# Official Journal C 317/30 A

| | ISSN 1977-091X |
| --- | --- |
| Official Journal
  of the European Union | C 317 |
| | |
| English edition | Information and Notices | Volume 5930 August 2016 |

ISSN 1977-091X

Official Journal

of the European Union

C 317

English edition

Information and Notices

Volume 5930 August 2016

---

| Notice No | Contents | page |
| --- | --- | --- |
| | I   Resolutions, recommendations and opinions |
| 2016/C 317/01 | Note to readers | 1 |

Notice No

Contents

page

I   Resolutions, recommendations and opinions

2016/C 317/01

Note to readers

1

---

| | IV   Notices |
| --- | --- |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES |
| | Court of Auditors |
| 2016/C 317/02 | Annual accounts of the European Court of Auditors for the financial year 2015 | 2 |

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

Court of Auditors

2016/C 317/02

Annual accounts of the European Court of Auditors for the financial year 2015

2

---

| EN | |
| --- | --- |

EN

---

I Resolutions, recommendations and opinions

| 30.8.2016 | EN | Official Journal of the European Union | C 317/1 |
| --- | --- | --- | --- |

30.8.2016

EN

Official Journal of the European Union

C 317/1

---

NOTE TO READERS

(2016/C 317/01)

Without prejudice to the provisions of Article 287 of the Treaty on the Functioning of the European Union, which gives the Court of Auditors responsibility for auditing all of the Union’s revenue and expenditure, and the provisions of Article 319 of the said Treaty on the granting of the discharge, the Court of Auditors has had its revenue and expenditure accounts audited by an external auditor every year since the close of the financial year 1987.

The reports which the external auditor of the Court of Auditors drew up in respect of the Court’s accounts for the financial years 1987 to 1991 were sent only to the Chairman of the European Parliament’s Budgetary Control Committee.

Pursuant to a decision taken by the Members of the Court of Auditors at the Court meeting of 8 July 1993, the external auditor’s reports have since been published in the Official Journal of the European Union, starting with the report on the financial year 1992.

For the Court of Auditors

Eduardo RUIZ GARCÍA

Secretary-General of the European Court of Auditors

---

IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

Court of Auditors

| 30.8.2016 | EN | Official Journal of the European Union | C 317/2 |
| --- | --- | --- | --- |

30.8.2016

EN

Official Journal of the European Union

C 317/2

---

ANNUAL ACCOUNTS OF THE EUROPEAN COURT OF AUDITORS FOR THE FINANCIAL YEAR 2015

(2016/C 317/02)

TABLE OF CONTENTS

| Certification of the accounts | 3 |
| --- | --- |

| Independent auditor’s report | 4 |
| --- | --- |

| Financial statements and explanatory notes | 5-14 |
| --- | --- |

| Balance Sheet | 5 |
| --- | --- |

| Statement of Financial Performance | 6 |
| --- | --- |

| Cash Flow Statement | 7 |
| --- | --- |

| Statement of changes in Net Assets | 7 |
| --- | --- |

| Accounting policies and notes to the financial statements | 8-14 |
| --- | --- |

| 1. | General | 8 |
| --- | --- | --- |

1.

| 2. | Legal basis and accounting rules | 8-9 |
| --- | --- | --- |

2.

| 3. | Notes to the Balance Sheet | 10-12 |
| --- | --- | --- |

3.

| 4. | Notes to the Statement of Financial Performance | 12-13 |
| --- | --- | --- |

4.

| 5. | Other significant disclosures | 13-14 |
| --- | --- | --- |

5.

| Budget information financial year 2015 | 15-16 |
| --- | --- |

| A | Computation of the budget result | 15 |
| --- | --- | --- |

A

| B | Reconciliation of economic result with budget result | 16 |
| --- | --- | --- |

B

| Independent assurance report | 17-18 |
| --- | --- |

CERTIFICATION OF THE ACCOUNTS

Certification for the annual accounts 2015 of the European Court of Auditors

The annual accounts of the European Court of Auditors for the year 2015 have been prepared in accordance with the Title IX of the Financial Regulation applicable to the general budget of the European Union, the accounting rules adopted by the Commission’s Accounting Officer and the accounting principles and methods adopted by myself.

I acknowledge my responsibility for the preparation and presentation of the annual accounts of the European Court of Auditors in accordance with art. 68 of the Financial Regulation.

I have obtained from the authorising officer, who certified its reliability, all the information necessary for the production of the accounts that show the European Court of Auditors’ assets and liabilities and the budgetary implementation.

I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the accounts, I have a reasonable assurance that the accounts present fairly, in all material aspects, the financial position, the results of the operations and the cash-flow of the European Court of Auditors.

Luxembourg, 19 May 2016.

Isidoro RODRÍGUEZ DE LAS PARRAS

Accounting Officer of the European Court of Auditors

---

AUDIT REPORT

To the Management of

European Court of Auditors

We have audited the accompanying financial statements of the European Court of Auditors, which comprise the balance sheet as at 31 December 2015, the statement of its financial performance, its cash flow statement and the statement of changes in net assets for the year then ended and a summary of significant accounting policies and other explanatory information, and which starts on page 5 and ends on page 16.

Management’s responsibility for the financial statements

The Management is responsible for the preparation and fair presentation of these financial statements in accordance with Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union; and repealing Council Regulation (EC, Euratom) No 1605/2002 of 26 October 2012, hereinafter referred to as the ‘Financial Regulation’; and with the Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of the Financial Regulation, and for such internal control as the Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Responsibility of the ‘Réviseur d’entreprises agréé’

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the ‘Commission de Surveillance du Secteur Financier’. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the ‘Réviseur d’entreprises agréé’, including the assessment of the risks of material misstatement of the annual accounts, whether due to fraud or error. In making those risk assessments, the ‘Réviseur d’entreprises agréé’ considers internal control relevant to the entity’s preparation and fair presentation of the annual accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the European Court of Auditors as of 31 December 2015, and of its financial performance, its cash flows and the changes in net assets for the year then ended in accordance with the Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union; and repealing Council Regulation (EC, Euratom) No 1605/2002 of 26 October 2012 (the Financial Regulation); and with the Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of the Financial Regulation.

Luxembourg, 19 May 2016.

PricewaterhouseCoopers, Société coopérative

Represented by

Rima ADAS

---

FINANCIAL STATEMENTS AND EXPLANATORY NOTES (1)

Balance Sheet

| (euro) |
| --- |
| | Note | 31 December 2015 | 31 December 2014 |
| Non — Current Assets | | | |
| Intangible assets | 3.1. | 5 021 023 | 4 842 801 |
| Property, plant and equipment | 3.2. | 83 145 082 | 88 591 910 |
| Receivables | | — | — |
| | | 88 166 105 | 93 434 711 |
| Current Assets | | | |
| Receivables | 3.3. | 604 313 | 757 924 |
| Cash and cash equivalents | 3.4. | 7 215 048 | 10 183 273 |
| | | 7 819 361 | 10 941 197 |
| Total Assets | | 95 985 466 | 104 375 908 |
| Current Liabilities | | | |
| Provisions | 3.5. | 50 000 | 27 250 |
| Payables | 3.6. | 6 982 008 | 7 028 142 |
| | | 7 032 008 | 7 055 392 |
| Total Liabilities | | 7 032 008 | 7 055 392 |
| Net Assets | | 88 953 458 | 97 320 516 |
| Accumulated surplus/deficit | | 97 320 516 | 30 745 317 |
| Economic result for the year | | (8 367 058 ) | 66 575 199 |
| Net Assets | | 88 953 458 | 97 320 516 |

(euro)

Note

31 December 2015

31 December 2014

Non — Current Assets

Intangible assets

3.1.

5 021 023

4 842 801

Property, plant and equipment

3.2.

83 145 082

88 591 910

Receivables

—

—

88 166 105

93 434 711

Current Assets

Receivables

3.3.

604 313

757 924

Cash and cash equivalents

3.4.

7 215 048

10 183 273

7 819 361

10 941 197

Total Assets

95 985 466

104 375 908

Current Liabilities

Provisions

3.5.

50 000

27 250

Payables

3.6.

6 982 008

7 028 142

7 032 008

7 055 392

Total Liabilities

7 032 008

7 055 392

Net Assets

88 953 458

97 320 516

Accumulated surplus/deficit

97 320 516

30 745 317

Economic result for the year

(8 367 058 )

66 575 199

Net Assets

88 953 458

97 320 516

Statement of Financial Performance

| (euro) |
| --- |
| | Note | 2015 | 2014 |
| Funds transferred from the Commission to other institutions | 4.1. | 106 700 000 | 114 500 000 |
| Revenue from administrative operations | 4.2. | 19 326 442 | 19 464 086 |
| Other operating revenue | 4.3. | 90 141 | 25 213 |
| Total operating revenue | 4.4. | 126 116 583 | 133 989 299 |
| Staff expenses | 4.5. | (106 959 858 ) | (104 431 815 ) |
| Assets related expenses | 4.6. | (6 957 504 ) | (6 543 584 ) |
| Other administrative expenses | 4.7. | (20 519 950 ) | (18 552 871 ) |
| Operational expenses | 4.8. | (31 295 ) | (23 621 ) |
| Total operating expenses | | (134 468 607 ) | (129 551 891 ) |
| Surplus/(deficit) from operating activities | | (8 352 024 ) | 4 437 408 |
| Financial revenue | 4.9. | 14 | 4 947 |
| Financial expenses | 4.10. | (15 048 ) | (20 049 ) |
| Movement in pensions (- expense, + revenue) | 4.11. | — | 62 152 893 |
| Surplus/(deficit) from non operating activities | 4.12. | (15 034 ) | 62 137 791 |
| Economic result of the year | | (8 367 058 ) | 66 575 199 |

(euro)

Note

2015

2014

Funds transferred from the Commission to other institutions

4.1.

106 700 000

114 500 000

Revenue from administrative operations

4.2.

19 326 442

19 464 086

Other operating revenue

4.3.

90 141

25 213

Total operating revenue

4.4.

126 116 583

133 989 299

Staff expenses

4.5.

(106 959 858 )

(104 431 815 )

Assets related expenses

4.6.

(6 957 504 )

(6 543 584 )

Other administrative expenses

4.7.

(20 519 950 )

(18 552 871 )

Operational expenses

4.8.

(31 295 )

(23 621 )

Total operating expenses

(134 468 607 )

(129 551 891 )

Surplus/(deficit) from operating activities

(8 352 024 )

4 437 408

Financial revenue

4.9.

14

4 947

Financial expenses

4.10.

(15 048 )

(20 049 )

Movement in pensions (- expense, + revenue)

4.11.

—

62 152 893

Surplus/(deficit) from non operating activities

4.12.

(15 034 )

62 137 791

Economic result of the year

(8 367 058 )

66 575 199

Cash Flow Statement

| (euro) |
| --- |
| | 2015 | 2014 |
| Economic result of the year | (8 367 058 ) | 66 575 199 |
| Operating activities — Adjustments | | |
| Amortisation | 831 765 | 550 630 |
| Depreciation | 6 120 197 | 7 122 924 |
| Increase/(decrease) in Provisions | 22 750 | (1 199 957 ) |
| (Increase)/decrease in Receivables | 153 611 | (368 750 ) |
| Increase/(decrease) in Payables | (46 134 ) | (7 252 677 ) |
| Net cash flow from operating activities | (1 284 869 ) | 65 427 369 |
| Cash flows from investing activities | | |
| Purchase of property, plant and equipment and intangible assets (-) | (1 688 898 ) | (1 367 492 ) |
| Proceeds from property, plant and equipment and intangible assets (+) | 5 542 | 18 520 |
| Net cash flow from investing activities | (1 683 356 ) | (1 348 972 ) |
| Increase/(decrease) in Employee benefits | — | (66 374 932 ) |
| Net increase/(decrease) in cash and cash equivalents | (2 968 225 ) | (2 296 535 ) |
| Cash and cash equivalents at the beginning of the year | 10 183 273 | 12 479 808 |
| Cash and cash equivalents at the end of the year | 7 215 048 | 10 183 273 |

(euro)

2015

2014

Economic result of the year

(8 367 058 )

66 575 199

Operating activities — Adjustments

Amortisation

831 765

550 630

Depreciation

6 120 197

7 122 924

Increase/(decrease) in Provisions

22 750

(1 199 957 )

(Increase)/decrease in Receivables

153 611

(368 750 )

Increase/(decrease) in Payables

(46 134 )

(7 252 677 )

Net cash flow from operating activities

(1 284 869 )

65 427 369

Cash flows from investing activities

Purchase of property, plant and equipment and intangible assets (-)

(1 688 898 )

(1 367 492 )

Proceeds from property, plant and equipment and intangible assets (+)

5 542

18 520

Net cash flow from investing activities

(1 683 356 )

(1 348 972 )

Increase/(decrease) in Employee benefits

—

(66 374 932 )

Net increase/(decrease) in cash and cash equivalents

(2 968 225 )

(2 296 535 )

Cash and cash equivalents at the beginning of the year

10 183 273

12 479 808

Cash and cash equivalents at the end of the year

7 215 048

10 183 273

Statement of changes in Net Assets

| (euro) |
| --- |
| Net Assets | 2015 | 2014 |
| Balance at the start of the year | 97 320 516 | 30 745 317 |
| Economic result of the year | (8 367 058 ) | 66 575 199 |
| Balance at the end of the year | 88 953 458 | 97 320 516 |

(euro)

Net Assets

2015

2014

Balance at the start of the year

97 320 516

30 745 317

Economic result of the year

(8 367 058 )

66 575 199

Balance at the end of the year

88 953 458

97 320 516

Accounting policies and notes to the financial statements

1.   
  General

The European Court of Auditors (hereafter the ‘Court’) was established by the Treaty of Brussels of 22 July 1975 and started operating in October 1977, with its headquarters in Luxembourg.

| Mission of the European Court of Auditors

  The European Court of Auditors’ mission is to contribute to improving EU financial management, promote accountability and transparency, and act as the independent guardian of the financial interests of the citizens of the Union. The ECA’s role as the EU’s independent external auditor is to check that EU funds are correctly accounted for, are raised and spent in accordance with the relevant rules and regulations and have achieved value for money.
  The ECA checks if the budget of the European Union has been implemented correctly, and that EU funds have been raised and spent legally and in accordance with the principles of sound financial management.
  The ECA is the EU institution for auditing the EU’s finances and is committed to being an efficient organisation at the forefront of developments in public audit and administration. |
| --- |

Mission of the European Court of Auditors

The European Court of Auditors’ mission is to contribute to improving EU financial management, promote accountability and transparency, and act as the independent guardian of the financial interests of the citizens of the Union. The ECA’s role as the EU’s independent external auditor is to check that EU funds are correctly accounted for, are raised and spent in accordance with the relevant rules and regulations and have achieved value for money.

The ECA checks if the budget of the European Union has been implemented correctly, and that EU funds have been raised and spent legally and in accordance with the principles of sound financial management.

The ECA is the EU institution for auditing the EU’s finances and is committed to being an efficient organisation at the forefront of developments in public audit and administration.

The financial year of the Court runs from 1 January to 31 December.

2.   
  Legal basis and accounting rules

2.1.   Basis of presentation

The financial statements of the Court are drawn up in accordance with Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (1) hereinafter referred to as the ‘Financial Regulation’ and Commission Delegated Regulation (EU) No 1268/2012 (2) laying down detailed rules of application of this Financial Regulation.

2.2.   Accounting principles

The financial statements are prepared on the basis of accrual-based accounting rules that are based on International Public Sector Accounting Standards (IPSAS). These EU Accounting Rules are adopted by the Accounting Officer of the Commission after a consultation of the other institutions.

The accounting principles to be followed when preparing the financial statements are laid down in EU accounting rule 1 ‘Financial Statements’ and are the same as those described in IPSAS 1, that is: fair presentation, accrual basis, going concern, consistency of presentation, aggregation, offsetting and comparative information. The qualitative characteristics of financial reporting according to article 144 of the Financial Regulation are relevance, reliability, understandability and comparability.

In accordance with IPSAS and generally accepted accounting principles, the financial statements necessarily include amounts based on estimates and assumptions by management based on the most reliable information available.

2.3.   Currency and basis for conversion

The financial statements are presented in euro, the euro being the EU’s functional and reporting currency.

Foreign currency transactions are translated into euro using the exchange rate prevailing at the date of the transaction.

Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of financial performance.

Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into euro on the basis of the exchange rates on 31 December.

2.4.   Intangible assets

Acquired computer software licences are stated at historical cost less accumulated amortisation and impairment losses. The assets are amortised on a straight-line basis over four years. Internally developed intangible assets are capitalised when the relevant criteria of the EU accounting rules are met. The costs that can be capitalised include all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by the Court management. Costs associated with research activities, not capitalised development costs and maintenance costs are recognised as expenses as incurred.

2.5.   Property, plant and equipment

All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition or construction of the asset.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits or service potential associated with the item will flow to the Court and its cost can be measured reliably. Repairs and maintenance costs are charged to the statement of financial performance during the financial period in which they are incurred. As the Court does not borrow money to fund the acquisition of property, plant and equipment, there are no borrowing costs related to such purchases.

Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.

Land and works of art are not depreciated as they are deemed to have an indefinite useful life. Assets under construction are not depreciated as these assets are not yet available for use. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

| Buildings | 25 years or expected useful life |
| --- | --- |
| Plant, machinery and tools | 4, 8 years |
| Furniture and vehicle fleet | 4, 8, 10 years |
| Computer hardware | 4 years |
| Fittings specific to leased buildings | the duration of the lease |
| Other fixtures and fittings | 4, 6, 8 years |

Buildings

25 years or expected useful life

Plant, machinery and tools

4, 8 years

Furniture and vehicle fleet

4, 8, 10 years

Computer hardware

4 years

Fittings specific to leased buildings

the duration of the lease

Other fixtures and fittings

4, 6, 8 years

2.6.   Provisions

Provisions are recognised when the Court has a present legal or constructive obligation towards third parties as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses. The amount of the provision is the best estimate of the expenditures expected to be required to settle the present obligation at the reporting date.

2.7.   Recognition of expenses

According to the EU accounting rules, transactions and events are recognised in the financial statements in the period to which they relate. At the end of the accounting period, accrued expenses are recognised based on an estimated amount of the transfer obligation of the period. The calculation of accrued expenses is done in accordance with detailed operational and practical guidelines issued by the Accounting Officer which aim at ensuring that the financial statements reflect a true and fair view.

3.   
  Notes to the Balance Sheet

NON-CURRENT ASSETS

3.1.   Intangible assets

The movements in intangible assets during the year 2015 were:

| (euro) |
| --- |
| | Gross carrying amounts 1 January 2015 | Additions | Disposals | Transfer | Gross carrying amounts 31 December 2015 | Accumulated amortisation and impairment 31 December 2015 | Net carrying amounts 31 December 2015 |
| Computer Software | 3 213 902 | 1 009 987 | | 3 443 712 | 7 667 601 | (2 646 578 ) | 5 021 023 |
| Intangible assets under development | 3 443 712 | | | (3 443 712 ) | — | | — |
| Total | 6 657 614 | 1 009 987 | — | — | 7 667 601 | (2 646 578 ) | 5 021 023 |

(euro)

Gross carrying amounts 1 January 2015

Additions

Disposals

Transfer

Gross carrying amounts 31 December 2015

Accumulated amortisation and impairment 31 December 2015

Net carrying amounts 31 December 2015

Computer Software

3 213 902

1 009 987

3 443 712

7 667 601

(2 646 578 )

5 021 023

Intangible assets under development

3 443 712

(3 443 712 )

—

—

Total

6 657 614

1 009 987

—

—

7 667 601

(2 646 578 )

5 021 023

In 2015 no costs associated with research activities were recognised.

3.2.   Property, Plant and Equipment

The movements in Property, plant and equipment during the year 2015 were:

| (euro) |
| --- |
| | Gross carrying amounts 1 January 2015 | Additions | Disposals | Transfer | Gross carrying amounts 31 December 2015 | Accumulated depreciation and impairment 31 December 2015 | Net carrying amounts 31 December 2015 |
| Land | 776 631 | | | | 776 631 | | 776 631 |
| Buildings | 124 335 198 | 5 470 | | | 124 340 668 | (46 453 274 ) | 77 887 394 |
| Plant and equipment | 834 462 | 60 063 | (8 942 ) | | 885 583 | (641 813 ) | 243 770 |
| Computer hardware | 3 812 765 | 375 119 | (95 489 ) | | 4 092 395 | (2 847 133 ) | 1 245 262 |
| Furniture and vehicle | 4 724 324 | 207 304 | (49 954 ) | | 4 881 674 | (2 480 284 ) | 2 401 390 |
| Other fixtures and fittings | 2 312 582 | 31 656 | (82 259 ) | | 2 261 979 | (1 671 344 ) | 590 635 |
| Total | 136 795 962 | 679 612 | (236 644 ) | — | 137 238 930 | (54 093 848 ) | 83 145 082 |

(euro)

Gross carrying amounts 1 January 2015

Additions

Disposals

Transfer

Gross carrying amounts 31 December 2015

Accumulated depreciation and impairment 31 December 2015

Net carrying amounts 31 December 2015

Land

776 631

776 631

776 631

Buildings

124 335 198

5 470

124 340 668

(46 453 274 )

77 887 394

Plant and equipment

834 462

60 063

(8 942 )

885 583

(641 813 )

243 770

Computer hardware

3 812 765

375 119

(95 489 )

4 092 395

(2 847 133 )

1 245 262

Furniture and vehicle

4 724 324

207 304

(49 954 )

4 881 674

(2 480 284 )

2 401 390

Other fixtures and fittings

2 312 582

31 656

(82 259 )

2 261 979

(1 671 344 )

590 635

Total

136 795 962

679 612

(236 644 )

—

137 238 930

(54 093 848 )

83 145 082

CURRENT ASSETS

3.3.   Receivables

| (euro) |
| --- |
| | 31 December 2015 | 31 December 2014 |
| Current receivables mainly due to the transfer of national pension rights by staff | 3 795 | 2 577 |
| Sundry receivables mainly related to payroll and mission advances | 66 833 | 180 210 |
| Deferred charges for building rentals and IT contracts | 533 685 | 564 853 |
| Receivables from EU entities | — | 10 284 |
| Total | 604 313 | 757 924 |

(euro)

31 December 2015

31 December 2014

Current receivables mainly due to the transfer of national pension rights by staff

3 795

2 577

Sundry receivables mainly related to payroll and mission advances

66 833

180 210

Deferred charges for building rentals and IT contracts

533 685

564 853

Receivables from EU entities

—

10 284

Total

604 313

757 924

3.4.   Cash and cash equivalents

| (euro) |
| --- |
| | 31 December 2015 | 31 December 2014 |
| Petty cash | 1 000 | 1 000 |
| Bank current account | 180 564 | 659 601 |
| Fiduciary account | 7 033 484 | 9 522 672 |
| Total | 7 215 048 | 10 183 273 |

(euro)

31 December 2015

31 December 2014

Petty cash

1 000

1 000

Bank current account

180 564

659 601

Fiduciary account

7 033 484

9 522 672

Total

7 215 048

10 183 273

A fiduciary account was opened on 27 January 2010 by the European Court of Auditors with the Banque et Caisse d’Epargne de l’Etat, Luxembourg. This fiduciary account allowed the Court to manage the budget granted by the budgetary authority in relation to the K3 building project. On 14 March 2014, the Court requested the European Parliament and Council to allow the use of the estimated remaining budget of the K3 project (7 million euro) for the necessary and compulsory technical upgrade of the Court’s K2 building. This proposal was approved by the European Parliament and Council on 1 April 2014. On 23 March 2015, the Court announced to the European Parliament and Council that the final remaining budget of the K3 project amounted to 9,4 million euro and, as the estimated cost for the K2 upgrade was 7 million euro, on 12 May 20152,4 million euro were returned to the EU budget.

CURRENT LIABILITIES

3.5.   Provisions

This is the estimate of amounts that will probably have to be paid in relation to an on-going legal case.

3.6.   Payables

| (euro) |
| --- |
| | 31 December 2015 | 31 December 2014 |
| Current payables | 61 781 | 15 571 |
| Sundry payables related to payroll and staff | (30 952 ) | (16 315 ) |
| Accrued charges | 6 791 296 | 6 808 292 |
| Accounts payable to consolidated EU entities mainly to the European Council and Parliament | 159 883 | 220 594 |
| Total | 6 982 008 | 7 028 142 |

(euro)

31 December 2015

31 December 2014

Current payables

61 781

15 571

Sundry payables related to payroll and staff

(30 952 )

(16 315 )

Accrued charges

6 791 296

6 808 292

Accounts payable to consolidated EU entities mainly to the European Council and Parliament

159 883

220 594

Total

6 982 008

7 028 142

4.   
  Notes to the Statement of Financial Performance

| 4.1. | ‘Funds transferred from the Commission to other institutions’: the amount corresponds to the monthly calls for funds made by the Court to the Commission to replenish its bank account. |
| --- | --- |

4.1.

‘Funds transferred from the Commission to other institutions’: the amount corresponds to the monthly calls for funds made by the Court to the Commission to replenish its bank account.

| 4.2. | ‘Revenue from administrative operations’: for the most part, this heading is made up of deductions from the salaries of members and staff in respect of tax and social contributions. |
| --- | --- |

4.2.

‘Revenue from administrative operations’: for the most part, this heading is made up of deductions from the salaries of members and staff in respect of tax and social contributions.

| 4.3. | ‘Other operating revenue’ arises among others from exchange rate gains. |
| --- | --- |

4.3.

‘Other operating revenue’ arises among others from exchange rate gains.

| 4.4. | Revenues were generated from exchange and non-exchange transactions as follows: |
| --- | --- |

4.4.

Revenues were generated from exchange and non-exchange transactions as follows:

| (euro) |
| --- |
| | 2015 | 2014 |
| Revenue from exchange transactions | 90 155 | 30 160 |
| Revenue from non-exchange transactions | 126 026 442 | 133 964 086 |
| Total revenue | 126 116 597 | 133 994 246 |

(euro)

2015

2014

Revenue from exchange transactions

90 155

30 160

Revenue from non-exchange transactions

126 026 442

133 964 086

Total revenue

126 116 597

133 994 246

| 4.5. | ‘Staff expenses’ include the salaries of members, statutory staff, contractual agents and temporary staff. |
| --- | --- |

4.5.

‘Staff expenses’ include the salaries of members, statutory staff, contractual agents and temporary staff.

| 4.6. | The ‘Assets related expenses’ consist of the depreciation/amortisation of the tangible and intangible assets. |
| --- | --- |

4.6.

The ‘Assets related expenses’ consist of the depreciation/amortisation of the tangible and intangible assets.

| 4.7. | The most significant items of the ‘other administrative expenses’ were: |
| --- | --- |

4.7.

The most significant items of the ‘other administrative expenses’ were:

| — | Buildings’ rental and associated charge |
| --- | --- |

—

Buildings’ rental and associated charge

| — | IT and telecommunications |
| --- | --- |

—

IT and telecommunications

| — | Missions expenses |
| --- | --- |

—

Missions expenses

| — | Cleaning and security services. |
| --- | --- |

—

Cleaning and security services.

| 4.8. | ‘Operational expenses’ arise among others from exchange rate losses. |
| --- | --- |

4.8.

‘Operational expenses’ arise among others from exchange rate losses.

| 4.9. | ‘Financial revenue’ consists of bank interest earned on the Court’s current and fiduciary accounts. |
| --- | --- |

4.9.

‘Financial revenue’ consists of bank interest earned on the Court’s current and fiduciary accounts.

| 4.10. | ‘Financial expenses’ are bank charges levied on the Court’s current and fiduciary accounts. |
| --- | --- |

4.10.

‘Financial expenses’ are bank charges levied on the Court’s current and fiduciary accounts.

| 4.11. | The expenditure related to the pensions of Members was transferred to the Commission section in the 2015 budget and, consequently, the movements in pensions are reflected in the Commission’s accounts. |
| --- | --- |

4.11.

The expenditure related to the pensions of Members was transferred to the Commission section in the 2015 budget and, consequently, the movements in pensions are reflected in the Commission’s accounts.

| 4.12. | The exceptional variation between the economic results of 2014 and 2015 is due to the exceptional surplus generated in 2014 by the transfer to the Commission’s accounts of the Member’s pension liability (66 374 932 euro). |
| --- | --- |

4.12.

The exceptional variation between the economic results of 2014 and 2015 is due to the exceptional surplus generated in 2014 by the transfer to the Commission’s accounts of the Member’s pension liability (66 374 932 euro).

5.   
  Other significant disclosures

5.1.   Contingent assets

The following bank guarantees have been given by suppliers following contractual obligations:

| (euro) |
| --- |
| | 31 December 2015 | 31 December 2014 |
| Renovation building | 80 353 | 2 500 |
| Project management building K3 | 110 339 | 2 299 801 |
| Insurance company | 1 361 | 1 361 |
| Telecommunication | 20 000 | 20 000 |
| EMAS methodological support | 4 680 | 4 680 |
| Total | 216 733 | 2 328 342 |

(euro)

31 December 2015

31 December 2014

Renovation building

80 353

2 500

Project management building K3

110 339

2 299 801

Insurance company

1 361

1 361

Telecommunication

20 000

20 000

EMAS methodological support

4 680

4 680

Total

216 733

2 328 342

5.2.   Commitments for future funding

| (euro) |
| --- |
| | 31 December 2015 | 31 December 2014 |
| Operational lease for Buildings | 797 500 | 807 500 |
| Operational lease for IT material, cars and other equipment | 1 350 635 | 2 914 006 |
| Subtotal | 2 148 135 | 3 721 506 |
| Commitments against appropriations not yet consumed — RAL (‘Restant à liquider’) —, after deduction of accruals for 2015 | 7 253 338 | 4 956 357 |
| Total | 9 401 473 | 8 677 863 |

(euro)

31 December 2015

31 December 2014

Operational lease for Buildings

797 500

807 500

Operational lease for IT material, cars and other equipment

1 350 635

2 914 006

Subtotal

2 148 135

3 721 506

Commitments against appropriations not yet consumed — RAL (‘Restant à liquider’) —, after deduction of accruals for 2015

7 253 338

4 956 357

Total

9 401 473

8 677 863

The RAL is an element of budgetary accounting representing the value of outstanding commitments. This is the difference between commitments entered into and payments, which is due to the time-lag between entering into a commitment and proceeding to the related payment.

5.3.   The Court’s buildings projects

The Court occupied its headquarters building (the ‘K1’ building) in 1988 and purchased it and the land it stands on outright in 1990. In 1999, the Court signed a framework agreement with the Luxembourg State through which it was given the right to use a second parcel of land for 49 years (renewable once) for the construction of an extension (the ‘K2’ building) in return for a payment of one euro. However for the second extension, the ‘K3’ building, due to different arrangements for carrying out the project it was necessary that the Luxembourg State and the Court concluded a new framework agreement on 22 February 2008.

As regards the two pieces of land relative to the two extensions (‘K2’ and ‘K3’) mentioned above, the state has sold these to the Court for a symbolic one euro.

For its part should the Court ever consider ceding one or other of the buildings to a third party other than the Union body or institution, the Court will return the land to the ownership of the State in return for a symbolic one euro, the latter disposing also of an option to buy the building at a price to be determined by an independent expert. In case the state decides not to exercise this option, it would provide a right to use the land to the purchasers of the building.

5.4.   Contingent liabilities
   (3)

There are no contingent liabilities.

---

(1)  The accompanying notes form an integral part of these financial statements.

(1)  OJ L 298, 26.10.2012, p. 1.

(2)  OJ L 362, 31.12.2012, p. 1.

(3)  EU Accounting Rule No 10 Provisions, contingent liabilities and contingent assets.

---

BUDGET INFORMATION FINANCIAL YEAR 2015

A.   Computation of the budget result

The budget result of the year is computed based on the figures of the budgetary implementation.

| (euro) |
| --- |
| Payments on appropriations of the year 2015 | (121 911 131 ) |
| Payments made from carry over of payment appropriations | (7 114 562 ) |
| Payments on appropriation related to earmarked revenue | (40 653 ) |
| Recovery orders of the year, cashed during the year 2015 | 19 410 932 |
| Budgetary recovery orders issued before 2015 and cashed in the year 2015 | 13 574 |
| Adjustment on recovery orders from previous years | — |
| Payment appropriations carried over to 2015 | (9 313 572 ) |
| Appropriation carried over from previous years | 7 715 416 |
| Adjustment for carry-over from previous year of appropriations available at 31.12 arising from assigned revenue | 56 685 |
| Budget result | (111 183 311 ) |

(euro)

Payments on appropriations of the year 2015

(121 911 131 )

Payments made from carry over of payment appropriations

(7 114 562 )

Payments on appropriation related to earmarked revenue

(40 653 )

Recovery orders of the year, cashed during the year 2015

19 410 932

Budgetary recovery orders issued before 2015 and cashed in the year 2015

13 574

Adjustment on recovery orders from previous years

—

Payment appropriations carried over to 2015

(9 313 572 )

Appropriation carried over from previous years

7 715 416

Adjustment for carry-over from previous year of appropriations available at 31.12 arising from assigned revenue

56 685

Budget result

(111 183 311 )

There were no supplements nor reductions between the original and the final budget.

B.   Reconciliation of economic result with budget result

| (euro) |
| --- |
| Economic result of the year | (8 367 058 ) |
| Adjustment for items included in the economic result but not in the budget result | (92 312 970 ) |
| | Difference between accruals end of previous year and end of current year | 891 224 |
| | Amount from liaison account with the Commission booked in the Economic Outturn Account | (106 700 000 ) |
| | Unpaid invoices at year end but booked in charges (class 6) | (824 755 ) |
| | Amortisation/Depreciation of intangible and tangible assets | 7 129 586 |
| | Provisions | — |
| | Value reductions | — |
| | Recovery orders issued in 2015 in class 7 not yet cashed | (1 038 ) |
| | Payments made from carry over of payment appropriations | 7 114 562 |
| | Other | 71 103 |
| | Exchange rate differences | 6 348 |
| Adjustment for items included in the budget result but not in the economic result | (10 503 283 ) |
| | Asset acquisitions (paid during the year) | (1 860 980 ) |
| | Budgetary recovery orders issued before 2015 and cashed in the year | 13 574 |
| | Payment appropriations carried over to 2015 | (9 313 572 ) |
| | Cancellation of unused carried over payment appropriations from previous year | 600 854 |
| | Adjustment for carry-over from previous year of appropriations available at 31.12 arising from assigned revenue | 56 685 |
| | Payments for pensions (they are budgetary payments but booked against provisions) | |
| | Other | 156 |
| Budget result | (111 183 311 ) |

(euro)

Economic result of the year

(8 367 058 )

Adjustment for items included in the economic result but not in the budget result

(92 312 970 )

Difference between accruals end of previous year and end of current year

891 224

Amount from liaison account with the Commission booked in the Economic Outturn Account

(106 700 000 )

Unpaid invoices at year end but booked in charges (class 6)

(824 755 )

Amortisation/Depreciation of intangible and tangible assets

7 129 586

Provisions

—

Value reductions

—

Recovery orders issued in 2015 in class 7 not yet cashed

(1 038 )

Payments made from carry over of payment appropriations

7 114 562

Other

71 103

Exchange rate differences

6 348

Adjustment for items included in the budget result but not in the economic result

(10 503 283 )

Asset acquisitions (paid during the year)

(1 860 980 )

Budgetary recovery orders issued before 2015 and cashed in the year

13 574

Payment appropriations carried over to 2015

(9 313 572 )

Cancellation of unused carried over payment appropriations from previous year

600 854

Adjustment for carry-over from previous year of appropriations available at 31.12 arising from assigned revenue

56 685

Payments for pensions (they are budgetary payments but booked against provisions)

Other

156

Budget result

(111 183 311 )

---

INDEPENDENT ASSURANCE REPORT

To the Management of the

European Court of Auditors

We have examined that the financial resources assigned by the European Commission to the European Court of Auditors (hereafter the ‘Court’) have been used for their intended purposes and that the control procedures put in place by the authorising officers provide the necessary guarantees to ensure the compliance of financial operations with the applicable rules and regulations for the financial resources made available and used for the period from 1 January 2015 to 31 December 2015.

The maintenance of books and records and the establishing and maintaining of appropriate controls are the responsibility of the Management of the Court. Our responsibility is to express our opinion based on our examination.

We conducted our examination in accordance with the International Standard on Assurance Engagements ‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’ (ISAE 3000) as adopted by the ‘Commission de Surveillance du Secteur Financier’. This standard requires that we plan and perform our examination such that misuse of the resources materially affecting the books of the Court are detected with reasonable assurance. Our work consisted primarily of examining on a test and sample basis, evidence supporting the fact that:

| — | The resources assigned to the Court have been used for their intended purposes; |
| --- | --- |

—

The resources assigned to the Court have been used for their intended purposes;

| — | The control procedures put in place provide the necessary guarantees to ensure the compliance of financial operations with the applicable rules and regulations. |
| --- | --- |

—

The control procedures put in place provide the necessary guarantees to ensure the compliance of financial operations with the applicable rules and regulations.

The criteria used for our examination are the following rules and regulations:

| — | Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget (hereafter the ‘Budget’) of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (hereafter the ‘Financial Regulation’); |
| --- | --- |

—

Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget (hereafter the ‘Budget’) of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (hereafter the ‘Financial Regulation’);

| — | Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (hereafter the ‘Implementing Rules’); |
| --- | --- |

—

Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (hereafter the ‘Implementing Rules’);

| — | Rules of Procedure of the Court of Auditors of 11 March 2010, in particular Article 15 thereof, and to Decision No 26-2010 of 11 March 2010 as amended by the Court on 3 April 2014 laying down the rules for implementing the Rules of Procedure, in particular Article 38 of that Decision; |
| --- | --- |

—

Rules of Procedure of the Court of Auditors of 11 March 2010, in particular Article 15 thereof, and to Decision No 26-2010 of 11 March 2010 as amended by the Court on 3 April 2014 laying down the rules for implementing the Rules of Procedure, in particular Article 38 of that Decision;

| — | Decision of the Court of Auditors No 21-2015 on types of post and post titles: |
| --- | --- |

—

Decision of the Court of Auditors No 21-2015 on types of post and post titles:

| — | Deliberations of the Court at its meeting on 17 December 2015; |
| --- | --- |

—

Deliberations of the Court at its meeting on 17 December 2015;

| — | Decision No 53-2015 of the European Court of Auditors concerning the internal rules for the implementation of its Budget of 17 December 2015. These provisions form part of the procedures established by the Treaties, or agreements made by virtue thereof, which concern the operational process linked to the implementation of the Budget. |
| --- | --- |

—

Decision No 53-2015 of the European Court of Auditors concerning the internal rules for the implementation of its Budget of 17 December 2015. These provisions form part of the procedures established by the Treaties, or agreements made by virtue thereof, which concern the operational process linked to the implementation of the Budget.

In particular, the following Internal Rules have been used as criteria:

| — | Article 7.1 — Signatures — ‘Each of the parties involved in the drafting, control and registration of operations to establish and recover revenue or to commit sums and make payments shall sign and date their involvement’; |
| --- | --- |

—

Article 7.1 — Signatures — ‘Each of the parties involved in the drafting, control and registration of operations to establish and recover revenue or to commit sums and make payments shall sign and date their involvement’;

| — | Article 8 — Building projects — ‘The President shall present to the European Parliament and the Council any building project likely to have significant financial implications for the Court’s budget. Before the Court gives its approval to any contractual undertaking concerning such a project, the service responsible shall submit an explanatory document justifying the compatibility of the project with the financial framework’; |
| --- | --- |

—

Article 8 — Building projects — ‘The President shall present to the European Parliament and the Council any building project likely to have significant financial implications for the Court’s budget. Before the Court gives its approval to any contractual undertaking concerning such a project, the service responsible shall submit an explanatory document justifying the compatibility of the project with the financial framework’;

| — | Article 11.2 — ‘Before signing, the persons empowered to sign bank credit transfer orders shall verify, in particular, that the bank credit transfer orders correspond to the payment orders’; |
| --- | --- |

—

Article 11.2 — ‘Before signing, the persons empowered to sign bank credit transfer orders shall verify, in particular, that the bank credit transfer orders correspond to the payment orders’;

| — | Article 17.2 — ‘The request for transfer shall be accompanied by the information enumerated in Article 17.2’; |
| --- | --- |

—

Article 17.2 — ‘The request for transfer shall be accompanied by the information enumerated in Article 17.2’;

| — | Article 18.4 — ‘The Accounting Officer shall make available to the authorising officers, via the central IT system, a list of amounts to be carried over. The authorising officers shall be responsible for ensuring that, at the end of the year, the only amounts carried over are those in respect of which there is a legal obligation to do so’; |
| --- | --- |

—

Article 18.4 — ‘The Accounting Officer shall make available to the authorising officers, via the central IT system, a list of amounts to be carried over. The authorising officers shall be responsible for ensuring that, at the end of the year, the only amounts carried over are those in respect of which there is a legal obligation to do so’;

| — | Article 20.1 — Property inventories — ‘An inventory of tangible assets shall be kept in a database common to all the authorising officers in accordance with the procedures laid down by the Secretary-General, after consulting the Accounting Officer’; |
| --- | --- |

—

Article 20.1 — Property inventories — ‘An inventory of tangible assets shall be kept in a database common to all the authorising officers in accordance with the procedures laid down by the Secretary-General, after consulting the Accounting Officer’;

| — | Article 22.1 — Minimum management and internal control procedures — ‘The management and internal control procedures shall be drawn up by the authorising officers in accordance with the minimum internal control standards adopted by the Court’. |
| --- | --- |

—

Article 22.1 — Minimum management and internal control procedures — ‘The management and internal control procedures shall be drawn up by the authorising officers in accordance with the minimum internal control standards adopted by the Court’.

We believe our examination provides a reasonable basis for our opinion.

Based on our work described in this report, nothing has come to our attention that causes us to believe that in all material respects and based on the criteria described above:

| — | The resources assigned to the Court have not been used for their intended purposes; |
| --- | --- |

—

The resources assigned to the Court have not been used for their intended purposes;

| — | The control procedures in place do not provide the necessary guarantees to ensure the compliance of financial operations with the applicable rules and regulations. |
| --- | --- |

—

The control procedures in place do not provide the necessary guarantees to ensure the compliance of financial operations with the applicable rules and regulations.

Our report is solely for the purpose set forth in the first paragraph and for your information and is not to be used for any other purpose or to be distributed to any other parties, except for publication purpose in the European Official Journal.

Luxembourg, 19 May 2016.

PricewaterhouseCoopers, Société coopérative

Réviseur d’entreprises

Represented by

Rima ADAS

---