# Official Journal C 323/18 S

| | ISSN 1977-091X |
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| Official Journal
  of the European Union | C 323 |
| | |
| English edition | Information and Notices | Volume 5718 September 2014 |

ISSN 1977-091X

Official Journal

of the European Union

C 323

English edition

Information and Notices

Volume 5718 September 2014

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| Notice No | Contents | page |
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| 2014/C 323/01 | Note to readers | 1 |

Notice No

Contents

page

2014/C 323/01

Note to readers

1

| | IV   Notices |
| --- | --- |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES |
| | Court of Auditors |
| 2014/C 323/02 | Annual accounts of the European Court of Auditors for the financial year 2013 | 2 |

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

Court of Auditors

2014/C 323/02

Annual accounts of the European Court of Auditors for the financial year 2013

2

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EN

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18.9.2014

| 18.9.2014 | EN | Official Journal of the European Union | C 323/1 |
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EN

Official Journal of the European Union

C 323/1

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NOTE TO READERS

2014/C 323/01

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

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IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES

Court of Auditors

| 18.9.2014 | EN | Official Journal of the European Union | C 323/2 |
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18.9.2014

EN

Official Journal of the European Union

C 323/2

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ANNUAL ACCOUNTS OF THE EUROPEAN COURT OF AUDITORS FOR THE FINANCIAL YEAR 2013

2014/C 323/02

TABLE OF CONTENTS

Certification of the accounts

Independent auditor’s report

Financial statements and explanatory notes

Balance Sheet as of 31 December 2013

Statement of Financial Performance

Cash Flow Statement

Statement of changes in Net Assets

Accounting policies and notes to the financial statements

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

1.

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

2.

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

3.

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

4.

| 5. | Other significant disclosures |
| --- | --- |

5.

Budget information financial year 2013

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

A.

| B. | Reconciliation of the economic result with the budget result |
| --- | --- |

B.

Independent assurance report

CERTIFICATION OF THE ACCOUNTS

Certification for the annual accounts 2013 of the European Court of Auditors

The annual accounts of the European Court of Auditors for the year 2013 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 Article 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, 28 May 2014.

Isidoro RODRÍGUEZ DE LAS PARRAS

Accounting Officer of the European Court of Auditors

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INDEPENDENT AUDITOR'S REPORT

To the Management of the

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 2013, the statement of financial performance, the 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 notes, and which starts on page 8 and ends on page 17.

Management’s responsibility for the financial statements

The Management is responsible for the preparation and fair presentation of these financial statements in accordance with the provisions of Council Regulation (EU, Euratom) No 966/2012 of 25 October 2012 on the Financial Regulation applicable to the general budget of the Union 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 financial statements, 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 financial statements 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 2013, of its financial performance and its cash flows for the year then ended in accordance with the provisions of Council Regulation (EU, Euratom) No 966/2012 of 25 October 2012 on the Financial Regulation applicable to the general budget of the Union and with the Commission delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of the Financial Regulation.

Luxembourg, 28 May 2014

PricewaterhouseCoopers, Société coopérative

Represented by

Pierre KRIER

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FINANCIAL STATEMENTS AND EXPLANATORY NOTES

Balance Sheet as of 31 December 2013

| (euro) |
| --- |
| | Note | 31 December 2013 | 31 December 2012 |
| Non-Current Assets | | | |
| Intangible assets | 3.1. | 4 1 48  978 | 2 2 71  343 |
| Property, plant and equipment | 3.2. | 9 5 6 10  315 | 9 5 4 37  237 |
| Receivables | | 25 | 25 |
| | | 9 9 7 59  318 | 9 7 7 08  605 |
| Current Assets | | | |
| Receivables | 3.3. | 3 89  149 | 1 5 87  108 |
| Cash and cash equivalents | 3.4. | 1 2 4 79  808 | 2 3 6 25  043 |
| | | 1 2 8 68  957 | 2 5 2 12  151 |
| Total Assets | | 11 2 6 28  275 | 12 2 9 20  756 |
| Non-Current Liabilities | | | |
| Employee benefits | 3.5. | 6 6 3 74  932 | 5 8 9 35  308 |
| Other liabilities | 3.6. | 1 75  000 | 1 75  000 |
| | | 6 6 5 49  932 | 5 9 1 10  308 |
| Current Liabilities | | | |
| Provisions | 3.7. | 1 0 52  207 | 3 0 66  916 |
| Payables | 3.8. | 1 4 2 80  819 | 2 3 7 02  306 |
| | | 1 5 3 33  026 | 2 6 7 69  222 |
| Total Liabilities | | 8 1 8 82  958 | 8 5 8 79  530 |
| Net Assets | | 3 0 7 45  317 | 3 7 0 41  227 |
| Accumulated surplus/deficit | | 3 7 0 41  226 | 3 9 4 60  724 |
| Economic result for the year | | (6 2 95  909) | (2 4 19  498) |
| Net Assets | | 3 0 7 45  317 | 3 7 0 41  226 |

(euro)

Note

31 December 2013

31 December 2012

Non-Current Assets

Intangible assets

3.1.

4 1 48  978

2 2 71  343

Property, plant and equipment

3.2.

9 5 6 10  315

9 5 4 37  237

Receivables

25

25

9 9 7 59  318

9 7 7 08  605

Current Assets

Receivables

3.3.

3 89  149

1 5 87  108

Cash and cash equivalents

3.4.

1 2 4 79  808

2 3 6 25  043

1 2 8 68  957

2 5 2 12  151

Total Assets

11 2 6 28  275

12 2 9 20  756

Non-Current Liabilities

Employee benefits

3.5.

6 6 3 74  932

5 8 9 35  308

Other liabilities

3.6.

1 75  000

1 75  000

6 6 5 49  932

5 9 1 10  308

Current Liabilities

Provisions

3.7.

1 0 52  207

3 0 66  916

Payables

3.8.

1 4 2 80  819

2 3 7 02  306

1 5 3 33  026

2 6 7 69  222

Total Liabilities

8 1 8 82  958

8 5 8 79  530

Net Assets

3 0 7 45  317

3 7 0 41  227

Accumulated surplus/deficit

3 7 0 41  226

3 9 4 60  724

Economic result for the year

(6 2 95  909)

(2 4 19  498)

Net Assets

3 0 7 45  317

3 7 0 41  226

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

Statement of Financial Performance

| (euro) |
| --- |
| | Note | 2013 | 2012 |
| Funds transferred from the Commission to other institutions | 4.1. | 11 2 8 00  000 | 11 7 7 95  049 |
| Revenue from administrative operations | 4.2. | 1 7 3 09  843 | 1 9 3 04  343 |
| Other operating revenue | 4.3. | 30  268 | 45  439 |
| Total operating revenue | 4.4 | 13 0 1 40  111 | 13 7 1 44  831 |
| Staff expenses | 4.5. | (9 9 3 47  366) | (10 3 4 41  065) |
| Assets-related expenses | 3.1. — 3.2. & 4.6. | (5 9 88  272) | (3 3 51  126) |
| Other administrative expenses | 4.7. | (1 9 7 88  770) | (2 3 5 43  939) |
| Operational expenses | 4.8. | (12  695) | (18  586) |
| Total operating expenses | | (12 5 1 37  103) | (13 0 3 54  716) |
| Surplus/(deficit) from operating activities | | 5 0 03  008 | 6 7 90  115 |
| Financial revenue | 4.9. | 646 | 59  336 |
| Financial expenses | 4.10. | (20  020) | (20  025) |
| Movement in pensions (- expense, + revenue) | 3.5. & 4.11. | (1 1 2 79  543) | (9 2 48  924) |
| Surplus/(deficit) from non-operating activities | | (1 1 2 98  917) | (9 2 09  613) |
| Economic result of the year | | (6 2 95  909) | (2 4 19  498) |

(euro)

Note

2013

2012

Funds transferred from the Commission to other institutions

4.1.

11 2 8 00  000

11 7 7 95  049

Revenue from administrative operations

4.2.

1 7 3 09  843

1 9 3 04  343

Other operating revenue

4.3.

30  268

45  439

Total operating revenue

4.4

13 0 1 40  111

13 7 1 44  831

Staff expenses

4.5.

(9 9 3 47  366)

(10 3 4 41  065)

Assets-related expenses

3.1. — 3.2. & 4.6.

(5 9 88  272)

(3 3 51  126)

Other administrative expenses

4.7.

(1 9 7 88  770)

(2 3 5 43  939)

Operational expenses

4.8.

(12  695)

(18  586)

Total operating expenses

(12 5 1 37  103)

(13 0 3 54  716)

Surplus/(deficit) from operating activities

5 0 03  008

6 7 90  115

Financial revenue

4.9.

646

59  336

Financial expenses

4.10.

(20  020)

(20  025)

Movement in pensions (- expense, + revenue)

3.5. & 4.11.

(1 1 2 79  543)

(9 2 48  924)

Surplus/(deficit) from non-operating activities

(1 1 2 98  917)

(9 2 09  613)

Economic result of the year

(6 2 95  909)

(2 4 19  498)

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

Cash Flow Statement

| (euro) |
| --- |
| | 2013 | 2012 |
| Economic result of the year | (6 2 95  909) | (2 4 19  498) |
| Operating activities — Adjustments | | |
| Amortisation | 1 97  753 | 2 09  828 |
| Depreciation | 5 7 61  980 | 3 1 39  253 |
| Increase/(decrease) in Provisions | (2 0 14  710) | 2 1 68  917 |
| (Increase)/decrease in Receivables | 1 1 97  959 | (1 1 63  164) |
| | | |
| Increase/(decrease) in Payables | (9 4 21  487) | 1 2 8 43  333 |
| | | |
| Net cash flow from operating activities | (1 0 5 74  414) | 1 4 7 78  669 |
| Cash flows from investing activities | | |
| Purchase of property, plant and equipment and intangible assets (-) | (8 0 38  985) | (4 4 5 35  664) |
| Proceeds from property, plant and equipment and intangible assets (+) | 28  540 | 2  043 |
| Net cash flow from investing activities | (8 0 10  445) | (4 4 5 33  621) |
| Increase/(decrease) in Employee benefits | 7 4 39  624 | 5 2 70  865 |
| Net increase/(decrease) in cash and cash equivalents | (1 1 1 45  235) | (2 4 4 84  087) |
| Cash and cash equivalents at the beginning of the year | 2 3 6 25  043 | 4 8 1 09  130 |
| Cash and cash equivalents at the end of the year | 1 2 4 79  808 | 2 3 6 25  043 |

(euro)

2013

2012

Economic result of the year

(6 2 95  909)

(2 4 19  498)

Operating activities — Adjustments

Amortisation

1 97  753

2 09  828

Depreciation

5 7 61  980

3 1 39  253

Increase/(decrease) in Provisions

(2 0 14  710)

2 1 68  917

(Increase)/decrease in Receivables

1 1 97  959

(1 1 63  164)

Increase/(decrease) in Payables

(9 4 21  487)

1 2 8 43  333

Net cash flow from operating activities

(1 0 5 74  414)

1 4 7 78  669

Cash flows from investing activities

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

(8 0 38  985)

(4 4 5 35  664)

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

28  540

2  043

Net cash flow from investing activities

(8 0 10  445)

(4 4 5 33  621)

Increase/(decrease) in Employee benefits

7 4 39  624

5 2 70  865

Net increase/(decrease) in cash and cash equivalents

(1 1 1 45  235)

(2 4 4 84  087)

Cash and cash equivalents at the beginning of the year

2 3 6 25  043

4 8 1 09  130

Cash and cash equivalents at the end of the year

1 2 4 79  808

2 3 6 25  043

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

Statement of changes in Net Assets

| (euro) |
| --- |
| Net Assets | 2013 | 2012 |
| Balance at the start of the year | 3 7 0 41  226 | 3 9 4 60  724 |
| Economic result of the year | (6 2 95  909) | (2 4 19  498) |
| Balance at the end of the year | 3 0 7 45  317 | 3 7 0 41  226 |

(euro)

Net Assets

2013

2012

Balance at the start of the year

3 7 0 41  226

3 9 4 60  724

Economic result of the year

(6 2 95  909)

(2 4 19  498)

Balance at the end of the year

3 0 7 45  317

3 7 0 41  226

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

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 Court is the EU Institution established by the Treaty to carry out the audit of EU finances. As the EU external auditor it contributes to improving EU financial management and acts as the independent guardian of the financial interests of the citizens of the European Union.

The Court renders audit services through which it assesses the collection and spending of EU funds. It examines whether financial operations have been properly recorded and disclosed, legally and regularly executed and managed so as to ensure economy, efficiency and effectiveness. The Court communicates the results of its audits in clear, relevant and objective reports. It also provides its opinion on financial management issues.

The Court promotes accountability and transparency and assists the European Parliament and Council in overseeing the implementation of the EU budget, particularly during the discharge procedure. The Court 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 accounts of the Court are drawn up in accordance with the provisions of 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 (1) (hereinafter ‘the Financial Regulation’) and with the Commission Delegated Regulation (EU) No 1268/2012 (2) on the rules of application of the Financial Regulation.

2.2.   Accounting principles

According to Article 144 of the Financial Regulation, the financial statements shall present information, including information on accounting policies, in a manner that ensures it is relevant, reliable, comparable and understandable. The budgetary accounts shall respect the budgetary principles laid down in the Financial Regulation. They shall present a true and fair view of the budgetary revenue and expenditure operations.

The financial statements are drawn up in accordance with the Accounting Rules of the European Union (EU Accounting Rules), based on internationally accepted accounting standards for the public sector. These Accounting Rules are adopted by the Accounting Officer of the Commission after a consultation of the other institutions.

2.3.   Valuation of foreign currency balances and transactions

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 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.

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.   Employee benefits

Employee benefits represent the future pension rights of the Members of the Court in accordance with Article 19 of Council Regulation (EEC, Euratom, ECSC) No 2290/77 of 18 October 1977 determining the emoluments of the Members of the Court of Auditors (3), the benefits provided for in this pension scheme are entered in the budget of the Union and the Member States jointly guarantee their payment.

The liability for these future pension payments is accounted and disclosed in accordance with EC Accounting Rule 12 ‘Employee Benefits’. The methodology to calculate the liability takes account of characteristics of the pension scheme as defined in accounting rule IPSAS 25.

The actuarial commitment is determined on an ongoing basis, taking into account both the promised benefits during the active lifetime and foreseeable increase in salaries. The actuarial valuation method used to calculate the liability is ‘the projected unit credit method’.

The liability is reduced by the estimated amount of taxes that will be applied to future pension payments since these taxes revert to the EU budget as revenue.

The pension liability is recomputed every year at reporting date. In the statement of financial performance, the pension expense for the year consists of the pensions paid during the year and of the adjustment of the pension liability at year-end, both net of taxes. Actuarial gains and losses are recognised in the ‘Statement of Financial Performance’.

Regarding potential ‘Plan assets’, the Court does not currently have any assets devoted to financing pension commitments.

2.7.   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.

2.8.   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 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 2013 were:

| (euro) |
| --- |
| | Gross carrying amounts
  1 January 2013 | Additions | Gross carrying amounts
  31 December 2013 | Accumulated amortisation and impairment
  31 December 2013 | Net carrying amounts
  31 December 2013 |
| Computer software | 1 4 03  346 | 1 49  047 | 1 5 52  393 | (1 2 64  183) | 2 88  210 |
| Intangible assets under development | 1 9 34  427 | 1 9 26  341 | 3 8 60  768 | | 3 8 60  768 |
| Total | 3 3 37  773 | 2 0 75  388 | 5 4 13  161 | (1 2 64  183) | 4 1 48  978 |

(euro)

Gross carrying amounts

1 January 2013

Additions

Gross carrying amounts

31 December 2013

Accumulated amortisation and impairment

31 December 2013

Net carrying amounts

31 December 2013

Computer software

1 4 03  346

1 49  047

1 5 52  393

(1 2 64  183)

2 88  210

Intangible assets under development

1 9 34  427

1 9 26  341

3 8 60  768

3 8 60  768

Total

3 3 37  773

2 0 75  388

5 4 13  161

(1 2 64  183)

4 1 48  978

In 2013 no costs associated with research activities were recognised.

3.2.   Property, plant and equipment

The movements in property, plant and equipment during the year 2013 were:

| (euro) |
| --- |
| | Gross carrying amounts
  1 January 2013 | Additions | Disposals | Transfer | Gross carrying amounts
  31 December 2013 | Accumulated amortisation and impairment
  31 December 2013 | Net carrying amounts
  31 December 2013 |
| Land | 7 76  631 | | | | 7 76  631 | | 7 76  631 |
| Buildings | 12 2 8 59  988 | 6  658 | | | 12 2 8 66  646 | (3 7 1 78  783) | 8 5 6 87  863 |
| Plant and equipment | 6 52  847 | 1 05  224 | (5  368) | | 7 52  703 | (3 38  700) | 4 14  003 |
| Computer hardware | 4 7 30  767 | 1 2 39  504 | (1 1 71  654) | | 4 7 98  617 | (3 2 06  316) | 1 5 92  301 |
| Furniture and vehicles | 4 4 46  526 | 3 98  659 | (2 59  961) | | 4 5 85  224 | (1 6 90  621) | 2 8 94  603 |
| Other fixtures and fittings | 1 8 91  828 | 68  569 | (1 42  385) | | 1 8 18  012 | (1 7 22  180) | 95  832 |
| Assets under construction | 4  099 | 4 1 44  983 | — | | 4 1 49  082 | | 4 1 49  082 |
| Total | 13 5 3 62  686 | 5 9 63  597 | (1 5 79  368) | — | 13 9 7 46  915 | (4 4 1 36  600) | 9 5 6 10  315 |

(euro)

Gross carrying amounts

1 January 2013

Additions

Disposals

Transfer

Gross carrying amounts

31 December 2013

Accumulated amortisation and impairment

31 December 2013

Net carrying amounts

31 December 2013

Land

7 76  631

7 76  631

7 76  631

Buildings

12 2 8 59  988

6  658

12 2 8 66  646

(3 7 1 78  783)

8 5 6 87  863

Plant and equipment

6 52  847

1 05  224

(5  368)

7 52  703

(3 38  700)

4 14  003

Computer hardware

4 7 30  767

1 2 39  504

(1 1 71  654)

4 7 98  617

(3 2 06  316)

1 5 92  301

Furniture and vehicles

4 4 46  526

3 98  659

(2 59  961)

4 5 85  224

(1 6 90  621)

2 8 94  603

Other fixtures and fittings

1 8 91  828

68  569

(1 42  385)

1 8 18  012

(1 7 22  180)

95  832

Assets under construction

4  099

4 1 44  983

—

4 1 49  082

4 1 49  082

Total

13 5 3 62  686

5 9 63  597

(1 5 79  368)

—

13 9 7 46  915

(4 4 1 36  600)

9 5 6 10  315

CURRENT ASSETS

3.3.   Receivables

| (euro) |
| --- |
| | 31 December 2013 | 31 December 2012 |
| Current receivables mainly due to the transfer of national pension rights by staff | 2  768 | 2  030 |
| Sundry receivables mainly related to payroll and mission advances | 1 89  485 | 2 00  942 |
| Deferred charges for building rentals and IT contracts | 1 95  197 | 1 3 82  757 |
| Receivables from EU entities | 1  699 | 1  379 |
| Total | 3 89  149 | 1 5 87  108 |

(euro)

31 December 2013

31 December 2012

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

2  768

2  030

Sundry receivables mainly related to payroll and mission advances

1 89  485

2 00  942

Deferred charges for building rentals and IT contracts

1 95  197

1 3 82  757

Receivables from EU entities

1  699

1  379

Total

3 89  149

1 5 87  108

3.4.   Cash and cash equivalents.

| (euro) |
| --- |
| | 31 December 2013 | 31 December 2012 |
| Petty cash | 1  000 | 1  000 |
| Bank current account | 3 32  783 | 2 6 27  191 |
| Fiduciary account | 1 2 1 46  025 | 2 0 9 96  852 |
| Total | 1 2 4 79  808 | 2 3 6 25  043 |

(euro)

31 December 2013

31 December 2012

Petty cash

1  000

1  000

Bank current account

3 32  783

2 6 27  191

Fiduciary account

1 2 1 46  025

2 0 9 96  852

Total

1 2 4 79  808

2 3 6 25  043

A fiduciary account was opened on 27 January 2010 between the European Court of Auditors and the Banque et Caisse d’épargne de l’État, Luxembourg. This fiduciary account allows the Court to manage the budget granted by the budgetary authority in relation to the K3 building project (see note 5.3).

The fiduciary account is used by the Court only under certain conditions disclosed in the contract with the Banque et Caisse d’épargne de l’État, Luxembourg.

The exclusive beneficiary of payments made from this fiduciary account is the operational bank account of the consortium acting as project manager. This operational account is used exclusively by the project manager to pay the invoices of the construction companies.

NON-CURRENT LIABILITIES

3.5   Employee benefits

The computation of the liability is performed by Eurostat assisted by a qualified independent expert with regard to the implementation of the methodology and to the definition of the corresponding actuarial assumptions.

The liability for future pension payments obligations is net of the taxes which will be recovered on the future pension payments (see also note 2.6).

| (euro) |
| --- |
| | 31 December 2013 | 31 December 2012 |
| Gross amount | 8 1 9 44  360 | 7 2 8 04  580 |
| Tax rate (%) (4) | 19,00 % | 19,05 % |
| Taxes | 1 5 5 69  428 | 1 3 8 69  273 |
| Amount net of taxes | 6 6 3 74  932 | 5 8 9 35  308 |
| Variation of Members' net pension liability | 7 4 39  624 | 5 2 70  865 |

(euro)

31 December 2013

31 December 2012

Gross amount

8 1 9 44  360

7 2 8 04  580

Tax rate (%) (4)

19,00 %

19,05 %

Taxes

1 5 5 69  428

1 3 8 69  273

Amount net of taxes

6 6 3 74  932

5 8 9 35  308

Variation of Members' net pension liability

7 4 39  624

5 2 70  865

The pension plan devoted to the members is a defined benefit plan. The defined benefits in this context are:

| — | transitional allowance (paid at the end of the mandate for three years), |
| --- | --- |

—

transitional allowance (paid at the end of the mandate for three years),

| — | retirement pension, |
| --- | --- |

—

retirement pension,

| — | invalidity pension and allowance, |
| --- | --- |

—

invalidity pension and allowance,

| — | survivor's pension (paid after the death of the Member whether this happens during or before retirement). |
| --- | --- |

—

survivor's pension (paid after the death of the Member whether this happens during or before retirement).

The categories of beneficiaries, for which the liability needs to be calculated, are:

| — | the active members, |
| --- | --- |

—

the active members,

| — | the non-active members with a transitional allowance, |
| --- | --- |

—

the non-active members with a transitional allowance,

| — | the non-active members after the transition period (deferred pension), |
| --- | --- |

—

the non-active members after the transition period (deferred pension),

| — | the retired members, |
| --- | --- |

—

the retired members,

| — | permanently disabled, |
| --- | --- |

—

permanently disabled,

| — | temporarily disabled, |
| --- | --- |

—

temporarily disabled,

| — | the surviving spouses, |
| --- | --- |

—

the surviving spouses,

| — | the orphans. |
| --- | --- |

—

the orphans.

The assessment of the pension liability requires the handling of variables related to economic and demographic aspects. The main actuarial assumptions are:

| Actuarial assumption | 31 December 2012 | 31 December 2013 |
| --- | --- | --- |
| Average age difference between married men and women | 3 years | 3 years |
| Probability of being married for men | 89 % | 81 % |
| Probability of being married for women | 24 % | 49 % |
| Marital status | Status at the reference date | Status at the reference date |
| Coefficient for orphan's and divorced spouse's pension | 0 % | 0 % |
| Assumed retirement age | 65 | 65 |
| Expected inflation rate over the duration of the scheme | 1,7 % | 1,5 % |
| Nominal discount rate (NDR) | 3,3 % | 3,3 % |
| Real discount rate (RDR) | 1,6 % | 1,8 % |
| General salary growth (GSG) | 0,0 % | - 0,1 % |
| General pension revaluation (GPR) | 0,0 % | - 0,1 % |
| Individual salary progression (ISP) | None (except if new appointment) | None (except if new appointment) |
| Mortality table healthy people | 2008 ICSLT (5) | 2013 ICSLT (5) |
| Mortality table for invalids | Rate corresponding to a healthy person aged of 3 years more | Rate corresponding to a healthy person aged of 3 years more |

Actuarial assumption

31 December 2012

31 December 2013

Average age difference between married men and women

3 years

3 years

Probability of being married for men

89 %

81 %

Probability of being married for women

24 %

49 %

Marital status

Status at the reference date

Status at the reference date

Coefficient for orphan's and divorced spouse's pension

0 %

0 %

Assumed retirement age

65

65

Expected inflation rate over the duration of the scheme

1,7 %

1,5 %

Nominal discount rate (NDR)

3,3 %

3,3 %

Real discount rate (RDR)

1,6 %

1,8 %

General salary growth (GSG)

0,0 %

- 0,1 %

General pension revaluation (GPR)

0,0 %

- 0,1 %

Individual salary progression (ISP)

None (except if new appointment)

None (except if new appointment)

Mortality table healthy people

2008 ICSLT (5)

2013 ICSLT (5)

Mortality table for invalids

Rate corresponding to a healthy person aged of 3 years more

Rate corresponding to a healthy person aged of 3 years more

3.6.   Other liabilities

The amount of EUR 1 75  000 is contractually due at the termination of the rental of the building K9.

CURRENT LIABILITIES

3.7.   Provisions

On 11 January 2012, the Commission decided to bring an action against the Council in the Court of Justice for not adopting the 2011 annual adjustment to remuneration of EU staff. The Court of Justice, in its judgment of 19 November 2013 (C-63/12) concluded that the Commission had to make a new proposal for the salary adjustment of 2011. On 14 April 2014 the Council approved the European Parliament's position on the draft regulations providing for the annual adjustments of remuneration and pensions of EU staff of 0 % for 2011 and of 0,8 % for 2012 (payable as from 1 July 2012).

Following this decision a short-term provision has been booked for the outstanding 0,8 % salary payments net of taxes and pension deduction.

3.8.   Payables

| (euro) |
| --- |
| | 31 December 2013 | 31 December 2012 |
| Current payables | 14  393 | 4 45  830 |
| Sundry payables related to payroll and staff | (10  212) | 3 44  427 |
| Accrued charges | 1 4 1 07  180 | 2 2 8 64  727 |
| Accounts payable to consolidated EU entities mainly to the European Council and Parliament | 1 69  458 | 47  322 |
| Total | 1 4 2 80  819 | 2 3 7 02  306 |

(euro)

31 December 2013

31 December 2012

Current payables

14  393

4 45  830

Sundry payables related to payroll and staff

(10  212)

3 44  427

Accrued charges

1 4 1 07  180

2 2 8 64  727

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

1 69  458

47  322

Total

1 4 2 80  819

2 3 7 02  306

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) |
| --- |
| | 2013 | 2012 |
| Revenue from exchange transactions | 22  378 | 41  910 |
| Revenue from non-exchange transactions | 13 0 1 17  733 | 13 7 1 02  921 |
| Total revenue | 13 0 1 40  111 | 13 7 1 44  831 |

(euro)

2013

2012

Revenue from exchange transactions

22  378

41  910

Revenue from non-exchange transactions

13 0 1 17  733

13 7 1 02  921

Total revenue

13 0 1 40  111

13 7 1 44  831

| 4.5. | ‘Staff expenses’ include the salaries of members, statutory staff, contractual agents and temporary staff. The transitional allowances for previous members and the taxes related to the members' pensions and transitional allowances are also part of the item ‘Movement in pensions’ (see note 4.11). |
| --- | --- |

4.5.

‘Staff expenses’ include the salaries of members, statutory staff, contractual agents and temporary staff. The transitional allowances for previous members and the taxes related to the members' pensions and transitional allowances are also part of the item ‘Movement in pensions’ (see note 4.11).

| 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 item ‘Movement in pensions’ includes all expenses linked to the pensions of the Members of the Court. This covers the pensions and transitional allowances paid during the year and the adjustment at year end of the liability for all future pension payments which explains the difference between the two years. |
| --- | --- |

4.11.

The item ‘Movement in pensions’ includes all expenses linked to the pensions of the Members of the Court. This covers the pensions and transitional allowances paid during the year and the adjustment at year end of the liability for all future pension payments which explains the difference between the two years.

| (euro) |
| --- |
| | 2013 | 2012 |
| Variation of Members’ net pension liability | 7 4 39  624 | 5 2 70  865 |
| Life pension paid | 2 7 15  911 | 2 5 90  511 |
| Survivor pensions paid | 3 25  474 | 3 50  485 |
| Transitional allowances paid | 1 5 37  185 | 1 7 85  937 |
| Invalidity pensions paid | — | 23  809 |
| Sub-total Pension paid during the year | 4 5 78  570 | 4 7 50  742 |
| Correction coefficient | 1 62  071 | 1 63  476 |
| Taxes deducted from payments | (9 00  722) | (9 36  159) |
| Total movement in pensions | 1 1 2 79  543 | 9 2 48  924 |

(euro)

2013

2012

Variation of Members’ net pension liability

7 4 39  624

5 2 70  865

Life pension paid

2 7 15  911

2 5 90  511

Survivor pensions paid

3 25  474

3 50  485

Transitional allowances paid

1 5 37  185

1 7 85  937

Invalidity pensions paid

—

23  809

Sub-total Pension paid during the year

4 5 78  570

4 7 50  742

Correction coefficient

1 62  071

1 63  476

Taxes deducted from payments

(9 00  722)

(9 36  159)

Total movement in pensions

1 1 2 79  543

9 2 48  924

5.   
  Other significant disclosures

5.1.   Contingent assets

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

| (euro) |
| --- |
| | 31 December 2013 | 31 December 2012 |
| Travel agency | 50  000 | 50  000 |
| Renovation building K1 | 2  500 | 2  500 |
| Project management building K3 | 7 1 96  680 | 7 0 96  680 |
| Insurance company | 1  361 | 1  361 |
| Telecommunication | 20  000 | 20  000 |
| Total | 7 2 70  541 | 7 1 70  541 |

(euro)

31 December 2013

31 December 2012

Travel agency

50  000

50  000

Renovation building K1

2  500

2  500

Project management building K3

7 1 96  680

7 0 96  680

Insurance company

1  361

1  361

Telecommunication

20  000

20  000

Total

7 2 70  541

7 1 70  541

5.2.   Commitments for future funding

| (euro) |
| --- |
| | 31 December 2013 | 31 December 2012 |
| Operational lease for buildings | 5 60  000 | 2 5 79  580 |
| Operational lease for IT material, cars and other equipment | 2 3 73  573 | 1 0 44  344 |
| Subtotal | 2 9 33  573 | 3 6 23  924 |
| Commitments against appropriations not yet consumed — RAL (‘Restant à liquider’) — after deduction of accruals for 2013 | 9 3 64  602 | 1 3 85  871 |
| Total | 1 2 2 98  175 | 5 0 09  795 |

(euro)

31 December 2013

31 December 2012

Operational lease for buildings

5 60  000

2 5 79  580

Operational lease for IT material, cars and other equipment

2 3 73  573

1 0 44  344

Subtotal

2 9 33  573

3 6 23  924

Commitments against appropriations not yet consumed — RAL (‘Restant à liquider’) — after deduction of accruals for 2013

9 3 64  602

1 3 85  871

Total

1 2 2 98  175

5 0 09  795

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.

In Luxembourg, the use of office buildings is authorised for a period of 15 years, after which they must be modernised to bring them into conformity with the prevailing health, safety and environmental standards. These required health and safety works were performed on the K1 building. The work is finalised, the formal final acceptance was confirmed in 2010. The K2 building entered into service in November 2003 and has thus an authorisation (‘autorisation d’exploitation’) valid until 2018.

The works for the construction of the K3 building started in March 2010, and on 15 November 2012 the building entered into service.

5.4.   Potential significant liability for litigations
   (6)

There are no potential significant liabilities for litigations.

---

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

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

(3)  OJ L 268, 20.10.1977, p. 1.

(4)  Rounded.

(5)  International Civil Servants Life Table

(6)  EU Accounting Rule No 10 ‘Provisions, contingent liabilities and contingent assets’.

---

BUDGET INFORMATION FINANCIAL YEAR 2013

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 2013 | (12 0 8 69  858) |
| Payments made from carry-over of payment appropriations | (1 1 1 09  965) |
| Payments on appropriation related to earmarked revenue | (1 74  759) |
| Recovery orders of the year, cashed during the year 2013 | 1 7 3 14  791 |
| Budgetary recovery orders issued before 2013 and cashed in the year 2013 | — |
| Adjustment on recovery orders from previous years | — |
| Payment appropriations carried over to 2013 | (1 1 4 29  492) |
| Appropriation carried over from previous years | 1 2 6 77  899 |
| Adjustment for carry-over from previous year of appropriations available at 31.12 arising from assigned revenue | 4 52  139 |
| Budget result | (11 3 1 39  245) |

(euro)

Payments on appropriations of the year 2013

(12 0 8 69  858)

Payments made from carry-over of payment appropriations

(1 1 1 09  965)

Payments on appropriation related to earmarked revenue

(1 74  759)

Recovery orders of the year, cashed during the year 2013

1 7 3 14  791

Budgetary recovery orders issued before 2013 and cashed in the year 2013

—

Adjustment on recovery orders from previous years

—

Payment appropriations carried over to 2013

(1 1 4 29  492)

Appropriation carried over from previous years

1 2 6 77  899

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

4 52  139

Budget result

(11 3 1 39  245)

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 | (6 2 95  909) |
| Adjustment for items included in the economic result but not in the budget result | (9 0 9 10  188) |
| | Difference between accruals end of previous year and end of current year | (3 1 92  546) |
| | Amount from liaison account with the Commission booked in the Economic Outturn Account | (11 2 8 00  000) |
| | Unpaid invoices at year end but booked in charges (class 6) | 44  362 |
| | Depreciation of intangible and tangible assets | 6 7 01  213 |
| | Provisions | 7 4 39  624 |
| | Value reductions | |
| | Recovery orders issued in 2013 in class 7 not yet cashed | (13  025) |
| | Payments made from carry-over of payment appropriations | 1 1 1 09  965 |
| | Other | (2 04  585) |
| | Exchange rate differences | 4  804 |
| Adjustment for items included in the budget result but not in the economic result | (1 5 9 33  148) |
| | Asset acquisitions (paid during the year) | (6 5 23  653) |
| | Budgetary recovery orders issued before 2013 and cashed in the year | — |
| | Payment appropriations carried over to 2013 | (1 1 4 29  492) |
| | Cancellation of unused carried over payment appropriations from previous year | 1 5 67  934 |
| | Adjustment for carry-over from previous year of appropriations available at 31.12 arising from assigned revenue | 4 52  139 |
| | Payments for pensions (they are budgetary payments but booked against provisions) | |
| | Other | (76) |
| Budget result | (11 3 1 39  245) |

(euro)

Economic result of the year

(6 2 95  909)

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

(9 0 9 10  188)

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

(3 1 92  546)

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

(11 2 8 00  000)

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

44  362

Depreciation of intangible and tangible assets

6 7 01  213

Provisions

7 4 39  624

Value reductions

Recovery orders issued in 2013 in class 7 not yet cashed

(13  025)

Payments made from carry-over of payment appropriations

1 1 1 09  965

Other

(2 04  585)

Exchange rate differences

4  804

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

(1 5 9 33  148)

Asset acquisitions (paid during the year)

(6 5 23  653)

Budgetary recovery orders issued before 2013 and cashed in the year

—

Payment appropriations carried over to 2013

(1 1 4 29  492)

Cancellation of unused carried over payment appropriations from previous year

1 5 67  934

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

4 52  139

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

Other

(76)

Budget result

(11 3 1 39  245)

---

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 2013 to 31 December 2013.

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’);

| — | Decision No 31-2013 of the European Court of Auditors concerning the internal rules for the implementation of its Budget of 27 June 2013. 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 31-2013 of the European Court of Auditors concerning the internal rules for the implementation of its Budget of 27 June 2013. 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 — 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 — 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 art 17.2’. |
| --- | --- |

—

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

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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, 28 May 2014.

PricewaterhouseCoopers, Société coopérative

Réviseur d’entreprises

Represented by

Pierre KRIER

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