# C_2008311EN.01011601.xml

| 5.12.2008 | EN | Official Journal of the European Union | C 311/116 |
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5.12.2008

EN

Official Journal of the European Union

C 311/116

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REPORT

REPORT

on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2007 together with the Centre's replies

(2008/C 311/17)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

| 3-6 | STATEMENT OF ASSURANCE |
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3-6

| 7-8 | OBSERVATIONS |
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7-8

Tables 1 to 4

The Centre's replies

The Centre's replies

INTRODUCTION

| 1. | The Translation Centre for the Bodies of the European Union (hereinafter the Centre) was established by Council Regulation (EC) No 2965/94 (1). The Centre's role is to provide the EU bodies, and any other EU Institutions and Bodies which call upon its services, with the translation services necessary for their activities. |
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1.

The Translation Centre for the Bodies of the European Union (hereinafter the Centre) was established by Council Regulation (EC) No 2965/94 (1). The Centre's role is to provide the EU bodies, and any other EU Institutions and Bodies which call upon its services, with the translation services necessary for their activities.

1

| 2. | Table 1 summarises the Centre's competences and activities. Key data taken from the financial statements drawn up by the Centre for the financial year 2007 are presented in Tables 2, 3 and 4for information purposes. |
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2.

Table 1 summarises the Centre's competences and activities. Key data taken from the financial statements drawn up by the Centre for the financial year 2007 are presented in Tables 2, 3 and 4for information purposes.

Table 1

Tables 2, 3 and 4

STATEMENT OF ASSURANCE

| 3. | This statement is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2); it was drawn up following an examination of the Centre's accounts, as required by Article 248 of the Treaty establishing the European Community. |
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3.

This statement is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2); it was drawn up following an examination of the Centre's accounts, as required by Article 248 of the Treaty establishing the European Community.

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| 4. | The Centre's accounts for the financial year ended 31 December 2007 (3) were drawn up by its Director, pursuant to Article 14 of Regulation (EC) No 2965/94, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions. |
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4.

The Centre's accounts for the financial year ended 31 December 2007 (3) were drawn up by its Director, pursuant to Article 14 of Regulation (EC) No 2965/94, and sent to the Court, which is required to give a statement of assurance on their reliability and on the legality and regularity of the underlying transactions.

3

| 5. | The Court conducted its audit in accordance with the IFAC and ISSAI (4) International Auditing Standards and Codes of Ethics, in so far as these are applicable in the European Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and that the underlying transactions are legal and regular. |
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5.

The Court conducted its audit in accordance with the IFAC and ISSAI (4) International Auditing Standards and Codes of Ethics, in so far as these are applicable in the European Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and that the underlying transactions are legal and regular.

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| 6. | The Court has thus obtained a reasonable basis for the statement set out below:

  Reliability of the accountsThe Centre's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Centre's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's statement into question. |
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6.

The Court has thus obtained a reasonable basis for the statement set out below:

Reliability of the accountsThe Centre's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Centre's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's statement into question.

Reliability of the accountsThe Centre's accounts for the financial year ended 31 December 2007 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Centre's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's statement into question.

OBSERVATIONS

| 7. | In one case, the audit of procurement procedures showed that the evaluation of the award criteria was not appropriately documented because the Centre did not make a cost/benefit analysis of the different alternatives proposed to justify the final choice. |
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7.

In one case, the audit of procurement procedures showed that the evaluation of the award criteria was not appropriately documented because the Centre did not make a cost/benefit analysis of the different alternatives proposed to justify the final choice.

| 8. | There was a lack of due diligence in the way in which one of the six recruitment procedures audited was implemented. The file examined showed various anomalies (errors in the evaluation sheets, dates not correctly registered as required, imprecision of the supporting documents). This situation did not ensure the transparency of the procedure. |
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8.

There was a lack of due diligence in the way in which one of the six recruitment procedures audited was implemented. The file examined showed various anomalies (errors in the evaluation sheets, dates not correctly registered as required, imprecision of the supporting documents). This situation did not ensure the transparency of the procedure.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 18 September 2008.

For the Court of Auditors

Vítor Manuel da SILVA CALDEIRA

President

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(1)  OJ L 314, 7.12.1994, p. 1.

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(2)  OJ L 248, 16.9.2002, p. 1.

2

(3)  These accounts were drawn up on 16 June 2008 and received by the Court on 3 July 2008.

3

(4)  International Federation of Accountants (IFAC) and International Standards of Supreme Audit Institutions (ISSAI).

4

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Table 1

Translation Centre for the Bodies of the European Union (Luxembourg)

| Areas of Community competence | Competences of the Centre Council Regulation (EC) No 2965/94 | Governance | Resources made available to the Centre in 2007

  (Data for 2006) | Products and services provided during the financial year 2007

  (Data for 2006) |
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| The representatives of the Member States' governments adopted by mutual agreement a declaration concerning the creation, under the aegis of the Commission's translation departments in Luxembourg, of a Translation Centre for the bodies of the Union, which would provide the necessary translation services for the operation of the bodies and services whose seats were established by the Decision of 29 October 1993.

  (Council Decision taken on the basis of Article 235 of the Treaty). | Objectives

  To provide the necessary translation services for the operation of the following bodies:






  — | the European Environment Agency, |

Areas of Community competence

Competences of the Centre Council Regulation (EC) No 2965/94

Governance

Resources made available to the Centre in 2007

(Data for 2006)

Products and services provided during the financial year 2007

(Data for 2006)

The representatives of the Member States' governments adopted by mutual agreement a declaration concerning the creation, under the aegis of the Commission's translation departments in Luxembourg, of a Translation Centre for the bodies of the Union, which would provide the necessary translation services for the operation of the bodies and services whose seats were established by the Decision of 29 October 1993.

(Council Decision taken on the basis of Article 235 of the Treaty).

Objectives

To provide the necessary translation services for the operation of the following bodies:

—

the European Environment Agency,

| — | the European Training Foundation, |
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the European Training Foundation,

| — | the European Monitoring Centre for Drugs and Drug Addiction, |
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the European Monitoring Centre for Drugs and Drug Addiction,

| — | the European Medicines Agency, |
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the European Medicines Agency,

| — | the European Agency for Health and Safety at Work, |
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—

the European Agency for Health and Safety at Work,

| — | the Office for Harmonization in the Internal Market (Trademarks and Designs), |
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—

the Office for Harmonization in the Internal Market (Trademarks and Designs),

| — | the European Police Office (Europol) and the Europol Drugs Unit. |
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—

the European Police Office (Europol) and the Europol Drugs Unit.

Bodies set up by the Council other than the above may use the Centre's services. The institutions and bodies of the European Union which already have their own Translation Services may, if need be, call upon the Centre's services on a voluntary basis.

The Centre plays a full part in the work of the Interinstitutional Translation Committee.

Tasks

| — | To make arrangements for cooperation with the bodies and institutions. |
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—

To make arrangements for cooperation with the bodies and institutions.

| — | To participate in the work of the Interinstitutional Translation Committee. |
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—

To participate in the work of the Interinstitutional Translation Committee.

1.   Management Board

Composition

| — | one representative per MemberState; |
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—

one representative per MemberState;

| — | two representatives from the Commission; |
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—

two representatives from the Commission;

| — | one representative from each body or institution calling upon the Centre's services. |
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—

one representative from each body or institution calling upon the Centre's services.

Task

Adopts the Centre's annual work programme and annual report.

2.   Director

Appointed by the Management Board on a proposal from the Commission.

3.   External audit

Court of Auditors.

4.   Internal audit

Commission's internal auditor.

5.   Discharge authority

Parliament acting on a recommendation from the Council.

Final budget:

46,12 (40,88) million euro.

Staff at 31 December 2007:

200 (189) posts provided for in the establishment plan,

posts occupied: 176 (169).

Assigned to the following duties:

| — | operational: 88 (80) |
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—

operational: 88 (80)

| — | administrative: 88 (89) |
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—

administrative: 88 (89)

Number of pages translated

732 673 (546 735)

Number of pages by language

| — | official languages: 729 286 (537 797) |
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—

official languages: 729 286 (537 797)

| — | other languages: 3 387 (8 938) |
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—

other languages: 3 387 (8 938)

Number of pages per client

| — | bodies: 711 131 (531 454) |
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—

bodies: 711 131 (531 454)

| — | institutions: 21 542 (15 281) |
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—

institutions: 21 542 (15 281)

Number of pages translated freelance

395 701 (260 303)

Source: Information supplied by the Centre.

Table 2

Translation Centre for the Bodies of the European Union (Luxembourg) — Implementation of the budget for the financial year 2007

| (1000 euro) |
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| Revenue | Expenditure |
| Source of revenue | Revenue entered in the final budget for the financial year | Revenue received | Allocation of expenditure | Final budget appropriations | Appropriations carried over from the previous financial year |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Own revenue | 37 967 | 40 291 | Title I
  Staff | 17 285 | 15 614 | 15 430 | 185 | 1 670 | 196 | 168 | 28 |
| Interest | 450 | 1 301 | Title II
  Administration | 4 983 | 4 215 | 2 757 | 1 457 | 769 | 1 215 | 1 124 | 91 |
| Balance for the previous financial year | 16 994 | 16 994 | Title III
  Operating activities | 14 753 | 13 385 | 11 102 | 2 283 | 1 368 | 1 475 | 1 473 | 2 |
| Reimbursement to clients | –9 295 | –9 295 | Title X
  Reserve | 9 095 | 0 | 0 | 0 | 9 095 | 0 | 0 | 0 |
| Other revenue | 0 | 12 | | | | | | | | | |
| Total | 46 116 | 49 303 | Total | 46 116 | 33 214 | 29 289 | 3 925 | 12 902 | 2 886 | 2 765 | 121 |
| Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts. Revenue collected and payments are estimated on a cash basis. |

(1000 euro)

Revenue

Expenditure

Source of revenue

Revenue entered in the final budget for the financial year

Revenue received

Allocation of expenditure

Final budget appropriations

Appropriations carried over from the previous financial year

entered

committed

paid

carried over

cancelled

available

paid

cancelled

Own revenue

37 967

40 291

Title I

Staff

17 285

15 614

15 430

185

1 670

196

168

28

Interest

450

1 301

Title II

Administration

4 983

4 215

2 757

1 457

769

1 215

1 124

91

Balance for the previous financial year

16 994

16 994

Title III

Operating activities

14 753

13 385

11 102

2 283

1 368

1 475

1 473

2

Reimbursement to clients

–9 295

–9 295

Title X

Reserve

9 095

0

0

0

9 095

0

0

0

Other revenue

0

12

Total

46 116

49 303

Total

46 116

33 214

29 289

3 925

12 902

2 886

2 765

121

Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

Translation Centre for the Bodies of the European Union (Luxembourg) — Economic outturn account for the financial years 2007 and 2006

| (1000 euro) |
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| | 2007 | 2006 |
| Operating revenue |
| Own resources | 41 317 | 32 817 |
| Other revenue | 211 | 126 |
| Total (a) | 41 528 | 32 943 |
| Operating expenditure |
| Staff expenditure | 15 476 | 13 713 |
| Fixed-asset-related expenditure | 3 875 | 4 195 |
| Other administrative expenditure | 2 229 | 2 021 |
| Operational expenditure | 12 810 | 8 757 |
| Total (b) | 34 390 | 28 686 |
| Surplus/(deficit) from operating activities (c = a – b) | 7 138 | 4 257 |
| Revenue from financial operations (e) | 1 301 | 844 |
| Expenditure on financial operations (f) | 4 | 3 |
| Surplus/(deficit) from non-operating activities (g = e – f) | 1 297 | 841 |
| Economic result for the year (h = c + g) | 8 435 | 5 099 |
| Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts: these accounts are drawn up on an accrual basis. |

(1000 euro)

2007

2006

Operating revenue

Own resources

41 317

32 817

Other revenue

211

126

Total (a)

41 528

32 943

Operating expenditure

Staff expenditure

15 476

13 713

Fixed-asset-related expenditure

3 875

4 195

Other administrative expenditure

2 229

2 021

Operational expenditure

12 810

8 757

Total (b)

34 390

28 686

Surplus/(deficit) from operating activities (c = a – b)

7 138

4 257

Revenue from financial operations (e)

1 301

844

Expenditure on financial operations (f)

4

3

Surplus/(deficit) from non-operating activities (g = e – f)

1 297

841

Economic result for the year (h = c + g)

8 435

5 099

Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts: these accounts are drawn up on an accrual basis.

Table 4

Translation Centre for the Bodies of the European Union (Luxembourg) — Balance sheet at 31 December 2007 and 2006

| (1000 euro) |
| --- |
| | 2007 | 2006 |
| Non-current assets |
| Intangible fixed assets | 539 | 267 |
| Tangible fixed assets | 551 | 391 |
| Current assets |
| Stock | 390 | 313 |
| Short-term receivables | 6 900 | 5 907 |
| Cash and cash equivalents | 34 930 | 34 618 |
| Total assets | 43 310 | 41 496 |
| Current liabilities |
| Provisions for risks and charges | 12 829 | 10 600 |
| Accounts payable | 2 436 | 1 991 |
| Total liabilities | 15 265 | 12 591 |
| Net assets | 28 045 | 28 905 |
| Reserve |
| Reserves | 10 760 | 9 761 |
| Accumulated surplus/deficit | 8 849 | 14 045 |
| Economic result for the year | 8 435 | 5 099 |
| Net capital | 28 045 | 28 905 |
| Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts: these accounts are drawn up on an accrual basis. |

(1000 euro)

2007

2006

Non-current assets

Intangible fixed assets

539

267

Tangible fixed assets

551

391

Current assets

Stock

390

313

Short-term receivables

6 900

5 907

Cash and cash equivalents

34 930

34 618

Total assets

43 310

41 496

Current liabilities

Provisions for risks and charges

12 829

10 600

Accounts payable

2 436

1 991

Total liabilities

15 265

12 591

Net assets

28 045

28 905

Reserve

Reserves

10 760

9 761

Accumulated surplus/deficit

8 849

14 045

Economic result for the year

8 435

5 099

Net capital

28 045

28 905

Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts: these accounts are drawn up on an accrual basis.

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THE CENTRE'S REPLIES

| 7. | The Centre takes full note of the Court's observation and will strengthen its ex-ante control by ensuring that cost-benefit analysis becomes an integral part of all activities that entail significant expenditure when different possible options are available. |
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7.

The Centre takes full note of the Court's observation and will strengthen its ex-ante control by ensuring that cost-benefit analysis becomes an integral part of all activities that entail significant expenditure when different possible options are available.

| 8. | The Centre takes full note of the Court's observation and the procedures will be adapted accordingly. |
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8.

The Centre takes full note of the Court's observation and the procedures will be adapted accordingly.

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