# C_2015304EN.01000201.xml

| 15.9.2015 | EN | Official Journal of the European Union | C 304/2 |
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15.9.2015

EN

Official Journal of the European Union

C 304/2

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ANNUAL ACCOUNTS OF THE EUROPEAN COURT OF AUDITORS FOR THE FINANCIAL YEAR 2014

(2015/C 304/02)

TABLE OF CONTENTS

TABLE OF CONTENTS

| Certification of the accounts | 3 |
| --- | --- |

| Independent auditor’s report | 4 |
| --- | --- |

| Financial statements and explanatory notes | 5 |
| --- | --- |

| Balance Sheet | 5 |
| --- | --- |

| Statement of Financial Performance | 6 |
| --- | --- |

| Cash Flow Statement | 7 |
| --- | --- |

| Statement of changes in Net Assets | 7 |
| --- | --- |

| Accounting policies and notes to the financial statements | 8 |
| --- | --- |

| 1. | General | 8 |
| --- | --- | --- |

1.

| 2. | Legal basis and accounting rules | 8 |
| --- | --- | --- |

2.

| 3. | Notes to the Balance Sheet | 10 |
| --- | --- | --- |

3.

| 4. | Notes to the Statement of Financial Performance | 12 |
| --- | --- | --- |

4.

| 5. | Other significant disclosures | 14 |
| --- | --- | --- |

5.

| Budget information financial year 2014 | 16 |
| --- | --- |

| A | Computation of the budget result | 16 |
| --- | --- | --- |

A

| B | Reconciliation of the economic result with the budget result | 16 |
| --- | --- | --- |

B

| Independent assurance report | 18 |
| --- | --- |

CERTIFICATION OF THE ACCOUNTS

CERTIFICATION OF THE ACCOUNTS

Certification for the annual accounts 2014 of the European Court of Auditors

Certification for the annual accounts 2014 of the European Court of Auditors

The annual accounts of the European Court of Auditors for the year 2014 have been prepared in accordance with the Title IX of the Financial Regulation applicable to the general budget of the European Union, the accounting rules adopted by the Commission’s Accounting Officer and the accounting principles and methods adopted by myself.

I acknowledge my responsibility for the preparation and presentation of the annual accounts of the European Court of Auditors in accordance with Art. 68 of the Financial Regulation.

I have obtained from the authorising officer, who certified its reliability, all the information necessary for the production of the accounts that show the European Court of Auditors’ assets and liabilities and the budgetary implementation.

I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the accounts, I have a reasonable assurance that the accounts present fairly, in all material aspects, the financial position, the results of the operations and the cash-flow of the European Court of Auditors.

Luxembourg, 20 May 2015.

Isidoro RODRÍGUEZ DE LAS PARRAS

Accounting Officer of the European Court of Auditors

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AUDIT REPORT

To the Management of the

European Court of Auditors

We have audited the accompanying financial statements of the European Court of Auditors, which comprise the balance sheet as at 31 December 2014, the statement of financial performance, the cash flow statement and the statement of changes in net assets for the year then ended and a summary of significant accounting policies and other explanatory notes, and which starts on page 5 and ends on page 17.

Management’s responsibility for the financial statements

The Management is responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of Council Regulation (EU, Euratom) No 966/2012 of 25 October 2012 on the Financial Regulation applicable to the general budget of the Union and with the Commission delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of the Financial regulation, and for such internal control as the Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Responsibility of the ‘Reviseur d’entreprises agree’

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the ‘Commission de Surveillance du Secteur Financier’. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the ‘Reviseur d’entreprises agree’, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the ‘Reviseur d’entreprises agree’ considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the European Court of Auditors as of 31 December 2014, and of its financial performance and its cash flows for the year then ended in accordance with the provisions of Council Regulation (EU, Euratom) No 966/2012 of 25 October 2012 on the Financial Regulation applicable to the general budget of the Union and with the Commission delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of the Financial Regulation.

Luxembourg, 20 May 2015.

PricewaterhouseCoopers, Société coopérative

Represented by

Pierre KRIER

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FINANCIAL STATEMENTS AND EXPLANATORY NOTES

Balance Sheet

| (euro) |
| --- |
| | Note | 31 December 2014 | 31 December 2013 |
| Non-Current Assets | | | |
| Intangible assets | 3.1. | 4 8 42  801 | 4 1 48  978 |
| Property, plant and equipment | 3.2. | 8 8 5 91  910 | 9 5 6 10  315 |
| Receivables | | — | 25 |
| | | 9 3 4 34  711 | 9 9 7 59  318 |
| Current Assets | | | |
| Receivables | 3.3. | 7 57  924 | 3 89  149 |
| Cash and cash equivalents | 3.4. | 1 0 1 83  273 | 1 2 4 79  808 |
| | | 1 0 9 41  197 | 1 2 8 68  957 |
| Total Assets | | 10 4 3 75  908 | 11 2 6 28  275 |
| Non-Current Liabilities | | | |
| Employee benefits | 3.5. | — | 6 6 3 74  932 |
| Other liabilities | 3.6. | — | 1 75  000 |
| | | — | 6 6 5 49  932 |
| Current Liabilities | | | |
| Provisions | 3.7. | 27  250 | 1 0 52  207 |
| Payables | 3.8. | 7 0 28  142 | 1 4 2 80  819 |
| | | 7 0 55  392 | 1 5 3 33  026 |
| Total Liabilities | | 7 0 55  392 | 8 1 8 82  958 |
| Net Assets | | 9 7 3 20  516 | 3 0 7 45  317 |
| Accumulated surplus/deficit | | 3 0 7 45  317 | 3 7 0 41  226 |
| Economic result for the year | | 6 6 5 75  199 | (6 2 95  909) |
| Net Assets | | 9 7 3 20  516 | 3 0 7 45  317 |

(euro)

Note

31 December 2014

31 December 2013

Non-Current Assets

Intangible assets

3.1.

4 8 42  801

4 1 48  978

Property, plant and equipment

3.2.

8 8 5 91  910

9 5 6 10  315

Receivables

—

25

9 3 4 34  711

9 9 7 59  318

Current Assets

Receivables

3.3.

7 57  924

3 89  149

Cash and cash equivalents

3.4.

1 0 1 83  273

1 2 4 79  808

1 0 9 41  197

1 2 8 68  957

Total Assets

10 4 3 75  908

11 2 6 28  275

Non-Current Liabilities

Employee benefits

3.5.

—

6 6 3 74  932

Other liabilities

3.6.

—

1 75  000

—

6 6 5 49  932

Current Liabilities

Provisions

3.7.

27  250

1 0 52  207

Payables

3.8.

7 0 28  142

1 4 2 80  819

7 0 55  392

1 5 3 33  026

Total Liabilities

7 0 55  392

8 1 8 82  958

Net Assets

9 7 3 20  516

3 0 7 45  317

Accumulated surplus/deficit

3 0 7 45  317

3 7 0 41  226

Economic result for the year

6 6 5 75  199

(6 2 95  909)

Net Assets

9 7 3 20  516

3 0 7 45  317

The accompanying notes form an integral part of these financial statements.

Statement of Financial Performance

| (euro) |
| --- |
| | Note | 2014 | 2013 |
| Funds transferred from the Commission to other institutions | 4.1. | 11 4 5 00  000 | 11 2 8 00  000 |
| Revenue from administrative operations | 4.2. | 1 9 4 64  086 | 1 7 3 09  843 |
| Other operating revenue | 4.3. | 25  213 | 30  268 |
| Total operating revenue | 4.4 | 13 3 9 89  299 | 13 0 1 40  111 |
| Staff expenses | 4.5. | (10 4 4 31  815) | (9 9 3 47  366) |
| Assets-related expenses | 4.6. | (6 5 43  584) | (5 9 88  272) |
| Other administrative expenses | 4.7. | (1 8 5 52  871) | (1 9 7 88  770) |
| Operational expenses | 4.8. | (23  621) | (12  695) |
| Total operating expenses | | (12 9 5 51  891) | (12 5 1 37  103) |
| Surplus/(deficit) from operating activities | | 4 4 37  408 | 5 0 03  008 |
| Financial revenue | 4.9. | 4  947 | 646 |
| Financial expenses | 4.10. | (20  049) | (20  020) |
| Movement in pensions (- expense, + revenue) | 4.11. | 6 2 1 52  893 | (1 1 2 79  543) |
| Surplus/(deficit) from non operating activities | | 6 2 1 37  791 | (1 1 2 98  917) |
| Economic result of the year | | 6 6 5 75  199 | (6 2 95  909) |

(euro)

Note

2014

2013

Funds transferred from the Commission to other institutions

4.1.

11 4 5 00  000

11 2 8 00  000

Revenue from administrative operations

4.2.

1 9 4 64  086

1 7 3 09  843

Other operating revenue

4.3.

25  213

30  268

Total operating revenue

4.4

13 3 9 89  299

13 0 1 40  111

Staff expenses

4.5.

(10 4 4 31  815)

(9 9 3 47  366)

Assets-related expenses

4.6.

(6 5 43  584)

(5 9 88  272)

Other administrative expenses

4.7.

(1 8 5 52  871)

(1 9 7 88  770)

Operational expenses

4.8.

(23  621)

(12  695)

Total operating expenses

(12 9 5 51  891)

(12 5 1 37  103)

Surplus/(deficit) from operating activities

4 4 37  408

5 0 03  008

Financial revenue

4.9.

4  947

646

Financial expenses

4.10.

(20  049)

(20  020)

Movement in pensions (- expense, + revenue)

4.11.

6 2 1 52  893

(1 1 2 79  543)

Surplus/(deficit) from non operating activities

6 2 1 37  791

(1 1 2 98  917)

Economic result of the year

6 6 5 75  199

(6 2 95  909)

Cash Flow Statement

| (euro) |
| --- |
| | 2014 | 2013 |
| Economic result of the year | 6 6 5 75  199 | (6 2 95  909) |
| Operating activities — Adjustments | | |
| Amortisation | 5 50  630 | 1 97  753 |
| Depreciation | 7 1 22  924 | 5 7 61  980 |
| Increase/(decrease) in provisions | (1 1 99  957) | (2 0 14  710) |
| (Increase)/decrease in receivables | (3 68  750) | 1 1 97  959 |
| | | |
| Increase/(decrease) in payables | (7 2 52  677) | (9 4 21  487) |
| | | |
| Net cash flow from operating activities | 6 5 4 27  369 | (1 0 5 74  414) |
| Cash flows from investing activities | | |
| Purchase of property, plant and equipment and intangible assets (-) | (1 3 67  492) | (8 0 38  985) |
| Proceeds from property, plant and equipment and intangible assets (+) | 18  520 | 28  540 |
| Net cash flow from investing activities | (1 3 48  972) | (8 0 10  445) |
| Increase/(decrease) in employee benefits | (6 6 3 74  932) | 7 4 39  624 |
| Net increase/(decrease) in cash and cash equivalents | (2 2 96  535) | (1 1 1 45  235) |
| Cash and cash equivalents at the beginning of the year | 1 2 4 79  808 | 2 3 6 25  043 |
| Cash and cash equivalents at the end of the year | 1 0 1 83  273 | 1 2 4 79  808 |

(euro)

2014

2013

Economic result of the year

6 6 5 75  199

(6 2 95  909)

Operating activities — Adjustments

Amortisation

5 50  630

1 97  753

Depreciation

7 1 22  924

5 7 61  980

Increase/(decrease) in provisions

(1 1 99  957)

(2 0 14  710)

(Increase)/decrease in receivables

(3 68  750)

1 1 97  959

Increase/(decrease) in payables

(7 2 52  677)

(9 4 21  487)

Net cash flow from operating activities

6 5 4 27  369

(1 0 5 74  414)

Cash flows from investing activities

Purchase of property, plant and equipment and intangible assets (-)

(1 3 67  492)

(8 0 38  985)

Proceeds from property, plant and equipment and intangible assets (+)

18  520

28  540

Net cash flow from investing activities

(1 3 48  972)

(8 0 10  445)

Increase/(decrease) in employee benefits

(6 6 3 74  932)

7 4 39  624

Net increase/(decrease) in cash and cash equivalents

(2 2 96  535)

(1 1 1 45  235)

Cash and cash equivalents at the beginning of the year

1 2 4 79  808

2 3 6 25  043

Cash and cash equivalents at the end of the year

1 0 1 83  273

1 2 4 79  808

Statement of changes in Net Assets

| (euro) |
| --- |
| Net Assets | 2014 | 2013 |
| Balance at the start of the year | 3 0 7 45  317 | 3 7 0 41  226 |
| Economic result of the year | 6 6 5 75  199 | (6 2 95  909) |
| Balance at the end of the year | 9 7 3 20  516 | 3 0 7 45  317 |

(euro)

Net Assets

2014

2013

Balance at the start of the year

3 0 7 45  317

3 7 0 41  226

Economic result of the year

6 6 5 75  199

(6 2 95  909)

Balance at the end of the year

9 7 3 20  516

3 0 7 45  317

Accounting policies and notes to the financial statements

1.   
  General

The European Court of Auditors (hereafter the ‘Court’) was established by the Treaty of Brussels of 22 July 1975 and started operating in October 1977, with its headquarters in Luxembourg.

| Mission of the European Court of Auditors

  The European Court of Auditors’ mission is to contribute to improving EU financial management, promote accountability and transparency, and act as the independent guardian of the financial interests of the citizens of the Union.
  The Court’s role as the EU’s independent external auditor is to check that EU funds are correctly accounted for, are raised and spent in accordance with the relevant rules and regulations and have achieved value for money.
  The Court renders audit services through which it assesses the collection and spending of EU funds. It examines whether financial operations have been properly recorded and disclosed, legally and regularly executed and managed so as to ensure economy, efficiency and effectiveness. The Court communicates the results of its audits in clear, relevant and objective reports. It also provides its opinion on financial management issues.
  The Court promotes accountability and transparency and assists the European Parliament and Council in overseeing the implementation of the EU budget, particularly during the discharge procedure. The Court is committed to being an efficient organisation at the forefront of developments in public audit and administration. |
| --- |

Mission of the European Court of Auditors

The European Court of Auditors’ mission is to contribute to improving EU financial management, promote accountability and transparency, and act as the independent guardian of the financial interests of the citizens of the Union.

The Court’s role as the EU’s independent external auditor is to check that EU funds are correctly accounted for, are raised and spent in accordance with the relevant rules and regulations and have achieved value for money.

The Court renders audit services through which it assesses the collection and spending of EU funds. It examines whether financial operations have been properly recorded and disclosed, legally and regularly executed and managed so as to ensure economy, efficiency and effectiveness. The Court communicates the results of its audits in clear, relevant and objective reports. It also provides its opinion on financial management issues.

The Court promotes accountability and transparency and assists the European Parliament and Council in overseeing the implementation of the EU budget, particularly during the discharge procedure. The Court is committed to being an efficient organisation at the forefront of developments in public audit and administration.

The financial year of the Court runs from 1 January to 31 December.

2.   
  Legal basis and accounting rules

2.1.   Basis of presentation

The accounts of the Court are drawn up in accordance with the provisions of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union (1) (hereinafter ‘the Financial Regulation’) and with the Commission delegated Regulation (EU) No 1268/2012 of 29 October 2012 (2) on the rules of application of the Financial Regulation.

2.2.   Accounting principles

According to Article 144 of the Financial Regulation, the financial statements shall present information, including information on accounting policies, in a manner that ensures it is relevant, reliable, comparable and understandable. The budgetary accounts shall respect the budgetary principles laid down in the Financial Regulation. They shall present a true and fair view of the budgetary revenue and expenditure operations.

The financial statements are drawn up in accordance with the Accounting Rules of the European Union (EU Accounting Rules), based on internationally accepted accounting standards for the public sector. These Accounting Rules are adopted by the Accounting Officer of the Commission after a consultation of the other institutions.

2.3.   Valuation of foreign currency balances and transactions

Foreign currency transactions are translated into euro using the exchange rate prevailing at the date of the transaction.

Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of financial performance.

Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into euro on the basis of the exchange rates on 31 December.

2.4.   Intangible assets

Acquired computer software licences are stated at historical cost less accumulated amortisation and impairment losses. The assets are amortised on a straight-line basis over four years. Internally developed intangible assets are capitalised when the relevant criteria of the EU accounting rules are met. The costs that can be capitalised include all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by management. Costs associated with research activities, not capitalised development costs and maintenance costs are recognised as expenses as incurred.

2.5.   Property, plant and equipment

All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition or construction of the asset.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits or service potential associated with the item will flow to the Court and its cost can be measured reliably. Repairs and maintenance costs are charged to the statement of financial performance during the financial period in which they are incurred. As the Court does not borrow money to fund the acquisition of property, plant and equipment, there are no borrowing costs related to such purchases.

Land and works of art are not depreciated as they are deemed to have an indefinite useful life. Assets under construction are not depreciated as these assets are not yet available for use. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

| Buildings | 25 years or expected useful life |
| --- | --- |
| Plant, machinery and tools | 4, 8 years |
| Furniture and vehicle fleet | 4, 8, 10 years |
| Computer hardware | 4 years |
| Fittings specific to leased buildings | the duration of the lease |
| Other fixtures and fittings | 4, 6, 8 years |

Buildings

25 years or expected useful life

Plant, machinery and tools

4, 8 years

Furniture and vehicle fleet

4, 8, 10 years

Computer hardware

4 years

Fittings specific to leased buildings

the duration of the lease

Other fixtures and fittings

4, 6, 8 years

2.6.   Employee benefits

Employee benefits represent the future pension rights of the Members of the Court in accordance with Article 19 of Council Regulation (EEC, Euratom, ECSC) No 2290/77 of 18 October 1977 determining the emoluments of the Members of the Court of Auditors (3), the benefits provided for in this pension scheme are entered in the budget of the Union and the Member States jointly guarantee their payment. The liability for these future pension payments is accounted in accordance with EU Accounting Rule 12 ‘Employee Benefits’. As of 31 December 2014, the corresponding pension liability is presented and disclosed in the Commission’s accounts.

2.7.   Provisions

Provisions are recognised when the Court has a present legal or constructive obligation towards third parties as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses. The amount of the provision is the best estimate of the expenditures expected to be required to settle the present obligation at the reporting date.

2.8.   Recognition of expenses

According to the EU accounting rules, transactions and events are recognised in the financial statements in the period to which they relate. At the end of the accounting period, accrued expenses are recognised based on an estimated amount of the transfer obligation of the period. The calculation of accrued expenses is done in accordance with detailed operational and practical guidelines which aim at ensuring that the financial statements reflect a true and fair view.

3.   
  Notes to the Balance Sheet

NON-CURRENT ASSETS

3.1.   Intangible assets

The movements in intangible assets during the year 2014 were:

| (euro) |
| --- |
| | Gross carrying amounts 1 January 2014 | Additions | Disposals | Transfer | Gross carrying amounts 31 December 2014 | Accumulated amortisation and impairment 31 December 2014 | Net carrying amounts 31 December 2014 |
| Computer software | 1 5 52  393 | 1 71  698 | (454) | 1 4 90  265 | 3 2 13  902 | (1 8 14  813) | 1 3 99  089 |
| Intangible assets under developement | 3 8 60  768 | 1 0 73  209 | | (1 4 90  265) | 3 4 43  712 | | 3 4 43  712 |
| Total | 5 4 13  161 | 1 2 44  907 | (454) | 0 | 6 6 57  614 | (1 8 14  813) | 4 8 42  801 |

(euro)

Gross carrying amounts 1 January 2014

Additions

Disposals

Transfer

Gross carrying amounts 31 December 2014

Accumulated amortisation and impairment 31 December 2014

Net carrying amounts 31 December 2014

Computer software

1 5 52  393

1 71  698

(454)

1 4 90  265

3 2 13  902

(1 8 14  813)

1 3 99  089

Intangible assets under developement

3 8 60  768

1 0 73  209

(1 4 90  265)

3 4 43  712

3 4 43  712

Total

5 4 13  161

1 2 44  907

(454)

0

6 6 57  614

(1 8 14  813)

4 8 42  801

In 2014 no costs associated with research activities were recognised.

3.2.   Property, plant and equipment

The movements in property, plant and equipment during the year 2014 were:

| (euro) |
| --- |
| | Gross carrying amounts 1 January 2014 | Additions | Disposals | Transfer | Gross carrying amounts 31 December 2014 | Accumulated amortisation and impairment 31 December 2014 | Net carrying amounts 31 December 2014 |
| Land | 7 76  631 | | | | 7 76  631 | | 7 76  631 |
| Buildings | 12 2 8 66  646 | 15  010 | (1 5 45  542) | 2 9 99  084 | 12 4 3 35  198 | (4 1 8 46  701) | 8 2 4 88  497 |
| Plant and equipment | 7 52  703 | 87  665 | (5  906) | | 8 34  462 | (4 85  516) | 3 48  946 |
| Computer hardware | 4 7 98  617 | 6 73  788 | (1 6 59  640) | | 3 8 12  765 | (2 2 36  847) | 1 5 75  918 |
| Furniture and vehicle | 4 5 85  224 | 1 77  215 | (38  115) | | 4 7 24  324 | (2 0 85  363) | 2 6 38  961 |
| Other fixtures and fittings | 1 8 18  012 | 7 14  449 | (2 19  879) | | 2 3 12  582 | (1 5 49  625) | 7 62  957 |
| Assets under construction | 4 1 49  082 | — | (1 1 49  998) | (2 9 99  084) | — | | — |
| Total | 13 9 7 46  915 | 1 6 68  127 | (4 6 19  080) | — | 13 6 7 95  962 | (4 8 2 04  052) | 8 8 5 91  910 |

(euro)

Gross carrying amounts 1 January 2014

Additions

Disposals

Transfer

Gross carrying amounts 31 December 2014

Accumulated amortisation and impairment 31 December 2014

Net carrying amounts 31 December 2014

Land

7 76  631

7 76  631

7 76  631

Buildings

12 2 8 66  646

15  010

(1 5 45  542)

2 9 99  084

12 4 3 35  198

(4 1 8 46  701)

8 2 4 88  497

Plant and equipment

7 52  703

87  665

(5  906)

8 34  462

(4 85  516)

3 48  946

Computer hardware

4 7 98  617

6 73  788

(1 6 59  640)

3 8 12  765

(2 2 36  847)

1 5 75  918

Furniture and vehicle

4 5 85  224

1 77  215

(38  115)

4 7 24  324

(2 0 85  363)

2 6 38  961

Other fixtures and fittings

1 8 18  012

7 14  449

(2 19  879)

2 3 12  582

(1 5 49  625)

7 62  957

Assets under construction

4 1 49  082

—

(1 1 49  998)

(2 9 99  084)

—

—

Total

13 9 7 46  915

1 6 68  127

(4 6 19  080)

—

13 6 7 95  962

(4 8 2 04  052)

8 8 5 91  910

CURRENT ASSETS

3.3.   Receivables

| (euro) |
| --- |
| | 31 December 2014 | 31 December 2013 |
| Current receivables mainly due to the transfer of national pension rights by staff | 2  577 | 2  768 |
| Sundry receivables mainly related to payroll and mission advances | 1 80  210 | 1 89  485 |
| Deferred charges for building rentals and IT contracts | 5 64  853 | 1 95  197 |
| Receivables from EU entities | 10  284 | 1  699 |
| Total | 7 57  924 | 3 89  149 |

(euro)

31 December 2014

31 December 2013

Current receivables mainly due to the transfer of national pension rights by staff

2  577

2  768

Sundry receivables mainly related to payroll and mission advances

1 80  210

1 89  485

Deferred charges for building rentals and IT contracts

5 64  853

1 95  197

Receivables from EU entities

10  284

1  699

Total

7 57  924

3 89  149

3.4.   Cash and cash equivalents

| (euro) |
| --- |
| | 31 December 2014 | 31 December 2013 |
| Petty cash | 1  000 | 1  000 |
| Bank current account | 6 59  601 | 3 32  783 |
| Fiduciary account | 9 5 22  672 | 1 2 1 46  025 |
| Total | 1 0 1 83  273 | 1 2 4 79  808 |

(euro)

31 December 2014

31 December 2013

Petty cash

1  000

1  000

Bank current account

6 59  601

3 32  783

Fiduciary account

9 5 22  672

1 2 1 46  025

Total

1 0 1 83  273

1 2 4 79  808

A fiduciary account was opened on 27 January 2010 between the European Court of Auditors and the Banque et Caisse d’Epargne de l’Etat, Luxembourg. This fiduciary account allows the Court to manage the budget granted by the budgetary authority in relation to the K3 building project (see note 5.3).

The fiduciary account is used by the Court only under certain conditions disclosed in the contract with the Banque et Caisse d’Epargne de l’Etat, Luxembourg.

The exclusive beneficiary of payments made from this fiduciary account is the operational bank account of the consortium acting as project manager. This operational account is used exclusively by the project manager to pay the invoices of the construction companies.

NON-CURRENT LIABILITIES

3.5.   Employee benefits

In the framework of the procedure for the establishment of estimates of administrative expenditure of Institutions for the 2015 Draft Budget, the Commission proposed to include the expenditure related to the pensions of members of all the institutions in the Commission’s section of the budget, which already covers the pension expenditure for the staff of all institutions.

The European Court of Auditors, as the other institutions, agreed on that proposal and the expenditure related to the pensions of Members was shifted to the Commission section in the 2015 adopted budget.

Accordingly, and as requested by the Accounting Officer of the Commission in its closure instructions for the 2014 financial statements and the year-end budgetary reporting, the corresponding pension liability as of 31 December 2014 will be shown in the Commission’s accounts.

3.6.   Other liabilities

The termination of the rental of the building K9 has not resulted in repairs expenditure.

CURRENT LIABILITIES

3.7.   Provisions

This is the estimate of amounts that will probably have to be paid in relation to a number of ongoing legal cases.

3.8.   Payables

| (euro) |
| --- |
| | 31 December 2014 | 31 December 2013 |
| Current payables | 15  571 | 14  393 |
| Sundry payables related to payroll and staff | (16  315) | (10  212) |
| Accrued charges | 6 8 08  292 | 1 4 1 07  180 |
| Accounts payable to consolidated EU entities mainly to the European Council and Parliament | 2 20  594 | 1 69  458 |
| Total | 7 0 28  142 | 1 4 2 80  819 |

(euro)

31 December 2014

31 December 2013

Current payables

15  571

14  393

Sundry payables related to payroll and staff

(16  315)

(10  212)

Accrued charges

6 8 08  292

1 4 1 07  180

Accounts payable to consolidated EU entities mainly to the European Council and Parliament

2 20  594

1 69  458

Total

7 0 28  142

1 4 2 80  819

4.   
  Notes to the Statement of Financial Performance

| 4.1. | ‘Funds transferred from the Commission to other institutions’: the amount corresponds to the monthly calls for funds made by the Court to the Commission to replenish its bank account. |
| --- | --- |

4.1.

‘Funds transferred from the Commission to other institutions’: the amount corresponds to the monthly calls for funds made by the Court to the Commission to replenish its bank account.

| 4.2. | ‘Revenue from administrative operations’: for the most part, this heading is made up of deductions from the salaries of members and staff in respect of tax and social contributions. |
| --- | --- |

4.2.

‘Revenue from administrative operations’: for the most part, this heading is made up of deductions from the salaries of members and staff in respect of tax and social contributions.

| 4.3. | ‘Other operating revenue’ arises among others from exchange rate gains. |
| --- | --- |

4.3.

‘Other operating revenue’ arises among others from exchange rate gains.

| 4.4. | Revenues were generated from exchange and non-exchange transactions as follows: |
| --- | --- |

4.4.

Revenues were generated from exchange and non-exchange transactions as follows:

| (euro) |
| --- |
| | 2014 | 2013 |
| Revenue from exchange transactions | 30  160 | 22  378 |
| Revenue from non-exchange transactions | 13 3 9 64  086 | 13 0 1 17  733 |
| Total revenue | 13 3 9 94  246 | 13 0 1 40  111 |

(euro)

2014

2013

Revenue from exchange transactions

30  160

22  378

Revenue from non-exchange transactions

13 3 9 64  086

13 0 1 17  733

Total revenue

13 3 9 94  246

13 0 1 40  111

| 4.5. | ‘Staff expenses’ include the salaries of members, statutory staff, contractual agents and temporary staff. The transitional allowances for previous members and the taxes related to the members’ pensions and transitional allowances are also part of the item ‘Movement in pensions’ (see note 4.11). |
| --- | --- |

4.5.

‘Staff expenses’ include the salaries of members, statutory staff, contractual agents and temporary staff. The transitional allowances for previous members and the taxes related to the members’ pensions and transitional allowances are also part of the item ‘Movement in pensions’ (see note 4.11).

| 4.6. | The ‘Assets-related expenses’ consist of the depreciation/amortisation of the tangible and intangible assets. |
| --- | --- |

4.6.

The ‘Assets-related expenses’ consist of the depreciation/amortisation of the tangible and intangible assets.

| 4.7. | The most significant items of the ‘other administrative expenses’ were: |
| --- | --- |

4.7.

The most significant items of the ‘other administrative expenses’ were:

| — | buildings’ rental and associated charge, |
| --- | --- |

—

buildings’ rental and associated charge,

| — | IT and telecommunications, |
| --- | --- |

—

IT and telecommunications,

| — | mission expenses, |
| --- | --- |

—

mission expenses,

| — | cleaning and security services. |
| --- | --- |

—

cleaning and security services.

| 4.8. | ‘Operational expenses’ arise among others from exchange rate losses. |
| --- | --- |

4.8.

‘Operational expenses’ arise among others from exchange rate losses.

| 4.9. | ‘Financial revenue’ consists of bank interest earned on the Court’s current and fiduciary accounts. |
| --- | --- |

4.9.

‘Financial revenue’ consists of bank interest earned on the Court’s current and fiduciary accounts.

| 4.10. | ‘Financial expenses’ are bank charges levied on the Court’s current and fiduciary accounts. |
| --- | --- |

4.10.

‘Financial expenses’ are bank charges levied on the Court’s current and fiduciary accounts.

| 4.11. | The item ‘Movement in pensions’ includes all expenses linked to the pensions of the members of the Court. This covers the pensions and transitional allowances paid during the year 2014. As the expenditure related to the pensions of Members has been transferred to the Commission section in the 2015 budget, the variation of the liability related to members’ net pension (6 6 3 74  932 euro) is due to its transfer to the Commission’s accounts. |
| --- | --- |

4.11.

The item ‘Movement in pensions’ includes all expenses linked to the pensions of the members of the Court. This covers the pensions and transitional allowances paid during the year 2014. As the expenditure related to the pensions of Members has been transferred to the Commission section in the 2015 budget, the variation of the liability related to members’ net pension (6 6 3 74  932 euro) is due to its transfer to the Commission’s accounts.

| (euro) |
| --- |
| | 2014 | 2013 |
| Variation of members’ net pension liability | (6 6 3 74  932) | 7 4 39  624 |
| Life pension paid | 2 9 38  437 | 2 7 15  911 |
| Survivor pensions paid | 3 80  772 | 3 25  474 |
| Transitional allowances paid | 1 6 63  086 | 1 5 37  185 |
| Invalidity pensions paid | — | — |
| Sub-total pension paid during the year | 4 9 82  295 | 4 5 78  570 |
| Correction coefficient | 2 29  296 | 1 62  071 |
| Taxes deducted from payments | (9 89  552) | (9 00  722) |
| Total movement in pensions | (6 2 1 52  893) | 1 1 2 79  543 |

(euro)

2014

2013

Variation of members’ net pension liability

(6 6 3 74  932)

7 4 39  624

Life pension paid

2 9 38  437

2 7 15  911

Survivor pensions paid

3 80  772

3 25  474

Transitional allowances paid

1 6 63  086

1 5 37  185

Invalidity pensions paid

—

—

Sub-total pension paid during the year

4 9 82  295

4 5 78  570

Correction coefficient

2 29  296

1 62  071

Taxes deducted from payments

(9 89  552)

(9 00  722)

Total movement in pensions

(6 2 1 52  893)

1 1 2 79  543

5.   
  Other significant disclosures

5.1.   Contingent assets

The following bank guarantees have been given by suppliers following contractual obligations:

| (euro) |
| --- |
| | 31 December 2014 | 31 December 2013 |
| Travel agency | — | 50  000 |
| Renovation building K1 | 2  500 | 2  500 |
| Project management building K3 | 2 2 99  801 | 7 1 96  680 |
| Insurance company | 1  361 | 1  361 |
| Telecommunication | 20  000 | 20  000 |
| EMAS methodological support | 4  680 | — |
| Total | 2 3 28  342 | 7 2 70  541 |

(euro)

31 December 2014

31 December 2013

Travel agency

—

50  000

Renovation building K1

2  500

2  500

Project management building K3

2 2 99  801

7 1 96  680

Insurance company

1  361

1  361

Telecommunication

20  000

20  000

EMAS methodological support

4  680

—

Total

2 3 28  342

7 2 70  541

5.2.   Commitments for future funding

| (euro) |
| --- |
| | 31 December 2014 | 31 December 2013 |
| Operational lease for buildings | 8 07  500 | 5 60  000 |
| Operational lease for IT material, cars and other equipment | 2 9 14  006 | 2 3 73  573 |
| Subtotal | 3 7 21  506 | 2 9 33  573 |
| Commitments against appropriations not yet consumed — RAL (‘Restant à liquider’) — after deduction of accruals for 2014 | 4 9 56  357 | 9 3 64  602 |
| Total | 8 6 77  863 | 1 2 2 98  175 |

(euro)

31 December 2014

31 December 2013

Operational lease for buildings

8 07  500

5 60  000

Operational lease for IT material, cars and other equipment

2 9 14  006

2 3 73  573

Subtotal

3 7 21  506

2 9 33  573

Commitments against appropriations not yet consumed — RAL (‘Restant à liquider’) — after deduction of accruals for 2014

4 9 56  357

9 3 64  602

Total

8 6 77  863

1 2 2 98  175

The RAL is an element of budgetary accounting representing the value of outstanding commitments. This is the difference between commitments entered into and payments, which is due to the time-lag between entering into a commitment and proceeding to the related payment.

5.3.   The Court’s buildings projects

The Court occupied its headquarters building (the ‘K1’ building) in 1988 and purchased it and the land it stands on outright in 1990. In 1999, the Court signed a framework agreement with the Luxembourg state through which it was given the right to use a second parcel of land for 49 years (renewable once) for the construction of an extension (the ‘K2’ building) in return for a payment of one euro. However for the second extension, the ‘K3’ building, due to different arrangements for carrying out the project it was necessary that the Luxembourg state and the Court concluded a new framework agreement on 22 February 2008.

As regards the two pieces of land relative to the two extensions (‘K2’ and ‘K3’) mentioned above, the state has sold these to the Court for a symbolic one euro.

For its part should the Court ever consider ceding one or other of the buildings to a third party other than the Union body or institution, the Court will return the land to the ownership of the state in return for a symbolic one euro, the latter disposing also of an option to buy the building at a price to be determined by an independent expert. In case the state decides not to exercise this option, it would provide a right to use the land to the purchasers of the building.

In Luxembourg, the use of office buildings is authorised for a period of 15 years, after which they must be modernised to bring them into conformity with the prevailing health, safety and environmental standards. These required health and safety works were performed on the K1 building. The work is finalised, the formal final acceptance was confirmed in 2010. The K2 building entered into service in November 2003 and has thus an authorisation (‘autorisation d’exploitation’) valid until 2018.

The works for the construction of the K3 building started in March 2010 and on 15 November 2012 the building entered into service.

5.4.   Potential significant liability for litigations
   (4)

There are no potential significant liabilities for litigations.

---

(1)  OJ L 298, 26.10.2012, p. 1.

(2)  OJ L 362, 31.12.2012, p. 1.

(3)  OJ L 268, 20.10.1977, p. 1.

(4)  EU Accounting Rule No 10 Provisions, contingent liabilities and contingent assets.

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BUDGET INFORMATION FINANCIAL YEAR 2014

A.   Computation of the budget result

The budget result of the year is computed based on the figures of the budgetary implementation.

| (euro) |
| --- |
| Payments on appropriations of the year 2014 | (12 4 1 62  633) |
| Payments made from carry-over of payment appropriations | (9 4 99  604) |
| Payments on appropriation related to earmarked revenue | (53  360) |
| Recovery orders of the year, cashed during the year 2014 | 1 9 4 87  805 |
| Budgetary recovery orders issued before 2014 and cashed in the year 2014 | 11  244 |
| Adjustment on recovery orders from previous years | — |
| Payment appropriations carried over to 2014 | (7 8 25  569) |
| Appropriation carried over from previous years | 1 1 0 40  895 |
| Adjustment for carry-over from previous year of appropriations available at 31.12 arising from assigned revenue | 1 05  327 |
| Budget result | (11 0 8 95  895) |

(euro)

Payments on appropriations of the year 2014

(12 4 1 62  633)

Payments made from carry-over of payment appropriations

(9 4 99  604)

Payments on appropriation related to earmarked revenue

(53  360)

Recovery orders of the year, cashed during the year 2014

1 9 4 87  805

Budgetary recovery orders issued before 2014 and cashed in the year 2014

11  244

Adjustment on recovery orders from previous years

—

Payment appropriations carried over to 2014

(7 8 25  569)

Appropriation carried over from previous years

1 1 0 40  895

Adjustment for carry-over from previous year of appropriations available at 31.12 arising from assigned revenue

1 05  327

Budget result

(11 0 8 95  895)

There were no supplement nor reductions between the original and the final budget.

B.   Reconciliation of economic result with budget result

| (euro) |
| --- |
| Economic result of the year | 6 6 5 75  199 |
| Adjustment for items included in the economic result but not in the budget result | (16 7 5 38  431) |
| | Difference between accruals end of previous year and end of current year | (1 5 94  505) |
| | Amount from liaison account with the Commission booked in the Economic Outturn Account | (11 4 5 00  000) |
| | Unpaid invoices at year end but booked in charges (class 6) | 1 2 19  754 |
| | Depreciation of intangible and tangible assets | 6 6 66  026 |
| | Provisions | — |
| | Value reductions | — |
| | Recovery orders issued in 2014 in class 7 not yet cashed | (3  042) |
| | Payments made from carry-over of payment appropriations | 9 4 99  604 |
| | Other | (6 8 8 27  941) |
| | Exchange rate differences | 1  673 |
| Adjustment for items included in the budget result but not in the economic result | (9 9 32  663) |
| | Asset acquisitions (paid during the year) | (3 7 55  403) |
| | Budgetary recovery orders issued before 2014 and cashed in the year | 1  690 |
| | Payment appropriations carried over to 2014 | (7 8 25  569) |
| | Cancellation of unused carried over payment appropriations from previous year | 1 5 41  292 |
| | Adjustment for carry-over from previous year of appropriations available at 31.12 arising from assigned revenue | 1 05  327 |
| | Payments for pensions (they are budgetary payments but booked against provisions) | |
| | Other | — |
| Budget result | (11 0 8 95  895) |

(euro)

Economic result of the year

6 6 5 75  199

Adjustment for items included in the economic result but not in the budget result

(16 7 5 38  431)

Difference between accruals end of previous year and end of current year

(1 5 94  505)

Amount from liaison account with the Commission booked in the Economic Outturn Account

(11 4 5 00  000)

Unpaid invoices at year end but booked in charges (class 6)

1 2 19  754

Depreciation of intangible and tangible assets

6 6 66  026

Provisions

—

Value reductions

—

Recovery orders issued in 2014 in class 7 not yet cashed

(3  042)

Payments made from carry-over of payment appropriations

9 4 99  604

Other

(6 8 8 27  941)

Exchange rate differences

1  673

Adjustment for items included in the budget result but not in the economic result

(9 9 32  663)

Asset acquisitions (paid during the year)

(3 7 55  403)

Budgetary recovery orders issued before 2014 and cashed in the year

1  690

Payment appropriations carried over to 2014

(7 8 25  569)

Cancellation of unused carried over payment appropriations from previous year

1 5 41  292

Adjustment for carry-over from previous year of appropriations available at 31.12 arising from assigned revenue

1 05  327

Payments for pensions (they are budgetary payments but booked against provisions)

Other

—

Budget result

(11 0 8 95  895)

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INDEPENDENT ASSURANCE REPORT

To the Management of the

European Court of Auditors

We have examined that the financial resources assigned by the European Commission to the European Court of Auditors (hereafter the ‘Court’) have been used for their intended purposes and that the control procedures put in place by the authorising officers provide the necessary guarantees to ensure the compliance of financial operations with the applicable rules and regulations for the financial resources made available and used for the period from l January 2014 to 31 December 2014.

The maintenance of books and records and the establishing and maintaining of appropriate controls are the responsibility of the Management of the Court. Our responsibility is to express our opinion based on our examination.

We conducted our examination in accordance with the International Standard on Assurance Engagements ‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’ (ISAE 3000) as adopted by the ‘Commission de Surveillance du Secteur Financier’. This standard requires that we plan and perform our examination such that misuse of the resources materially affecting the books of the Court are detected with reasonable assurance. Our work consisted primarily of examining on a test and sample basis, evidence supporting the fact that:

| — | The resources assigned to the Court have been used for their intended purposes; |
| --- | --- |

—

The resources assigned to the Court have been used for their intended purposes;

| — | The control procedures put in place provide the necessary guarantees to ensure the compliance of financial operations with the applicable rules and regulations. |
| --- | --- |

—

The control procedures put in place provide the necessary guarantees to ensure the compliance of financial operations with the applicable rules and regulations.

The criteria used for our examination are the following rules and regulations:

| — | Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget (hereafter the ‘Budget’) of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (hereafter the ‘Financial Regulation’); |
| --- | --- |

—

Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget (hereafter the ‘Budget’) of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (hereafter the ‘Financial Regulation’);

| — | Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (hereafter the ‘Implementing Rules’); |
| --- | --- |

—

Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (hereafter the ‘Implementing Rules’);

| — | Decision No 24-2014 of the European Court of Auditors concerning the internal rules for the implementation of its Budget of 5 June 2014. These provisions form part of the procedures established by the Treaties, or agreements made by virtue thereof, which concern the operational process linked to the implementation of the Budget. |
| --- | --- |

—

Decision No 24-2014 of the European Court of Auditors concerning the internal rules for the implementation of its Budget of 5 June 2014. These provisions form part of the procedures established by the Treaties, or agreements made by virtue thereof, which concern the operational process linked to the implementation of the Budget.

In particular, the following Internal Rules have been used as criteria:

| — | Article 7 — Signatures — ‘Each of the parties involved in the drafting, control and registration of operations to establish and recover revenue or to commit sums and make payments shall sign and date their involvement’; |
| --- | --- |

—

Article 7 — Signatures — ‘Each of the parties involved in the drafting, control and registration of operations to establish and recover revenue or to commit sums and make payments shall sign and date their involvement’;

| — | Article 8 — Building projects — ‘The President shall present to the European Parliament and the Council any building project likely to have significant financial implications for the Court’s budget. Before the Court gives its approval to any contractual undertaking concerning such a project, the service responsible shall submit an explanatory document justifying the compatibility of the project with the financial framework’; |
| --- | --- |

—

Article 8 — Building projects — ‘The President shall present to the European Parliament and the Council any building project likely to have significant financial implications for the Court’s budget. Before the Court gives its approval to any contractual undertaking concerning such a project, the service responsible shall submit an explanatory document justifying the compatibility of the project with the financial framework’;

| — | Article 11.2 — ‘Before signing, the persons empowered to sign bank credit transfer orders shall verify, in particular, that the bank credit transfer orders correspond to the payment orders’; |
| --- | --- |

—

Article 11.2 — ‘Before signing, the persons empowered to sign bank credit transfer orders shall verify, in particular, that the bank credit transfer orders correspond to the payment orders’;

| — | Article 17.2 — ‘The request for transfer shall be accompanied by the information enumerated in Article 17.2’; |
| --- | --- |

—

Article 17.2 — ‘The request for transfer shall be accompanied by the information enumerated in Article 17.2’;

| — | Article 18.4 — ‘The Accounting Officer shall make available to the authorising officers, via the central IT system, a list of amounts to be carried over. The authorising officers shall be responsible for ensuring that, at the end of the year, the only amounts carried over are those in respect of which there is a legal obligation to do so’; |
| --- | --- |

—

Article 18.4 — ‘The Accounting Officer shall make available to the authorising officers, via the central IT system, a list of amounts to be carried over. The authorising officers shall be responsible for ensuring that, at the end of the year, the only amounts carried over are those in respect of which there is a legal obligation to do so’;

| — | Article 20 — Property inventories — ‘An inventory of tangible assets shall be kept in a database common to all the authorising officers in accordance with the procedures laid down by the Secretary-General, after consulting the Accounting Officer’; |
| --- | --- |

—

Article 20 — Property inventories — ‘An inventory of tangible assets shall be kept in a database common to all the authorising officers in accordance with the procedures laid down by the Secretary-General, after consulting the Accounting Officer’;

| — | Article 22.1 — Minimum management and internal control procedures — ‘The management and internal control procedures shall be drawn up by the authorising officers in accordance with the minimum internal control standards adopted by the Court’. |
| --- | --- |

—

Article 22.1 — Minimum management and internal control procedures — ‘The management and internal control procedures shall be drawn up by the authorising officers in accordance with the minimum internal control standards adopted by the Court’.

We believe our examination provides a reasonable basis for our opinion.

Based on our work described in this report, nothing has come to our attention that causes us to believe that in all material respects and based on the criteria described above:

| — | The resources assigned to the Court have not been used for their intended purposes; |
| --- | --- |

—

The resources assigned to the Court have not been used for their intended purposes;

| — | The control procedures in place do not provide the necessary guarantees to ensure the compliance of financial operations with the applicable rules and regulations. |
| --- | --- |

—

The control procedures in place do not provide the necessary guarantees to ensure the compliance of financial operations with the applicable rules and regulations.

Our report is solely for the purpose set forth in the first paragraph and for your information and is not to be used for any other purpose or to be distributed to any other parties, except for publication purpose in the European Official Journal.

Luxembourg, 20 May 2015.

PricewaterhouseCoopers, Société coopérative

Reviseur d’entreprises

Represented by

Pierre KRIER

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