# C_2005332EN.01006801.xml

| 28.12.2005 | EN | Official Journal of the European Union | C 332/68 |
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28.12.2005

EN

Official Journal of the European Union

C 332/68

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REPORT

REPORT

on the annual accounts of Eurojust for the financial year 2004 together with Eurojust's replies

(2005/C 332/10)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

| 3-6 | THE COURT'S OPINION |
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3-6

| 7-9 | OBSERVATIONS |
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7-9

Tables 1 to 4

Eurojust's replies

Eurojust's replies

INTRODUCTION

| 1. | Eurojust was set up by Council Decision 2002/187/JHA (1) with a view to stepping up the fight against serious organised 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 summarises Eurojust's competences and activities on the basis of information provided by Eurojust. |
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1.

Eurojust was set up by Council Decision 2002/187/JHA (1) with a view to stepping up the fight against serious organised 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 summarises Eurojust's competences and activities on the basis of information provided by Eurojust.

1

Table 1

| 2. | For information, the annual accounts drawn up by Eurojust for the financial year 2004 are summarised in Tables 2, 3 and 4. |
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2.

For information, the annual accounts drawn up by Eurojust for the financial year 2004 are summarised in Tables 2, 3 and 4.

Tables 2, 3 and 4

THE COURT'S OPINION

| 3. | The Court's opinion is addressed to the European Parliament and the Council pursuant to Article 36 of Council Decision 2002/187/JHA. |
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3.

The Court's opinion is addressed to the European Parliament and the Council pursuant to Article 36 of Council Decision 2002/187/JHA.

| 4. | The Agency's accounts for the financial year ended 31 December 2004 (2) were drawn up by its Administrative Director, pursuant to Article 36 of Council Decision 2002/187/JHA, 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 Agency's accounts for the financial year ended 31 December 2004 (2) were drawn up by its Administrative Director, pursuant to Article 36 of Council Decision 2002/187/JHA, 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.

2

| 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 obtained a reasonable basis for the opinion expressed below. |
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6.

The Court has obtained a reasonable basis for the opinion expressed below.

Reliability of the accountsEurojust's accounts for the financial year ended 31 December 2004 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying Eurojust's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's opinion into question.

Reliability of the accountsEurojust's accounts for the financial year ended 31 December 2004 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying Eurojust's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's opinion into question.

OBSERVATIONS

| 7. | In 2004, Eurojust still did not have its own financial regulation (3) and, in these circumstances, continued to apply the framework financial regulation for Community bodies (4). |
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7.

In 2004, Eurojust still did not have its own financial regulation (3) and, in these circumstances, continued to apply the framework financial regulation for Community bodies (4).

3

4

| 8. | The last amending budget adopted by the College of Eurojust forecast revenue and expenditure of 8,3 million euro. In practice, Eurojust implemented a budget of 9,3 million euro (5), which was neither formally adopted by the College nor published in the Official Journal, and hence contravened the provisions in force (6). |
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8.

The last amending budget adopted by the College of Eurojust forecast revenue and expenditure of 8,3 million euro. In practice, Eurojust implemented a budget of 9,3 million euro (5), which was neither formally adopted by the College nor published in the Official Journal, and hence contravened the provisions in force (6).

5

6

| 9. | A member of staff who was appointed as the accounting officer on the departure of the titular accounting officer retained his role as the authorising officer by delegation. Since May 2004 he has been carrying out, at the same time and for the same expenditure, the duties of the authorising officer and the accounting officer (7). In this instance, the Court must point out the fundamental nature of the principle of the segregation of the duties of authorising officer and accounting officer and asks Eurojust to take the utmost care to ensure that this principle is adhered to. |
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9.

A member of staff who was appointed as the accounting officer on the departure of the titular accounting officer retained his role as the authorising officer by delegation. Since May 2004 he has been carrying out, at the same time and for the same expenditure, the duties of the authorising officer and the accounting officer (7). In this instance, the Court must point out the fundamental nature of the principle of the segregation of the duties of authorising officer and accounting officer and asks Eurojust to take the utmost care to ensure that this principle is adhered to.

7

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 5 October 2005.

For the Court of Auditors

Hubert WEBER

President

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

1

(2)  These accounts were drawn up on 15 July 2005 and received by the Court on 5 August 2005.

2

(3)  In April 2005, the Commission had still not issued an opinion on the draft submitted by Eurojust.

3

(4)  Commission Regulation (EC, Euratom) No 2343/2002 of 23 December 2002 (OJ L 357, 31.12.2002, p. 72).

4

(5)  This sum corresponds to Eurojust's initial budget and the subsidy to Eurojust entered in the Commission's budget.

5

(6)  Articles 4 and 26 of Regulation (EC, Euratom) No 2343/2002.

6

(7)  This situation continued beyond the end of the financial year 2004.

7

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Table 1

Eurojust (The Hague)

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

  (2003 data) | Activities and services provided (2003 data) |
| --- | --- | --- | --- | --- |
| Third pillar body created by Council Decision.
  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


  Article 3


  Eurojust Decision







  — | To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions. |

Areas of competence stipulated in the Treaty on European Union

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

Governance

Resources made available to Eurojust

(2003 data)

Activities and services provided (2003 data)

Third pillar body created by Council Decision.

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

Article 3

Eurojust Decision

—

To stimulate and improve the coordination, between the competent national authorities of the Member States, of investigations and prosecutions.

| — | To improve cooperation, in particular by facilitating the exchange of information, mutual legal assistance and the implementation of extradition requests. |
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—

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

Articles 5, 6 and 7

Eurojust Decision

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

| — | through its national members; or |
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—

through its national members; or

| — | as a College. |
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—

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 audit: the Court of Auditors. |
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6.

External audit: 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:

9,3 million euro (8 million euro)

Community subsidy: 100 % (100 %)

Staff as at 31 December 2004:

76 (53) posts listed in the establishment plan,

posts occupied: 52 (28)

+ 13 (15) other staff (auxiliary contracts, seconded national experts, local staff, 12 agency staff)

Total staff: 65 (43)

carrying out

operational tasks: 27 (18)

administrative tasks: 26 (20)

mixed tasks: 12 (5)

Number of meetings:

52 (26)

Bilateral cases:

272 (222)

Multilateral cases:

109 (78)

Total number of cases:

381 (300)

Fraud:

20 % (22 %)

Drug-trafficking:

20 % (22 %)

Terrorism:

7 % (6 %)

Murder:

7 % (4 %)

Smuggling:

not available % (3 %)

Trafficking in human beings:

4 % (4 %)

Money-laundering:

7 % (8 %)

Other:

35 % (31 %)

Source: Information supplied by Eurojust.

Table 2

Eurojust — Implementation of the budget for the financial year 2004

| (1000 euro) |
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| 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 (2004 budget and the financial year 2003) |
| entered | committed | paid | carried over | cancelled | outstanding commitments | paid | cancelled | appropriations | committed | paid | carried over | cancelled |
| Community subsidies | 9 300 | 9 300 | Title I
  Staff | 4 198 | 4 132 | 4 044 | 88 | 66 | 177 | 177 | 0 | 4 375 | 4 309 | 4 221 | 88 | 66 |
| Miscellaneous revenue | 0 | 2 | Title II
  Administration | 3 563 | 3 547 | 3 112 | 435 | 16 | 1 009 | 593 | 416 | 4 572 | 4 556 | 3 705 | 435 | 432 |
| | | | Title III
  Operating activities | 1 539 | 1 465 | 1 120 | 345 | 74 | 77 | 77 | 0 | 1 616 | 1 542 | 1 197 | 345 | 74 |
| Total | 9 300 | 9 302 | Total | 9 300 | 9 144 | 8 276 | 868 | 156 | 1 263 | 847 | 416 | 10 563 | 10 407 | 9 123 | 868 | 572 |
| Source: Eurojust data. This table summarises the data supplied by Eurojust in its annual accounts. |

(1000 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 (2004 budget and the financial year 2003)

entered

committed

paid

carried over

cancelled

outstanding commitments

paid

cancelled

appropriations

committed

paid

carried over

cancelled

Community subsidies

9 300

9 300

Title I

Staff

4 198

4 132

4 044

88

66

177

177

0

4 375

4 309

4 221

88

66

Miscellaneous revenue

0

2

Title II

Administration

3 563

3 547

3 112

435

16

1 009

593

416

4 572

4 556

3 705

435

432

Title III

Operating activities

1 539

1 465

1 120

345

74

77

77

0

1 616

1 542

1 197

345

74

Total

9 300

9 302

Total

9 300

9 144

8 276

868

156

1 263

847

416

10 563

10 407

9 123

868

572

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

Table 3

Eurojust — Revenue and expenditure accounts for the financial years 2004 and 2003 (1)

| (1000 euro) |
| --- |
| | 2004 | 2003 |
| Operating revenue |
| Community subsidies | 8 726 | 6 441 |
| Miscellaneous revenue | 397 | 12 |
| Total (a) | 9 123 | 6 453 |
| Operating expenditure |
| Purchases of goods and services | 4 476 | 3 228 |
| Staff costs | 4 142 | 2 112 |
| Depreciation | 332 | 211 |
| Total (b) | 8 950 | 5 551 |
| Outturn for the financial year (a – b) | 173 | 902 |
| Source: Eurojust data — This table summarises the data supplied by Eurojust in its annual accounts. |

(1000 euro)

2004

2003

Operating revenue

Community subsidies

8 726

6 441

Miscellaneous revenue

397

12

Total (a)

9 123

6 453

Operating expenditure

Purchases of goods and services

4 476

3 228

Staff costs

4 142

2 112

Depreciation

332

211

Total (b)

8 950

5 551

Outturn for the financial year (a – b)

173

902

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

Table 4

Eurojust — Balance sheet at 31 December 2004 and 31 December 2003 (2)

| (1000 euro) |
| --- |
| Assets | 2004 | 2003 | Liabilities | 2004 | 2003 |
| Intangible assets | 134 | 62 | Own capital | | |
| | | | Results carried over from previous years | 1 718 | 815 |
| Tangible assets | | | Economic outturn | 173 | 902 |
| Equipment, machinery and tools | 145 | 114 | Subtotal | 1 891 | 1 717 |
| Furniture and vehicles | 726 | 492 | | | |
| Computer equipment | 449 | 460 | Provisions for risks and charges | 0 | 396 |
| Subtotal | 1 320 | 1 066 | | | |
| | | | Current liabilities | | |
| Long-term assets | 1 | 1 | Payable to the Commission | 1 298 | 698 |
| | | | Other liabilities | 13 | 10 |
| Stocks | 30 | 0 | Payable to suppliers | 517 | 305 |
| | | | Subtotal | 1 828 | 1 013 |
| Current assets | | | | | |
| Current assets | 135 | 232 | | | |
| Sundry accounts receivable | 17 | 34 | | | |
| Subtotal | 152 | 266 | | | |
| Disposable assets | 2 082 | 1 731 | | | |
| Total | 3 719 | 3 126 | Total | 3 719 | 3 126 |
| Source: Eurojust data —This table summarises the data supplied by Eurojust in its annual accounts. |

(1000 euro)

Assets

2004

2003

Liabilities

2004

2003

Intangible assets

134

62

Own capital

Results carried over from previous years

1 718

815

Tangible assets

Economic outturn

173

902

Equipment, machinery and tools

145

114

Subtotal

1 891

1 717

Furniture and vehicles

726

492

Computer equipment

449

460

Provisions for risks and charges

0

396

Subtotal

1 320

1 066

Current liabilities

Long-term assets

1

1

Payable to the Commission

1 298

698

Other liabilities

13

10

Stocks

30

0

Payable to suppliers

517

305

Subtotal

1 828

1 013

Current assets

Current assets

135

232

Sundry accounts receivable

17

34

Subtotal

152

266

Disposable assets

2 082

1 731

Total

3 719

3 126

Total

3 719

3 126

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

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(1)  The data for the financial year 2003 have been restated to take account of a change in methodology.

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

(2)  The data for the financial year 2003 have been restated to take account of a change in methodology.

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

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EUROJUST REPLIES

| 7. | Eurojust awaits the Commission's prior consent before adopting its own financial regulation in accordance with Article 37(1) of the Eurojust decision. |
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7.

Eurojust awaits the Commission's prior consent before adopting its own financial regulation in accordance with Article 37(1) of the Eurojust decision.

| 8. | Eurojust tried to follow as closely as possible the structure given in the European Parliament decision concerning its budget. As a consequence, Eurojust presented for formal adoption to the College a budget decision covering the budget concerning EU 15 and informing it of a further increase of one million euros due to the enlargement and informing it where these appropriations would be allocated once released. In the future, Eurojust will ensure it presents as complete a budget as possible to the College. |
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8.

Eurojust tried to follow as closely as possible the structure given in the European Parliament decision concerning its budget. As a consequence, Eurojust presented for formal adoption to the College a budget decision covering the budget concerning EU 15 and informing it of a further increase of one million euros due to the enlargement and informing it where these appropriations would be allocated once released. In the future, Eurojust will ensure it presents as complete a budget as possible to the College.

| 9. | The situation referred to began in June 2004 when the accountant resigned unexpectedly. At this time, no reserve list existed and the only statutory member of staff with the necessary experience to assume the responsibilities of the accountant was the authorising in question. It should be noted however that the risk due to this ‘force majeure’ situation has been reduced by limiting the capacity to act as authorising officer to transactions of up to 1 000 euro. In the meantime, Eurojust has successfully completed a recruitment procedure for an accountant. It recognises the importance of the segregation of duties and will avoid such a situation arising in future. |
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9.

The situation referred to began in June 2004 when the accountant resigned unexpectedly. At this time, no reserve list existed and the only statutory member of staff with the necessary experience to assume the responsibilities of the accountant was the authorising in question. It should be noted however that the risk due to this ‘force majeure’ situation has been reduced by limiting the capacity to act as authorising officer to transactions of up to 1 000 euro. In the meantime, Eurojust has successfully completed a recruitment procedure for an accountant. It recognises the importance of the segregation of duties and will avoid such a situation arising in future.

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