Annex 2 Detailed cost calculations

• Author: Directorate-General for Migration and Home Affairs (European Commission), ICF
• Pages: 69-89

Study to assess the impacts related to possible evolutions of EUROSUR - Final Report

September, 2019

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Annex 2 Detailed cost calculations

This annex describes the calculations in the cost model, showing how they h ave been

calculated and key assumptions used in the calculations.

The costs i ncluded in each category are presented in the sections below, along with a

description of how the costs were calculated. The options build on one another – the

total cost for option 2 includes all the costs association with option 1, pl us the extra

costs a ssociated wi th opti on 2. All the option 4 sub options (4.1, 4.2, 4.3) buil d on

option 3 (the total costs of option 3 plus the additional costs in each o f the sub-options

separately).

A2.1 Tables in Excel file cover sheet

A2.1.1 Total financial cost table

The total financial cost figures show the nominal value of each policy opti on over the

period 2020 t o 2027. This sums t he finan cial cost in each year to provide the total

financial costs over the period.

A2.1.2 Average annual cost

The average annual cost tables present the total cost over an eight-year period divided

by ei ght, to give the average monetary cost of each option. This approach has been

undertaken as not al l costs are incurred every year, so the annual cost i s different in

different years.

The level of t otal expenditure can be calculated from thi s table. This can be calculated

by multiplying the monetary values in the table by the number of years covered by th e

analysis (i.e. eight).

A2.1.3 Human resource cost

The human resource cost presents the number of full- time equivalents (FTEs) required

in each option, and the annual staffing cost for each option. They sum the cost

calculations by option wherever staff costs are incurred.

A2.2 Option 0 – Baseline

A2.2.1 Infrastructure

A2.2.1.1 Replacement of building security equipment

The building security equipment will need to be replaced every five years. This is

assumed to happen in 2020 and 2025.

The total cost of replacing building security equipment at existing NCCs and at EBCGA

is assumed to be (on the basis of the past technical and financial impact assessment of

EUROSUR):

 €30,000 per NCC; and

 €100,000 for the ECBGA.

The cost per NCC is multiplied by the total number of NCCs (30) to esti mate the total

cost of replacing NCC security systems in each year.

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A2.2.2 Operating and IT equipment

No operating and IT equipment costs were identified.

A2.2.3 Staff costs

A2.2.3.1 Existing staff costs

The cost of providing staff to implement EUROSUR in line with the existi ng legislation

was esti mated in the previous impact ass essment of EUROSUR an d informati on from

Eurostat on GDP deflator95 to update the labour costs as reported in the impact

assessment. The sta ff cost i s incurred every year, and is for NCCs and the EBCG A.

Member State's staff cost have been derived from the last technical and financial impact

assessment of EUROSUR and actualised. EBCGA staff cost have been derived from

EBCGA data on the basis of core staff profil es (e.g. analyst, pl anning officers, IT staff,

etc.). The annual staff cost to provide these services was estimat ed to be:

 an average of 35 staff are required at each NCCs to fully deliver EUROSUR.

This has a cost of €824,000 per NCC per year; and

 the EBCGA has an annual staff cost of €3.9 million to deliver services in line

with the current legislation.

The cost per NCC is multiplied by the total number of NCCs (30) to esti mate the total

cost of staffing at an NCC in each year.

An additional 15% has been added to the l abour costs fo r NCC staff. Thi s is to cover

the costs associated wi th providing a desk, IT systems and other on-costs associated

with the member of staff being able to undertake their job. The 15% is based on the

ratio between the labour cost and desk / IT costs for EBCGA staff.

This cost has been multiplied by the degree to which each Member State

complies with the existing legislation, to estimate th e cost of labour if

EUROSUR continued to be delivered as it is currently. A compliance score was

assigned to each Member State on the basis of the state of play of implementation of

the Regulation 2013/1052 across Member States and Schengen Associated States.

Therefore, the cost per NCC varies as the level of compliance is different in each Member

State, and the average cost (including the 15% mark-up) is €739,000 per NCC per year.

There is also the existing staff cost relating to the provision of EUROSUR Fusion Services.

It is estimated that providing EUROSUR F usion Services under the current legislation

requires 10 FTE. This assumption is based on information provided by th e EBCGA.

The staff cost of providing EUROSUR Fusion Services has been estimated by multiplying

the number of sta ff by an average labour cost. The average labour cost f or EUROSUR

Fusion services staff is assumed to be €105,300. This is based on information provided

by DG HOME.

A2.2.3.2 Existing staff to analyse BCP data

Some Member States already collect a nd analyse BCP data in EUROSUR. Where a

Member State NCC does thi s, it is estimated that some additional staff are in place to

analyse the data. However, these Member States do not always collect and anal yse all

BCP data for all border types (land, sea an d air borders). For the baseline, i t has been

assumed that these Member States collect data from land and sea BCPs, but not

airports. This assumption was made in the absence of data from the EUROSUR

evaluation and or EBCGA feedback. The assumption is based on a reasoned argument

95 See https://ec.europa.eu/eurostat/data/database?node_code=teina110. When implied to 2011 prices, the

inflation between 2011 and 2018 show a 10% increase. A 10% uplift has then been applied to 2011 estimates.