COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COURT OF AUDITORS CONSOLIDATED ANNUAL ACCOUNTS OF THE EUROPEAN UNION - FINANCIAL YEAR 2011 /* COM/2012/0436 final */





EUROPEAN UNION CONSOLIDATED REPORTs on IMPLEMENTATION OF THE budgEt AND EXPLANATORY NOTES FINANCIAL YEAR 2011 CONTENTS Page Part II: Consolidated reports on implementation of the budget and explanatory notes Consolidated reports on implementation of the budget: 1. EU Budget outturn 94 2. Statement of Comparison of Budget and Actual Amounts 95 Revenue: 3. Summary of the implementation of budget revenue 97 Expenditure: 4. Breakdown and changes in commitment and payment appropriations by financial framework heading 98 5. Implementation of commitment appropriations by financial framework heading 98 6. Implementation of payment appropriations by financial framework heading 99 7. Movement in commitments outstanding by financial framework heading 100 8. Breakdown of commitments outstanding by year of origin by financial framework heading 100 9. Breakdown and changes in commitment and payment appropriations by policy area 101 10. Implementation of commitment appropriations by policy area 102 11. Implementation of payment appropriations by policy area 103 12. Movement in commitments outstanding by policy area 104 13. Breakdown of commitments outstanding by year of origin by policy area 105 Institutions: 14. Summary of the implementation of budget revenue by Institution 106 15. Implementation of commitment and payment appropriations by Institution 107 Agencies: 16. Agency income: budget forecasts, entitlements and amounts received 108 17. Commitment and payment appropriations by Agency 109 18. Budget outturn including Agencies 110 Explanatory notes to the consolidated reports on implementation of the budget: 1. Budgetary principles, structure and appropriations 112 2. Explanation of the consolidated reports on the implementation of the budget 115 Consolidated reports on the implementation of the budget* * It should be noted that due to the rounding of figures into millions of euros, some financial data in these budgetary tables may appear not to add-up RESULT OF IMPLEMENTATION OF THE EU BUDGET || 1: EU BUDGET OUTTURN || EUR millions EUROPEAN UNION || 2011 || 2010 || Revenue for the financial year || 130 000 || 127 795 || Payments against current year appropriations || (128 043) || (121 213) || Payment appropriations carried over to year N+1 || (1 019) || (2 797) || Cancellation of unused payment appropriations carried over from year N-1 || 457 || 741 || Exchange differences for the year || 97 || 23 || Budget Outturn* || 1 492 || 4 549 || * Of which EFTA amounts total EUR (5) million in 2011 and EUR 9 million in 2010. The budget surplus for the European Union is returned to the Member States during the following year through deduction of their amounts due for that year. 2. Statement of Comparison OF Budget and Actual amounts || REVENUE || || || || || || || || || EUR millions Title || Original Budget || Final Budget || Entitlements established || Revenue || Difference Final-Actual || Receipts as % of budget || Outstanding || 1 || 2 || 3 || 4 || 5=2-4 || 6=4/2 || 7=3-4 1. Own resources || 125 106 || 118 289 || 118 193 || 118 164 || 125 || 99.89% || 29 3. Surpluses, balances and adjustments || 0 || 6 354 || 6 472 || 6 370 || (16) || 100.25% || 102 4. Revenue accruing from persons working with the institutions and with other Union bodies || 1 182 || 1 182 || 1 213 || 1 207 || (25) || 102.12% || 6 5. Revenue accruing from the administrative operation of the institutions || 56 || 56 || 609 || 587 || (531) || 1 048.48% || 22 6. Contributions and refunds in connection with Union/Community agreements and programmes || 30 || 82 || 2 745 || 2 454 || (2 372) || 2 993.28% || 291 7. Interest on late payments and fines || 123 || 733 || 13 943 || 1 183 || (450) || 161.37% || 12 761 8. Borrowing and lending operations || 0 || 0 || 159 || 1 || 0 || || 159 9. Miscellaneous revenue || 30 || 30 || 44 || 34 || (4) || 111.86% || 11 Total || 126 527 || 126 727 || 143 380 || 130 000 || (3 273) || 102.58% || 13 380 || || || || || || || EXPENDITURE – BY FINANCIAL FRAMEWORK HEADING || EUR millions Financial Framework Heading || Original Budget || Final Budget (*) || Payments made || Difference Final-Actual || % || Appropriations carried over || Appropriations lapsing || 1 || 2 || 3 || 4=2-3 || 5=3/2 || 6 || 7=2-3-6 1. Sustainable growth || 53 280 || 56 982 || 54 732 || 2 251 || 96.05% || 2 051 || 199 2. Preservation & management of natural resources || 56 379 || 58 887 || 57 374 || 1 513 || 97.43% || 1 416 || 97 3. Citizenship, freedom, security and justice || 1 459 || 2 008 || 1 827 || 181 || 91.00% || 144 || 37 4. The EU as a global player || 7 238 || 7 366 || 7 102 || 264 || 96.42% || 145 || 118 5. Administration || 8 172 || 9 716 || 8 359 || 1 357 || 86.03% || 1 012 || 345 6. Compensations || || || || || || || Total || 126 527 || 134 960 || 129 395 || 5 565 || 95.88% || 4 768 || 797 * including appropriations carried over and assigned revenue 2. Statement of Comparison OF Budget and Actual amounts Amounts/Expenditure || BY POLICY AREA || EUR millions Policy Area || Original Budget || Final Budget (*) || Payments made || Difference Final-Actual || % || Appropriations carried over || Appropriations lapsing || 1 || 2 || 3 || 4=2-3 || 5=3/2 || 6 || 7=2-3-6 01 Economic and financial affairs || 341 || 443 || 389 || 54 || 87.76% || 9 || 46 02 Enterprise || 1 210 || 1 485 || 1 336 || 149 || 89.99% || 123 || 25 03 Competition || 93 || 104 || 94 || 10 || 90.73% || 9 || 1 04 Employment and social affairs || 9 163 || 10 498 || 10 392 || 106 || 98.99% || 75 || 30 05 Agriculture and rural development || 55 269 || 57 784 || 56 342 || 1 442 || 97.50% || 1 406 || 35 06 Mobility and transport || 1 142 || 1 217 || 1 114 || 103 || 91.53% || 77 || 26 07 Environment and Climate action || 390 || 379 || 332 || 47 || 87.54% || 24 || 23 08 Research || 4 117 || 5 476 || 4 604 || 872 || 84.08% || 861 || 10 09 Information society and media || 1 334 || 1 741 || 1 489 || 252 || 85.51% || 250 || 2 10 Direct research || 396 || 832 || 441 || 391 || 53.01% || 384 || 6 11 Maritime affairs and Fisheries || 771 || 812 || 772 || 40 || 95.08% || 5 || 35 12 Internal market || 93 || 104 || 95 || 9 || 91.52% || 8 || 1 13 Regional policy || 33 317 || 33 052 || 32 995 || 57 || 99.83% || 51 || 5 14 Taxation and customs union || 115 || 133 || 123 || 10 || 92.20% || 9 || 1 15 Education and culture || 1 996 || 2 725 || 2 414 || 310 || 88.62% || 305 || 5 16 Communication || 253 || 279 || 259 || 21 || 92.61% || 17 || 4 17 Health and consumer protection || 596 || 659 || 623 || 37 || 94.40% || 27 || 10 18 Area of freedom, security and justice || 885 || 1 014 || 944 || 70 || 93.10% || 40 || 30 19 External relations || 3 385 || 3 462 || 3 313 || 148 || 95.72% || 66 || 82 20 Trade || 104 || 113 || 104 || 8 || 92.51% || 8 || 1 21 Development and relations with ACP States || 1 480 || 1 583 || 1 513 || 71 || 95.54% || 43 || 27 22 Enlargement || 1 013 || 970 || 928 || 42 || 95.63% || 38 || 4 23 Humanitarian aid || 839 || 1 090 || 1 068 || 22 || 97.96% || 10 || 12 24 Fight against fraud || 75 || 83 || 71 || 12 || 85.96% || 7 || 4 25 Commission's policy coordination & legal advice || 191 || 221 || 197 || 24 || 89.07% || 21 || 4 26 Commission’s administration || 1 017 || 1 274 || 1 063 || 211 || 83.45% || 196 || 15 27 Budget || 69 || 73 || 60 || 13 || 82.01% || 12 || 1 28 Audit || 11 || 13 || 12 || 1 || 91.58% || 1 || 0 29 Statistics || 124 || 159 || 134 || 25 || 84.26% || 19 || 6 30 Pensions and related expenditure || 1 278 || 1 273 || 1 257 || 16 || 98.75% || 0 || 16 31 Language Services || 393 || 501 || 442 || 60 || 88.11% || 56 || 3 32 Energy || 1 535 || 1 087 || 963 || 123 || 88.63% || 44 || 79 40 Reserves || 100 || 0 || 0 || 0 || 0.00% || 0 || 0 90 Other Institutions || 3 428 || 4 321 || 3 512 || 809 || 81.27% || 565 || 245 Total || 126 527 || 134 960 || 129 395 || 5 565 || 95.88% || 4 768 || 797 * including appropriations carried over and assigned revenue 3. SUMMARY OF THE IMPLEMENTATION OF BUDGET REVENUE || || || || || || || || || EUR millions Title || Income appropriations || Entitlements established || Revenue || Receipts as || Outstanding || Initial || Final || Current year || Carried over || Total || On entitlements current year || On entitlements carried over || Total || % of budget || 1. Own resources || 125 106 || 118 289 || 118 111 || 81 || 118 193 || 118 121 || 43 || 118 164 || 99.89% || 29 3. Surpluses, balances and adjustments || 0 || 6 354 || 6 308 || 164 || 6 472 || 6 308 || 62 || 6 370 || 100.25% || 102 4. Revenue accruing from persons working with the institutions & with other EU bodies || 1 182 || 1 182 || 1 206 || 7 || 1 213 || 1 201 || 6 || 1 207 || 102.12% || 6 5. Revenue from administrative operations of institutions || 56 || 56 || 591 || 18 || 609 || 573 || 14 || 587 || 1 048.48% || 22 6. Contributions and refunds in connection with community agreements & programmes || 30 || 82 || 2 470 || 275 || 2 745 || 2 313 || 141 || 2 454 || 2 993.28% || 291 7. Interest on late payments and fines || 123 || 733 || 50 || 13 893 || 13 943 || (172) || 1 355 || 1 183 || 161.37% || 12 761 8. Borrowing and lending operations || 0 || 0 || 37 || 122 || 159 || 1 || 0 || 1 || 195.64% || 159 9. Miscellaneous revenue || 30 || 30 || 34 || 10 || 44 || 30 || 4 || 34 || 111.86% || 11 Total || 126 527 || 126 727 || 128 808 || 14 572 || 143 380 || 128 374 || 1 626 || 130 000 || 102.58% || 13 380 || || || || || || || || || || Detail Title 1: Own resources Chapter || Income appropriations || Entitlements established || Revenue || Receipts as || Outstanding || Initial || Final || Current year || Carried over || Total || On entitlements current year || On entitlements carried over || Total || % of budget || 11. Sugar levies || 123 || 123 || 132 || 0 || 132 || 132 || 0 || 132 || 106.75% || 0 12. Customs duties || 16 654 || 16 544 || 16 593 || 81 || 16 675 || 16 603 || 43 || 16 646 || 100.62% || 29 13. VAT || 13 787 || 14 126 || 14 077 || 0 || 14 077 || 14 077 || 0 || 14 077 || 99.65% || 0 14. GNI || 94 542 || 87 497 || 87 259 || 0 || 87 259 || 87 259 || 0 || 87 259 || 99.73% || 0 15. Correction of budgetary imbalances || 0 || 0 || 52 || 0 || 52 || 52 || 0 || 52 || || 0 16. Reduction GNI-based contributions NL, S || 0 || 0 || (1) || 0 || (1) || (1) || 0 || (1) || || 0 Total || 125 106 || 118 289 || 118 111 || 81 || 118 193 || 118 121 || 43 || 118 164 || 99.89% || 29 || || || || || || || || || || Detail Title 3: Surpluses, balances and adjustments Chapter || Income appropriations || Entitlements established || Revenue || Receipts as || Outstanding || Initial || Final || Current year || Carried over || Total || On entitlements current year || On entitlements carried over || Total || % of budget || 30. Surplus from previous year || 0 || 4 539 || 4 539 || 0 || 4 539 || 4 539 || 0 || 4 539 || 100.00% || 0 31. VAT balances || 0 || 673 || 680 || 37 || 717 || 680 || 14 || 694 || 103.11% || 23 32. GNI balances || 0 || 1 142 || 1 135 || 128 || 1 263 || 1 135 || 48 || 1 183 || 103.64% || 80 34. Adjustment for non-participation in JHAP || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || || 0 35. United Kingdom correction-adjustments || 0 || 0 || (46) || 0 || (46) || (46) || 0 || (46) || || 0 Total || 0 || 6 354 || 6 308 || 164 || 6 472 || 6 308 || 62 || 6 370 || 100.25% || 102 4. Breakdown & changes in commitment & payment appropriations by financial FRAMEWORK HEADING || || || || || || || || || EUR millions || Commitment appropriations || Payment appropriations Financial Framework Heading || Appropriations adopted || Modifications (Transfers & AB || Carried over || Assigned revenue || Total additional || Total authorised || Appropriations adopted || Modifications (Transfers & AB) || Carried over || Assigned revenue || Total additional || Total authorised || 1 || 2 || 3 || 4 || 5=3+4 || 6=1+2+5 || 7 || 8 || 9 || 10 || 11=9+10 || 12=7+8+11 1 Sustainable growth || 64 501 || 3 || 182 || 2 308 || 2 490 || 66 995 || 53 280 || 714 || 281 || 2 707 || 2 989 || 56 982 2 Preservation and management of natural resources || 58 659 || 0 || 2 || 2 680 || 2 682 || 61 341 || 56 379 || (585) || 419 || 2 675 || 3 093 || 58 887 3 Citizenship, freedom, security and justice || 1 822 || 276 || 24 || 169 || 193 || 2 291 || 1 459 || 255 || 98 || 196 || 294 || 2 008 4 The EU as global player || 8 754 || 5 || 42 || 287 || 329 || 9 088 || 7 238 || (184) || 38 || 274 || 313 || 7 366 5 Administration || 8 173 || 0 || 9 || 785 || 794 || 8 967 || 8 172 || 1 || 745 || 799 || 1 544 || 9 716 6 Compensations || || || || || || || || || || || || Total || 141 909 || 284 || 259 || 6 228 || 6 488 || 148 681 || 126 527 || 200 || 1 582 || 6 651 || 8 233 || 134 960 || || || || || || || || || || 5. Implementation of commitment appropriations by financial FRAMEWORK HEADING || || || || || EUR millions Financial Framework Heading || Commitment appropriations authorised || Commitments made || Appropriations carried over || Appropriations lapsing || From the year’s appropriations || From carry-overs || From assigned revenue || Total || % || Assigned revenue || Carry-overs by decision || Total || % || From the year’s budget appropriations || From carry overs || Assigned revenue || Total || % || 1 || 2 || 3 || 4 || 5=2+3+4 || 6=5/1 || 7 || 8 || 9=7+8 || 10=9/1 || 11 || 12 || 13 || 14=11+12+13 || 15=14/1 1 Sustainable growth || 66 995 || 64 065 || 182 || 991 || 65 238 || 97.38% || 1 317 || 36 || 1 353 || 2.02% || 403 || 0 || 0 || 404 || 0.60% 2 Preservation and management of natural resources || 61 341 || 58 577 || 2 || 1 328 || 59 907 || 97.66% || 1 352 || 23 || 1 375 || 2.24% || 59 || 0 || 0 || 59 || 0.10% 3 Citizenship, freedom, security and justice || 2 291 || 2 048 || 24 || 92 || 2 165 || 94.50% || 76 || 41 || 117 || 5.12% || 9 || 0 || 0 || 9 || 0.38% 4 The EU as a global player || 9 088 || 8 572 || 42 || 194 || 8 808 || 96.91% || 94 || 178 || 272 || 2.99% || 8 || 0 || 0 || 8 || 0.09% 5 Administration || 8 967 || 7 941 || 9 || 504 || 8 454 || 94.28% || 281 || 22 || 303 || 3.38% || 210 || 0 || 0 || 210 || 2.34% 6 Compensations || || || || || || || || || || || || || || || Total || 148 681 || 141 204 || 259 || 3 108 || 144 572 || 97.24% || 3 120 || 301 || 3 420 || 2.30% || 689 || 0 || 0 || 689 || 0.46% 6. Implementation of payment appropriations by financial FRAMEWORK HEADING || || || || || || || || || || || || || || EUR millions Financial Framework Heading || Payment Approp-riations authorised || Payments made || Appropriations carried over || Appropriations lapsing From the year’s appropriations || From carry-overs || From assigned revenue || Total || % || Automatic carry-overs || Carry-overs by decision || Assigned revenue || Total || % || From the year’s appropriations || From carryovers || Assigned revenue || Total || % || 1 || 2 || 3 || 4 || 5=2+3+4 || 6=5/1 || 7 || 8 || 9 || 10=7+8+9 || 11=10/1 || 12 || 13 || 14 || 15=12+ 13+14 || 16= 15/1 1 Sustainable growth || 56 982 || 53 658 || 235 || 839 || 54 732 || 96.05% || 131 || 53 || 1 868 || 2 051 || 3.60% || 153 || 47 || 0 || 199 || 0.35% 2 Preservation & management of natural resources || 58 887 || 55 646 || 391 || 1 337 || 57 374 || 97.43% || 32 || 46 || 1 338 || 1 416 || 2.40% || 70 || 27 || 0 || 97 || 0.16% 3 Citizenship, freedom, security & justice || 2 008 || 1 636 || 92 || 99 || 1 827 || 91.00% || 9 || 38 || 97 || 144 || 7.17% || 31 || 6 || 0 || 37 || 1.83% 4 The EU as a global player || 7 366 || 6 902 || 19 || 181 || 7 102 || 96.42% || 27 || 25 || 93 || 145 || 1.97% || 99 || 19 || 0 || 118 || 1.61% 5 Administration || 9 716 || 7 304 || 614 || 442 || 8 359 || 86.03% || 637 || 22 || 352 || 1 012 || 10.41% || 209 || 131 || 5 || 345 || 3.55% 6 Compensations || || || || || || || || || || || || || || || || Total || 134 960 || 125 145 || 1 352 || 2 898 || 129 395 || 95.88% || 835 || 185 || 3 748 || 4 768 || 3.53% || 562 || 230 || 5 || 797 || 0.59% 7. MOVEMENTs IN COMMITMENTS OUTSTANDING - BY FINANCIAL FRAMEWORK HEADING || || || || || || || || || EUR millions || Commitments outstanding at the end of the previous year || Commitments of the year || Financial Framework Heading || Commitments carried forward from previous year || Decommitments /Revaluations/ Cancellations || Payments || Commitments outstanding at year-end || Commitments made during the year || Payments || Cancellation of commitments which cannot be carried over || Commitments outstanding at year-end || Total Commitments outstanding at year-end 1 Sustainable growth || 150 467 || (1 262) || (48 945) || 100 259 || 65 238 || (5 786) || (3) || 59 448 || 159 707 2 Preservation and management of natural resources || 22 963 || (193) || (11 687) || 11 083 || 59 907 || (45 687) || 0 || 14 220 || 25 302 3 Citizenship, freedom, security and justice || 1 911 || (118) || (555) || 1 237 || 2 165 || (1 272) || 0 || 893 || 2 130 4 The EU as a global player || 18 332 || (469) || (4 740) || 13 123 || 8 808 || (2 363) || (1) || 6 444 || 19 567 5 Administration || 722 || (77) || (631) || 14 || 8 454 || (7 728) || (4) || 722 || 737 6 Compensations || || || || || || || || || Total || 194 395 || (2 120) || (66 559) || 125 717 || 144 572 || (62 836) || (9) || 81 727 || 207 443 8. breakdown of commitments outstanding by year of origin - BY FINANCIAL FRAMEWORK HEADING || || || || || || || || || EUR millions || Financial Framework Heading || <2005 || 2005 || 2006 || 2007 || 2008 || 2009 || 2010 || 2011 || Total 1 Sustainable growth || 820 || 998 || 10 089 || 984 || 7 997 || 29 501 || 49 870 || 59 448 || 159 707 2 Preservation & management of natural resources || 42 || 32 || 928 || 91 || 180 || 1 237 || 8 573 || 14 220 || 25 302 3 Citizenship, freedom, security and justice || 16 || 14 || 21 || 80 || 172 || 401 || 534 || 893 || 2 130 4 The EU as a global player || 783 || 357 || 986 || 1 093 || 2 097 || 3 180 || 4 627 || 6 444 || 19 567 5 Administration || 0 || 0 || 0 || 0 || 0 || 0 || 14 || 722 || 737 Total || 1 661 || 1 401 || 12 024 || 2 247 || 10 446 || 34 319 || 63 618 || 81 727 || 207 443 9. Breakdown and changes in commitment and payment appropriations by Policy Area || || EUR millions || Commitment appropriations || Payment appropriations Policy Area || Approps adopted || Modifications (Transfer /AB) || Carried over || Assigned revenue || Total additional || Total authorised || Approps adopted || Modifications (Transfer/ AB) || Carried over || Assigned revenue || Total additional || Total authorised || 1 || 2 || 3 || 4 || 5=3+4 || 6=1+2+5 || 7 || 8 || 9 || 10 || 11=9+10 || 12=7+8+11 01 Economic and financial affairs || 524 || (122) || 0 || 13 || 13 || 416 || 341 || 26 || 54 || 22 || 76 || 443 02 Enterprise || 1 056 || (1) || 0 || 119 || 119 || 1 174 || 1 210 || 95 || 33 || 146 || 180 || 1 485 03 Competition || 93 || (2) || 0 || 5 || 5 || 96 || 93 || (2) || 8 || 5 || 13 || 104 04 Employment and social affairs || 11 398 || 255 || 19 || 16 || 35 || 11 689 || 9 163 || 1 283 || 36 || 15 || 51 || 10 498 05 Agriculture and rural development || 57 292 || 0 || 0 || 2 667 || 2 667 || 59 960 || 55 269 || (510) || 357 || 2 667 || 3 024 || 57 784 06 Mobility and transport || 1 547 || 1 || 0 || 115 || 115 || 1 663 || 1 142 || (110) || 66 || 119 || 185 || 1 217 07 Environment and Climate action || 471 || 0 || 0 || 21 || 21 || 492 || 390 || (44) || 17 || 16 || 33 || 379 08 Research || 5 335 || 0 || 0 || 849 || 849 || 6 184 || 4 117 || 130 || 29 || 1 199 || 1 228 || 5 476 09 Information society and media || 1 539 || (3) || 0 || 248 || 248 || 1 784 || 1 334 || 101 || 17 || 289 || 305 || 1 741 10 Direct research || 395 || 0 || 0 || 484 || 484 || 879 || 396 || (7) || 39 || 403 || 443 || 832 11 Maritime affairs and Fisheries || 1 001 || 23 || 2 || 2 || 4 || 1 028 || 771 || 0 || 38 || 2 || 40 || 812 12 Internal market || 95 || 2 || 0 || 3 || 3 || 100 || 93 || 2 || 6 || 3 || 9 || 104 13 Regional policy || 40 383 || 141 || 21 || 4 || 25 || 40 549 || 33 317 || (346) || 77 || 4 || 81 || 33 052 14 Taxation and customs union || 142 || (3) || 0 || 4 || 4 || 143 || 115 || 6 || 8 || 4 || 12 || 133 15 Education and culture || 2 429 || (6) || 0 || 514 || 514 || 2 937 || 1 996 || 145 || 20 || 563 || 583 || 2 725 16 Communication || 273 || 1 || 0 || 6 || 6 || 280 || 253 || 8 || 13 || 5 || 18 || 279 17 Health and consumer protection || 692 || (23) || 0 || 36 || 36 || 705 || 596 || (8) || 35 || 36 || 71 || 659 18 Area of freedom, security and justice || 1 210 || 42 || 24 || 62 || 86 || 1 339 || 885 || 24 || 31 || 75 || 106 || 1 014 19 External relations || 4 315 || 45 || 31 || 118 || 149 || 4 508 || 3 385 || (75) || 43 || 109 || 152 || 3 462 20 Trade || 105 || 0 || 0 || 3 || 3 || 109 || 104 || 0 || 5 || 3 || 8 || 113 21 Development & relations ACP States || 1 542 || 81 || 6 || 121 || 127 || 1 749 || 1 480 || (47) || 31 || 119 || 150 || 1 583 22 Enlargement || 1 123 || (5) || 0 || 44 || 44 || 1 163 || 1 013 || (94) || 7 || 44 || 52 || 970 23 Humanitarian aid || 878 || 256 || 0 || 14 || 14 || 1 149 || 839 || 234 || 5 || 12 || 17 || 1 090 24 Fight against fraud || 82 || 0 || 0 || 0 || 0 || 81 || 75 || 1 || 7 || 0 || 7 || 83 25 Commission’s policy coordination and legal advice || 191 || 2 || 0 || 10 || 10 || 203 || 191 || 2 || 18 || 10 || 28 || 221 26 Commission’s administration || 1 019 || 4 || 0 || 108 || 108 || 1 131 || 1 017 || 10 || 134 || 112 || 246 || 1 274 27 Budget || 69 || (12) || 0 || 6 || 6 || 64 || 69 || (12) || 8 || 6 || 15 || 73 28 Audit || 11 || 0 || 0 || 1 || 1 || 12 || 11 || 0 || 1 || 1 || 2 || 13 29 Statistics || 145 || (5) || 0 || 17 || 17 || 157 || 124 || 10 || 7 || 18 || 25 || 159 30 Pensions and related expenditure || 1 278 || (5) || 0 || 0 || 0 || 1 273 || 1 278 || (5) || 0 || 0 || 0 || 1 273 31 Language Services || 393 || (2) || 0 || 83 || 83 || 474 || 393 || (2) || 28 || 83 || 110 || 501 32 Energy || 700 || 1 || 146 || 42 || 188 || 889 || 1 535 || (518) || 15 || 54 || 70 || 1 087 40 Reserves || 754 || (383) || 0 || 0 || 0 || 371 || 100 || (100) || 0 || 0 || 0 || 0 90 Other Institutions || 3 428 || 0 || 9 || 493 || 502 || 3 930 || 3 428 || 0 || 388 || 504 || 893 || 4 321 Total || 141 909 || 284 || 259 || 6 228 || 6 488 || 148 681 || 126 527 || 200 || 1 582 || 6 651 || 8 233 || 134 960 10. Implementation of commitment appropriations by Policy Area EUR millions || Policy Area || Commitment appropriations authorised || Commitments made || Appropriations carried over || Appropriations lapsing From the year’s approps || From carry-overs || Assigned revenue || Total || % || Assigned revenue || Carry-overs: decision || Total || % || From year’s budget approps || From carry-overs || Assigned revenue || Total || % || 1 || 2 || 3 || 4 || 5=2+3+4 || 6=5/1 || 7 || 8 || 9=7+8 || 10=9/1 || 11 || 12 || 13 || 14=11+12+13 || 15=14/1 01 Economic and financial affairs || 416 || 403 || 0 || 11 || 414 || 99.55% || 2 || 0 || 2 || 0.41% || 0 || 0 || 0 || 0 || 0.05% 02 Enterprise || 1 174 || 1 053 || 0 || 61 || 1 113 || 94.87% || 58 || 0 || 58 || 4.94% || 2 || 0 || 0 || 2 || 0.19% 03 Competition || 96 || 91 || 0 || 3 || 94 || 97.65% || 2 || 0 || 2 || 2.28% || 0 || 0 || 0 || 0 || 0.07% 04 Employment and social affairs || 11 689 || 11 612 || 19 || 7 || 11 638 || 99.57% || 9 || 34 || 42 || 0.36% || 8 || 0 || 0 || 8 || 0.07% 05 Agriculture and rural development || 59 960 || 57 257 || 0 || 1 322 || 58 579 || 97.70% || 1 345 || 0 || 1 345 || 2.24% || 36 || 0 || 0 || 36 || 0.06% 06 Mobility and transport || 1 663 || 1 545 || 0 || 64 || 1 609 || 96.79% || 51 || 0 || 51 || 3.08% || 2 || 0 || 0 || 2 || 0.12% 07 Environment & Climate action || 492 || 466 || 0 || 11 || 478 || 97.08% || 10 || 0 || 10 || 2.02% || 4 || 0 || 0 || 4 || 0.90% 08 Research || 6 184 || 5 334 || 0 || 396 || 5 730 || 92.67% || 453 || 0 || 453 || 7.33% || 0 || 0 || 0 || 0 || 0.01% 09 Information society and media || 1 784 || 1 535 || 0 || 102 || 1 637 || 91.75% || 146 || 0 || 146 || 8.21% || 1 || 0 || 0 || 1 || 0.04% 10 Direct research || 879 || 395 || 0 || 79 || 474 || 53.90% || 405 || 0 || 405 || 46.09% || 0 || 0 || 0 || 0 || 0.01% 11 Maritime affairs and Fisheries || 1 028 || 996 || 2 || 1 || 999 || 97.13% || 1 || 23 || 24 || 2.35% || 5 || 0 || 0 || 5 || 0.51% 12 Internal market || 100 || 96 || 0 || 2 || 98 || 98.21% || 1 || 0 || 1 || 1.47% || 0 || 0 || 0 || 0 || 0.32% 13 Regional policy || 40 549 || 40 472 || 21 || 2 || 40 495 || 99.87% || 2 || 40 || 41 || 0.10% || 12 || 0 || 0 || 12 || 0.03% 14 Taxation and customs union || 143 || 139 || 0 || 2 || 141 || 98.01% || 3 || 0 || 3 || 1.78% || 0 || 0 || 0 || 0 || 0.21% 15 Education and culture || 2 937 || 2 422 || 0 || 297 || 2 720 || 92.58% || 217 || 0 || 217 || 7.40% || 0 || 0 || 0 || 0 || 0.02% 16 Communication || 280 || 271 || 0 || 3 || 274 || 97.71% || 3 || 0 || 3 || 0.96% || 4 || 0 || 0 || 4 || 1.32% 17 Health & consumer protection || 705 || 653 || 0 || 21 || 674 || 95.61% || 15 || 0 || 15 || 2.12% || 16 || 0 || 0 || 16 || 2.27% 18 Freedom, security and justice || 1 339 || 1 244 || 24 || 40 || 1 308 || 97.74% || 22 || 3 || 25 || 1.86% || 5 || 0 || 0 || 5 || 0.40% 19 External relations || 4 508 || 4 312 || 31 || 72 || 4 415 || 97.93% || 46 || 44 || 90 || 2.00% || 3 || 0 || 0 || 3 || 0.07% 20 Trade || 109 || 105 || 0 || 2 || 106 || 98.01% || 1 || 0 || 1 || 1.22% || 1 || 0 || 0 || 1 || 0.77% 21 Development & relations ACP || 1 749 || 1 495 || 6 || 111 || 1 612 || 92.16% || 10 || 127 || 136 || 7.80% || 1 || 0 || 0 || 1 || 0.04% 22 Enlargement || 1 163 || 1 110 || 0 || 9 || 1 119 || 96.29% || 35 || 8 || 43 || 3.70% || 0 || 0 || 0 || 0 || 0.01% 23 Humanitarian aid || 1 149 || 1 131 || 0 || 8 || 1 139 || 99.19% || 6 || 0 || 6 || 0.55% || 3 || 0 || 0 || 3 || 0.26% 24 Fight against fraud || 81 || 77 || 0 || 0 || 77 || 95.16% || 0 || 0 || 0 || 0.02% || 4 || 0 || 0 || 4 || 4.82% 25 Policy coord and legal advice || 203 || 193 || 0 || 5 || 198 || 97.72% || 4 || 0 || 4 || 2.09% || 0 || 0 || 0 || 0 || 0.20% 26 Commission’s administration || 1 131 || 1 020 || 0 || 61 || 1 081 || 95.61% || 47 || 0 || 47 || 4.16% || 3 || 0 || 0 || 3 || 0.23% 27 Budget || 64 || 57 || 0 || 4 || 61 || 94.91% || 3 || 0 || 3 || 4.17% || 1 || 0 || 0 || 1 || 0.92% 28 Audit || 12 || 11 || 0 || 0 || 12 || 96.94% || 0 || 0 || 0 || 2.74% || 0 || 0 || 0 || 0 || 0.32% 29 Statistics || 157 || 137 || 0 || 9 || 146 || 93.06% || 7 || 0 || 7 || 4.58% || 4 || 0 || 0 || 4 || 2.37% 30 Pensions +related expenditure || 1 273 || 1 257 || 0 || 0 || 1 257 || 98.75% || 0 || 0 || 0 || 0.00% || 16 || 0 || 0 || 16 || 1.25% 31 Language Services || 474 || 390 || 0 || 50 || 440 || 92.98% || 33 || 0 || 33 || 6.89% || 1 || 0 || 0 || 1 || 0.13% 32 Energy || 889 || 698 || 146 || 16 || 860 || 96.75% || 26 || 0 || 26 || 2.96% || 3 || 0 || 0 || 3 || 0.29% 40 Reserves || 371 || 0 || 0 || 0 || 0 || 0.00% || 0 || 0 || 0 || 0.00% || 371 || 0 || 0 || 371 || 100.00% 90 Other Institutions || 3 930 || 3 225 || 9 || 336 || 3 570 || 90.83% || 156 || 22 || 178 || 4.53% || 182 || 0 || 0 || 182 || 4.64% Total || 148 681 || 141 204 || 259 || 3 108 || 144 572 || 97.24% || 3 120 || 301 || 3 420 || 2.30% || 689 || 0 || 0 || 689 || 0.46% 11. Implementation of payment appropriations by budget Policy Area || || || || || || || || || EUR millions Policy Area || Payment Appro-priations authorised || Payments made || Appropriations carried over || Appropriations lapsing || From the year's approps || From carry-overs || Assigned revenue || Total || % || Automatic carry-overs || Carry-overs by decision || Assigned revenue || Total || % || From the year's approps || From carry-overs || Assigned revenue || Total || % || 1 || 2 || 3 || 4 || 5=2+3+4 || 6=5/1 || 7 || 8 || 9 || 10=7+8+9 || 11=10/1 || 12 || 13 || 14 || 15=12+13+14 || 16=15/1 01 Economic and financial affairs || 443 || 330 || 40 || 20 || 389 || 87.76% || 6 || 0 || 2 || 9 || 1.92% || 31 || 14 || 0 || 46 || 10.32% 02 Enterprise || 1 485 || 1 271 || 22 || 43 || 1 336 || 89.99% || 20 || 0 || 103 || 123 || 8.29% || 14 || 12 || 0 || 25 || 1.71% 03 Competition || 104 || 85 || 7 || 2 || 94 || 90.73% || 6 || 0 || 3 || 9 || 8.53% || 0 || 1 || 0 || 1 || 0.74% 04 Employment and social affairs || 10 498 || 10 354 || 32 || 7 || 10 392 || 98.99% || 17 || 50 || 8 || 75 || 0.72% || 26 || 4 || 0 || 30 || 0.29% 05 Agriculture & rural development || 57 784 || 54 663 || 349 || 1 330 || 56 342 || 97.50% || 25 || 45 || 1 337 || 1 406 || 2.43% || 27 || 8 || 0 || 35 || 0.06% 06 Mobility and transport || 1 217 || 1 001 || 64 || 48 || 1 114 || 91.53% || 6 || 0 || 71 || 77 || 6.33% || 25 || 1 || 0 || 26 || 2.15% 07 Environment & Climate action || 379 || 307 || 14 || 10 || 332 || 87.54% || 18 || 0 || 6 || 24 || 6.33% || 21 || 2 || 0 || 23 || 6.13% 08 Research || 5 476 || 4 217 || 23 || 364 || 4 604 || 84.08% || 26 || 0 || 835 || 861 || 15.73% || 4 || 7 || 0 || 10 || 0.19% 09 Information society and media || 1 741 || 1 422 || 15 || 52 || 1 489 || 85.51% || 13 || 0 || 236 || 250 || 14.35% || 1 || 2 || 0 || 2 || 0.14% 10 Direct research || 832 || 343 || 35 || 63 || 441 || 53.01% || 44 || 0 || 341 || 384 || 46.22% || 2 || 4 || 0 || 6 || 0.77% 11 Maritime affairs and Fisheries || 812 || 750 || 21 || 1 || 772 || 95.08% || 3 || 1 || 1 || 5 || 0.64% || 18 || 17 || 0 || 35 || 4.28% 12 Internal market || 104 || 89 || 5 || 1 || 95 || 91.52% || 6 || 0 || 2 || 8 || 7.56% || 0 || 1 || 0 || 1 || 0.92% 13 Regional policy || 33 052 || 32 917 || 76 || 2 || 32 995 || 99.83% || 11 || 38 || 2 || 51 || 0.16% || 4 || 1 || 0 || 5 || 0.02% 14 Taxation and customs union || 133 || 114 || 7 || 1 || 123 || 92.20% || 7 || 0 || 3 || 9 || 7.03% || 0 || 1 || 0 || 1 || 0.77% 15 Education and culture || 2 725 || 2 126 || 15 || 273 || 2 414 || 88.62% || 15 || 0 || 290 || 305 || 11.21% || 0 || 5 || 0 || 5 || 0.18% 16 Communication || 279 || 246 || 11 || 2 || 259 || 92.61% || 14 || 0 || 3 || 17 || 6.09% || 2 || 2 || 0 || 4 || 1.30% 17 Health and consumer protection || 659 || 572 || 31 || 20 || 623 || 94.40% || 11 || 0 || 16 || 27 || 4.07% || 5 || 5 || 0 || 10 || 1.53% 18 Freedom, security and justice || 1 014 || 876 || 25 || 43 || 944 || 93.10% || 8 || 0 || 31 || 40 || 3.95% || 24 || 6 || 0 || 30 || 2.95% 19 External relations || 3 462 || 3 243 || 12 || 59 || 3 313 || 95.72% || 10 || 6 || 50 || 66 || 1.91% || 51 || 32 || 0 || 82 || 2.37% 20 Trade || 113 || 99 || 4 || 1 || 104 || 92.51% || 4 || 2 || 2 || 8 || 6.69% || 0 || 1 || 0 || 1 || 0.80% 21 Development and relations ACP || 1 583 || 1 393 || 11 || 108 || 1 513 || 95.54% || 16 || 17 || 11 || 43 || 2.73% || 7 || 20 || 0 || 27 || 1.74% 22 Enlargement || 970 || 914 || 3 || 10 || 928 || 95.63% || 4 || 0 || 34 || 38 || 3.95% || 0 || 4 || 0 || 4 || 0.43% 23 Humanitarian aid || 1 090 || 1 054 || 5 || 9 || 1 068 || 97.96% || 6 || 0 || 3 || 10 || 0.90% || 12 || 0 || 0 || 12 || 1.14% 24 Fight against fraud || 83 || 66 || 5 || 0 || 71 || 85.96% || 6 || 1 || 0 || 7 || 8.93% || 3 || 2 || 0 || 4 || 5.11% 25 Commission’s policy coordination and legal advice || 221 || 178 || 15 || 4 || 197 || 89.07% || 15 || 0 || 5 || 21 || 9.28% || 0 || 3 || 0 || 4 || 1.65% 26 Commission’s administration || 1 274 || 893 || 122 || 47 || 1 063 || 83.45% || 130 || 2 || 65 || 196 || 15.37% || 3 || 12 || 0 || 15 || 1.18% 27 Budget || 73 || 49 || 8 || 3 || 60 || 82.01% || 8 || 0 || 4 || 12 || 16.29% || 1 || 1 || 0 || 1 || 1.71% 28 Audit || 13 || 11 || 1 || 0 || 12 || 91.58% || 1 || 0 || 0 || 1 || 7.29% || 0 || 0 || 0 || 0 || 1.13% 29 Statistics || 159 || 125 || 5 || 4 || 134 || 84.26% || 5 || 0 || 14 || 19 || 12.19% || 4 || 2 || 0 || 6 || 3.55% 30 Pensions and related expenses || 1 273 || 1 257 || 0 || 0 || 1 257 || 98.75% || 0 || 0 || 0 || 0 || 0.00% || 16 || 0 || 0 || 16 || 1.25% 31 Language Services || 501 || 373 || 25 || 43 || 442 || 88.11% || 17 || 0 || 39 || 56 || 11.23% || 1 || 3 || 0 || 3 || 0.67% 32 Energy || 1 087 || 934 || 14 || 16 || 963 || 88.63% || 6 || 0 || 39 || 44 || 4.08% || 78 || 2 || 0 || 79 || 7.28% 40 Reserves || 0 || 0 || 0 || 0 || 0 || 0.00% || 0 || 0 || 0 || 0 || 0.00% || 0 || 0 || 0 || 0 || 0.00% 90 Other Institutions || 4 321 || 2 873 || 330 || 308 || 3 512 || 81.27% || 351 || 22 || 192 || 565 || 13.07% || 182 || 58 || 5 || 245 || 5.66% Total || 134 960 || 125 145 || 1 352 || 2 898 || 129 395 || 95.88% || 835 || 185 || 3 748 || 4 768 || 3.53% || 562 || 230 || 5 || 797 || 0.59% 12. MOVEMENTs IN COMMITMENTS OUTSTANDING BY POLICY AREA || EUR millions || || Commitments outstanding at end of the previous year || Commitments of the year || Policy Area || Commitments carried forward from previous year || Decommitments /Revaluations/Cancellations || Payments || Commitments outstanding at year-end || Commitments made during the year || Payments || Cancellation commitments which cannot be carried over || Commitments outstanding at year-end || Total commitments outstanding at year-end 01 Economic & financial affairs || 581 || (24) || (175) || 382 || 414 || (214) || 0 || 200 || 582 02 Enterprise || 2 414 || (36) || (963) || 1 415 || 1 113 || (373) || 0 || 740 || 2 155 03 Competition || 8 || (1) || (7) || 0 || 94 || (87) || 0 || 7 || 7 04 Employment & social affairs || 28 673 || (250) || (9 999) || 18 424 || 11 638 || (394) || 0 || 11 245 || 29 669 05 Agriculture rural development || 20 197 || (76) || (10 833) || 9 288 || 58 579 || (45 509) || 0 || 13 070 || 22 358 06 Mobility and transport || 2 468 || (154) || (894) || 1 420 || 1 609 || (220) || 0 || 1 389 || 2 809 07 Environment & Climate action || 783 || (30) || (199) || 554 || 478 || (133) || 0 || 344 || 898 08 Research || 8 222 || (147) || (2 910) || 5 165 || 5 730 || (1 694) || (2) || 4 035 || 9 200 09 Information society & media || 2 157 || (35) || (767) || 1 355 || 1 637 || (722) || 0 || 914 || 2 269 10 Direct research || 163 || (12) || (93) || 58 || 474 || (348) || 0 || 125 || 184 11 Maritime affairs and Fisheries || 1 877 || (42) || (521) || 1 314 || 999 || (251) || 0 || 748 || 2 062 12 Internal market || 20 || (1) || (16) || 3 || 98 || (80) || 0 || 19 || 22 13 Regional policy || 101 474 || (561) || (31 994) || 68 919 || 40 495 || (1 001) || 0 || 39 494 || 108 413 14 Taxation and customs union || 76 || (2) || (51) || 22 || 141 || (71) || 0 || 69 || 92 15 Education and culture || 1 698 || (82) || (707) || 909 || 2 720 || (1 708) || 0 || 1 012 || 1 921 16 Communication || 123 || (16) || (83) || 24 || 274 || (176) || 0 || 98 || 122 17 Health and consumer protection || 724 || (58) || (312) || 355 || 674 || (311) || 0 || 363 || 718 18 Freedom, security & justice || 1 282 || (51) || (267) || 964 || 1 308 || (678) || 0 || 631 || 1 595 19 External relations || 9 380 || (249) || (2 229) || 6 901 || 4 415 || (1 085) || 0 || 3 330 || 10 232 20 Trade || 19 || (1) || (12) || 6 || 106 || (93) || 0 || 13 || 20 21 Development/relations ACP || 3 276 || (94) || (971) || 2 211 || 1 612 || (542) || 0 || 1 070 || 3 281 22 Enlargement || 2 766 || (93) || (766) || 1 907 || 1 119 || (162) || 0 || 957 || 2 864 23 Humanitarian aid || 621 || (24) || (369) || 229 || 1 139 || (699) || 0 || 441 || 670 24 Fight against fraud || 32 || (4) || (16) || 12 || 77 || (56) || 0 || 22 || 34 25 Commission's policy coordination & legal advice || 20 || (3) || (17) || 1 || 198 || (180) || 0 || 18 || 19 26 Commission’s administration || 179 || (14) || (156) || 10 || 1 081 || (907) || 0 || 174 || 184 27 Budget || 8 || (1) || (8) || 0 || 61 || (52) || 0 || 9 || 9 28 Audit || 1 || 0 || (1) || 0 || 12 || (11) || 0 || 1 || 1 29 Statistics || 108 || (5) || (50) || 53 || 146 || (84) || 0 || 62 || 115 30 Pensions & related expenditure || 0 || 0 || 0 || 0 || 1 257 || (1257) || 0 || 0 || 0 31 Language Services || 28 || (3) || (25) || 0 || 440 || (417) || 0 || 24 || 24 32 Energy || 4 672 || (47) || (820) || 3 805 || 860 || (143) || 0 || 717 || 4 522 90 Other Institutions || 344 || (2) || (330) || 12 || 3 570 || (3 181) || (3) || 385 || 397 Total || 194 395 || (2 120) || (66 559) || 125 717 || 144 572 || (62 836) || (9) || 81 727 || 207 443 13. breakdown of commitments outstanding by year of origin BY POLICY AREA || || || || || || || || || EUR millions || Policy Area || <2005 || 2005 || 2006 || 2007 || 2008 || 2009 || 2010 || 2011 || Total 01 Economic and financial affairs || 0 || 11 || 43 || 10 || 5 || 113 || 200 || 200 || 582 02 Enterprise || 9 || 9 || 10 || 27 || 179 || 222 || 959 || 740 || 2 155 03 Competition || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 7 || 7 04 Employment and social affairs || 109 || 333 || 2 029 || 62 || 984 || 5 209 || 9 697 || 11 245 || 29 669 05 Agriculture and rural development || 6 || 1 || 631 || 0 || 30 || 828 || 7 790 || 13 070 || 22 358 06 Mobility and transport || 24 || 21 || 45 || 161 || 152 || 400 || 618 || 1 389 || 2 809 07 Environment & Climate action || 3 || 13 || 23 || 78 || 111 || 156 || 172 || 344 || 898 08 Research || 157 || 96 || 204 || 370 || 736 || 1 413 || 2 189 || 4 035 || 9 200 09 Information society and media || 12 || 13 || 20 || 75 || 196 || 363 || 676 || 914 || 2 269 10 Direct research || 0 || 1 || 5 || 2 || 11 || 15 || 24 || 125 || 184 11 Maritime affairs and Fisheries || 33 || 18 || 275 || 10 || 28 || 302 || 649 || 748 || 2 062 12 Internal market || 0 || 0 || 0 || 0 || 0 || 0 || 3 || 19 || 22 13 Regional policy || 681 || 579 || 8 004 || 159 || 5 532 || 20 317 || 33 647 || 39 494 || 108 413 14 Taxation and customs union || 0 || 0 || 0 || 0 || 2 || 5 || 16 || 69 || 92 15 Education and culture || 4 || 3 || 4 || 78 || 177 || 238 || 405 || 1 012 || 1 921 16 Communication || 0 || 0 || 0 || 0 || 1 || 3 || 20 || 98 || 122 17 Health and consumer protection || 11 || 2 || 10 || 14 || 50 || 92 || 175 || 363 || 718 18 Area of freedom, security and justice || 1 || 9 || 7 || 57 || 142 || 345 || 403 || 631 || 1 595 19 External relations || 406 || 135 || 421 || 750 || 1 149 || 1 658 || 2 382 || 3 330 || 10 232 20 Trade || 0 || 0 || 0 || 0 || 0 || 2 || 4 || 13 || 20 21 Development and relations ACP States || 118 || 87 || 118 || 145 || 344 || 586 || 812 || 1 070 || 3 281 22 Enlargement || 45 || 42 || 116 || 185 || 385 || 453 || 682 || 957 || 2 864 23 Humanitarian aid || 0 || 0 || 1 || 2 || 12 || 41 || 172 || 441 || 670 24 Fight against fraud || 0 || 0 || 0 || 1 || 1 || 3 || 6 || 22 || 34 25 Commission's policy coordination & legal advice || 0 || 0 || 0 || 0 || 0 || 0 || 1 || 18 || 19 26 Commission’s administration || 0 || 0 || 0 || 0 || 1 || 0 || 9 || 174 || 184 27 Budget || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 9 || 9 28 Audit || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 1 || 1 29 Statistics || 2 || 1 || 3 || 3 || 2 || 10 || 31 || 62 || 115 30 Pensions and related expenditure || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 0 31 Language Services || 0 || 0 || 0 || 0 || 0 || 0 || 0 || 24 || 24 32 Energy || 42 || 28 || 56 || 55 || 216 || 1 545 || 1 863 || 717 || 4 522 90 Other Institutions || 0 || 0 || 0 || 0 || 0 || 0 || 12 || 385 || 397 Total || 1 661 || 1 401 || 12 024 || 2 247 || 10 446 || 34 319 || 63 618 || 81 727 || 207 443 14. SUMMARY OF THE IMPLEMENTATION OF BUDGET REVENUE BY INSTITUTION || || || || || || || || || EUR millions Institution || Income appropriations || Entitlements established || Revenue || Receipts as || Outstanding || Initial || Final || Current year || Carried || Total || On entitlements of current year || On entitlements Carried || Total || % of budget || European Parliament || 125 || 125 || 170 || 29 || 200 || 169 || 4 || 173 || 139.02% || 26 European Council and Council || 49 || 49 || 121 || 8 || 129 || 111 || 7 || 118 || 240.35% || 11 Commission || 126 236 || 126 436 || 128 119 || 14 535 || 142 654 || 127 697 || 1 615 || 129 312 || 102.27% || 13 342 Court of Justice || 44 || 44 || 45 || 0 || 45 || 44 || 0 || 44 || 102.26% || 0 Court of Auditors || 21 || 21 || 20 || 0 || 20 || 20 || 0 || 20 || 94.14% || 0 Economic and Social Committee || 11 || 11 || 16 || 0 || 16 || 16 || 0 || 16 || 138.47% || 0 Committee of the Regions || 8 || 8 || 21 || 0 || 21 || 21 || 0 || 21 || 262.06% || 0 Ombudsman || 1 || 1 || 1 || 0 || 1 || 1 || 0 || 1 || 99.52% || 0 European Data Protection Supervisor || 1 || 1 || 1 || 0 || 1 || 1 || 0 || 1 || 69.15% || 0 European External Action Service || 32 || 32 || 295 || 0 || 295 || 295 || 0 || 295 || 917.61% || 0 Total || 126 527 || 126 727 || 128 808 || 14 572 || 143 380 || 128 374 || 1 626 || 130 000 || 102.58% || 13 380 15. Implementation of commitment and payment appropriations by Institution || Commitment appropriations || || || || || || || || || EUR millions Institution || Commitment appropriations authorised || Commitments made || Appropriations carried over || Appropriations lapsing From the year's approps || From carry-overs || From assigned revenue || Total || % || From assigned revenue || Carry-overs by decision || Total || % || From the year's budget approps || from carry-overs || Assigned revenue || Total || % || 1 || 2 || 3 || 4 || 5=2+3+4 || 6=5/1 || 7 || 8 || 9=7+8 || 10=9/1 || 11 || 12 || 13 || 14=11+12+13 || 15=14/1 European Parliament || 1 820 || 1 570 || 9 || 24 || 1 603 || 88.11% || 101 || 22 || 123 || 6.74% || 94 || 0 || 0 || 94 || 5.15% European Council and Council || 647 || 507 || 0 || 47 || 554 || 85.51% || 37 || 0 || 37 || 5.77% || 56 || 0 || 0 || 56 || 8.71% Commission || 144 751 || 137 979 || 250 || 2 772 || 141 002 || 97.41% || 2 964 || 279 || 3 242 || 2.24% || 507 || 0 || 0 || 507 || 0.35% Court of Justice || 344 || 336 || 0 || 2 || 338 || 98.11% || 1 || 0 || 1 || 0.34% || 5 || 0 || 0 || 5 || 1.55% Court of Auditors || 145 || 134 || 0 || 0 || 135 || 92.81% || 0 || 0 || 0 || 0.30% || 10 || 0 || 0 || 10 || 6.89% Economic & Social Committee || 132 || 123 || 0 || 3 || 125 || 95.20% || 0 || 0 || 0 || 0.30% || 6 || 0 || 0 || 6 || 4.50% Committee of the Regions || 96 || 82 || 0 || 12 || 94 || 97.76% || 0 || 0 || 0 || 0.02% || 2 || 0 || 0 || 2 || 2.22% Ombudsman || 9 || 9 || 0 || 0 || 9 || 92.54% || 0 || 0 || 0 || 0.00% || 1 || 0 || 0 || 1 || 7.46% European Data Protection Supervisor || 8 || 7 || 0 || 0 || 7 || 89.31% || 0 || 0 || 0 || 0.00% || 1 || 0 || 0 || 1 || 10.69% European External Action Service || 729 || 457 || 0 || 249 || 706 || 96.82% || 16 || 0 || 16 || 2.19% || 7 || 0 || 0 || 7 || 0.99% Total || 148 681 || 141 204 || 259 || 3 108 || 144 572 || 97.24% || 3 120 || 301 || 3 420 || 2.30% || 689 || 0 || 0 || 689 || 0.46% || || || || || || || Payment appropriations || || || || || || || || EUR millions Institution || Payment appropriations authorised || Payments made || Appropriations carried over || Appropriations lapsing From year's approps || From carryovers || From assigned revenue || Total || % || Automatic carry-overs || Carry-overs by decision || From assigned revenue || Total || % || From year's approps || From carry-overs || Assigned revenue || Total || % || 1 || 2 || 3 || 4 || 5=2+3+4 || 6=5/1 || 7 || 8 || 9 || 10=7+8+9 || 11=10/1 || 12 || 13 || 14 || 15=12+13+14 || 16=15/1 European Parliament || 2 060 || 1 348 || 207 || 25 || 1 580 || 76.72% || 223 || 22 || 109 || 353 || 17.14% || 94 || 33 || 0 || 126 || 6.14% European Council and Council || 699 || 465 || 40 || 41 || 547 || 78.26% || 41 || 0 || 44 || 86 || 12.29% || 56 || 10 || 0 || 66 || 9.45% Commission || 130 639 || 122 272 || 1 021 || 2 590 || 125 883 || 96.36% || 484 || 163 || 3 557 || 4 203 || 3.22% || 380 || 172 || 0 || 552 || 0.42% Court of Justice || 361 || 318 || 15 || 2 || 334 || 92.62% || 18 || 0 || 1 || 19 || 5.36% || 5 || 2 || 0 || 7 || 2.02% Court of Auditors || 161 || 121 || 15 || 0 || 137 || 84.64% || 13 || 0 || 0 || 14 || 8.41% || 10 || 1 || 0 || 11 || 6.95% Economic & Social Committee || 142 || 115 || 7 || 3 || 126 || 88.83% || 7 || 0 || 1 || 8 || 5.71% || 6 || 2 || 0 || 8 || 5.46% Committee of the Regions || 103 || 73 || 6 || 12 || 91 || 88.39% || 9 || 0 || 0 || 9 || 8.51% || 2 || 1 || 0 || 3 || 3.10% Ombudsman || 10 || 8 || 0 || 0 || 9 || 85.89% || 1 || 0 || 0 || 1 || 6.55% || 1 || 0 || 0 || 1 || 7.56% European Data protection Supervisor || 9 || 6 || 1 || 0 || 7 || 74.86% || 1 || 0 || 0 || 1 || 10.49% || 1 || 1 || 0 || 1 || 14.65% European External Action Service || 777 || 419 || 38 || 225 || 682 || 87.80% || 38 || 0 || 36 || 74 || 9.56% || 7 || 9 || 5 || 21 || 2.65% Total || 134 960 || 125 145 || 1 352 || 2 898 || 129 395 || 95.88% || 835 || 185 || 3 748 || 4 768 || 3.53% || 562 || 230 || 5 || 797 || 0.59% || 16. AgencIES income: budget forecasts, entitlements and amounts received || EUR millions || Agency || Forecasted income budget || Entitlements established || Amounts received || Outstanding || Funding Commission Policy Area European Agency for the Cooperation of Energy Regulators || 4 || 4 || 4 || 0 || 06 European Aviation Safety Agency || 139 || 111 || 111 || 0 || 06 Frontex || 118 || 119 || 119 || 0 || 18 European Centre for the Development of Vocational Training || 19 || 19 || 18 || 1 || 15 European Police College || 8 || 9 || 9 || 0 || 18 European Chemicals Agency || 35 || 38 || 38 || 0 || 02 European Centre for Disease prevention and control || 57 || 57 || 57 || 0 || 17 European Monitoring Centre for Drugs and Drug Addiction || 16 || 16 || 16 || 0 || 18 European Banking Authority || 13 || 13 || 13 || 0 || 12 European Insurance and Occupational Pensions Authority || 11 || 9 || 9 || 0 || 12 European Environment Agency || 62 || 45 || 44 || 0 || 07 European Police office || 85 || 85 || 85 || 0 || 18 European Securities and Markets Authority || 17 || 17 || 17 || 0 || 12 Community Fisheries Control Agency || 12 || 12 || 12 || 0 || 11 European Food Safety Authority || 76 || 76 || 76 || 0 || 17 European Institute for Gender Equality || 8 || 8 || 8 || 0 || 04 European GNSS supervisory authority || 8 || 39 || 39 || 0 || 06 Fusion for Energy || 242 || 279 || 243 || 36 || 08 Eurojust || 32 || 31 || 31 || 0 || 18 European Maritime Safety Agency || 57 || 53 || 53 || 0 || 06 Office For Harmonisation in the Internal Market || 166 || 176 || 176 || 0 || 12 European Medicines Agency || 209 || 220 || 199 || 21 || 17 European Network and Information Security Agency || 8 || 8 || 8 || 0 || 09 European Regulators for Electronic Communications office || 1 || 1 || 1 || 0 || 09 European Union Agency for Fundamental Rights || 22 || 22 || 22 || 0 || 18 European Railway Agency || 26 || 25 || 25 || 0 || 06 European Agency for Safety and Health at Work || 15 || 15 || 15 || 0 || 04 European Institute of Innovation and Technology || 16 || 10 || 10 || 0 || 15 Translation Centre for the Bodies of the EU || 51 || 47 || 43 || 4 || 15 European Training Foundation || 20 || 20 || 20 || 0 || 15 Community Plant Variety Office || 13 || 13 || 13 || 0 || 17 European Foundation for the Improvement of Living and Working Conditions || 21 || 21 || 21 || 0 || 04 Education, Audiovisual & Culture Executive Agency || 50 || 50 || 50 || 0 || 15 Executive Agency for Competitiveness and Innovation || 16 || 16 || 16 || 0 || 06 European Research Council Executive Agency || 36 || 36 || 36 || 0 || 08 Research Executive Agency || 39 || 39 || 39 || 0 || 08 Executive Agency for Health and Consumers || 7 || 7 || 7 || 0 || 17 Trans-European Transport Network Executive Agency || 10 || 10 || 10 || 0 || 06 Total || 1 744 || 1 773 || 1 710 || 63 || || || || EUR millions Type of revenue || Forecasted income budget || Entitlements established || Amounts received || Outstanding Commission Subsidy || 1 119 || 1 137 || 1 137 || 0 Fee income || 441 || 457 || 437 || 19 Other income || 184 || 180 || 136 || 44 Total || 1 744 || 1 773 || 1 710 || 63 || 17. Commitment & payment appropriations by Agency || || || EUR millions || Agency || Commitment appropriations || Payment appropriations Approp-riations || Commit-ments made || Carried over || Approp-riations || Payments made || Carried over European Agency for the Cooperation of Energy Regulators || 5 || 3 || 0 || 6 || 4 || 1 European Aviation Safety Agency || 150 || 122 || 26 || 162 || 103 || 55 Frontex || 121 || 119 || 0 || 145 || 100 || 39 European Centre for the Development of Vocational Training || 21 || 21 || 0 || 21 || 18 || 2 European Police College || 10 || 10 || 0 || 11 || 8 || 2 European Chemicals Agency || 93 || 89 || 0 || 105 || 85 || 15 European Centre for Disease prevention and control || 57 || 55 || 0 || 72 || 58 || 11 European Monitoring Centre for Drugs and Drug Addiction || 17 || 16 || 0 || 17 || 16 || 1 European Banking Authority || 13 || 9 || 0 || 13 || 7 || 2 European Insurance and Occupational Pensions Authority || 11 || 7 || 0 || 11 || 6 || 0 European Environment Agency || 71 || 46 || 25 || 75 || 43 || 31 European Police Office || 87 || 82 || 0 || 107 || 84 || 17 European Securities & Markets Authority || 17 || 13 || 0 || 17 || 11 || 2 Community Fisheries Control Agency || 13 || 13 || 0 || 13 || 12 || 1 European Food Safety Authority || 78 || 77 || 0 || 87 || 72 || 13 European Institute for Gender Equality || 8 || 7 || 0 || 10 || 5 || 3 European GNSS supervisory authority || 77 || 33 || 44 || 56 || 21 || 34 Fusion for Energy || 649 || 647 || 1 || 298 || 255 || 40 Eurojust || 35 || 31 || 2 || 41 || 31 || 7 European Maritime Safety Agency || 58 || 55 || 1 || 59 || 50 || 2 Office For Harmonisation in the Internal Market || 387 || 151 || 0 || 422 || 149 || 32 European Medicines Agency || 212 || 202 || 3 || 254 || 205 || 39 European Network and Information Security Agency || 8 || 8 || 0 || 10 || 9 || 1 European Regulators for Electronic Communications Office || 1 || 1 || 0 || 1 || 1 || 0 European Union Agency for Fundamental Rights || 21 || 20 || 1 || 28 || 21 || 7 European Railway Agency || 26 || 25 || 0 || 32 || 26 || 4 European Agency for Safety & Health at Work || 16 || 14 || 1 || 20 || 14 || 4 European Institute of Innovation and Technology || 26 || 24 || 0 || 16 || 7 || 5 Translation Centre for the Bodies of the EU || 51 || 42 || 0 || 55 || 43 || 4 European Training Foundation || 21 || 20 || 0 || 21 || 20 || 1 Community Plant Variety Office || 14 || 13 || 0 || 14 || 12 || 0 European Foundation for the Improvement of Living and Working Conditions || 21 || 20 || 0 || 24 || 20 || 4 Education, Audiovisual & Culture Executive Agency || 50 || 50 || 0 || 56 || 50 || 6 Executive Agency for Competitiveness and Innovation || 16 || 15 || 0 || 18 || 15 || 1 European Research Council Executive Agency || 36 || 35 || 0 || 37 || 34 || 2 Research Executive Agency || 39 || 38 || 0 || 43 || 37 || 3 Executive Agency for Health and Consumers || 7 || 7 || 0 || 8 || 7 || 1 Trans-European Transport Network Executive Agency || 10 || 10 || 0 || 11 || 10 || 1 Total || 2 553 || 2 149 || 107 || 2 397 || 1 670 || 394 Type of expenditure || Commitment appropriations || Payment appropriations || Appropriations || Commitments made || Carried over || Appropriations || Payments made || Carried over Staff || 757 || 727 || 4 || 773 || 720 || 21 Administrative expenses || 274 || 260 || 4 || 361 || 265 || 76 Operational expenses || 1 522 || 1 162 || 99 || 1 263 || 684 || 297 Total || 2 553 || 2 149 || 107 || 2 397 || 1 670 || 394 18. BUDGET OUTTURN INCLUDING AGENCIES || EUR millions || || || EUROPEAN UNION || AGENCIES || Elimination of subsidies to agencies || TOTAL || Revenue for the financial year || 130 000 || 1 710 || (1 137) || 130 573 || Payments against current year appropriations || (128 043) || (1 451) || 1 137 || (128 357) || Payment appropriations carried over to year N+1 || (1 020) || (394) || 0 || (1 413) || Cancellation of unused appropriations carried over from year N-1 || 457 || 167 || 0 || 624 || Exchange differences for the year || 97 || (2) || 0 || 96 || Budget Outturn || 1 492 || 31 || 0 || 1 523 Explanatory notes to the consolidated reports on the implementation of the budget 1. BUDGETARY PRINCIPLES, STRUCTURE & APPROPRIATIONS 2. EXPLANATION OF THE CONSOLIDATED REPORTS ON THE IMPLEMENTATION OF THE BUDGET 1. BUDGETARY PRINCIPLES, STRUCTURE & APPROPRIATIONS 1.1 LEGAL BASIS AND THE FINANCIAL REGULATION The budgetary accounts are kept in accordance with Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 (OJ L 248 of 16 September 2002) on the Financial Regulation applicable to the general budget of the European Union and Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of this Financial Regulation. The general budget, the main instrument of the Union's financial policy, is the instrument which provides for and authorises the Union's revenue and expenditure every year. Every year, the Commission estimates all the Institutions' revenue and expenditure for the year and draws up a draft budget which it sends to the budgetary authority. On the basis of this draft budget, the Council draws its position which is then the subject of negotiations between the two arms of the budgetary authority. The President of Parliament declares that the joint draft has been finally adopted making the budget enforceable. The task of executing the budget is mainly the responsibility of the Commission. 1.2 BUDGETARY PRINCIPLES The general budget of the European Union is governed by a number of basic principles: – Unity and budget accuracy: all expenditure and revenue must be in a single budget, booked on a budget line and expenditure may not exceed authorised appropriations; – universality: this principle comprises two rules: – the rule of non-assignment, meaning that budget revenue must not be earmarked for specific items of expenditure (total revenue must cover total expenditure); – the gross budget rule, meaning that revenue and expenditure are entered in full in the budget without any adjustment against each other; – annuality: appropriations are authorised for a single year so must be used during that year; – equilibrium: the revenue and expenditure shown in the budget must be in balance (estimated revenue must equal payment appropriations); – specification: each appropriation is assigned to a specific purpose and a specific objective; – unit of account: the budget is drawn up and implemented in euros, as are the accounts; – sound financial management: budget appropriations are used in accordance with the principle of sound financial management, i.e. economy, efficiency and effectiveness; – transparency: the budget and amending budgets and final accounts are published in the Official Journal of the European Union. 1.3 BUDGET STRUCTURE The budget consists of: (a) a general statement of revenue; (b) separate sections giving the statements of revenue and expenditure of each Institution: Section I: Parliament; Section II: Council; Section III: Commission; Section IV: Court of Justice; Section V: Court of Auditors; Section VI: Economic and Social Committee; Section VII: Committee of the Regions; Section VIII: Ombudsman; Section IX : European Data Protection Supervisor; Section X: European External Action Service. Each Institution's items of revenue and expenditure are classified according to their type or the use to which they are assigned under titles, chapters, articles and items. 1.4 STRUCTURE OF THE BUDGETARY ACCOUNTS 1.4.1 General overview Only the Commission budget contains administrative appropriations and operating appropriations. The other Institutions have only administrative appropriations. Furthermore, the budget distinguishes between two types of appropriation: non-differentiated appropriations and differentiated appropriations. Non-differentiated appropriations are used to finance operations of an annual nature (which comply with the principle of annuality). They cover all the administrative chapters of the budget of the Commission Section and the whole of every other section, EAGF appropriations of an annual nature and certain technical appropriations (repayments, borrowing and lending guarantees, etc.) In the case of non-differentiated appropriations, the amount of commitment appropriations is the same as that of payment appropriations. Differentiated appropriations were introduced in order to reconcile the principle of annuality with the need to manage multi-annual operations. They are intended to cover multi-annual operations and comprise all the other appropriations in all Chapters except Chapter 1 of the Commission Section. Differentiated appropriations are split into commitment and payment appropriations: – commitment appropriations: cover the total cost of the legal obligations entered into for the current financial year for operations extending over a number of years. However, budgetary commitments for actions extending over more than one financial year may, in accordance with Article 76(3) of the Financial Regulation, be broken down over several years into annual instalments where the basic act so provides. – payment appropriations: cover expenditure arising from commitments entered into in the current financial year and/or earlier financial years. 1.4.2 Origin of Appropriations The main source of appropriations is the Union's budget for the current year. However, there are other types of appropriations resulting from the provisions of the Financial Regulation. They come from previous financial years or outside sources: – Initial budget appropriations adopted for the current year can be supplemented with transfers between lines in accordance with the rules laid down in Articles 22 to 24 of the Financial Regulation (No 1605/2002 of 25 June 2002) and by amending budgets (covered by Articles 37 and 38 of the Financial Regulation). – Appropriations carried over from previous year or made available again also supplement the current budget. These are (i) non-differentiated payment appropriations which may be carried over automatically for one financial year only in accordance with Article 9(4) of the Financial Regulation; (ii) appropriations carried over by decision of the Institutions in one of two cases: if the preparatory stages have been completed (Article 9(2)(a) of the Financial Regulation) or if the legal base is adopted late (Article 9(2)(b)). Both commitment and payment appropriations may be carried over (Article 9(3)) and (iii) appropriations made available again as a result of decommitments: This involves the re-entry of commitment appropriations concerning structural funds which have been decommitted. Amounts can be re-entered by way of exception in the event of error by the Commission or if they are indispensable for completion of the programme (Article 157 of the Financial Regulation). – Assigned revenue which is made up of (i) refunds where the amounts are assigned revenue on the budget line which incurred the initial expenditure and may be carried over without limit; (ii) EFTA appropriations: The agreement on the European Economic Area provides for financial contribution by its members to certain activities in the EU budget. The budget lines concerned and the amounts projected are published in Annex III of the EU budget. The lines concerned are increased by the EFTA contribution. Appropriations not used at the year-end are cancelled and returned to the EEA countries; (iii) Revenue from third parties/ other countries that have concluded agreements with the European Union involving a financial contribution to EU activities. The amounts received are considered to be revenue from third parties which is allocated to the budget lines concerned (often in the field of research) and may be carried over without limit (Article 10 and Article 18(1)(a) and (d) of the Financial Regulation); (iv) Work for third parties: As part of their research activities, the EU research centres may work for outside bodies, (Article 161(2) of the Financial Regulation). Like the revenue from third parties, the work for third parties is assigned to specific budget lines and may be carried over without limit (Article 10 and Article 18(1)(d) of the Financial Regulation); and (v) Appropriations made available again as a result of repayment of payments on account: These are EU funds which have been repaid by the beneficiaries and may be carried over without limit. In the area of Structural Funds the re-inscription is based on a Commission Decision (Article 18(2) of the Financial Regulation and Article 228 of its Implementing Rules). 1.4.3 Composition of Appropriations Available – Final budget appropriations = initial budget appropriations adopted + amending budget appropriations + transfers; – Additional appropriations = assigned revenue (see above) + appropriations carried over from the previous financial year or made available again following decommitments; – Total appropriations authorised = final budget appropriations + additional appropriations; – Appropriations for the year (as used to calculate the budgetary result) = final budget appropriations + assigned revenue. 1.5 BUDGET IMPLEMENTATION The implementation of the budget is governed by the Financial Regulation, Article 48(1) of which states: "The Commission shall implement ... the budget in accordance with this Regulation, on its own responsibility and within the limits of the appropriations authorised." Article 50 states that the Commission shall confer on the Institutions the requisite powers for the implementation of the sections of the budget relating to them. 1.6 OUTSTANDING COMMITMENTS (RAL) With the introduction of differentiated appropriations, a gap developed between commitments entered into and payments made: this gap, corresponding to outstanding commitments, represents the time-lag between when the commitments are entered into and when the corresponding payments are made. 2. EXPLANATION OF THE CONSOLIDATED REPORTS ON THE IMPLEMENTATION OF THE BUDGET 2.1 BUDGET OUTTURN FOR THE YEAR (Table 1) 2.1.1 General The amounts of own resources entered in the accounts are those credited in the course of the year to the accounts opened in the Commission's name by the governments of the Member States. Revenue comprises also, in the case of a surplus, the budget outturn for the previous financial year. The other revenue entered in the accounts is the amount actually received in the course of the year. For the purposes of calculating the budget outturn for the year, expenditure comprises payments made against the year's appropriations for payments plus any of the appropriations for that year that are carried over to the following year. Payments made against the year's appropriations for payments means payments that are made by the accounting officer by 31 December of the financial year. In the case of the European Agricultural Guarantee Fund, the payments are those effected by the Member States between 16 October N-1 and 15 October N, provided that the accounting officer was notified of the commitment and authorisation by 31 January N+1. EAGF expenditure may be subject to a conformity decision following controls in the Member States. The budget outturn comprises two elements: the result of the European Union and the result of the participation of the EFTA countries belonging to the EEA. In accordance with Article 15 of Regulation No 1150/2000 on own resources, this outturn represents the difference between: – total revenue received for that year; – and total payments made against that year's appropriations plus the total amount of that year's appropriations carried over to the following year. The following are added to or deducted from the resulting figure: – the net balance of cancellations of payment appropriations carried over from previous years and any payments which, because of fluctuations in the euro rate, exceed non-differentiated appropriations carried over from the previous year; – the balance of exchange-rate gains and losses recorded during the year. The budget outturn is returned to the Member States the following year through deduction of their amounts due for that financial year. Appropriations carried over from the previous financial year in respect of contributions by and work for third parties, which by definition never lapse, are included with the additional appropriations for the financial year. This explains the difference between carryovers from the previous year in the 2011 budget implementation statements and those carried over to the following year in the 2010 budget implementation statements. The payment appropriations for re-use and appropriations made available again following the repayment of payments on account are disregarded when calculating the outturn for the year. The payment appropriations carried over include: automatic carryovers and carryovers by decision. The cancellation of unused payment appropriations carried over from the previous year shows the cancellations on appropriations carried over automatically and by decision. It also includes the decrease in assigned revenue appropriations carried over to the next year in comparison with 2010. 2.1.2 Reconciliation of the budget outturn with the economic outturn The economic outturn for the year is calculated on the basis of accrual accounting principles. The budget outturn is however based on modified cash accounting rules, in accordance with the Financial Regulation. As both are the result of the same underlying transactions, it is a useful control to ensure that they are reconcilable. The table below shows this reconciliation, highlighting the key reconciling amounts, split between revenue and expenditure items. || RECONCILIATION: ECONOMIC OUTTURN – BUDGET OUTTURN || || || EUR millions || 2011 || 2010 || || ECONOMIC OUTTURN FOR THE YEAR || (1 789) || 17 232 || || Revenues || || Entitlements established in current year but not yet collected || (371) || (3 132) Entitlements established in previous years and collected in current year || 2 072 || 1 346 Accrued revenue (net) || (236) || (371) || || Expenditure || || Accrued expenses (net) || 3 410 || (7 426) Expenses prior year paid in current year || (936) || (386) Net-effect pre-financing || 1 131 || (678) Payment appropriations carried over to next year || (1 211) || (2 798) Payments made from carry-overs & cancellation of unused payment appropriations || 2 000 || 1 760 Movement in provisions || (2 109) || (323) Other || (378) || (257) || || Economic outturn Agencies & ECSC || (91) || (418) || || BUDGET OUTTURN FOR THE YEAR || 1 492 || 4 549 || || Reconciling items - Revenue The actual budgetary revenue for a financial year corresponds to the revenue collected from entitlements established in the course of the year and amounts collected from entitlements established in previous years. Therefore the entitlements established in the current year but not yet collected are to be deducted from the economic outturn for reconciliation purposes as they do not form part of budgetary revenue. On the contrary the entitlements established in previous years and collected in current year must be added to the economic outturn for reconciliation purposes. The net accrued revenue mainly consists of accrued revenue for agricultural levies, own resources and interests and dividends. Only the net-effect, i.e. accrued revenue for current year minus reversal accrued revenue from previous year, is taken into consideration. Reconciling items - Expenditure The net accrued expenses mainly consist of accruals made for year-end cut-off purposes, i.e. eligible expenses incurred by beneficiaries of Community funds but not yet reported to the Commission. While accrued expenses are not considered as budgetary expenditure, the payments made in the current year relating to invoices registered in prior years are part of current year's budgetary expenditure. The net effect of pre-financing is the combination of (1) the new pre-financing amounts paid in the current year and recognised as budgetary expenditure of the year and (2) the clearing of the pre-financing paid in current year or previous years through the acceptance of eligible costs. The latter represent an expense in accrual terms but not in the budgetary accounts since the payment of the initial pre-financing had already been considered as a budgetary expenditure at the time of its payment. Besides the payments made against the year's appropriations, the appropriations for that year that are carried to the next year also need to be taken into account in calculating the budget outturn for the year (in accordance with Article 15 of Regulation No 1150/2000). The same applies for the budgetary payments made in the current year from carry-overs and the cancellation of unused payment appropriations. The movement in provisions relate to year-end estimates made in the accrual accounts (employee benefits mainly) that do not impact the budgetary accounts. Other reconciling amounts comprise different elements such as asset depreciation, asset acquisitions, capital lease payments and financial participations for which the budgetary and accrual accounting treatments differ. 2.2 COMPARISON OF BUDGET AND ACTUAL AMOUNTS (Table 2) In the initial adopted budget, signed by the President of the European Parliament on 15 December 2010, the amount of payment appropriations was EUR 126 527 million and the amount to be financed by own resources totalled EUR 125 106 million. The revenue and expenditure estimates in the initial budget are typically adjusted during the budgetary year, such modifications being presented in amending budgets. Adjustments in the GNI-based own resources ensure that budgeted revenue matches exactly budgeted expenditure. In accordance with the principle of equilibrium, budget revenue and expenditure (payment appropriations) must be in balance. Revenue: During 2011 seven amending budgets were adopted. Taking them into account, the total final revenue in the 2011 budget amounted to EUR 126 727 million. This was financed by own resources totalling EUR 118 289 million (thus EUR 6 816 million less than initially forecasted) and the remainder by other revenue. The reduced need for own resources stemmed mainly from the inclusion of EUR 4 539 million relating to the surplus of the previous year. Finally the changes in the revenue forecast in the Amending Budget no. 6/2011 resulted in a supplementary reduction. As far as the own resources outturn is concerned, the collection of traditional own resources matched almost the forecasted amounts. Namely because the budget estimates that were modified at the time the Amending Budget No. 4/2011 was established (they were increased by EUR 1 090 million according to the new macroeconomic forecasts of spring 2011), were once again amended in the Amending Budget No. 6/2011 to take into account the actual rhythm of collection. Thus they were decreased by EUR 1 200 re-establishing almost the original amount. The final Member States' VAT and GNI payments also correspond closely to the final budgetary estimate. The differences between the forecasted amounts and the amounts actually paid are due to the differences between the euro rates used for budgetary purposes and the rates in force at the time when the Member States outside the EMU actually made their payments. Expenditure: The year 2011 was the fifth year of the current programming period, with many major programmes seeing an acceleration in the implementation of payments. Given the general context of fiscal consolidation in the Member States, however, the increase of payment appropriations in the budget had been limited, and proved insufficient to meet the payment needs during the course of the year. It was also below a level, which would have had an affect on reducing the volume of outstanding commitments (RAL = reste à liquider). For commitments, the authorised budget, and hence the political targets set, were fully implemented (99.6%) Adjustments during the year concerned EUR 240 million for the European Solidarity Fund, unforeseeable expenditure by its very nature, and EUR 41 million for Title 18 Area of freedom, security and justice (mainly for FRONTEX). The total implementation of EUR 141 204 million left EUR 617 million unused. After the carryover to 2012, an amount of EUR 316 million lapses, as well as the un-mobilised reserve for European Globalisation fund of EUR 371 million and unused provisional appropriations of EUR 2 million. The total implementation of payment appropriations, EUR 125 145 million, represents an implementation rate of 98.8%. The total appropriations were amended in course of the year, with an additional EUR 200 million authorised in Amending Budget 6/2011 for the European Social Fund (ESF). A further amount of EUR 253 million was redeployed from Rural Development to the ESF in this amending budget, and the budgetary authority transfer DEC 52/2011 provided another EUR 601 million for this Fund. Despite these measures, a surge in payment requests in the last three weeks of the year, and an absence of the necessary payment appropriations, meant that some EUR 11 billion in claims will only be met in 2012. The unused voted appropriations excluding the reserves amounted to EUR 1 580 million (2010: EUR 3 243 million) and after the carryover to 2012, a total of EUR 560 million (2010: EUR 1 730 million) lapses, mainly in Headings 2 and 4. EUR 2 million of provisional payment appropriations remained unused. A more detailed analysis of budgetary adjustments, their relevant context, their justification and their impact is presented in Commission's Report on Budgetary and Financial Management 2011, Part A "Overview at budget level" and Part B dealing with each heading of the multi-annual financial framework. 2.3 REVENUE (Table 3) The revenue of the general budget of the European Union can be divided into two main categories: own resources and other revenue. This is laid down in Article 311 of the Treaty on the Functioning of the European Union, which states that: "Without prejudice to other revenue, the budget shall be financed wholly from own resources." The main bulk of budgetary expenditure is financed by own resources. Other revenue represents only a minor part of total financing. There are three categories of own resources: traditional own resources, the VAT resource and the GNI resource. Traditional own resources, in turn, comprise sugar levies and customs duties. A correction mechanism in favour of the United Kingdom as well as a gross reduction in the annual GNI-based contribution of Netherlands and Sweden are also part of the own resources system. The allocation of own resources is made in accordance with the rules laid down in the Council Decision No. 2007/436/EC, Euratom of 7 June 2007 on the system of the European Communities' own resources (ORD 2007). On 1 March 2009 the ORD 2007 entered into force. However it took effect on 1 January 2007. Consequently the retroactive effects have been taken in account in the budgetary year 2009. 2.3.1 Traditional own resources Traditional own resources: All established amounts of traditional own resources must be entered in one or other of the accounts kept by the competent authorities. – In the ordinary account provided for in Article 6(3)(a) of Regulation No 1150/2000: all amounts recovered or guaranteed. – In the separate account provided for in Article 6(3)(b) of Regulation No 1150/2000: all amounts not yet recovered and/or not guaranteed; amounts guaranteed but challenged may also be entered in this account. For the separate account, the Member States quarterly statement to the Commission includes: – the balance to be recovered during the previous quarter, – the established entitlements during the quarter in question, – rectifications of the base (corrections/cancellations) during the quarter in question, – amounts written off (which cannot be made available according to Article 17(2) of Regulation 1150/2000), – the amounts recovered during the quarter in question, – the balance to be recovered at the end of the quarter in question. Traditional own resources must be entered in the Commission's account with the Treasury or the body appointed by the Member State at the latest on the first working day following the 19th day of the second month following the month during which the entitlement was established (or recovered in the case of the separate account). Member States retain, by way of collection costs, 25% of traditional own resources. The contingent own resources entitlements are adjusted on the basis of the likelihood of their recovery. 2.3.2 VAT-based resources and GNI-based resources VAT-based own resource derive from the application of a uniform rate, for all Member States, to the harmonised VAT base determined in accordance with the rules of Article 2(1)(b) of the ORD 2007. The uniform rate is fixed at 0.30% except for the period 2007-2013 in which the rate of call for Austria is fixed at 0.225, for Germany at 0.15% and for Netherlands and Sweden at 0.10%. The VAT base is capped at 50% of GNI for all Member States. The GNI-based resource is a variable resource intended to supply the revenue required, in any given year, to cover expenditure exceeding the amount collected from traditional own resources, VAT resources and miscellaneous revenue. The revenue derives from the application of a uniform rate to the aggregate GNI of all the Member States. VAT and GNI-based resources are determined on the basis of forecasts of VAT and GNI bases made when the preliminary draft budget is being prepared. These forecasts are subsequently revised; the figures are updated during the budget year in question by means of an amending budget. The actual figures for the VAT and GNI bases are available in the course of the year following the budget year in question. The Commission calculates the differences between the amounts due by the Member States by reference to the actual bases and the sums actually paid on the basis of the (revised) forecasts. These VAT and GNI balances, either positive or negative, are called in by the Commission from the Member States for the first working day of December of the year following the budget year in question. Corrections may still be made to the actual VAT and GNI bases during the subsequent four years, unless a reservation is issued. The balances calculated earlier are adjusted and the difference is called in at the same time as the VAT and GNI balances for the previous budget year. When conducting controls of VAT statements and GNI data, the Commission may notify reservations to the Member States regarding certain points which may have consequences to their own resources contributions. These points, for example, may result from an absence of acceptable data, or a need to develop a suitable methodology. These reservations have to be seen as potential claims on the Member States for uncertain amounts as their financial impact cannot be estimated with accuracy. When the exact amount can be determined, the corresponding VAT and GNI-based resources are called either in connection with VAT and GNI balances or by individual calls for funds. 2.3.3 UK correction This mechanism reduces the own resources payments of the UK in proportion to what is known as its "budgetary imbalance" and increases the own resources payments of the other Member States correspondingly. The budgetary imbalance correction mechanism in favour of the United Kingdom was instituted by the European Council in Fontainebleau (June 1984) and the resulting Own Resources Decision of 7 May 1985. The purpose of the mechanism was to reduce the budgetary imbalance of the UK through a reduction in its payments to the EU. Germany, Austria, Sweden and Netherlands benefit from a reduced financing of the correction (restricted to one fourth of their normal share). 2.3.4 Gross reduction The European Council of 15 and 16 December 2005 concluded that the Netherlands and Sweden shall benefit from gross reductions in their annual GNI-based contributions during the period 2007-2013. Thus this mechanism of compensation stipulates that the Netherlands shall benefit from a gross reduction in its annual GNI contribution of EUR 605 million and Sweden from a gross reduction in its annual GNI contribution of EUR 150 million, measured in 2004 prices. 2.4 EXPENDITURE (Tables 4 to 13) 2.4.1 Financial Framework 2007-2013 || EUR millions || 2007 || 2008 || 2009 || 2010 || 2011 || 2012 || 2013 1. Sustainable Growth || 53 979 || 57 653 || 61 696 || 63 555 || 63 974 || 67 614 || 70 147 2. Preservation & management of natural resources || 55 143 || 59 193 || 56 333 || 59 955 || 59 888 || 60 810 || 61 289 3. Citizenship, freedom, security & justice || 1 273 || 1 362 || 1 518 || 1 693 || 1 889 || 2 105 || 2 376 4. EU as a global player || 6 578 || 7 002 || 7 440 || 7 893 || 8 430 || 8 997 || 9 595 5. Administration || 7 039 || 7 380 || 7 525 || 7 882 || 8 091 || 8 523 || 9 095 6. Compensations || 445 || 207 || 210 || 0 || 0 || 0 || 0 Commitment appropriations: || 124 457 || 132 797 || 134 722 || 140 978 || 142 272 || 148 049 || 152 502 Total payment appropriations: || 122 190 || 129 681 || 120 445 || 134 289 || 133 700 || 141 360 || 143 911 This section describes the main categories of EU expenditure, classified by heading of the financial framework 2007-2013. The 2011 financial year was the fifth covered by the financial framework 2007-2013. The overall ceiling on commitments appropriations for 2011 comes to EUR 142 272 million, equivalent to 1.15% of GNI. The corresponding ceiling on the appropriations for payments comes to EUR 133 700 million, i.e. 1.08 % of GNI. The above table shows the financial framework at current prices. Heading 1 – Sustainable growth This Heading divided into two separate, but interlinked components: - 1a. Competitiveness for growth and employment, encompassing expenditure on research and innovation, education and training, trans-European networks, social policy, the internal market and accompanying policies. - 1b. Cohesion for growth and employment, designed to enhance convergence of the least developed Member States and regions, to complement the EU strategy for sustainable development outside the less prosperous regions and to support inter regional cooperation.. Heading 2 – Preservation and management of natural resources Heading 2 includes the common agricultural and fisheries policies, rural development and environmental measures, in particular Natura 2000. The amount earmarked for the common agricultural policy reflects the agreement reached at the European Council in October 2002. Heading 3 – Citizenship, freedom, security and justice The new heading 3 (Citizenship, freedom, security and justice) reflects the growing importance attached to certain fields where the EU has been assigned new tasks – justice and home affairs, border protection, immigration and asylum policy, public health and consumer protection, culture, youth, information and dialogue with citizens. It is split in two components: - 3a. Freedom, Security and Justice - 3b. Citizenship Heading 4 – The EU as a global player Heading 4 covers all external action, including pre-accession instruments. Whereas the Commission had proposed to integrate the European Development Fund (EDF) into the financial framework, the European Council and the European Parliament agreed to leave it outside. Heading 5 - Administration This heading covers administrative expenditure for all institutions, pensions and the European Schools. For the Institutions other than the Commission, these costs make up the total of their expenditure, but the Agencies and other bodies make both administrative and operational expenditure. Heading 6 - Compensations In accordance with the political agreement that the new Member States should not become net-contributors to the budget at the very beginning of their membership, compensation was foreseen under this heading. This amount was available as transfers to them to balance their budgetary receipts and contributions. 2.4.2 Policy areas As part of its use of Activity Based Management (ABM) the Commission implements Activity Based Budgeting (ABB) in its planning and management processes. ABB involves a budget structure where budget titles correspond to policy areas and budget chapters to activities. ABB aims to provide a clear framework for translating the Commission's policy objectives into action, either through legislative, financial or any other public policy means. By structuring the Commission's work in terms of activities, a clear picture is obtained of the Commission's undertakings and simultaneously a common framework is established for priority setting. Resources are allocated to priorities during the budget procedure, using the activities as the building blocks for budgeting purposes. By establishing such a link between activities and the resources allocated to them, ABB aims to increase efficiency and effectiveness in the use of resources in the Commission. A policy area may be defined as a homogeneous grouping of Activities constituting parts of the Commission's work, which are relevant for the decision-making process. Each policy area corresponds, in general, to a DG, and encompassing an average of about 6 or 7 individual activities. Policy areas are mainly operational, since their core activities aim at benefiting a third-party beneficiary within their respective domains of activity. The operational budget is completed with the necessary administrative expenditure for each policy area. 2.5 INSTITUTIONS AND AGENCIES (Tables 14 to 18) The consolidated reports on the implementation of the general budget of the European Union include, as in previous years, the budget implementation of all Institutions since within the EU budget a separate budget for each Institution is established. Agencies do not have a separate budget inside the EU budget and they are partially financed by a Commission budget subsidy. Concerning the EEAS, it should be noted that, in addition to its own budget, it also receives contributions from the Commission (EUR 202 million) and the EDF (EUR 50 million). These budget credits are put at the disposal of the EEAS (as assigned revenue) so as to cover primarily the costs of Commission staff working in the EU delegations, these delegations being administratively managed by the EEAS. In order to provide all relevant budgetary data for the Agencies, the budgetary part of the consolidated annual accounts include separate reports on the implementation of the individual budgets of the traditional agencies consolidated. CONTENTS Page NOTE ACCOMPANYING THE CONSOLIDATED ACCOUNTS 3 PART I: CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES 5 Balance Sheet 8 Economic Outturn Account 9 Cashflow Table 10 Statement of changes in Net Assets 11 Notes to the financial statements 13 PART II: CONSOLIDATED REPORTS ON IMPLEMENTATION OF THE BUDGET AND EXPLANATORY NOTES 91 Consolidated reports on implementation of the budget 93 Explanatory notes to the consolidated reports on implementation of the budget 111 NOTE ACCOMPANYING THE CONSOLIDATED ACCOUNTS The consolidated annual accounts of the European Union for the year 2011 have been prepared on the basis of the information presented by the institutions and bodies under Article 129.2 of the Financial Regulation applicable to the general budget of the European Union. I hereby declare that they were prepared in accordance with Title VII of this Financial Regulation and with the accounting principles, rules and methods set out in the notes to the financial statements. I have obtained from the accounting officers of these institutions and bodies, who certified its reliability, all the information necessary for the production of the accounts that show the European Union's 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 of the European Commission, I have a reasonable assurance that the accounts present a true and fair view of the financial position of the European Union in all material aspects. (signed) Philippe Taverne Accounting Officer of the Commission 18 July 2012 EUROPEAN UNION CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES FINANCIAL YEAR 2011 CONTENTS Page PART I: CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES Balance Sheet 8 Economic Outturn Account 9 Cashflow Table 10 Statement of Changes in Net Assets 11 Notes to the Financial Statements: 13 1. Significant accounting policies 14 2. Notes to the Balance Sheet 24 3. Notes to the Economic Outturn Account 42 4. Notes to the Cashflow table 49 5. Contingent Assets & Liabilities and other disclosures 50 6. Financial corrections and recoveries 54 7. Borrowing and lending activities of the EU 73 8. Financial risk management 79 9. Related party disclosures 85 10. Events after the balance sheet date 87 11. Scope of consolidation 88 * It should be noted that due to the rounding of figures into millions of euros, some financial data in the tables below may appear not to add-up BALANCE SHEET || || || || EUR millions || Note || 31.12.2011 || 31.12.2010 || NON-CURRENT ASSETS: || || || || Intangible assets || 2.1 || 149 || 108 || Property, plant and equipment || 2.2 || 5 071 || 4 813 || Long-term investments: || || || || Investments accounted for using the equity method || 2.3 || 374 || 492 || Financial assets: Available for sale assets || 2.4 || 2 272 || 2 063 || Financial assets: Long-term loans || 2.5 || 41 400 || 11 640 || Long-term receivables & recoverables || 2.6 || 289 || 40 || Long-term pre-financing || 2.7 || 44 723 || 44 118 || || || 94 278 || 63 274 || CURRENT ASSETS: || || || || Inventories || 2.8 || 94 || 91 || Short-term investments: || || || || Financial assets: Available for sale assets || 2.9 || 3 619 || 2 331 || Short-term receivables & recoverables: || || || || Financial assets: Short-term loans || 2.10 || 102 || 2 170 || Other receivables & recoverables || 2.11 || 9 477 || 11 331 || Short-term pre-financing || 2.12 || 11 007 || 10 078 || Cash and cash equivalents || 2.13 || 18 935 || 22 063 || || || 43 234 || 48 064 || TOTAL ASSETS || || 137 512 || 111 338 || || || || || NON-CURRENT LIABILITIES: || || || || Pension & other employee benefits || 2.14 || (34 835) || (37 172) || Long-term provisions || 2.15 || (1 495) || (1 317) || Long-term financial liabilities || 2.16 || (41 179) || (11 445) || Other long-term liabilities || 2.17 || (2 059) || (2 104) || || || (79 568) || (52 038) || CURRENT LIABILITIES: || || || || Short-term provisions || 2.18 || (270) || (214) || Short-term financial liabilities || 2.19 || (51) || (2 004) || Payables || 2.20 || (91 473) || (84 529) || || || (91 794) || (86 747) || TOTAL LIABILITIES || || (171 362) || (138 785) || || || || || NET ASSETS || || (33 850) || (27 447) || || || || || Reserves || 2.21 || 3 608 || 3 484 || Amounts to be called from Member States* || 2.22 || (37 458) || (30 931) || || || || || NET ASSETS || || (33 850) || (27 447) * The European Parliament has adopted a budget on 1 December 2011 which provides for the payment of the Union's short-term liabilities from own resources to be collected by, or called up from, the Member States in 2012. Additionally, under Article 83 of the Staff Regulations (Council Regulation 259/68 of 29 February 1968 as amended), the Member States shall jointly guarantee the liability for pensions. || ECONOMIC OUTTURN ACCOUNT || || || || || || || || || EUR millions || Note || 2011 || 2010 OPERATING REVENUE || || || Own resource and contributions revenue || 3.1 || 124 677 || 122 328 Other operating revenue || 3.2 || 5 376 || 8 188 || || || || || 130 053 || 130 516 || || || OPERATING EXPENSES || || || Administrative expenses || 3.3 || (8 976) || (8 614) Operating expenses || 3.4 || (123 778) || (103 764) || || || || || (132 754) || (112 378) || || || (DEFICIT)/SURPLUS FROM OPERATING ACTIVITIES || || (2 701) || 18 138 || || || Financial revenue || 3.5 || 1 491 || 1 178 Financial expenses || 3.6 || (1 355) || (661) Movement in pension & other employee benefits liability || || 1 212 || (1 003) Share of net deficit of joint ventures & associates || 3.7 || (436) || (420) || || || ECONOMIC OUTTURN FOR THE YEAR || || (1 789) || 17 232 || CASHFLOW TABLE || || || || || EUR millions || Note || 2011 || 2010 || || || Economic outturn for the year || || (1 789) || 17 232 || || || Operating activities || 4.2 || || Amortisation || || 33 || 28 Depreciation || || 361 || 358 (Increase)/decrease in long-term loans || || (29 760) || (876) (Increase)/decrease in long-term pre-financing || || (605) || (2 574) (Increase)/decrease in long-term receivables & recoverables || || (249) || 15 (Increase)/decrease in inventories || || (3) || (14) (Increase)/decrease in short-term pre-financing || || (929) || (642) (Increase)/decrease in short-term receivables & recoverables || || 3 922 || (4 543) Increase/(decrease) in long-term provisions || || 178 || (152) Increase/(decrease) in long-term financial liabilities || || 29 734 || 886 Increase/(decrease) in other long-term liabilities || || (45) || (74) Increase/(decrease) in short-term provisions || || 56 || 1 Increase/(decrease) in short-term financial liabilities || || (1 953) || 1 964 Increase/(decrease) in payables || || 6 944 || (9 355) Prior year budgetary surplus taken as non cash revenue || || (4 539) || (2 254) Other non-cash movements || || (75) || (149) || || || Increase/(decrease) in pension & employee benefits liability || || (2 337) || (70) || || || Investing activities || 4.3 || || (Increase)/decrease in intangible assets and property, plant and equipment || || (693) || (374) (Increase)/decrease in long-term investments || || (91) || (176) (Increase)/decrease in short-term investments || || (1 288) || (540) || || || NET CASHFLOW || || (3 128) || (1 309) || || || Net increase/(decrease) in cash and cash equivalents || || (3 128) || (1 309) Cash and cash equivalents at the beginning of the year || 2.13 || 22 063 || 23 372 Cash and cash equivalents at year-end || 2.13 || 18 935 || 22 063 STATEMENT OF CHANGES IN NET ASSETS || || || || || || || EUR millions || || Reserves (A) || Amounts to be called from Member States (B) || Net Assets =(A)+(B) Fair value reserve || Other reserves || Accumulated Surplus/(Deficit) || Economic outturn of the year BALANCE AS AT 31 DECEMBER 2009 || 69 || 3 254 || (52 488) || 6 887 || (42 278) Movement in Guarantee Fund reserve || || 273 || (273) || || 0 Fair value movements || (130) || || || || (130) Other || || 4 || (21) || || (17) Allocation of the economic outturn 2009 || || 14 || 6 873 || (6 887) || 0 Budget result 2009 credited to Member States || || || (2 254) || || (2 254) Economic outturn for the year || || || || 17 232 || 17 232 BALANCE AS AT 31 DECEMBER 2010 || (61) || 3 545 || (48 163) || 17 232 || (27 447) Movement in Guarantee Fund reserve || || 165 || (165) || || 0 Fair value movements || (47) || || || || (47) Other || || 2 || (30) || || (28) Allocation of the economic outturn 2010 || || 4 || 17 228 || (17 232) || 0 Budget result 2010 credited to Member States || || || (4 539) || || (4 539) Economic outturn for the year || || || || (1 789) || (1 789) BALANCE AS AT 31 DECEMBER 2011 || (108) || 3 716 || (35 669) || (1 789) || (33 850) Notes to the financial statements 1. SIGNIFICANT ACCOUNTING POLICIES 1.1 LEGAL BASIS AND ACCOUNTING RULES The accounts of the European Union are kept in accordance with Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 (OJ L 248 of 16 September 2002), on the Financial Regulation applicable to the general budget of the European Union and Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of this Financial Regulation. In accordance with article 133 of the Financial Regulation, the European Union prepares its financial statements on the basis of accrual-based accounting rules that are derived from International Public Sector Accounting Standards (IPSAS) or by default, International Financial Reporting Standards (IFRS). These accounting rules, adopted by the Accounting Officer of the Commission, have to be applied by all the institutions and EU bodies falling within the scope of consolidation in order to establish a uniform set of rules for accounting, valuation and presentation of the accounts with a view to harmonising the process for drawing up the financial statements and consolidation. The accounts are kept in Euro on the basis of the calendar year. 1.2 ACCOUNTING PRINCIPLES The objective of the financial statements is to provide information about the financial position, performance and cashflows of an entity that is useful to a wide range of users. For the EU as a public sector entity, the objectives are more specifically to provide information useful for decision making, and to demonstrate the accountability of the entity for the resources entrusted to it. It is with these goals in mind that the present document has been drawn up. The overall considerations (or accounting principles) to be followed when preparing the financial statements are laid down in EU accounting rule 2 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. Preparation of the financial statements in accordance with the above mentioned rules and principles requires management to make estimates that affect the reported amounts of certain items in the balance sheet and economic outturn account, as well as the disclosures of contingent assets and liabilities. 1.3 CONSOLIDATION Scope of consolidation The consolidated financial statements of the EU comprise all significant controlled entities (institutions and agencies), associates and joint ventures, this being 50 controlled entities, 5 joint ventures and 4 associates. The complete list of consolidated entities can be found in note 11.1. In comparison with 2010, the scope of consolidation has been extended by 7 controlled entities (one institution, 6 agencies). The impact of the additions on the consolidated financial statements is not material. Controlled entities The decision to include an entity in the scope of consolidation is based on the control concept. Controlled entities are all entities over which the European Union has, directly or indirectly, the power to govern the financial and operating policies so as to be able to benefit from these entities' activities. This power must be presently exercisable. Controlled entities are fully consolidated. The consolidation begins at the first date on which control exists, and ends when such control no longer exists. The most common indicators of control within the European Union are: creation of the entity through founding treaties or secondary legislation, financing of the entity from the general budget, the existence of voting rights in the governing bodies, audit by the European Court of Auditors and discharge by the European Parliament. It is clear that an assessment for each entity needs to be made in order to decide whether one or all of the criteria listed above are sufficient to trigger control. Under this approach, the EU's institutions (except the ECB) and agencies (excluding the agencies of the former 2nd pillar) are considered as under the exclusive control of the EU and are therefore included in the consolidation scope. Furthermore the European Coal and Steel Community in Liquidation (ECSC) is also considered as a controlled entity. All material inter-company transactions and balances between EU controlled entities are eliminated, while unrealised gains and losses on inter-entity transactions are not material and have therefore not been eliminated. Joint ventures A joint venture is a contractual arrangement whereby the European Union and one or more parties (the "venturers") undertake an economic activity which is subject to joint control. Joint control is the contractually agreed sharing of control, directly or indirectly, over an activity embodying service potential. Participations in joint ventures are accounted for using the equity method initially recognised at cost. The European Union's interest in the results of its jointly controlled entities is recognised in the economic outturn