# C_2007309EN.01011101.xml

| 19.12.2007 | EN | Official Journal of the European Union | C 309/111 |
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19.12.2007

EN

Official Journal of the European Union

C 309/111

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REPORT

REPORT

on the annual accounts of Eurojust for the financial year 2006 together with the Eurojust's replies

(2007/C 309/19)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

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

| 7-9 | OBSERVATIONS |
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7-9

Tables 1 to 4

The Eurojust's replies

The Eurojust's replies

INTRODUCTION

| 1. | Eurojust was set up by Council Decision No 2002/187/JHA (1) with a view to stepping up the fight against serious organised crime. Its objective is to improve the coordination of investigations and prosecutions covering the territories of several Member States of the European Union, as well as that of non-member States. |
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1.

Eurojust was set up by Council Decision No 2002/187/JHA (1) with a view to stepping up the fight against serious organised crime. Its objective is to improve the coordination of investigations and prosecutions covering the territories of several Member States of the European Union, as well as that of non-member States.

1

| 2. | Table 1 summarises Eurojust's competences and activities. Key data summarised from the financial statements drawn up by Eurojust for the financial year 2006 is presented in Tables 2, 3 and 4 for information purposes. |
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2.

Table 1 summarises Eurojust's competences and activities. Key data summarised from the financial statements drawn up by Eurojust for the financial year 2006 is presented in Tables 2, 3 and 4 for information purposes.

Table 1

Tables 2, 3

4

STATEMENT OF ASSURANCE

| 3. | This statement is addressed to the European Parliament and the Council pursuant to Article 36 of Council Decision 2002/187/JHA. |
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3.

This statement is addressed to the European Parliament and the Council pursuant to Article 36 of Council Decision 2002/187/JHA.

| 4. | Eurojust's accounts for the financial year ended 31 December 2006 (2) were drawn up by its Administrative Director, pursuant to Article 36 of Council Decision No 2002/187/JHA, 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.

Eurojust's accounts for the financial year ended 31 December 2006 (2) were drawn up by its Administrative Director, pursuant to Article 36 of Council Decision No 2002/187/JHA, 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.

2

| 5. | The Court conducted its audit in accordance with the IFAC and INTOSAI International Auditing Standards and Codes of Ethics, insofar 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 INTOSAI International Auditing Standards and Codes of Ethics, insofar 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.

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

  Reliability of the accountsEurojust's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying Eurojust'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 accountsEurojust's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying Eurojust'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 accountsEurojust's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying Eurojust'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. | The commitment rate for appropriations entered in the budget for the financial year 2006 was 96 %. The carryover rate was 33 % for administrative expenditure (Title II), and 30 % for operational expenditure (Title III). The management of the budget showed a high number of transfers of appropriations between budget lines and in many cases the supporting documentation was insufficiently detailed. Thus, the budgetary principles of annuality and specification were not strictly observed. |
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7.

The commitment rate for appropriations entered in the budget for the financial year 2006 was 96 %. The carryover rate was 33 % for administrative expenditure (Title II), and 30 % for operational expenditure (Title III). The management of the budget showed a high number of transfers of appropriations between budget lines and in many cases the supporting documentation was insufficiently detailed. Thus, the budgetary principles of annuality and specification were not strictly observed.

| 8. | The rules for procurement were not strictly implemented. Four framework contracts were concluded for a maximum duration of more than four years. For the procurement of courier services (3) no appropriate procedure had been launched at the time of the audit (November 2006). For translation services, a bureau was instructed to use translators chosen by Eurojust instead of its own staff. This situation was not in line with the competition principle and it resulted in a price increase of 45 000 euro as compared to contractual tariffs. |
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8.

The rules for procurement were not strictly implemented. Four framework contracts were concluded for a maximum duration of more than four years. For the procurement of courier services (3) no appropriate procedure had been launched at the time of the audit (November 2006). For translation services, a bureau was instructed to use translators chosen by Eurojust instead of its own staff. This situation was not in line with the competition principle and it resulted in a price increase of 45 000 euro as compared to contractual tariffs.

3

| 9. | The data concerning fixed assets were compiled using a spreadsheet and other software tools. This did not guarantee the integrity of the data recorded. A fixed assets register which includes all assets and their values was not established and used to monitor the Eurojust's property. |
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9.

The data concerning fixed assets were compiled using a spreadsheet and other software tools. This did not guarantee the integrity of the data recorded. A fixed assets register which includes all assets and their values was not established and used to monitor the Eurojust's property.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 27 September 2007.

For the Court of Auditors

Hubert WEBER

President

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(1)  Decision of 28 February 2002 setting up Eurojust (OJ L 63, 6.3.2002, p. 1).

1

(2)  These accounts were drawn up on 27 June 2007 and received by the Court on 4 July 2007.

2

(3)  Value of the contracts: more than 100 000 euro.

3

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Table 1

Eurojust (The Hague) — 2006

| Areas of competence deriving from the Treaty on European Union | Competences of Eurojust as defined in the Council Decision 2002/187/JAI | Governance | Resources made available to Eurojust in 2006

  (2005) | Products and services supplied in 2006

  (2005) |
| --- | --- | --- | --- | --- |
| Third pillar body created by Council Decision.
  The Union's objective is to provide citizens with a high level of safety within an area of freedom, security and justice.
  The Council encourages cooperation through Eurojust by enabling it to facilitate proper coordination between the Member States' national prosecuting authorities.

  (extracts from Articles 29 and 31)

  Eurojust's main areas of responsibility are the same as Europol's, that is, the fight against terrorism, organised crime, in particular drug-trafficking, illegal immigration, illicit vehicle trafficking, trafficking in human beings, the counterfeiting of money, trafficking in radioactive substances, computer crime, acts detrimental to the Union's financial interests and money-laundering. | Objectives


  Article 3


  Eurojust Decision







  — | To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions. |

Areas of competence deriving from the Treaty on European Union

Competences of Eurojust as defined in the Council Decision 2002/187/JAI

Governance

Resources made available to Eurojust in 2006

(2005)

Products and services supplied in 2006

(2005)

Third pillar body created by Council Decision.

The Union's objective is to provide citizens with a high level of safety within an area of freedom, security and justice.

The Council encourages cooperation through Eurojust by enabling it to facilitate proper coordination between the Member States' national prosecuting authorities.

(extracts from Articles 29 and 31)

Eurojust's main areas of responsibility are the same as Europol's, that is, the fight against terrorism, organised crime, in particular drug-trafficking, illegal immigration, illicit vehicle trafficking, trafficking in human beings, the counterfeiting of money, trafficking in radioactive substances, computer crime, acts detrimental to the Union's financial interests and money-laundering.

Objectives

Article 3

Eurojust Decision

—

To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions.

| — | To improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests. |
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—

To improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests.

| — | To support the competent authorities of the Member States in order to render their investigations and prosecutions more effective. |
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—

To support the competent authorities of the Member States in order to render their investigations and prosecutions more effective.

| — | To provide support with procedures involving a Member State and a non-member State. |
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—

To provide support with procedures involving a Member State and a non-member State.

| — | To provide support with procedures involving a Member State and the Community. |
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—

To provide support with procedures involving a Member State and the Community.

Tasks

Articles 5, 6 and 7

Eurojust Decision

To organise cooperation between the various national legal systems, Eurojust acts:

| — | through its national members; or |
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—

through its national members; or

| — | as a College. |
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—

as a College.

If the competent authorities of the Member State concerned decide not to respond to the requests which Eurojust has issued as a College, they shall inform Eurojust of the reasons for their decision.

| 1. | The College is responsible for the organisation and operation of Eurojust. |
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1.

The College is responsible for the organisation and operation of Eurojust.

| 2. | The College is composed of national members who are seconded by each Member State in accordance with its legal system and who are prosecutors, judges or police officers of equivalent competence. |
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2.

The College is composed of national members who are seconded by each Member State in accordance with its legal system and who are prosecutors, judges or police officers of equivalent competence.

| 3. | The College elects its President from among the national members. |
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3.

The College elects its President from among the national members.

| 4. | The Joint Supervisory Body checks the processing of personal data |
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4.

The Joint Supervisory Body checks the processing of personal data

| 5. | The Administrative Director is unanimously appointed by the College. |
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5.

The Administrative Director is unanimously appointed by the College.

| 6. | External audit: the European Court of Auditors. |
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6.

External audit: the European Court of Auditors.

| 7. | Discharge is given by the Parliament on the Council's recommendation. |
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7.

Discharge is given by the Parliament on the Council's recommendation.

Final budget

14,7 million euro (13 million euro)

Community subsidy: 100 % (100 %)

Staff numbers at 31 December 2006

Number of posts in the establishment plan: 112 (87)

Posts occupied: 93 (70)

+21 (15) other posts:

(2 contract staff, 5 seconded national experts, local staff, 14 employment agency staff)

Total staff numbers: 114 (85)

assigned to the following tasks:

operational: 56 (31)

administrative: 49 (41)

mixed: 9 (13)

Number of meetings: 89 (73)

Standard cases (*): 270 out of 361

Complex cases: 91 out of 361

Total number of cases: 771 (588)

Fraud: 175 (120)

Drug trafficking: 170 (135)

Terrorism: 44 (25)

Murder: 59 (43)

Trafficking in persons: 32 (33)

(*) New type of classification as of 1 July 2006, valid for the 361 cases opened between this date and 31 December 2006.

Source: Information supplied by Eurojust.

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

Table 2

EUROJUST (The Hague) — Implementation of the budget for the financial year 2006

| (1000 euro) |
| --- |
| Revenue | Expenditure |
| Source of revenue | Revenue entered in the final budget for the financial year | Revenue received | Allocation of expenditure | Appropriations under the final budget | Appropriations carried over from the previous financial year(s) |
| entered | committed | paid | carried over | cancelled | entered | paid | cancelled |
| Community subsidies | 14 700 | 14 700 | Title I
  Staff | 6 844 | 6 601 | 6 412 | 189 | 243 | 112 | 96 | 16 |
| Other revenue | — | 1 004 | Title II
  Administration | 3 384 | 3 295 | 2 214 | 1 082 | 89 | 722 | 571 | 151 |
| | | | Title III
  Operating activities | 4 472 | 4 189 | 2 940 | 1 320 | 211 | 1 280 | 1 153 | 127 |
| Total | 14 700 | 15 704 | Total | 14 700 | 14 086 | 11 566 | 2 591 | 543 | 2 114 | 1 819 | 295 |
| NB: Variations in totals are due to the effects of rounding.

  Source: Data supplied by Eurojust. This table summarises the data supplied by Eurojust 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

Appropriations under the final budget

Appropriations carried over from the previous financial year(s)

entered

committed

paid

carried over

cancelled

entered

paid

cancelled

Community subsidies

14 700

14 700

Title I

Staff

6 844

6 601

6 412

189

243

112

96

16

Other revenue

—

1 004

Title II

Administration

3 384

3 295

2 214

1 082

89

722

571

151

Title III

Operating activities

4 472

4 189

2 940

1 320

211

1 280

1 153

127

Total

14 700

15 704

Total

14 700

14 086

11 566

2 591

543

2 114

1 819

295

NB: Variations in totals are due to the effects of rounding.

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

Table 3

EUROJUST (The Hague) — Economic outturn account for the financial years 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Community subsidies | 12 858 | 11 991 |
| Other revenues | 973 | 59 |
| Total (a) | 13 831 | 12 050 |
| Operating expenditure |
| Staff expenditure | 6 581 | 5 149 |
| Fixed-asset related expenditure | 674 | 508 |
| Other administrative expenditure | 2 202 | 2 800 |
| Operational expenditure | 3 297 | 2 054 |
| Total (b) | 12 754 | 10 511 |
| Surplus/(deficit) from operating activities (c = a – b) | 1 077 | 1 539 |
| Other charges (d) | — | 3 |
| Surplus /(deficit) from non-operating activities (e = – d) | 0 | –3 |
| Economic result for the year (f = c + e) | 1 077 | 1 536 |

(1000 euro)

2006

2005

Operating revenue

Community subsidies

12 858

11 991

Other revenues

973

59

Total (a)

13 831

12 050

Operating expenditure

Staff expenditure

6 581

5 149

Fixed-asset related expenditure

674

508

Other administrative expenditure

2 202

2 800

Operational expenditure

3 297

2 054

Total (b)

12 754

10 511

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

1 077

1 539

Other charges (d)

—

3

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

0

–3

Economic result for the year (f = c + e)

1 077

1 536

Table 4

EUROJUST (The Hague) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 556 | 167 |
| Tangible fixed assets | 1 674 | 1 606 |
| Current assets |
| Short-term receivables | 372 | 159 |
| Cash and cash equivalents | 4 749 | 3 130 |
| Total assets | 7 351 | 5 062 |
| Current liabilities |
| Provisions for risks and charges | 134 | 85 |
| Accounts payables | 2 762 | 1 599 |
| Total liabilities | 2 896 | 1 684 |
| Net assets |
| Accumulated surplus/deficit | 3 378 | 1 842 |
| Economic result for the year | 1 077 | 1 536 |
| Total net assets | 4 455 | 3 378 |
| Total liabilities and net assets | 7 351 | 5 062 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

556

167

Tangible fixed assets

1 674

1 606

Current assets

Short-term receivables

372

159

Cash and cash equivalents

4 749

3 130

Total assets

7 351

5 062

Current liabilities

Provisions for risks and charges

134

85

Accounts payables

2 762

1 599

Total liabilities

2 896

1 684

Net assets

Accumulated surplus/deficit

3 378

1 842

Economic result for the year

1 077

1 536

Total net assets

4 455

3 378

Total liabilities and net assets

7 351

5 062

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THE EUROJUST'S REPLIES

| 7. | For Title II, the level of carry over is mostly due to a project managed by the host State and started very late in the year.
  For Title III, Eurojust has reduced the rate since 2005 (from 33 % to 30 %). Eurojust has reviewed its Budget transfer policy in view to lower the number and volume of transfers and improve their documentation. |
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7.

For Title II, the level of carry over is mostly due to a project managed by the host State and started very late in the year.

For Title III, Eurojust has reduced the rate since 2005 (from 33 % to 30 %). Eurojust has reviewed its Budget transfer policy in view to lower the number and volume of transfers and improve their documentation.

| 8. | Eurojust has adopted appropriate measures to replace framework contracts within their fourth year of duration at the latest. An open procurement procedure for courier services has been launched and is ongoing.
  The translation of the Annual Report of Eurojust entails very strict constraints as regards both timetable and quality requirements. Unfortunately, no supplier with whom Eurojust has a contract was able to provide the quality of service required within the timeframe necessary which led to the situation described by the Court. Nevertheless, Eurojust has taken into account the comment of the Court and is preparing a new procurement procedure to be launched before the end of 2007. |
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8.

Eurojust has adopted appropriate measures to replace framework contracts within their fourth year of duration at the latest. An open procurement procedure for courier services has been launched and is ongoing.

The translation of the Annual Report of Eurojust entails very strict constraints as regards both timetable and quality requirements. Unfortunately, no supplier with whom Eurojust has a contract was able to provide the quality of service required within the timeframe necessary which led to the situation described by the Court. Nevertheless, Eurojust has taken into account the comment of the Court and is preparing a new procurement procedure to be launched before the end of 2007.

| 9. | Eurojust is working to resolve this situation by the end of 2007 by which time ABAC Assets will be in place and a link to the current software used for physical inventory will have the capacity to provide the information requested by the financial regulation. |
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9.

Eurojust is working to resolve this situation by the end of 2007 by which time ABAC Assets will be in place and a link to the current software used for physical inventory will have the capacity to provide the information requested by the financial regulation.

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