FINANCIAL STATEMENTS OF THE EUROPEAN COAL AND STEEL COMMUNITY AT 31 DECEMBER 1991 AND 31 DECEMBER 1990 (92/C 215/03)

In accordance with undertakings given by the Commission on behalf of the ECSC with regard to its borrowing activities, the following financial statements, drawn up in conformity with Article 78 of the Treaty establishing the ECSC, are published:

- balance sheets of the European Coal and Steel Community at 31 December 1991 and 31 December 1990,

- profit-and-loss accounts for the years ending 31 December 1991 and 31 December 1990;

- allocation of the surplus for the years ending 31 December 1991 and 31 December 1990.

These financial statements are accompanied by the report of the Court of Auditors provided for under Article 78f (5) of the ECSC Treaty, dealing with the financial operations of the ECSC for 1991 with the exception of those relating to revenue and expenditure of an administrative nature.

>TABLE>

Before allocation of profit

LIABILITIES

>TABLE>

>TABLE>

INCOME

>TABLE>

>TABLE>

NOTES RELATING TO THE FINANCIAL STATEMENTS AT 31 DECEMBER 1991 AND 31 DECEMBER 1990

(amounts in ecus)

1. PRESENTATION OF THE FINANCIAL STATEMENTS

1.1. The European Coal and Steel Community (ECSC) was established by the Treaty of 18 April 1951. According to the Treaty, the task of the ECSC is to contribute to the economic expansion of the Member States through the establishment of a common market for coal and steel. Most of the ECSC's funds come from the levy, the net profit from its financial activity, borrowings raised on the financial markets and direct bank loans.

1.2. The ECSC's financial statements for 1991 and 1990 and the notes thereto are presented in accordance with Council Directives 78/660/EEC and 86/635/EEC on the annual accounts and consolidated accounts of banks and other financial institutions (OJ No L 222, 14. 8. 1978 and OJ No L 372, 31. 12. 1986).

1.3. ECSC accounts are kept in the various currencies used for its financial activity. The financial statements are expressed in ecus.

The following rates have been used for converting year-end balance-sheet amounts expressed in currency into ecus:

>TABLE>

1.4. At 31 December 1991 the various currencies listed in 1.3, together with the ecu, made up the ECSC's balance sheet as follows:

(ECU 1 000)

>TABLE>

NB: The ecu has a much larger place in the ECSC's accounts than suggested by the above table.

The apparently small share in ecus is explained by certain accounting operations, mainly the offsetting of accounts receivable and payable relating to currency swaps.

The offsetting of these items on the assets and liabilities sides is designed to prevent artificial inflation of the balance sheet.

This accounting operation is caaried out in ecus and involved a total of ECU 6 371 064 642 in 1991.

The real weight of the ecu in the ECSC's accounts can therefore be assessed more accurately if this amount is added both to the assets and to the liabilities sides of the balance sheet.

2. ACCOUNTING POLICIES AND METHODS

2.1. The financial statements are drawn up in accordance with generally recognized accounting principles.

2.2. Charges and income for the financial year are entered in currency and converted to ecus at the monthly accounting rate in force on the day of the transaction.

3. BALANCES WITH CENTRAL BANKS

This item represents the ECSC's balances with the central banks of the 12 Member States.

4. LOANS AND ADVANCES TO CREDIT INSTITUTIONS

4.1. Repayable on demand

This item comprises loans and advances to CEDEL repayable on demand.

4.2. With agreed maturity dates or periods of notice

The breakdown of the time to maturity of these loans is as follows:

(in ecus)

>TABLE>

4.3. Loans

The breakdown of the time to maturity of these loans is as follows:

(in ecus)

>TABLE>

5. LOANS AND ADVANCES TO CUSTOMERS ETC.

5.1. Loans

The loans granted to credit institutions are shown under 'Loans and advances to credit institutions` (see note 4).

The other loans break down as follows:

(in ecus)

>TABLE>

These loans are usually secured by guarantees from the Member States, banks or companies, or by mortgages.

5.2. Levy

Before value adjustment, this item amounts to ECU 18 687 124 (ECU 6 669 660 at 31 December 1990). It comprises in particular ECU 3 988 246 subject to legal proceedings (ECU 3 954 650 at 31 December 1990) and ECU 1 101 482 relating to temporary deferment in respect of coal in stock (ECU 1 498 891 at 31 December 1990).

Payment of the levy in respect of coal in stock is temporarily deferred under a general decision taken in 1972.

5.3. Fines

After value adjustment the item 'Fines receivable` amounts to ECU 1 754 070 (ECU 1 702 087 at 31 December 1990).

6. BONDS AND OTHER FIXED-INCOME SECURITIES

6.1. Valuation

Bonds and other fixed-income securities are valued at average purchase price or market value at 31 December 1991, whichever is the lower.

This principle is not applied in the case of securities considered as financial fixed assets (cf. 6.5).

6.2. Composition

Bonds and other fixed-income securities break down as follows:

(in ecus)

>TABLE>

6.3. Maturities in 1992

Securities in the portfolio reaching final maturity during 1992 represent the following amounts (in ecus):

- issued by public bodies: 146 031 345

- own-debt securities: 1 142 071

- issued by other borrowers:

16 828 268

Total 164 001 684

6.4. Listed/unlisted securities

The securities portfolio comprises ECU 1 180 532 879 of securities with a stock-exchange listing, the balance of ECU 132 975 708 being unlisted securities.

6.5. Financial fixed assets

6.5.1. Financial fixed assets are defined as securities that will remain in the portfolio until their final maturity. They comprise mainly short-term paper and own-debt securities repurchased for servicing ECSC borrowings.

6.5.2. Financial fixed assets are valued at average purchase price or redemption value, whichever is the lower. The redemption value of these securities exceeds the average purchase price by a total of ECU 9 973 206.

6.5.3. Financial fixed assets are made up as follows (in ecus):

- issued by public bodies: 4 115 389

- own-debt securities: 88 954 023

- issued by other borrowers:

13 596 669

Total 106 666 081

7. TANGIBLE AND INTANGIBLE ASSETS

(in ecus)

>TABLE>

The building at 61-63 rue des Belles Feuilles in Paris was sold for ECU 9,6 million on 20 December 1990. The proceeds of the sale were used to purchase two buildings: the first, in Avenue d'Eylau, houses the offices of the Commission's delegation to the OECD; the second, in Avenue H. Martin, will serve as the residence of the head of the delegation once the necessary work has been carried out. In June 1991 the ECSC purchased for ECU 324 254 eight car-parking spaces in rue Commandant Schloesing.

The building purchases were undertaken for non-speculative reasons, primarily to provide the delegation with more modern offices.

ECU 8 480 683 from the proceeds of the sale of the building in rue des Belles Feuilles, which was fully amortized, was used to purchase the new buildings in 1990. The surplus from the operation was used to create a provision for liabilities and charges at 31 December 1990 in the sum of ECU 1 159 465 for the purchase of the above-mentioned parking facilities in 1991. The balance of the provision, amounting to ECU 835 211, will be used to equip the building in Avenue H. Martin.

In 1991 the ECSC purchased the offices at 2 rue Barbusse which currently accommodate the Marseilles branch of the Paris office.

In 1986 the ECSC took a 45-year lease on a building in Milan. At the end of this period, the building will revert to its owner.

These buildings are rented by the Commission of the European Communities.

8. OTHER ASSETS

(in ecus)

>TABLE>

9. PREPAYMENTS AND ACCRUED INCOME

(in ecus)

>TABLE POSITION>

10. AMOUNTS OWED TO CREDIT INSTITUTIONS

The time to maturity on these operations is as follows:

(in ecus)

>TABLE>

11. DEBTS EVIDENCED BY CERTIFICATES

Part of the borrowings outstanding at 31 December 1991 will reach maturity during the 1992 financial year. These borrowings amount to ECU 345 793 262.

12. OTHER LIABILITIES

(in ecus)

>TABLE>

13. ACCRUALS AND DEFERRED INCOME

(in ecus)

>TABLE POSITION>

14. PROVISIONS FOR LIABILITIES AND CHARGES

(in ecus)

>TABLE>

15. COMMITMENTS FOR THE ECSC OPERATING BUDGET

In 1991, commitments for the ECSC Operating Budget were as follows:

>TABLE>

16. PROVISIONS FOR FINANCING THE ECSC OPERATING BUDGET

>TABLE>

17. RESERVES

The plattern of reserves was as follows:

>TABLE>

The guarantee fund is intended to cover lending and borrowing operations.

The special reserve is used to grant loans from ECSC own funds to finance subsidized housing.

The former pension fund originally represented the ECSC's total pension obligations prior to 5 March 1968. Since that date, the Member States have assumed responsibility for the payment of staff pensions. This fund is used to finance housing loans for officials of the European Communities and has also been used to grant special loans to the coal and steel industries.

18. ANALYSIS OF THE RESULT FOR THE FINANCIAL YEAR

Overall ECSC performance is influenced by both the result of non-budgetary operations (loans/borrowing - investment - exchange-rate variations) and the outturn of the ECSC Operating Budget.

18.1. Non-budgetary operations

These operations closed on 31 December 1991 with a net surplus in excess of that at 31 December 1990.

(in ecus)

>TABLE>

18.2. Implementation of the ECSC Operating Budget

(in ecus)

>TABLE POSITION>

(in ecus)

>TABLE>

19. ADMINISTRATIVE EXPENSES (FIXED AMOUNT)

The ECSC paid a lump sum of ECU 5 million to the general budget of the Commission of the European Communities to cover its administration costs.

20. OTHER OPERATING CHARGES

(in ecus)

>TABLE>

21. INTEREST RECEIVED

(in ecus)

>TABLE POSITION>

22. OTHER OPERATING INCOME

(in ecus)

>TABLE>

23. INCOME RELATING TO THE OPERATING BUDGET

(in ecus)

>TABLE>

24. OFF-BALANCE-SHEET COMMITMENTS

24.1. Commitments received

(in ecus)

>TABLE>

24.2. Commitments given

(in ecus)

>TABLE>

>TABLE POSITION>