# C_2006312EN.01004801.xml

| 19.12.2006 | EN | Official Journal of the European Union | C 312/48 |
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19.12.2006

EN

Official Journal of the European Union

C 312/48

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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 2005 together with the Centre's replies

(2006/C 312/09)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

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

| 7-10 | OBSERVATIONS |
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7-10

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 information from the financial statements drawn up by the Centre for the financial year 2005 is presented in Tables 2, 3 and 4. |
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2.

Table 1 summarises the Centre's competences and activities. Key information from the financial statements drawn up by the Centre for the financial year 2005 is presented in Tables 2, 3 and 4.

Table 1

Tables 2, 3 and 4

STATEMENT OF ASSURANCE

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

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

2

| 4. | The Centre's accounts for the financial year ended 31 December 2005 (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 2005 (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 an audit in accordance with its policies and standards, which are based on international auditing standards that have been adapted to the Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and the underlying transactions are legal and regular. |
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5.

The Court conducted an audit in accordance with its policies and standards, which are based on international auditing standards that have been adapted to the Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and the underlying transactions are legal and regular.

| 6. | The Court has thus obtained a reasonable basis for the Statement set out below. |
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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 2005 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 2005 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. | For the financial year 2005, the overall rate of implementation for commitment appropriations was over 90 % and the same was true for payment appropriations. Nevertheless, under-utilisation was noted with regard to expenditure on administration (Title II), less than 75 % of the appropriations for which were committed, and 24 % of commitments were carried over. Furthermore, for the same expenditure, more than 50 % of the total commitments carried over from the previous year were cancelled. Such a situation indicates a qualitative weakness in the programming of administrative expenditure. |
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7.

For the financial year 2005, the overall rate of implementation for commitment appropriations was over 90 % and the same was true for payment appropriations. Nevertheless, under-utilisation was noted with regard to expenditure on administration (Title II), less than 75 % of the appropriations for which were committed, and 24 % of commitments were carried over. Furthermore, for the same expenditure, more than 50 % of the total commitments carried over from the previous year were cancelled. Such a situation indicates a qualitative weakness in the programming of administrative expenditure.

| 8. | The appropriations for freelance translators' fees of seven million euro, more than a quarter of the budget, are committed in the form of several global commitments. These commitments, as such, are subject to ex ante verification and subsequently give rise to specific commitments to many individual service-providers. However, these specific commitments, for amounts which may not be negligible, are not subject to ex ante verification. In view of the associated risks, these specific commitments should also be subject to ex ante verification. |
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8.

The appropriations for freelance translators' fees of seven million euro, more than a quarter of the budget, are committed in the form of several global commitments. These commitments, as such, are subject to ex ante verification and subsequently give rise to specific commitments to many individual service-providers. However, these specific commitments, for amounts which may not be negligible, are not subject to ex ante verification. In view of the associated risks, these specific commitments should also be subject to ex ante verification.

ex ante

ex ante

ex ante

| 9. | The Centre is responsible for administering and developing a database (IATE) in conjunction with the EU Institutions, which meet part of the costs. The agreement on the division of costs associated with IATE says nothing about intellectual property rights. This omission must be rectified so that account can be taken of its value in the assets of the Institutions concerned. |
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9.

The Centre is responsible for administering and developing a database (IATE) in conjunction with the EU Institutions, which meet part of the costs. The agreement on the division of costs associated with IATE says nothing about intellectual property rights. This omission must be rectified so that account can be taken of its value in the assets of the Institutions concerned.

| 10. | In its Annual Report on the Centre for the financial year 2004, the Court made an observation concerning the long-standing conflict between the Commission and the Centre about the Centre's payment of the employer's portion of pension contributions for its staff. The Court reiterates its call for this conflict to be settled as soon as possible. |
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10.

In its Annual Report on the Centre for the financial year 2004, the Court made an observation concerning the long-standing conflict between the Commission and the Centre about the Centre's payment of the employer's portion of pension contributions for its staff. The Court reiterates its call for this conflict to be settled as soon as possible.

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 28 September 2006.

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 6 July 2006 and received by the Court on 11 July 2006.

3

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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 2005

  (2004) | Products and services provided during the financial year 2005

  (2004) |
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| The representatives of the Member States' governments adopted by mutual agreement a declaration concerning the creation, under the aegis of the Commission's translation departments in Luxembourg, of a Translation Centre for the bodies of the Union, which would provide the necessary translation services for the operation of the bodies and services whose seats were established by the Decision of 29 October 1993.

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

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






  — | the European Environment Agency, |

Areas of Community competence

Competences of the Centre

Council Regulation (EC) No 2965/94 of 28 November 1994

Governance

Resources made available to the Centre in 2005

(2004)

Products and services provided during the financial year 2005

(2004)

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.

The 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 audit

Court of Auditors.

4. Internal audit

Commission's internal auditor.

5. Discharge authority

Parliament on a recommendation from the Council.

Final budget

27,9 million euro (29,8 million euro)

Staff as at 31 December 181 (181) posts listed in the establishment plan

posts occupied: 163 (150)

+12 (15) other posts

Total staff: 175 (165)

Assigned to:

| — | operational duties: 114 (119) |
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operational duties: 114 (119)

| — | administrative duties: 57 (52) |
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—

administrative duties: 57 (52)

| — | mixed duties: 4(4) |
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—

mixed duties: 4(4)

Number of pages translated

505 438 (377 999)

Number of pages by languages

| — | official languages: 501 475 (373 270) |
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—

official languages: 501 475 (373 270)

| — | other languages: 3 963 (4 729) |
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—

other languages: 3 963 (4 729)

Number of pages per customer

| — | bodies: 496 665 (366 055) |
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—

bodies: 496 665 (366 055)

| — | institutions: 8 773 (11 944) |
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—

institutions: 8 773 (11 944)

Number of pages translated freelance: 226 822 (146 342)

Source: Information supplied by the Centre.

TRANSLATION CENTRE FOR THE BODIES OF THE EUROPEAN UNION

Source: Data compiled by the Centre. These tables summarise the data supplied by the Centre in its annual accounts.

Table 2

Implementation of the budget for the financial year 2005

| (1000 euro) |
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| Revenue | Expenditure |
| Source of revenue | Revenue entered in the final budget for the financial year | Revenue received | Allocation of expenditure | Final budget appropriations | Appropriations carried over from the previous financial year | Appropriations for the financial year and carried over from the previous financial year |
| entered | committed | paid | carried over | cancel-led | available | paid | cancelled | available | committed | paid | carried over | cancelled |
| Own revenue | 24 166 | 30 356 | Title I
  Staff | 14 117 | 13 410 | 13 305 | 106 | 707 | 122 | 100 | 22 | 14 239 | 13 532 | 13 404 | 106 | 729 |
| Other revenue | 0 | 94 | Title II
  Administration | 4 235 | 3 112 | 2 358 | 755 | 1 123 | 642 | 583 | 59 | 4 877 | 3 754 | 2 941 | 755 | 1 181 |
| Interest | 300 | 428 | Title III
  Operating activities | 7 645 | 7 309 | 6 018 | 1 291 | 336 | 990 | 987 | 2 | 8 634 | 8 298 | 7 005 | 1 291 | 338 |
| Balance for the previous financial year | 3 497 | 0 | Title X
  Reserve | 1 966 | 0 | 0 | 0 | 1 966 | 0 | 0 | 0 | 1 966 | 0 | 0 | 0 | 1 966 |
| Total | 27 963 | 30 879 | Total | 27 963 | 23 831 | 21 681 | 2 152 | 4 132 | 1 754 | 1 670 | 83 | 29 716 | 25 584 | 23 350 | 2 152 | 4 214 |

(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

Appropriations for the financial year and carried over from the previous financial year

entered

committed

paid

carried over

cancel-led

available

paid

cancelled

available

committed

paid

carried over

cancelled

Own revenue

24 166

30 356

Title I

Staff

14 117

13 410

13 305

106

707

122

100

22

14 239

13 532

13 404

106

729

Other revenue

0

94

Title II

Administration

4 235

3 112

2 358

755

1 123

642

583

59

4 877

3 754

2 941

755

1 181

Interest

300

428

Title III

Operating activities

7 645

7 309

6 018

1 291

336

990

987

2

8 634

8 298

7 005

1 291

338

Balance for the previous financial year

3 497

0

Title X

Reserve

1 966

0

0

0

1 966

0

0

0

1 966

0

0

0

1 966

Total

27 963

30 879

Total

27 963

23 831

21 681

2 152

4 132

1 754

1 670

83

29 716

25 584

23 350

2 152

4 214

Table 3

Revenue and expenditure account for the financial years 2005 and 2004

| (1000 euro) |
| --- |
| | 2005 | 2004 |
| Operating revenue |
| Community subsidies | 0 | 0 |
| Other subsidies/revenue | 30 780 | 23 573 |
| Total (a) | 30 780 | 23 573 |
| Operating expenditure |
| Staff | 13 200 | 11 929 |
| Administration | 3 547 | 2 734 |
| Operating activities | 7 397 | 5 919 |
| Provisions | 1 849 | 1 410 |
| Total (b) | 25 993 | 21 992 |
| Operating result (c = a — b) | 4 787 | 1 581 |
| Other income (d) | 429 | 2 618 |
| Other charges (e) | –4 | –7 |
| Economic result (f = c + d + e) | 5 212 | 4 192 |

(1000 euro)

2005

2004

Operating revenue

Community subsidies

0

0

Other subsidies/revenue

30 780

23 573

Total (a)

30 780

23 573

Operating expenditure

Staff

13 200

11 929

Administration

3 547

2 734

Operating activities

7 397

5 919

Provisions

1 849

1 410

Total (b)

25 993

21 992

Operating result (c = a — b)

4 787

1 581

Other income (d)

429

2 618

Other charges (e)

–4

–7

Economic result (f = c + d + e)

5 212

4 192

Table 4

Balance sheet at 31 December 2005 and 2004

| (1000 euro) |
| --- |
| | 2005 | 2004 |
| Assets |
| Fixed Assets | 699 | 895 |
| Stock | 279 | 0 |
| Receivables | 6 184 | 6 368 |
| Cash accounts | 27 392 | 19 903 |
| Total | 34 554 | 27 166 |
| Liabilities |
| Accumulated surplus/deficit | 18 594 | 14 403 |
| Economic result for the year | 5 212 | 4 192 |
| Long-term liabilities | 9 330 | 7 481 |
| Current liabilities | 1 418 | 1 090 |
| Total | 34 554 | 27 166 |

(1000 euro)

2005

2004

Assets

Fixed Assets

699

895

Stock

279

0

Receivables

6 184

6 368

Cash accounts

27 392

19 903

Total

34 554

27 166

Liabilities

Accumulated surplus/deficit

18 594

14 403

Economic result for the year

5 212

4 192

Long-term liabilities

9 330

7 481

Current liabilities

1 418

1 090

Total

34 554

27 166

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THE CENTRE'S REPLIES

| 7. | The lack of regularity in requests for translation, together with a marked increase in the field of Community trade marks, created a climate of instability throughout 2005, forcing the Centre to postpone a number of projects provided for under Title 2. |
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7.

The lack of regularity in requests for translation, together with a marked increase in the field of Community trade marks, created a climate of instability throughout 2005, forcing the Centre to postpone a number of projects provided for under Title 2.

| 8. | The Centre will take the Court's observation into account when migrating from SI2 to ABAC (this migration is scheduled for 2007) to establish new financial circuits. |
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8.

The Centre will take the Court's observation into account when migrating from SI2 to ABAC (this migration is scheduled for 2007) to establish new financial circuits.

| 9. | The Centre will ask the Interinstitutional Committee for Translation and Interpretation to resolve the issue of ownership of the IATE database. |
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9.

The Centre will ask the Interinstitutional Committee for Translation and Interpretation to resolve the issue of ownership of the IATE database.

| 10. | At its meeting of 22 March 2006, the Management Board of the Centre adopted an opinion in which it reiterated that it was ‘well aware of the importance of settling this matter once and for all and calls on the European Commission to agree, together with the Centre, to an arbitration procedure in order to reach a settlement’. The Centre will keep the Court apprised of any developments in this matter. |
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10.

At its meeting of 22 March 2006, the Management Board of the Centre adopted an opinion in which it reiterated that it was ‘well aware of the importance of settling this matter once and for all and calls on the European Commission to agree, together with the Centre, to an arbitration procedure in order to reach a settlement’. The Centre will keep the Court apprised of any developments in this matter.

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