staff                                 Insurance claims                                       70           70        70

                                                                                                      Tickets                                     99,070 tickets    120,000     120,000
        16     Management of PMO Contact
                                                                                                      Phone calls                             32,200 phone calls     45,000      45,000

9
    PMO decided to change the activity indicator to provide reliable figures (i.e. number of SNE files payed by the Commission, extracted from e-Sire)

                                                                                                                 20
    Electronically signed on 16/01/2019 16:59 (UTC+01) in accordance with article 4.2 (Validity of electronic documents) of Commission Decision 2004/563
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