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INCOME AND EXPENDITURE OF THE EUROPEAN COAL AND STEEL COMMUNITY FROM 1 JANUARY 1978 TO 31 DECEMBER 1978

( All amounts are stated in European units of account )

EXPENDITURE INCOME

A . Servicing of borrowings and guarantees * 352 181 251 * 15 * A . Servicing of loans and guarantees * 374 456 791 * 30

B . Budgetary expenditure : * * B . Levy * 100 775 514 * 54

_ administrative expenditure 5 000 000 . _

_ expenditure for research 32 306 675 * 19 * * C . Other income

_ expenditure for rehabilitation 20 993 860 * 29 * * _ interest from deposits and portfolio 33 781 462 * 93

_ assistance ( Article 56 ) 4 799 674 * 54 * * _ fines and increases for overdue payment 141 424 * 88

_ assistance ( Article 54 ) 3 976 807 * 66 * 67 007 017 * 68 * _ contributions from Member States 28 000 000 . _

* * _ miscellaneous 46 450 * 96 * 61 969 338 * 77

C . Other expenditure :

_ financial expenses * 236 252 * 09

D . Exchange rate adjustments * 10 783 339 * 46

E . Excess of income over expenditure * 106 923 784 * 23

* 537 201 644 * 61 * * 537 201 644 * 61

Note of the Court of Auditors

We have examined the accompanying financial statements comprising the balance sheet of the European Coal and Steel Community at 31 December 1978 and the statement of income and expenditure for the year ended on that date .

Our examination has been carried out in accordance with the provisions of the Treaty of 22 July 1975 , which amended certain financial provisions of the Treaties establishing the European Communities .

On the basis of our examinations , we certify that these financial statements are in accordance with the books and records of the Commission ; in our opinion the balance sheet and the statement of income and expenditure present fairly the financial position of the European Coal and Steel Community at 31 December 1978 and the result of its operations for the year then ended .

Luxembourg , 20 July 1979 .

M . N . MURPHY P . GAUDY

President Member

European Coal and Steel Community

Commission of the European Communities

F . -X . ORTOLI A . NICOLETTI

Vice-President Director-General

of the Commission for Credit and Investments

Significant accounting policies

( a ) European unit of account used for translation of currencies

The ECSC uses the European unit of account ( the EUA ) as the unit of measure for presenting its financial position and results of operations . The EUA was adopted by the Council of the European Communities and has been defined as equal to the sum of the following amounts of the currencies of the Member States :

Deutschmark 0 * 828

Belgian franc 3 * 66

French franc 1 * 15

Italian lira 109 * 00

Luxembourg franc 0 * 14

Dutch guilder 0 * 286

Pound sterling 0 * 0885

Irish pound 0 * 00759

Danish krone 0 * 217

The value of the EUA , in terms of the currencies of the Member States , is determined by the Commission of the European Communities by converting the abovementioned amounts of currencies into the currency concerned on the basis of the official exchange rates prevailing on that currency's national market . The value of the EUA in terms of a non-member currency is determined on the basis of the cross rates of the currency concerned relative to the EUA on a financial market of the Member States that the Commission considers to be representative ; normally , this is the Brussels market .

( b ) The ECSC follows the accrual method of accounting with respect to the collection of levies , interest and other revenues and expenses .

( c ) Currency parity adjustments shown in the income and expenditure account constitute the gain or loss resulting from a revaluation of the net assets of the ECSC using year end exchange rates .

( d ) Investments are stated at cost . A provision for the depreciation of investments to the lower of cost and market value is carried under the heading provision for charges .

Explanatory notes to statement of income and expenditure of the ECSC for the period

1 January 1978 to 31 December 1978

( in European units of account )

Expenditure

A . The expenditure for the servicing of borrowing operations and guarantees totalling 352 181 251 * 15 EUA is broken down as follows :

Interest on funds borrowed 336 235 968 * 71

Miscellaneous 137 940 * 35

Fees to agent banks 3 335 688 * 53

Amortization of recoverable issuing costs 12 471 653 * 56

Income

B . The income on the servicing of loans and guarantees totalling 374 456 791 * 30 EUA is broken down as follows :

Interest on loans 355 391 593 * 72

Interest on available funds borrowed 10 324 175 * 24

Guarantee fees 79 731 * 74

Miscellaneous 8 661 290 * 60

ECU ( 1 ) _ EUROPEAN UNIT OF ACCOUNT ( 2 )

20 March 1980

Currency amount for one unit :

Belgian and Swiss franc 2 * 36972

Luxembourg franc 40 * 5910

Spanish peseta 93 * 4281

German mark 2 * 51185

Swedish krona 5 * 89021

Dutch guilder 2 * 75205

Norwegian krone 6 * 81884

Pound sterling 0 * 612223

Canadian dollar 1 * 58457

Danish krone 7 * 84473

Portuguese escudo 67 * 5619

French franc 5 * 85829 Austrian schilling 18 * 0120

Italian lira 1170 * 71 Finnish markka 5 * 24060

Irish pound 0 * 677835 Japanese yen 334 * 509

United States dollar 1 * 34720 Greek drachma 54 * 6881

The Commission has installed a telex with an automatic answering device which gives the conversion rates in a number of currencies . This service is available every day from 3.30 p.m . until 1 p.m . the following day .

Users of the service should do as follows :

_ call telex number Brussels 23789 ;

_ give their own telex code ;

_ type the code " cccc " which puts the automatic system into operation resulting in the transmission of the conversion rates of the EUA ;

_ the transmission should not be interrupted until the end of the message , which is marked by the code " ffff " .

( 1 ) Council Regulation ( EEC ) No 3180/78 of 18 December 1978 ( OJ No L 379 , 30 . 12 . 1978 , p . 1 ) .

( 2 ) Council Decision 75/250/EEC of 21 April 1975 ( Convention of Lomé ) ( OJ No L 104 , 24 . 4 . 1975 , p . 35 ) .

Commission Decision No 3289/75/ECSC of 18 December 1975 ( OJ No L 327 , 19 . 12 . 1975 , p . 4 ) .

Decisions of the Council of Governors of the European Investment Bank of 18 March 1975 and of 30 December 1977 .

Financial Regulation of 21 December 1977 concerning the general budget of the European Communities ( OJ No L 356 , 31 . 12 . 1977 , p . 1 ) .