# C_2007309EN.01009401.xml

| 19.12.2007 | EN | Official Journal of the European Union | C 309/94 |
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19.12.2007

EN

Official Journal of the European Union

C 309/94

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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 2006 together with the Centre's replies

(2007/C 309/16)

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 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 summarised from the financial statements drawn up by the Centre for the financial year 2006 is presented in Tables 2, 3 and 4 for information purposes. |
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2.

Table 1 summarises the Centre's competences and activities. Key data summarised from the financial statements drawn up by the Centre 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 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.

2

| 4. | The Centre's accounts for the financial year ended 31 December 2006 (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 its opinion 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 2006 (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 its opinion 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 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 accountsThe Centre'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 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 2006 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 2006 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. | The accumulated budget surplus (4) for 2006 was 16,9 million euro. In 2005 it was 10,5 million euro and in 2004 it was 3,5 million euro. In 2007, the Centre will refund 9,3 million euro to its clients. Such an accumulation of surpluses showed that the method for pricing its translations is not precise enough. |
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7.

The accumulated budget surplus (4) for 2006 was 16,9 million euro. In 2005 it was 10,5 million euro and in 2004 it was 3,5 million euro. In 2007, the Centre will refund 9,3 million euro to its clients. Such an accumulation of surpluses showed that the method for pricing its translations is not precise enough.

4

| 8. | In one case (5), a legal commitment was made prior to the budget commitment, in breach of the Financial Regulation. |
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8.

In one case (5), a legal commitment was made prior to the budget commitment, in breach of the Financial Regulation.

5

| 9. | Written guidelines necessary for the assessment of candidates did not exist. In a recruitment procedure for translators, the Centre failed to provide written evidence of the rules applied for the evaluation of the candidates files. |
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9.

Written guidelines necessary for the assessment of candidates did not exist. In a recruitment procedure for translators, the Centre failed to provide written evidence of the rules applied for the evaluation of the candidates files.

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)  OJ L 314, 7.12.1994, p. 1.

1

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

2

(3)  These accounts were drawn up on 1 July 2007 and received by the Court on 3 July 2007.

3

(4)  The budgetary result is calculated on the basis of a modified cash method and not on the basis of the accruals principle used for the economic result (see table 3).

4

see table 3

(5)  Value: 320 000 euro.

5

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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 of 28 November 1994 | Governance | Resources made available to the Centre in 2006

  (2005 data) | Products and services provided during the financial year 2006

  (2005 data) |
| --- | --- | --- | --- | --- |
| 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 of 28 November 1994

Governance

Resources made available to the Centre in 2006

(2005 data)

Products and services provided during the financial year 2006

(2005 data)

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 Harmonisation in the Internal Market (Trademarks and Designs), |
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—

the Office for Harmonisation 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 Member State; |
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—

one representative per Member State;

| — | 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 control

Court of Auditors.

4.   Internal audit

Commission's internal auditor.

5.   Discharge authority

Parliament on a recommendation from the Council.

Final budget

40,88 (27,9) million euro

Staff as at 31 December 2006

189 (181) posts listed in the establishment plan

posts occupied: 169 (163)

Assigned to:

| — | operational duties: 80 (114); |
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—

operational duties: 80 (114);

| — | administrative duties: 89 (57); |
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—

administrative duties: 89 (57);

| — | mixed duties: 0 (4). |
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—

mixed duties: 0 (4).

Number of pages translated

546 735 (505 438).

Number of pages by language

| — | official languages: 537 797 (501 475); |
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—

official languages: 537 797 (501 475);

| — | other languages: 8 938 (3 963). |
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—

other languages: 8 938 (3 963).

Number of pages per client

| — | bodies: 531 454 (496 665); |
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—

bodies: 531 454 (496 665);

| — | institutions 15 281 (8 773). |
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—

institutions 15 281 (8 773).

Number of pages translated freelance

260 301 (226 822)

Source: Information forwarded by the Centre.

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 2

Translation Centre for the Bodies of the European Union (Luxembourg) — 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 | Final budget appropriations | Appropriations carried over from the previous financial year |
| entered | committed | paid | carried over | cancelled | available | paid | cancelled |
| Own revenue | 29 731 | 32 359 | Title I
  Staff | 15 464 | 13 989 | 13 793 | 196 | 1 475 | 106 | 99 | 7 |
| Other revenue | 0 | 93 | Title II
  Administration | 4 421 | 3 949 | 2 734 | 1 215 | 472 | 755 | 673 | 82 |
| Interest | 600 | 844 | Title III
  Operating activities | 10 739 | 8 909 | 7 434 | 1 475 | 1 830 | 1 291 | 1 288 | 3 |
| Balance for the previous financial year | 10 545 | 10 545 | Title X
  Reserve | 10 252 | 0 | 0 | 0 | 10 252 | 0 | 0 | 0 |
| Total | 40 876 | 43 841 | Total | 40 876 | 26 847 | 23 961 | 2 886 | 14 029 | 2 151 | 2 060 | 92 |
| 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

29 731

32 359

Title I

Staff

15 464

13 989

13 793

196

1 475

106

99

7

Other revenue

0

93

Title II

Administration

4 421

3 949

2 734

1 215

472

755

673

82

Interest

600

844

Title III

Operating activities

10 739

8 909

7 434

1 475

1 830

1 291

1 288

3

Balance for the previous financial year

10 545

10 545

Title X

Reserve

10 252

0

0

0

10 252

0

0

0

Total

40 876

43 841

Total

40 876

26 847

23 961

2 886

14 029

2 151

2 060

92

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 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Operating revenue |
| Own resources | 32 817 | 30 408 |
| Other revenue (1) | 126 | 372 |
| Total (a) | 32 943 | 30 780 |
| Operating expenditure |
| Staff expenditure | 13 713 | 13 200 |
| Fixed asset-related expenditure | 4 195 | 3 547 |
| Other administrative expenditure | 2 021 | 1 849 |
| Operational expenditure | 8 757 | 7 397 |
| Total (b) | 28 686 | 25 993 |
| Surplus/(deficit) from operating activities (c = a – b) | 4 258 | 4 787 |
| Revenue from financial operations (e) (2) | 844 | 429 |
| Expenditure on financial operations (f) | 3 | 4 |
| Surplus/(deficit) from non-operating activities (g = e – f) | 841 | 425 |
| Economic result for the year (h = c + g) | 5 099 | 5 212 |

(1000 euro)

2006

2005

Operating revenue

Own resources

32 817

30 408

Other revenue (1)

126

372

Total (a)

32 943

30 780

Operating expenditure

Staff expenditure

13 713

13 200

Fixed asset-related expenditure

4 195

3 547

Other administrative expenditure

2 021

1 849

Operational expenditure

8 757

7 397

Total (b)

28 686

25 993

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

4 258

4 787

Revenue from financial operations (e) (2)

844

429

Expenditure on financial operations (f)

3

4

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

841

425

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

5 099

5 212

Table 4

Translation Centre for the Bodies of the European Union (Luxembourg) — Balance sheet at 31 December 2006 and 2005

| (1000 euro) |
| --- |
| | 2006 | 2005 |
| Non-current assets |
| Intangible fixed assets | 267 | 343 |
| Tangible fixed assets | 391 | 356 |
| Current assets |
| Stock | 313 | 279 |
| Short-term receivables | 5 907 | 6 184 |
| Cash and cash equivalents | 34 618 | 27 392 |
| Total assets | 41 496 | 34 554 |
| Current liabilities |
| Provisions for risks and charges | 10 600 | 9 330 |
| Accounts payable (3) | 11 286 | 1 418 |
| Total liabilities | 21 886 | 10 748 |
| Net assets |
| Reserves | 466 | 9 761 |
| Accumulated surplus/deficit | 14 045 | 8 833 |
| Economic result for the year | 5 099 | 5 212 |
| Total net assets | 19 610 | 23 806 |
| Total liabilities and net assets | 41 496 | 34 554 |

(1000 euro)

2006

2005

Non-current assets

Intangible fixed assets

267

343

Tangible fixed assets

391

356

Current assets

Stock

313

279

Short-term receivables

5 907

6 184

Cash and cash equivalents

34 618

27 392

Total assets

41 496

34 554

Current liabilities

Provisions for risks and charges

10 600

9 330

Accounts payable (3)

11 286

1 418

Total liabilities

21 886

10 748

Net assets

Reserves

466

9 761

Accumulated surplus/deficit

14 045

8 833

Economic result for the year

5 099

5 212

Total net assets

19 610

23 806

Total liabilities and net assets

41 496

34 554

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(1)  In 2005, the Centre included translation work in progress (279 452 euro) in its Balance Sheet for the first time. In 2006, by contrast, only the variation in the volume of this work in progress (33 215 euro) is recorded in the economic outturn account.

(2)  In 2006, there was an increase in the available financial assets, resulting in an increase in interest received.

(3)  This amounts includes 9 292 000 euro to be repaid to the Centre's clients and disclosed as a reserve in the Centre's Financial Statements (see Centre's reply to point 7).

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THE CENTRE'S REPLIES

| 7. | The Centre is aware of the increase of its budget surpluses and has decided to refund EUR 9,3 million to its clients in 2007. To prevent this situation from arising in the future, the Centre will do its utmost to improve the method for calculating prices. Moreover, as this method requires an estimate of the foreseen demand for translation, the Centre will encourage its clients to improve their forecasts. |
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7.

The Centre is aware of the increase of its budget surpluses and has decided to refund EUR 9,3 million to its clients in 2007. To prevent this situation from arising in the future, the Centre will do its utmost to improve the method for calculating prices. Moreover, as this method requires an estimate of the foreseen demand for translation, the Centre will encourage its clients to improve their forecasts.

| 8. | The Centre has adapted its procedure to prevent the repetition of the situation described by the Court. |
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8.

The Centre has adapted its procedure to prevent the repetition of the situation described by the Court.

| 9. | The Centre will study ways to improve its recruitment procedure to take into account the Court's remark. |
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9.

The Centre will study ways to improve its recruitment procedure to take into account the Court's remark.

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