ANNUAL REPORT

concerning the financial year 1993

(94/C 327/01)

The report, together with the institutions' replies to the Court's observations, was transmitted to the authorities responsible for giving discharge and to the other institutions

André J. MIDDELHOEK

(President)

Ole Joergen WARBERG

Constantinos ANDROUTSOPOULOS

Daniel STRASSER

Bernhard FRIEDMANN

Maurice THOSS

John WIGGINS

Giorgio CLEMENTE

Barry DESMOND

Patrick EVERARD

Armindo de Jesus de SOUSA RIBEIRO

Antoni CASTELLS

TABLE OF CONTENTS

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Introduction 5

Part I: OBSERVATIONS ON THE COMMISSION'S REVENUE AND OPERATING APPROPRIATIONS AND ON THE EUROPEAN DEVELOPMENT FUNDS

Chapter 1 - Own resources 19

Chapter 2 -The European Agricultural Guidance and Guarantee Fund, Guarantee Section (EAGGF-Guarantee) - Management and budgetary control 38

Chapter 3-The European Agricultural Guidance and Guarantee Fund, Guarantee Section (EAGGF-Guarantee) - Organization and management of markets: viticultural products 71

Chapter 4-Aid for the production of casein and caseinates from skimmed milk 91

Chapter 5-Common policy on fisheries and the sea 100

Chapter 6-Structural Funds - Joint observations 112

Chapter 7-Regional sector 118

Chapter 8-European Social Fund 137

Chapter 9-European Agricultural Guidance and Guarantee Fund - Guidance Section (EAGGF-Guidance) 163

Chapter 10-Loans, borrowings and interest subsidies 172

Chapter 11-Research 181

Chapter 12-Cooperation with the countries of Central and Eastern Europe and with the successor republics of the former Soviet Union 195

Chapter 13-Cooperation with developing and third countries 223

Chapter 14-Financial audit of the Commission's revenue, operating expenditure and accounting and of the consolidated accounts 240

Chapter 15-European Development Funds 264

Part II: OBSERVATIONS ON THE OPERATING APPROPRIATIONS OF THE INSTITUTIONS AND ORGANIZATIONS OF THE EUROPEAN COMMUNITIES FOLLOWED BY THEIR REPLIES

Chapter 16 - Annual travelling expenses paid by the institutions between the place of employment and the place of origin 437

Chapter 17-The European Parliament's buildings expenditure 447

Chapter 18-Expenditure relating to the construction of new premises for the Council 459

Chapter 19-The Commission - The management of data-processing resources 465

Chapter 20-Court of Auditors 471

THE COMMISSION'S REPLIES TO THE OBSERVATIONS ON ITS REVENUE AND OPERATING APPROPRIATIONS AND ON THE EUROPEAN DEVELOPMENT FUNDS

Page

Part I: OBSERVATIONS ON THE COMMISSION'S REVENUE AND OPERATING APPROPRIATIONS AND ON THE EUROPEAN DEVELOPMENT FUNDS

Chapter 1 - Own resources 295

Chapter 2 -The European Agricultural Guidance and Guarantee Fund, Guarantee Section (EAGGF-Guarantee) - Management and budgetary control 301

Chapter 3-The European Agricultural Guidance and Guarantee Fund, Guarantee Section (EAGGF-Guarantee) - Organization and management of markets: viticultural products 309

Chapter 4-Aid for the production of casein and caseinates from skimmed milk 317

Chapter 5-Common policy on fisheries and the sea 319

Chapter 6-Structural Funds - Joint observations 323

Chapter 7-Regional sector 327

Chapter 8-European Social Fund - Financial and administrative management 340

Chapter 9-European Agricultural Guidance and Guarantee Fund - Guidance Section (EAGGF-Guidance) 350

Chapter 10-Loans, borrowings and interest subsidies 355

Chapter 11-Research 358

Chapter 12-Cooperation with the countries of Central and Eastern Europe and with the successor republics of the former Soviet Union 365

Chapter 13-Cooperation with developing and third countries 387

Chapter 14-Financial audit of the Commission's revenue, operating expenditure and accounting and of the consolidated accounts 397

Chapter 15-European Development Funds 421

ANNEX

Annex I - Reports and opinions adopted by the Court of Auditors during the last five years 472

Annex II-Annex in respect of the abbreviations and symbols used in the report and background information on the general budget 479

SUMMARY OF DIAGRAMS (D)

Page

D I. General budget 1993 - estimated revenue 8

D II. General budget 1993 - estimated expenditure - appropriations for payment 9

D III. General budget 1993 - appropriations for commitment 10

D IV. Appropriations for commitment available in 1993 and their utilization, by sector and by institution 11

D V. Appropriations for payment available in 1993 and their utilization, by sector and by institution 12

D VI. Financial perspective: breakdown of appropriations for commitment available from the 1993 budget and implementation; total appropriations for payment available from the 1993 budget and implementation 13

D VII. The consolidated revenue and expenditure account and the balance calculated for the 1993 financial year 14

D VIII. Payments made in 1993, by sector and by Member State 15

D IX. Evolution and utilization of appropriations for payment for the period 1989-93, by sector 16

D X. Utilization rates of appropriations for payment from 1989 to 1993, by sector 17

D XI. Annual payments during the period 1989-93, by sector and by institution 18

D XII. Estimated and actual revenue in 1993 35

D XIII. Actual own resources in 1993 36

D XIV. Actual own resources, by Member State (1989-93) 37

D XV. EAGGF-Guarantee - payments made in 1993, by market and by Member State 70

D XVI. The Structural Funds: commitments entered into and payments made in 1993, by Member State 161

D XVII. Structural aid - commitments entered into and payments made in 1993, by Member State and by objective 162

D XVIII. Aid to the countries of Central and Eastern Europe - the PHARE and TACIS programmes 220

D XIX. EC loans for the benefit of the countries of Central and Eastern Europe up until 31 December 1993 221

D XX. Basic information on the European Development Funds (EDFs) 286

D XXI. The sixth EDF - allocation, financing and distribution of aid, overall utilization 287

D XXII. The seventh EDF - allocation, financing and distribution of aid, overall utilization 288

D XXIII. The sixth EDF - aid by type and by recipient country 289

D XXIV. The sixth EDF - aid by sector and by recipient country 290

D XXV. The seventh EDF - aid by type and by recipient country 291

D XXVI. The seventh EDF - aid by sector and by recipient country 292

D XXVII. The sixth and seventh EDFs - utilization of aid by economic sector 293

D XXVIII. The seven EDFs - evolution of annual payments (1960-93) 294

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