# C_2004324EN.01002301.xml

| 30.12.2004 | EN | Official Journal of the European Union | C 324/23 |
| --- | --- | --- | --- |

30.12.2004

EN

Official Journal of the European Union

C 324/23

---

REPORT

REPORT

on the annual accounts of the European Environment Agency for the 2003 financial year together with the Agency's replies

(2004/C 324/04)

CONTENTS

| 1 | INTRODUCTION |
| --- | --- |

1

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

2-5

| 6-8 | OBSERVATIONS |
| --- | --- |

6-8

Tables 1 to 4

The Agency's replies

The Agency's replies

INTRODUCTION

| 1. | The European Environment Agency (hereinafter called the Agency) was established by Council Regulation (EEC) No 1210/90 of 7 May 1990 (1). It is responsible for setting up an observation network that provides the Commission, the Member States and, more generally, the public with reliable information on the state of the environment. The information should, in particular, enable the European Union and the Member States to take action to safeguard the environment and assess the effectiveness of such action. Table 1 summarises the Agency's competencies and activities on the basis of information it has forwarded. |
| --- | --- |

1.

The European Environment Agency (hereinafter called the Agency) was established by Council Regulation (EEC) No 1210/90 of 7 May 1990 (1). It is responsible for setting up an observation network that provides the Commission, the Member States and, more generally, the public with reliable information on the state of the environment. The information should, in particular, enable the European Union and the Member States to take action to safeguard the environment and assess the effectiveness of such action. Table 1 summarises the Agency's competencies and activities on the basis of information it has forwarded.

1

Table 1

THE COURT'S OPINION

| 2. | This opinion is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2). |
| --- | --- |

2.

This opinion is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2).

2

| 3. | The Court has examined the annual accounts of the Agency for the financial year ended 31 December 2003. In accordance with Article 13 of Council Regulation (EEC) No 1210/90, the budget was implemented on the responsibility of the Director. This responsibility includes the drawing-up and presentation of the accounts (3), in accordance with the internal financial provisions adopted on the basis of Article 14 of Council Regulation (EEC) No 1210/90. The Court of Auditors is required under Article 248 of the Treaty establishing the European Community to examine these accounts. |
| --- | --- |

3.

The Court has examined the annual accounts of the Agency for the financial year ended 31 December 2003. In accordance with Article 13 of Council Regulation (EEC) No 1210/90, the budget was implemented on the responsibility of the Director. This responsibility includes the drawing-up and presentation of the accounts (3), in accordance with the internal financial provisions adopted on the basis of Article 14 of Council Regulation (EEC) No 1210/90. The Court of Auditors is required under Article 248 of the Treaty establishing the European Community to examine these accounts.

3

| 4. | The Court carried out its audit in accordance with its auditing policies and standards, which have been adapted from generally accepted international auditing standards to reflect the specific nature of the Community context. The Court carried out such tests on the accounting records and applied such other procedures as it deemed necessary in the circumstances. |
| --- | --- |

4.

The Court carried out its audit in accordance with its auditing policies and standards, which have been adapted from generally accepted international auditing standards to reflect the specific nature of the Community context. The Court carried out such tests on the accounting records and applied such other procedures as it deemed necessary in the circumstances.

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

5.

The Court has thus obtained reasonable assurance that the annual accounts for the year ended 31 December 2003 are reliable and that the underlying transactions, taken as a whole, are legal and regular. The content of the following observations does not call the audit 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
   (4). The Agency's revenue and expenditure account and balance sheet for the 2003 financial year are presented in summary form in Tables 3 and 4. |
| --- | --- |

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
   (4). The Agency's revenue and expenditure account and balance sheet for the 2003 financial year are presented in summary form in Tables 3 and 4.

Table 2

4

Tables 3 and 4

| 7. | Contrary to the provisions of the Agency's financial regulation (5), recovery orders are not issued on a systematic basis when claims are established. This was the case for claims amounting to 2 539 000 euro, 1 472 000 euro of which had already been collected. |
| --- | --- |

7.

Contrary to the provisions of the Agency's financial regulation (5), recovery orders are not issued on a systematic basis when claims are established. This was the case for claims amounting to 2 539 000 euro, 1 472 000 euro of which had already been collected.

5

| 8. | The statements for the Agency's seven bank accounts were not reconciled with the corresponding balances in the accounts during the course of 2003. Reconciliation should be carried out monthly and the details forwarded to the responsible person in the administration. |
| --- | --- |

8.

The statements for the Agency's seven bank accounts were not reconciled with the corresponding balances in the accounts during the course of 2003. Reconciliation should be carried out monthly and the details forwarded to the responsible person in the administration.

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

---

(1)  OJ L 120, 11.5.1990.

1

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

2

(3)  As required under Article 13(3) of Council Regulation (EEC) No 1210/90, the final accounts of all the Agency's revenue and expenditure for the financial year 2003 were drawn up on 6 August 2004 and were sent to the Court of Auditors. They were received by the Court on 22 September 2004. A summary version of these accounts is presented in the tables annexed to this report.

3

(4)  All the tables in this report have been drawn up on the basis of the most accurate values possible for the data used. The totals may include minimal differences due to rounding for the purposes of presentation. A dash indicates a non-existent or zero value and 0,0 indicates a value below the rounding threshold.

4

(5)  Article 53(2).

5

---

Table 1

European Environment Agency (Copenhagen)

| Areas of Community competence deriving from the Treaty | Competencies of the Agency as defined in Council Regulation (EEC) No 1210/90 of 7 May 1990 | Governance | Resources made available to the Agency (2002 data) | Products and services supplied in 2003 |
| --- | --- | --- | --- | --- |
| Policy on the environment

  Community policy on the environment aims at a high level of protection, taking into account the diversity of situations in the various regions of the Community. It is based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source and that the polluter should pay. (...) In preparing its policy (...) the Community takes account of available scientific and technical data (...)

  (Article 174 of the Treaty) | Objectives

  To set up a European environment observation network to provide the Community and the Member States with reliable information so that they are able to:






  (a) | take the requisite action to protect the environment |

Areas of Community competence deriving from the Treaty

Competencies of the Agency as defined in Council Regulation (EEC) No 1210/90 of 7 May 1990

Governance

Resources made available to the Agency (2002 data)

Products and services supplied in 2003

Policy on the environment

Community policy on the environment aims at a high level of protection, taking into account the diversity of situations in the various regions of the Community. It is based on the precautionary principle and on the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source and that the polluter should pay. (...) In preparing its policy (...) the Community takes account of available scientific and technical data (...)

(Article 174 of the Treaty)

Objectives

To set up a European environment observation network to provide the Community and the Member States with reliable information so that they are able to:

(a)

take the requisite action to protect the environment

| (b) | evaluate its implementation |
| --- | --- |

(b)

evaluate its implementation

| (c) | ensure that the public is well-informed about the state of the environment. |
| --- | --- |

(c)

ensure that the public is well-informed about the state of the environment.

Tasks

| — | To supply the Community and the Member States with the requisite information |
| --- | --- |

—

To supply the Community and the Member States with the requisite information

| — | To record and evaluate data on the state of the environment and to report on its quality |
| --- | --- |

—

To record and evaluate data on the state of the environment and to report on its quality

| — | To ensure that environmental data are comparable at European level |
| --- | --- |

—

To ensure that environmental data are comparable at European level

| — | To promote the incorporation of European environment information into international programmes |
| --- | --- |

—

To promote the incorporation of European environment information into international programmes

| — | To publish a report every five years on the state of, changes in and outlook for the environment |
| --- | --- |

—

To publish a report every five years on the state of, changes in and outlook for the environment

| — | To encourage the development of environment forecasting techniques, as well as methods for evaluating the cost of damage caused to the environment, and the exchange of information concerning damage-prevention technology |
| --- | --- |

—

To encourage the development of environment forecasting techniques, as well as methods for evaluating the cost of damage caused to the environment, and the exchange of information concerning damage-prevention technology

| 1. | Management Board

  Composition






  — | One representative per Member State |
| --- | --- | --- |

1.

Management Board

—

One representative per Member State

| — | Two representatives of the Commission |
| --- | --- |

—

Two representatives of the Commission

| — | Two scientists appointed by the European Parliament |
| --- | --- |

—

Two scientists appointed by the European Parliament

To adopt the work programme and ensure that it is implemented

| 2. | Director

  Appointed by the Management Board on the Commission's proposal |
| --- | --- |

2.

Director

Appointed by the Management Board on the Commission's proposal

| 3. | Advisory Forum

  Made up of one representative per Member State; advises the Executive Director |
| --- | --- |

3.

Advisory Forum

Made up of one representative per Member State; advises the Executive Director

| 4. | Scientific Committee

  Made up of persons qualified in the environmental field who are appointed by the Management Board |
| --- | --- |

4.

Scientific Committee

Made up of persons qualified in the environmental field who are appointed by the Management Board

| 5. | External audit

  Court of Auditors |
| --- | --- |

5.

External audit

Court of Auditors

| 6. | Discharge authority

  Parliament, on the Council's recommendation |
| --- | --- |

6.

Discharge authority

Parliament, on the Council's recommendation

Final budget

27,5 million euro

(25,1 million euro), Community contribution: 77 % (76 %)

Staff numbers as at 31 December 2003

Number of posts in establishment plan: 111 (106)

Posts occupied: 95 (85)

+16 (26) other staff (auxiliary contracts, seconded national experts, local staff, temporary staff)

Total staff: 111 (111)

assigned to the following duties:

operational: 69 (69)

administrative: 41 (41)

mixed: 1 (1)

| — | Support work and provision of indicators for the Synthesis report on sustainable development |
| --- | --- |

—

Support work and provision of indicators for the Synthesis report on sustainable development

| — | Indicators concerning the state of the environment in 2003 |
| --- | --- |

—

Indicators concerning the state of the environment in 2003

| — | Analysis and estimation of greenhouse gas emissions (1990 to 2020) |
| --- | --- |

—

Analysis and estimation of greenhouse gas emissions (1990 to 2020)

| — | Finalisation of the Kiev report (state of the environment in candidate Central and Eastern European countries) |
| --- | --- |

—

Finalisation of the Kiev report (state of the environment in candidate Central and Eastern European countries)

| — | Three seminars organised under the Greek Presidency of the Council |
| --- | --- |

—

Three seminars organised under the Greek Presidency of the Council

| — | Provision of environmental indicators in specific fields (transport sector in candidate countries, Danube region — Black Sea) |
| --- | --- |

—

Provision of environmental indicators in specific fields (transport sector in candidate countries, Danube region — Black Sea)

| — | Assistance in harmonising data |
| --- | --- |

—

Assistance in harmonising data

| — | Management of the EIONET network (European Environment Information and Observation Network) |
| --- | --- |

—

Management of the EIONET network (European Environment Information and Observation Network)

Source:Information supplied by the Agency.

Table 2

European Environment Agency — Implementation of the budget for the 2003 financial year

| (million euro) |
| --- |
| Revenue | Expenditure |
| Origin of revenue | Revenue entered in the final budget for the financial year | Revenue collected | Expenditure allocation | Appropriations under the final budget | Appropriations carried over from the previous financial year | Available appropriations
  (2003 budget and financial year 2002) |
| entered | committed | paid | carried over | cancelled | entered | committed | paid | to be carried over | cancelled | available | committed | paid | carried over | cancelled |
| Community subsidies | 21,4 | 21,4 | Title I
  Staff | 11,5 | 11,5 | 11,1 | 0,3 | 0,1 | 1,4 | 1,4 | 0,8 | 0,3 | 0,3 | 13,0 | 13,0 | 11,9 | 0,7 | 0,4 |
| Other subsidies | 6,1 | 8,4 | Title II
  Administration | 2,9 | 2,8 | 2,4 | 0,4 | 0,0 | 0,3 | 0,2 | 0,2 | 0,0 | 0,1 | 3,1 | 3,1 | 2,6 | 0,4 | 0,1 |
| Other revenue | 0,0 | 0,1 | Title III
  Operating activities | 13,1 | 13,0 | 6,0 | 7,0 | 0,1 | 5,9 | 5,6 | 4,9 | 0,8 | 0,3 | 19,0 | 18,6 | 10,9 | 7,8 | 0,4 |
| Total | 27,5 | 29,9 | Total | 27,5 | 27,4 | 19,6 | 7,7 | 0,2 | 7,6 | 7,3 | 5,8 | 1,1 | 0,6 | 35,1 | 34,6 | 25,4 | 8,9 | 0,9 |
| NB:The totals may contain differences due to the effects of rounding.

  Source:Information supplied by the Agency. These tables summarise the data provided by the Agency in its own accounts. |

(million euro)

Revenue

Expenditure

Origin of revenue

Revenue entered in the final budget for the financial year

Revenue collected

Expenditure allocation

Appropriations under the final budget

Appropriations carried over from the previous financial year

Available appropriations

(2003 budget and financial year 2002)

entered

committed

paid

carried over

cancelled

entered

committed

paid

to be carried over

cancelled

available

committed

paid

carried over

cancelled

Community subsidies

21,4

21,4

Title I

Staff

11,5

11,5

11,1

0,3

0,1

1,4

1,4

0,8

0,3

0,3

13,0

13,0

11,9

0,7

0,4

Other subsidies

6,1

8,4

Title II

Administration

2,9

2,8

2,4

0,4

0,0

0,3

0,2

0,2

0,0

0,1

3,1

3,1

2,6

0,4

0,1

Other revenue

0,0

0,1

Title III

Operating activities

13,1

13,0

6,0

7,0

0,1

5,9

5,6

4,9

0,8

0,3

19,0

18,6

10,9

7,8

0,4

Total

27,5

29,9

Total

27,5

27,4

19,6

7,7

0,2

7,6

7,3

5,8

1,1

0,6

35,1

34,6

25,4

8,9

0,9

NB:The totals may contain differences due to the effects of rounding.

Source:Information supplied by the Agency. These tables summarise the data provided by the Agency in its own accounts.

Table 3

European Environment Agency — Revenue and expenditure account for the financial years 2003 and 2002

| (1000 euro) |
| --- |
| | 2003 | 2002 |
| Revenue |
| Community subsidies | 21 380 | 18 749 |
| Other subsidies | 8 423 | 1 136 |
| Other revenue | 89 | 198 |
| Total revenue (a) | 29 891 | 20 083 |
| Expenditure |
| Staff — Title I of the budget |
| Payments | 11 123 | 9 714 |
| Appropriations carried over | 315 | 1 018 |
| Administration — Title II of the budget |
| Payments | 2 447 | 2 054 |
| Appropriations carried over | 395 | 247 |
| Operating activities — Title III of the budget |
| Payments | 5 997 | 6 493 |
| Appropriations carried over | 7 008 | 5 611 |
| Total expenditure (b) | 27 284 | 25 136 |
| Outturn for the financial year (a – b) | 2 607 | –5 053 |
| Balance carried over from the previous financial year | –7 427 | –3 275 |
| Appropriations carried over and cancelled | 617 | 889 |
| Sums for re-use from the previous financial year not used | 36 | 8 |
| Exchange-rate differences | –4 | 4 |
| Adjustments | –18 | 0 |
| Balance for the financial year | –4 190 | –7 427 |
| NB:The totals may include differences due to rounding.

  Source:Information supplied by the Agency. These tables summarise the data provided by the Agency in its own accounts. |

(1000 euro)

2003

2002

Revenue

Community subsidies

21 380

18 749

Other subsidies

8 423

1 136

Other revenue

89

198

Total revenue (a)

29 891

20 083

Expenditure

Staff — Title I of the budget

Payments

11 123

9 714

Appropriations carried over

315

1 018

Administration — Title II of the budget

Payments

2 447

2 054

Appropriations carried over

395

247

Operating activities — Title III of the budget

Payments

5 997

6 493

Appropriations carried over

7 008

5 611

Total expenditure (b)

27 284

25 136

Outturn for the financial year (a – b)

2 607

–5 053

Balance carried over from the previous financial year

–7 427

–3 275

Appropriations carried over and cancelled

617

889

Sums for re-use from the previous financial year not used

36

8

Exchange-rate differences

–4

4

Adjustments

–18

0

Balance for the financial year

–4 190

–7 427

NB:The totals may include differences due to rounding.

Source:Information supplied by the Agency. These tables summarise the data provided by the Agency in its own accounts.

Table 4

European Environment Agency — Balance sheet at 31 December 2003 and 31 December 2002

| (1000 euro) |
| --- |
| Assets | 2003 | 2002 | Liabilities | 2003 | 2002 |
| Fixed assets | | | Own capital | | |
| Computer equipment | 1 366 | 1 847 | Own capital | 1 265 | 1 295 |
| Equipment and furniture | 2 302 | 2 254 | Balance for the financial year | –4 190 | –7 427 |
| Financial fixed assets | 425 | 405 | Subtotal | –2 925 | –6 133 |
| Depreciation | –2 860 | –3 237 | Current liabilities | | |
| Subtotal | 1 232 | 1 269 | Commission | 3 124 | 5 263 |
| Stocks | | | Other contributors | 1 066 | 2 270 |
| Office supplies | 33 | 26 | Automatic carry-overs | 8 852 | 7 591 |
| Subtotal | 33 | 26 | Sundry accounts payable | 0 | 769 |
| Current assets | | | Deductions from salaries | 417 | 111 |
| Community subsidies | 3 124 | 5 263 | Subtotal | 13 460 | 16 003 |
| Other subsidies | 1 066 | 2 270 | Suspense accounts and deferrals | | |
| Recovery orders | 65 | 226 | Sums to be reused | 212 | 175 |
| Sundry accounts receivable | 127 | 153 | Recovery orders | 65 | 226 |
| Recoverable VAT | 232 | 266 | Subtotal | 277 | 400 |
| Subtotal | 4 614 | 8 178 | | | |
| Cash accounts | | | | | |
| Bank accounts | 4 892 | 740 | | | |
| Imprest account | 40 | 40 | | | |
| Subtotal | 4 932 | 780 | | | |
| Suspense accounts and accruals | | | | | |
| Suspense accounts | 0 | 18 | | | |
| Subtotal | 0 | 18 | | | |
| Total | 10 811 | 10 271 | Total | 10 811 | 10 271 |
| NB:The totals may include differences due to rounding.

  Source:Information supplied bythe Agency. These tables summarise the data provided by the Agency in its own accounts. |

(1000 euro)

Assets

2003

2002

Liabilities

2003

2002

Fixed assets

Own capital

Computer equipment

1 366

1 847

Own capital

1 265

1 295

Equipment and furniture

2 302

2 254

Balance for the financial year

–4 190

–7 427

Financial fixed assets

425

405

Subtotal

–2 925

–6 133

Depreciation

–2 860

–3 237

Current liabilities

Subtotal

1 232

1 269

Commission

3 124

5 263

Stocks

Other contributors

1 066

2 270

Office supplies

33

26

Automatic carry-overs

8 852

7 591

Subtotal

33

26

Sundry accounts payable

0

769

Current assets

Deductions from salaries

417

111

Community subsidies

3 124

5 263

Subtotal

13 460

16 003

Other subsidies

1 066

2 270

Suspense accounts and deferrals

Recovery orders

65

226

Sums to be reused

212

175

Sundry accounts receivable

127

153

Recovery orders

65

226

Recoverable VAT

232

266

Subtotal

277

400

Subtotal

4 614

8 178

Cash accounts

Bank accounts

4 892

740

Imprest account

40

40

Subtotal

4 932

780

Suspense accounts and accruals

Suspense accounts

0

18

Subtotal

0

18

Total

10 811

10 271

Total

10 811

10 271

NB:The totals may include differences due to rounding.

Source:Information supplied bythe Agency. These tables summarise the data provided by the Agency in its own accounts.

---

THE AGENCY'S REPLIES

| 7 and 8. | The need to reinforce the management of recoveries and the requirement for regular reconciliations of the accounts is recognised by the European Environment Agency.
  To remediate the resource limitations that have occurred and to increase the capacities it has been decided to recruit an accountant at the administrator level against the establishment table 2004.
  In the short term, an EEA task force on accounting is being established to ensure regular and correct operations throughout the year, to implement accrual accounting and to prepare for the closing of the accounts against the necessary standards and requirements. |
| --- | --- |

7 and 8.

The need to reinforce the management of recoveries and the requirement for regular reconciliations of the accounts is recognised by the European Environment Agency.

To remediate the resource limitations that have occurred and to increase the capacities it has been decided to recruit an accountant at the administrator level against the establishment table 2004.

In the short term, an EEA task force on accounting is being established to ensure regular and correct operations throughout the year, to implement accrual accounting and to prepare for the closing of the accounts against the necessary standards and requirements.

---