# C_2004324EN.01006101.xml

| 30.12.2004 | EN | Official Journal of the European Union | C 324/61 |
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30.12.2004

EN

Official Journal of the European Union

C 324/61

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REPORT

REPORT

on the annual accounts of Eurojust for the 2003 financial year together with Eurojust's replies

(2004/C 324/09)

CONTENTS

| 1 | INTRODUCTION |
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1

| 2-5 | THE COURT'S OPINION |
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2-5

| 6-9 | OBSERVATIONS |
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6-9

Tables 1 to 4

Eurojust's replies

Eurojust's replies

INTRODUCTION

| 1. | Eurojust, which became operational at the end of 2002, was set up by Council Decision No 2002/187/JHA (1) with a view to reinforcing the fight against serious crime. Its objective is to improve the coordination of investigations and prosecutions covering the territories of several Member States of the European Union, as well as that of non-member States. Table 1 contains a summary of Eurojust's powers and activities which is based on information provided by Eurojust itself. |
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1.

Eurojust, which became operational at the end of 2002, was set up by Council Decision No 2002/187/JHA (1) with a view to reinforcing the fight against serious crime. Its objective is to improve the coordination of investigations and prosecutions covering the territories of several Member States of the European Union, as well as that of non-member States. Table 1 contains a summary of Eurojust's powers and activities which is based on information provided by Eurojust itself.

1

Table 1

THE COURT'S OPINION

| 2. | This opinion is addressed to the European Parliament and the Council pursuant to Article 36 of Council Decision No 2002/187/JHA (). |
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2.

This opinion is addressed to the European Parliament and the Council pursuant to Article 36 of Council Decision No 2002/187/JHA ().

| 3. | The Court has examined the annual accounts of Eurojust for the financial year ended 31 December 2003. In accordance with Article 36 of Council Decision No 2002/187/JHA of 28 February 2002 (), the budget was implemented on the responsibility of Eurojust's Administrative Director. This responsibility includes the drawing-up and presentation of the accounts (2), in accordance with the internal financial provisions provided for in Article 37 of the Council Decision. The Court of Auditors is required under Article 248 of the Treaty establishing the European Community to audit these accounts. |
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3.

The Court has examined the annual accounts of Eurojust for the financial year ended 31 December 2003. In accordance with Article 36 of Council Decision No 2002/187/JHA of 28 February 2002 (), the budget was implemented on the responsibility of Eurojust's Administrative Director. This responsibility includes the drawing-up and presentation of the accounts (2), in accordance with the internal financial provisions provided for in Article 37 of the Council Decision. The Court of Auditors is required under Article 248 of the Treaty establishing the European Community to audit these accounts.

| 4. | The Court carried out its audit in accordance with its auditing standards and policies. These have been adapted from generally accepted international auditing standards to reflect the specific nature of the Community context. It examined the accounting documents and applied the audit procedures that it considered necessary in this context. |
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4.

The Court carried out its audit in accordance with its auditing standards and policies. These have been adapted from generally accepted international auditing standards to reflect the specific nature of the Community context. It examined the accounting documents and applied the audit procedures that it considered necessary in this context.

| 5. | The Court has thus obtained reasonable assurance that the annual accounts for the financial year ended 31 December 2003 were reliable and that the underlying transactions, taken as a whole, were legal and regular. The content of the following observations does not call the opinion expressed by the Court in this report into question. |
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5.

The Court has thus obtained reasonable assurance that the annual accounts for the financial year ended 31 December 2003 were reliable and that the underlying transactions, taken as a whole, were legal and regular. The content of the following observations does not call the opinion expressed by the Court in this report into question.

OBSERVATIONS

| 6. | The implementation of the appropriations for the financial year 2003 and of the appropriations carried over from the previous financial year is shown in Table 2. Eurojust's economic outturn account and balance sheet for the financial year 2003 are presented in summary form in Tables 3 and 4. |
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6.

The implementation of the appropriations for the financial year 2003 and of the appropriations carried over from the previous financial year is shown in Table 2. Eurojust's economic outturn account and balance sheet for the financial year 2003 are presented in summary form in Tables 3 and 4.

Table 2

Tables 3 and 4

| 7. | Eurojust was unable to adopt its new financial regulation during the financial year. Pending adoption, it has been applying the framework financial regulation for the decentralised bodies (3). The documentation describing the roles and tasks of those responsible for the internal control system is still unclear. Supporting documents for orders or for the receipt of goods and services are not all kept. |
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7.

Eurojust was unable to adopt its new financial regulation during the financial year. Pending adoption, it has been applying the framework financial regulation for the decentralised bodies (3). The documentation describing the roles and tasks of those responsible for the internal control system is still unclear. Supporting documents for orders or for the receipt of goods and services are not all kept.

3

| 8. | Article 43(1)(e) of the framework financial regulation stipulates that the accounting officer shall validate the systems laid down by the authorising officer to supply or justify accounting information. No such validation took place during the financial year. |
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8.

Article 43(1)(e) of the framework financial regulation stipulates that the accounting officer shall validate the systems laid down by the authorising officer to supply or justify accounting information. No such validation took place during the financial year.

| 9. | The management of transfers of appropriations must be monitored more closely. In one case, the Eurojust College was notified of a transfer of 349 500 euro even though the sum was already part of the amending budget presented a few weeks earlier. A transfer of 8 500 euro was entered in the budgetary accounts without the College being informed. |
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9.

The management of transfers of appropriations must be monitored more closely. In one case, the Eurojust College was notified of a transfer of 349 500 euro even though the sum was already part of the amending budget presented a few weeks earlier. A transfer of 8 500 euro was entered in the budgetary accounts without the College being informed.

This Report was adopted by the Court of Auditors in Luxembourg at its meeting of 29 and 30 September 2004.

For the Court of Auditors

Juan Manuel FABRA VALLÉS

President

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

1

(2)  As required under Article 36 of the Decision setting up Eurojust, the final accounts for the financial year 2003 were drawn up on 7 September 2004 and forwarded to the Parliament, the Commission and the Court of Auditors. The Court received them on 24 September 2004. A summarised version of these accounts is published in the tables annexed to this report.

2

(3)  Commission Regulation (EC, Euratom) No 2343/2002 of 19 December 2002 (OJ L 357, 31.12.2002, p. 72).

3

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Table 1

Eurojust (The Hague) Council Decision of 28 February 2002 (2002/187/JHA)

| Areas of responsibility stipulated in the Treaty on European Union | Eurojust's powers as defined in the Council Decision of 28 February 2002 (2002/187/JHA) | Governance | Resources made available to Eurojust

  (Data for 2002 in brackets) | Activities and services provided

  (Data for 2002 in brackets) |
| --- | --- | --- | --- | --- |
| The Union's objective is to provide citizens with a high level of safety within an area of freedom, security and justice.
  The Council encourages cooperation through Eurojust by enabling it to facilitate proper coordination between the Member States' national prosecuting authorities. (Articles 29 and 31)

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







  — | To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions and to improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests. |

Areas of responsibility stipulated in the Treaty on European Union

Eurojust's powers as defined in the Council Decision of 28 February 2002 (2002/187/JHA)

Governance

Resources made available to Eurojust

(Data for 2002 in brackets)

Activities and services provided

(Data for 2002 in brackets)

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

The Council encourages cooperation through Eurojust by enabling it to facilitate proper coordination between the Member States' national prosecuting authorities. (Articles 29 and 31)

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

Objectives

—

To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions and to improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests.

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

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

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

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

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

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

Tasks

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

| — | through its national members |
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—

through its national members

| — | or as a College. |
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—

or as a College.

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

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

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

| 2. | The College is composed of national members seconded by each Member State in accordance with its legal system, being a prosecutor, judge or police officer of equivalent competence. |
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2.

The College is composed of national members seconded by each Member State in accordance with its legal system, being a prosecutor, judge or police officer of equivalent competence.

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

The College elects its President from among the national members.

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

The Joint Supervisory Body checks the processing of personal data.

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

The Administrative Director is unanimously appointed by the College.

| 6. | External control: the Court of Auditors. |
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6.

External control: the Court of Auditors.

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

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

Final budget:

8 million euro (2,8 million euro) funded in full (100 %) (100 %) by the EU:

Staff as at 31 December 2003:

53 (46) posts listed in the establishment plan

posts occupied: 28 (5)

+15(7) other posts (auxiliary contracts, seconded national experts, local staff, employment-agency staff)

Total staff: 43 (12)

carrying out

operational tasks: 18 (3)

administrative tasks: 20 (6)

mixed tasks: 5 (3)

Number of meetings: 26 (20)

Bilateral cases: 222 (144)

Multilateral cases: 78 (70)

Total number of cases: 300 (214)

Fraud: 22 % (30 %)

Drug-trafficking: 22 % (16 %)

Terrorism: 6 % (9 %)

Murder: 4 % (7 %)

Smuggling: 3 % (6 %)

Trafficking

in human beings: 4 % (6 %)

Money-laundering: 8 % (2 %)

Other: 31 % (24 %)

Source:Information supplied by Eurojust.

Table 2

Eurojust — Implementation of the budget for the 2003 financial year

| (million euro) |
| --- |
| Revenue | Expenditure |
| Source of revenue | Revenue entered under the final budget for the financial year | Revenue received | Allocation of expenditure | Appropriations under the final budget | Appropriations carried over from the previous financial year | Available appropriations
  (2003 budget and the financial year 2002) |
| entered | committed | paid | carried over | cancelled | outstanding commitments | paid | cancelled | appropriations | committed | paid | carried over | cancelled |
| Community subsidies | 8,0 | 7,2 | Title I
  Staff | 2,5 | 2,2 | 2,0 | 0,2 | 0,3 | 0,0 | 0,0 | 0,0 | 2,5 | 2,2 | 2,0 | 0,2 | 0,3 |
| Financial interest | 0,0 | 0,0 | Title II
  Administration | 4,0 | 3,0 | 2,3 | 1,0 | 0,7 | 0,3 | 0,3 | 0,0 | 4,3 | 3,3 | 2,6 | 1,0 | 0,7 |
| Miscellaneous revenue | 0,1 | 0,0 | Title III
  Operational activities | 1,6 | 1,0 | 0,9 | 0,1 | 0,6 | 0,1 | 0,1 | 0,0 | 1,7 | 1,1 | 1,0 | 0,1 | 0,6 |
| Total | 8,1 | 7,2 | Total | 8,1 | 6,2 | 5,2 | 1,3 | 1,6 | 0,4 | 0,4 | 0,0 | 8,5 | 6,6 | 5,6 | 1,3 | 1,6 |
| Source:Eurojust data. This table summarises the data supplied by Eurojust in its own accounts. |

(million euro)

Revenue

Expenditure

Source of revenue

Revenue entered under the final budget for the financial year

Revenue received

Allocation of expenditure

Appropriations under the final budget

Appropriations carried over from the previous financial year

Available appropriations

(2003 budget and the financial year 2002)

entered

committed

paid

carried over

cancelled

outstanding commitments

paid

cancelled

appropriations

committed

paid

carried over

cancelled

Community subsidies

8,0

7,2

Title I

Staff

2,5

2,2

2,0

0,2

0,3

0,0

0,0

0,0

2,5

2,2

2,0

0,2

0,3

Financial interest

0,0

0,0

Title II

Administration

4,0

3,0

2,3

1,0

0,7

0,3

0,3

0,0

4,3

3,3

2,6

1,0

0,7

Miscellaneous revenue

0,1

0,0

Title III

Operational activities

1,6

1,0

0,9

0,1

0,6

0,1

0,1

0,0

1,7

1,1

1,0

0,1

0,6

Total

8,1

7,2

Total

8,1

6,2

5,2

1,3

1,6

0,4

0,4

0,0

8,5

6,6

5,6

1,3

1,6

Source:Eurojust data. This table summarises the data supplied by Eurojust in its own accounts.

Table 3

Eurojust — Economic outturn accounts for the financial years 2003 and 2002

| (1000 euro) |
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| | 2003 | 2002 |
| Operating revenue |
| Community subsidies | 7 125 | 1 478 |
| Miscellaneous revenue | 12 | 0 |
| Total (a) | 7 137 | 1 478 |
| Operating expenditure |
| Purchases of goods and services | 3 228 | 378 |
| Staff costs | 2 112 | 256 |
| Depreciation | 211 | 29 |
| Total (b) | 5 551 | 663 |
| Outturn for the financial year (a – b) | 1 586 | 815 |
| Source:Eurojust data. |

(1000 euro)

2003

2002

Operating revenue

Community subsidies

7 125

1 478

Miscellaneous revenue

12

0

Total (a)

7 137

1 478

Operating expenditure

Purchases of goods and services

3 228

378

Staff costs

2 112

256

Depreciation

211

29

Total (b)

5 551

663

Outturn for the financial year (a – b)

1 586

815

Source:Eurojust data.

Table 4

Eurojust — Balance sheet at 31 December 2003 and 31 December 2002

| (1000 euro) |
| --- |
| Assets | 2003 | 2002 | Liabilities | 2003 | 2002 |
| Intangible assets
   (1) | 62 | 6 | Own capital | | |
| | | | Budget outturn (a) | 778 | –80 |
| Fixed assets
   (1) | | | Result of adjustments (b) | 808 | 895 |
| Equipment, machinery and tools | 114 | 20 | Economic outturn (a + b) | 1 586 | 815 |
| Furniture and vehicles | 492 | 207 | Result carried over from previous years | 815 | 0 |
| Computer equipment | 460 | 451 | Subtotal | 2 401 | 815 |
| Subtotal | 1 066 | 678 | | | |
| | | | Provisions for risks and charges | 396 | 0 |
| Financial assets | 1 | 0 | | | |
| | | | Current liabilities | | |
| Current assets | | | Current liabilities | 24 | 173 |
| Current assets | 232 | 158 | Other liabilities | 305 | 125 |
| Sundry accounts receivable | 34 | 30 | Subtotal | 329 | 298 |
| Subtotal | 266 | 188 | | | |
| Disposable assets | 1 731 | 241 | | | |
| Total | 3 126 | 1 113 | Total | 3 126 | 1 113 |
| Source:Eurojust data. This table summarises the data supplied by Eurojust in its own accounts. |

(1000 euro)

Assets

2003

2002

Liabilities

2003

2002

Intangible assets
   (1)

62

6

Own capital

Budget outturn (a)

778

–80

Fixed assets
   (1)

Result of adjustments (b)

808

895

Equipment, machinery and tools

114

20

Economic outturn (a + b)

1 586

815

Furniture and vehicles

492

207

Result carried over from previous years

815

0

Computer equipment

460

451

Subtotal

2 401

815

Subtotal

1 066

678

Provisions for risks and charges

396

0

Financial assets

1

0

Current liabilities

Current assets

Current liabilities

24

173

Current assets

232

158

Other liabilities

305

125

Sundry accounts receivable

34

30

Subtotal

329

298

Subtotal

266

188

Disposable assets

1 731

241

Total

3 126

1 113

Total

3 126

1 113

Source:Eurojust data. This table summarises the data supplied by Eurojust in its own accounts.

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(1)  Intangible and fixed assets are depreciated on a monthly basis.

Source:Eurojust data. This table summarises the data supplied by Eurojust in its own accounts.

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THE COURT’S REPLIES

| 7. | On 11 November 2003 the College of Eurojust adopted the proposal for a new Financial Regulation submitted to it by the Administrative Director and its text was forwarded to the Commission for approval.
  Eurojust has revised its guidelines on financial circuits and the separation of tasks and has finalised specific verification lists for each financial sector.
  Eurojust has decided to centralise all supporting documents in the unit responsible for budget and finance so as to avoid the risks associated with them being spread throughout the operational departments. |
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7.

On 11 November 2003 the College of Eurojust adopted the proposal for a new Financial Regulation submitted to it by the Administrative Director and its text was forwarded to the Commission for approval.

Eurojust has revised its guidelines on financial circuits and the separation of tasks and has finalised specific verification lists for each financial sector.

Eurojust has decided to centralise all supporting documents in the unit responsible for budget and finance so as to avoid the risks associated with them being spread throughout the operational departments.

| 8. | Eurojust’s Accounting Officer took up his post in September 2003. The time required to settle and test the accounting systems meant that it was 2004 before they could be validated. |
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8.

Eurojust’s Accounting Officer took up his post in September 2003. The time required to settle and test the accounting systems meant that it was 2004 before they could be validated.

| 9. | The experience gained in financial year 2003, Eurojust’s first complete financial year, exposed some weaknesses in the control of budgetary transactions. This has since been strengthened to avoid any repetition of the problems noted by the Court. |
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9.

The experience gained in financial year 2003, Eurojust’s first complete financial year, exposed some weaknesses in the control of budgetary transactions. This has since been strengthened to avoid any repetition of the problems noted by the Court.

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