# C_2005332EN.01005301.xml

| 28.12.2005 | EN | Official Journal of the European Union | C 332/53 |
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28.12.2005

EN

Official Journal of the European Union

C 332/53

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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 2004 together with the Centre's replies

(2005/C 332/08)

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

The Centre's replies

The Centre's replies

INTRODUCTION

| 1. | The Translation Centre for the bodies of the European Union (hereinafter called 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. Table 1 summarises the Centre's competences and activities on the basis of information it has supplied. |
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1.

The Translation Centre for the bodies of the European Union (hereinafter called 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. Table 1 summarises the Centre's competences and activities on the basis of information it has supplied.

1

Table 1

| 2. | For information, the annual accounts drawn up by the Centre 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 the Centre 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 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.

The Court's 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); 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 2004 (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 2004 (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 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 accountsThe Centre'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 the Centre'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 accountsThe Centre'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 the Centre'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. | The dispute over rent between the Centre and the Luxembourg authorities was resolved in 2004. Consequently there was no longer any need for the balance-sheet provision that had been created to cover the risks arising from this dispute (4). In order to remove this provision, the Centre, by means of an amending budget, increased its expenditure by the amount of the provision and at the same time offset this by entering a negative amount in a provision heading. This operation calls for the following two remarks:






  (a) | the entry in the budget of amounts which did not correspond to the requirements of the financial year does not comply with the principle of budgetary accuracy; |
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7.

The dispute over rent between the Centre and the Luxembourg authorities was resolved in 2004. Consequently there was no longer any need for the balance-sheet provision that had been created to cover the risks arising from this dispute (4). In order to remove this provision, the Centre, by means of an amending budget, increased its expenditure by the amount of the provision and at the same time offset this by entering a negative amount in a provision heading. This operation calls for the following two remarks:

4

(a)

the entry in the budget of amounts which did not correspond to the requirements of the financial year does not comply with the principle of budgetary accuracy;

| (b) | the Centre's recording of the provision in its revenue and expenditure account would have sufficed from the point of view of the legality and transparency of the transaction. |
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(b)

the Centre's recording of the provision in its revenue and expenditure account would have sufficed from the point of view of the legality and transparency of the transaction.

| 8. | The Centre cancelled appropriations for the financial year 2004 amounting to 8,8 million euro. Even if 4,1 million euro of these cancellations concerned provisions, the volume of the remaining cancellations is still too high (16 % of expenditure appropriations). |
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8.

The Centre cancelled appropriations for the financial year 2004 amounting to 8,8 million euro. Even if 4,1 million euro of these cancellations concerned provisions, the volume of the remaining cancellations is still too high (16 % of expenditure appropriations).

| 9. | The conflict, which is already an old one, over the payment by the Centre to the Commission of employer's contributions in respect of its employees’ pension rights has not yet been resolved. In order to deal with the financial uncertainty resulting from this conflict, the Centre created provisions which, at the end of 2004, amounted to 7,5 million euro, or more than a quarter of its balance sheet total. As the Court pointed out in its previous report (4), the Centre must step up its efforts to settle this dispute and thus liquidate this provision. |
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9.

The conflict, which is already an old one, over the payment by the Centre to the Commission of employer's contributions in respect of its employees’ pension rights has not yet been resolved. In order to deal with the financial uncertainty resulting from this conflict, the Centre created provisions which, at the end of 2004, amounted to 7,5 million euro, or more than a quarter of its balance sheet total. As the Court pointed out in its previous report (4), the Centre must step up its efforts to settle this dispute and thus liquidate this provision.

4

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)  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 29 August 2005 and received by the Court on 26 September 2005.

3

(4)  See paragraph 8 of the report for the financial year 2003 (OJ C 324, 30.12.2004, p. 47).

4

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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 2004

  (2003 data) | Products and services provided during the financial year 2004

  (2003 data) |
| --- | --- | --- | --- | --- |
| 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 2004

(2003 data)

Products and services provided during the financial year 2004

(2003 data)

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

European Court of Auditors.

4. Internal audit

Commission's internal auditor.

5. Discharge authority

Parliament on a recommendation from the Council.

Final budget

29,8 million euro (29,0 million euro).

Staff as at 31 December 2004

181 posts (158) listed in the establishment plan,

posts occupied: 150 (132)

+ 15 (15) other posts

Total staff: 165 (147)

Assigned to:

| — | operational duties: 109 (95) |
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—

operational duties: 109 (95)

| — | administrative duties: 52 (48) |
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—

administrative duties: 52 (48)

| — | mixed duties: 4 (4) |
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—

mixed duties: 4 (4)

Number of pages translated

374 106(238 399)

Number of pages per language

| — | official languages: 369 377(221 127) |
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—

official languages: 369 377(221 127)

| — | other languages: 4 729(17 272) |
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—

other languages: 4 729(17 272)

Number of pages per customer

| — | bodies: 362 162(215 992) |
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—

bodies: 362 162(215 992)

| — | institutions: 11 944(22 407) |
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—

institutions: 11 944(22 407)

Number of pages translated freelance: 146 350(94 355)

Source: Information supplied by the Centre.

Table 2

Translation Centre for the bodies of the European Union — Implementation of the budget for the financial year 2004

| (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 available (2004 budget and 2003 financial year) |
| entered | committed | paid | carried over | cancelled | outstanding commitments | paid | cancelled | appropriations | committed | paid | carried over | cancelled |
| Revenue paid by the bodies and institutions | 25 169 | 19 489 | Title I
  Staff | 14 921 | 11 937 | 11 815 | 122 | 2 984 | 104 | 64 | 40 | 15 025 | 12 041 | 11 879 | 122 | 3 024 |
| Financial income | 250 | 387 | Title II
  Administration | 6 414 | 2 990 | 2 349 | 641 | 3 424 | 619 | 541 | 78 | 7 033 | 3 609 | 2 890 | 641 | 3 502 |
| Miscellaneous income | p.m. | 23 | Title III
  Operating activities | 7 949 | 6 074 | 5 084 | 990 | 1 875 | 493 | 487 | 6 | 8 442 | 6 567 | 5 571 | 990 | 1 881 |
| Balance for the previous financial year | 4 405 | — | Title X
  Reserve and provisions | 540 | — | — | — | 540 | — | — | — | 540 | — | — | — | 540 |
| Total | 29 824 | 19 899 | Total | 29 824 | 21 001 | 19 248 | 1 753 | 8 823 | 1 216 | 1 092 | 124 | 31 040 | 22 217 | 20 340 | 1 753 | 8 947 |
| Source: Data compiled by the Centre. This table summarises the data supplied by the Centre in its own annual accounts. |

(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 available (2004 budget and 2003 financial year)

entered

committed

paid

carried over

cancelled

outstanding commitments

paid

cancelled

appropriations

committed

paid

carried over

cancelled

Revenue paid by the bodies and institutions

25 169

19 489

Title I

Staff

14 921

11 937

11 815

122

2 984

104

64

40

15 025

12 041

11 879

122

3 024

Financial income

250

387

Title II

Administration

6 414

2 990

2 349

641

3 424

619

541

78

7 033

3 609

2 890

641

3 502

Miscellaneous income

p.m.

23

Title III

Operating activities

7 949

6 074

5 084

990

1 875

493

487

6

8 442

6 567

5 571

990

1 881

Balance for the previous financial year

4 405

—

Title X

Reserve and provisions

540

—

—

—

540

—

—

—

540

—

—

—

540

Total

29 824

19 899

Total

29 824

21 001

19 248

1 753

8 823

1 216

1 092

124

31 040

22 217

20 340

1 753

8 947

Source: Data compiled by the Centre. This table summarises the data supplied by the Centre in its own annual accounts.

Table 3

Translation Centre for the bodies of the European Union — Revenue and expenditure account for the financial years 2004 and 2003

| (1000 euro) |
| --- |
| | 2004 | 2003 |
| Operating revenue |
| Invoicing for the financial year | 23 423 | 22 075 |
| Miscellaneous revenue | 150 | 223 |
| Total (a) | 23 573 | 22 298 |
| Operating expenditure |
| Staff | 11 929 | 10 347 |
| Buildings, equipment and sundry operating expenditure | 2 734 | 2 095 |
| Operational expenditure | 5 919 | 3 618 |
| Allocation to provisions | 1 410 | 2 195 |
| Total (b) | 21 992 | 18 255 |
| Operating result (c = a – b) | 1 581 | 4 043 |
| Financial income |
| Bank interest | 387 | 387 |
| Exchange-rate gain | 1 | 1 |
| Total (d) | 388 | 388 |
| Financial expenses |
| Bank charges | 7 | 10 |
| Total (e) | 7 | 10 |
| Financial result (f = d – e) | 381 | 378 |
| Result for ordinary activities (g = c + f) | 1 962 | 4 421 |
| Exceptional income (h) | 2 230 | 19 |
| Exceptional expenses (i) | 0 | 9 |
| Exceptional result (j = h – i) | 2 230 | 10 |
| Result for the financial year (g + j) | 4 192 | 4 431 |
| Source: Data compiled by the Centre. This table summarises the data supplied by the Centre in its own annual accounts. |

(1000 euro)

2004

2003

Operating revenue

Invoicing for the financial year

23 423

22 075

Miscellaneous revenue

150

223

Total (a)

23 573

22 298

Operating expenditure

Staff

11 929

10 347

Buildings, equipment and sundry operating expenditure

2 734

2 095

Operational expenditure

5 919

3 618

Allocation to provisions

1 410

2 195

Total (b)

21 992

18 255

Operating result (c = a – b)

1 581

4 043

Financial income

Bank interest

387

387

Exchange-rate gain

1

1

Total (d)

388

388

Financial expenses

Bank charges

7

10

Total (e)

7

10

Financial result (f = d – e)

381

378

Result for ordinary activities (g = c + f)

1 962

4 421

Exceptional income (h)

2 230

19

Exceptional expenses (i)

0

9

Exceptional result (j = h – i)

2 230

10

Result for the financial year (g + j)

4 192

4 431

Source: Data compiled by the Centre. This table summarises the data supplied by the Centre in its own annual accounts.

Table 4

Translation Centre for the bodies of the European Union — Balance sheet at 31 December 2004 and 31 December 2003

| (1000 euro) |
| --- |
| Assets | 2004 | 2003 | Liabilities | 2004 | 2003 |
| Intangible assets | 466 | 760 | Own capital | | |
| Tangible assets | | | Reserves | 9 761 | 8 330 |
| Furniture and vehicles | 155 | 219 | Outturns carried over from previous financial years | 4 642 | 1 642 |
| IT equipment | 274 | 398 | Economic outturn | 4 192 | 4 431 |
| Fixed assets under construction and advances paid | 0 | 35 | Subtotal | 18 595 | 14 403 |
| Subtotal | 429 | 652 | Provisions for risks and liabilities (1) | 7 481 | 8 601 |
| Current assets | | | Current liabilities | | |
| VAT paid and recoverable from the Member States | 3 | 3 | Supplier debts | 832 | 784 |
| Amounts owed by Community institutions and bodies | 6 363 | 2 676 | Sundry accounts payable | 1 | 162 |
| Sundry accounts receivable | 2 | 10 | Sundry liabilities | 1 | 5 |
| Subtotal | 6 368 | 2 689 | Advances to customers | 256 | 500 |
| Disposable assets | 19 903 | 20 354 | Subtotal | 1 090 | 1 451 |
| Total | 27 166 | 24 455 | Total | 27 166 | 24 455 |
| Source: Data compiled by the Centre. This table summarises the data supplied by the Centre in its own annual accounts. |

(1000 euro)

Assets

2004

2003

Liabilities

2004

2003

Intangible assets

466

760

Own capital

Tangible assets

Reserves

9 761

8 330

Furniture and vehicles

155

219

Outturns carried over from previous financial years

4 642

1 642

IT equipment

274

398

Economic outturn

4 192

4 431

Fixed assets under construction and advances paid

0

35

Subtotal

18 595

14 403

Subtotal

429

652

Provisions for risks and liabilities (1)

7 481

8 601

Current assets

Current liabilities

VAT paid and recoverable from the Member States

3

3

Supplier debts

832

784

Amounts owed by Community institutions and bodies

6 363

2 676

Sundry accounts payable

1

162

Sundry accounts receivable

2

10

Sundry liabilities

1

5

Subtotal

6 368

2 689

Advances to customers

256

500

Disposable assets

19 903

20 354

Subtotal

1 090

1 451

Total

27 166

24 455

Total

27 166

24 455

Source: Data compiled by the Centre. This table summarises the data supplied by the Centre in its own annual accounts.

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(1)  For 2004 these provisions cover any payment of the employer's share of pension contributions for the Centre's employees.

Source: Data compiled by the Centre. This table summarises the data supplied by the Centre in its own annual accounts.

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THE CENTRE'S REPLIES

| 7. | Given the importance of this matter, the Centre introduced this operation in an amending budget for the sake of transparency and in order to inform the Management Board thereof as soon as possible, without waiting for the accounts to be closed. It should be noted that the outturn for the financial year was unaffected by the application of this approach. |
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7.

Given the importance of this matter, the Centre introduced this operation in an amending budget for the sake of transparency and in order to inform the Management Board thereof as soon as possible, without waiting for the accounts to be closed. It should be noted that the outturn for the financial year was unaffected by the application of this approach.

| 8. | The Centre takes note of the Court's observation and will seek to improve its budgetary estimates. |
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8.

The Centre takes note of the Court's observation and will seek to improve its budgetary estimates.

| 9. | As stated in the Centre's reply in relation to the Court's observations on the accounts for 2003, the Centre made follow-up contact with the Commission on 23 November 2004. The Directorate-General for Personnel and Administration stated its position in a note of 17 May 2005, and the full file will be submitted for decision to the Centre's Management Board at its meeting of 20 October 2005. |
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9.

As stated in the Centre's reply in relation to the Court's observations on the accounts for 2003, the Centre made follow-up contact with the Commission on 23 November 2004. The Directorate-General for Personnel and Administration stated its position in a note of 17 May 2005, and the full file will be submitted for decision to the Centre's Management Board at its meeting of 20 October 2005.

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