20. 5. 83 Official Journal of the European Communities No C 133/3 
II 
(Preparatory Acts) 
COURT OF AUDITORS 
OPINION No 2/82 
of the Court of Auditors of the European Communities on a proposal for a Council 
Regulation amending Regulation (EEC, Euratom, ECSC) No 2891/77 implementing the 
Decision of 21 April 1970 on the replacement of financial contributions from Member 
States by the Communities' own resources 
THE COURT OF AUDITORS OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Coal and Steel Community, and in 
particular Article 78h thereof, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Article 209 thereof, 
Having regard to the Treaty establishing the 
European Atomic Energy Community, and in 
particular Article 183 thereof, 
Having regard to Council Decision 70/243/ECSC, 
EEC, Euratom of 21 April 1970 on the replacement 
of financial contributions from Member States by the 
Communities' own resources ('), hereinafter referred 
to as 'the Decision' of 21 April 1970, and in 
particular Article 6 (2) thereof, 
Having regard to the proposal from the Com­
mission (2), 
Whereas the Council decided, on 3 August 1982, to 
consult the Court of Auditors on this proposal; 
Whereas Article 26 of Regulation (EEC, Euratom, 
ECSC) No 2891/77 of 19 December 1977 (J) — 
hereinafter referred to as 'the Regulation' — states 
that the Regulation shall have effect from the 
financial year 1978; 
Whereas the Court was also consulted, by Council 
Decision of 26 July 1982, on a proposal for a Council 
Regulation amending and extending the terms of 
validity of Regulation (EEC, Euratom, ECSC) No 
2892/77 implementing, in respect of own resources 
accruing from value-added tax, the Decision of 
21 April 1970 on the replacement of financial contri­
butions from Member States by the Communities' 
own resources; 
(') OJ No L 94, 28. 4. 1970, p. 19. 
(2) OJNoC231,4. 9. 1982, p. 15. 
(3) OJ No L 336, 27. 12. 1977, p. 1. Whereas that Regulation was intended to apply for a 
transitional period only until 31 December 1982, 
when a definitive uniform system would be 
introduced, but because of the delay in entry into 
force in the Member States of the Sixth Council 
Directive 77/388/EEC of 17 May 1977, the 
Commission now proposes to defer the introduction 
of the definitive uniform system by the extension of 
the transitional period until 31 December 1985, 
HAS ADOPTED THE FOLLOWING OPINION: 
PARTI 
General observations 
1.1. Although the Commission has had only a 
limited experience of the application of the Regu­
lation and the system of Communities' own resources, 
this has revealed that a number of its provisions 
require adjustment. 
1.2. The Court has considered the proposals with a 
view to seeking such improvements as can reasonably 
be introduced at this stage. Its opinion with regard to 
the detailed Articles of the Regulation is given in Part 
2 hereof. 
1.3. The Court notes that all the Member States 
apply Article 2 of the Regulation in the same way as 
regards the establishment of Community own 
resources other than those derived from VAT. It 
notes from the Commission's report on the 
implementation of the Regulation, paragraph II, that 
the Commission decided that establishment should 
take place when entry is made in the accounts of the 
appropriate department or agency of the Member 
State. The Commission did not, however, propose 
any amendment to implement this decision because it 
has not completed its review of national legislation 
and practices, particularly regarding cases in which a 
No C 133/4 Official Journal of the European Communities 20.5.83 
dispute arises (II. 1 of the Commission's Report on the 
implementation of the Regulation (')). The Court 
regards establishment as a basic element in the system 
of Communities' own resources and accordingly 
considers that amendment of the Regulation would 
be incomplete if it did not resolve this problem. The 
Court has therefore proposed that Article 2 be 
amended to reflect the Commission's decision. This 
amendment necessitates consequential editing of 
other Articles to draw the distinction between this 
action and the subsequent entry in the Treasury 
accounts held in the name of the Commission. 
1.4. On 17 May 1979, the Court adopted an 
opinion (2) on the proposal for a Council Regulation 
on the measures to be taken in the event of irregu­
larities affecting the own resources referred to in the 
Decision of 21 April 1970 and the organization of an 
information system for the Commission in this field. 
The Court regrets that this Regulation has not been 
enacted. It endorses the Commission's proposals to 
implement the requirement for an information system 
by amendment of Article 17 of the Regulation. In this 
respect, the Court refers to its earlier opinion wherein 
it noted that 'some guidance on what the term "irre­
gularities" is intended to cover is essential in order to 
ensure the consistency and comparability of the infor­
mation to be provided by the Member States. This is 
important since the laws of the Member States differ 
in this respect'. There is still a need for this guidance. 
As it has already done in its opinion of 17 May 1979, 
the Court agrees that the Commission should be 
given the right of audit on the spot in regard to the 
establishment and collection of own resources. 
1.5. The Court also refers to its opinion on a 
proposal for a Council Regulation amending the 
Financial Regulation of 21 December 1977 applicable 
to the general budget of the European 
Communities (3). Certain of the proposed 
amendments to Regulation (EEC, Euratom, ECSC) 
No 2891/77 on own resources have a relevance to financial provisions within the Financial Regulation 
and other specific Regulations, and the Court must 
repeat its view that ideally these should be 
coordinated. The provision for payment of interest on 
own resources — Article 9 (as amended) of Regu­
lation (EEC, Euratom, ECSC) No 2891/77 — raises 
the question whether a consequential amendment 
should not be made in relation to other funds of 
Community origin managed by the Member States. 
1.6. The Commission's proposal includes an 
amendment to Article 15 (2) of the Regulation which 
would allow the balance of a given financial year to 
be increased or decreased by the balance resulting 
from exchange gains and losses during the financial 
year; the Court, on practical grounds, does not 
oppose this proposal. However, the Court considers 
that the Commission should resolve the basic problem 
by introducing, within a reasonable time, such 
measures as are necessary to reduce the incidence of 
such exchange gains and losses. 
PART 2 
Introductory note 
2.1. The left-hand column contains only those 
Articles for which the Court has suggested 
amendments. The text given is either that of the 
present Regulation, as amended by the Commission's 
proposals, or the present text if no proposal applies. 
2.2. The middle column states the Court's 
proposed amendment, justified by the reasons in the 
third column. 
2.3. Where the amendment of the Court relates to 
a single paragraph, only that paragraph has been 
included, unless others are needed to understand the 
amendment. The proposed amendments of the 
Commission and of the Court are printed in italic and 
bold type respectively. 
(l) OJNoC231,4. 9. 1982, p. 2. 
O OJ No C 187, 25. 7. 1979, p. 9. 
O OJNoC232, 11.9. 1981, p. 1. 
20. 5. 83 Official Journal of the European Communities No C 133/5 
2.4. Proposed amendments to Regulation (EEC, Euratom, ECSC) No 2891/77 
Commission proposal Amendments proposed by the Court of Auditors Reasons 
Article 2 (part): 
For the purpose of applying this Regu­
lation, an entitlement shall be deemed to 
be established as soon as the 
corresponding claim has been duly 
determined by the appropriate 
department or agency of the Member 
States. 
Article 5 (becomes Article 8): 
Each Member State shall draw up yearly 
a summary account of entitlements 
established together with a report on the 
establishment and entry in the accounts of 
own resources and shall forward this to 
the Commission before 1 April of the 
year following the financial year in 
question. 
Article 7 (becomes Article 6) (part): 
(1) Accounts for own resources shall 
be kept by the Treasury of each Member 
State or by the body appointed by each 
Member State and broken down by type 
of resources. 
(2) The established entitlements shall 
be entered in the accounts at the latest 
on the 20th day of the second month 
following the month during which the 
entitlements were established. Amend Article 2 to read: 
For the purpose of applying this Regu­
lation, an entitlement shall be deemed 
to be established as soon as the 
corresponding claim has been entered 
in the accounts of the appropriate 
department or agency of the Member 
State. This entry shall be made upon 
determination of the claim, in accord­
ance with Article 1 (d) of Council 
Directive 79/623/EEC and Article 
3 (2) of Council Directive 78/453/ 
EEC. 
Amend Article 5 to read: 
Each Member State shall draw-up 
yearly a summary account of 
entitlements established together with a 
report on the establishment and entry 
in the Treasury accounts referred to in 
Article 6 (previously 7) of own re­
sources and shall forward this to the 
Commission before 1 April of the year 
following the financial year in 
question. The form of this summary 
account and of the monthly statement 
required in Article 6 (3) — previously 
7 (3) — shall be determined by the 
Commission. 
Amend paragraph 2 to read: 
(2) The established entitlements 
shall be entered in these accounts at 
the latest on the 20th day of the 
second month following the month 
during which the entitlements were 
established. To codify in the basic Regulations that 
the concept of 'establishment' relates to 
the determination of the claim and its 
entry in the national accounts, so that 
these are simultaneous. 
To clarify that the report is intended to 
show both the amounts established and 
thus entered in the national accounts as 
required by the concept codified in the 
Court's amendment to Article 2; and 
credited to the Commission's account 
kept by the Treasury of the Member 
State. 
To harmonize the form and content of 
these returns. 
To distinguish from the entry upon 
establishment. 
NoC 133/6 Official Journal of the European Communities 20. 5. 83 
Commission proposal Amendments proposed by the Court of Auditors Reasons 
Article 17 (part): 
3. Every six months, Member States 
shall send to the Commission two 
separate reports, one on the results of their 
inspections and the other containing 
comprehensive information and 
questions of principle concerning the 
most important problems arising out of 
the application of this Regulation and in 
particular matters in dispute. These re­
ports shall be submitted during the month 
following the end of each half year and 
shall include the number of cases of irregu­
larities concerning own resources, an 
overall estimate of the own resources 
evaded and the amount of own resources 
established or still to be established. The 
reports shall also describe serious irregu­
larities which could have a significant 
financial impact on own resources. 
Article 18: 
(1) Member States shall carry out the 
verifications and inquiries concerning the 
establishment and the making available 
of own resources. The Commission shall 
make use of its powers as specified in 
this Article. 
(2) Accordingly, Member States shall: 
— carry out any additional inspection 
measures the Commission may ask 
for in a reasoned request, 
— associate the Commission, at its 
request, with the inspection measures 
which they carry out. 
Member States shall take all steps re­
quired to facilitate these inspection 
measures. Where the Commission is as­
sociated with these measures, Member 
States shall place at its disposal the sup­
porting documents referred to in Article 
3. In order to restrict additional 
inspection measures to the minimum. 
(a) the Commission may, in specific 
cases, request that certain documents 
be forwarded to it; 
(b) in the monthly statement of accounts 
referred to in Article 7(3), the 
amounts entered in the accounts which 
relate to irregularities or delays in the 
establishment, entry in the accounts 
and making available of own res­
ources, discovered during the 
inspections referred to above, must be 
identified by means of appropriate 
notes; Amend paragraph 1 to read: 
Member States shall carry out the 
inspections, including verifications and 
inquiries, concerning the establishment 
and the making available of own re­
sources. The Commission shall make 
use of its powers as specified in this 
Article. 
Amend subparagraph (b) to read: 
(b) in the monthly statement of ac­
counts referred to in Article 6 (3), 
the amounts entered therein which 
relate to irregularities or delays in 
the establishment, entry in either 
of the accounts referred to in 
Articles 2 and 6, and making avai­
lable of own resources, must be 
identified by means of appropriate 
notes, which shall also indicate if 
these irregularities or delays were 
discovered during the inspections 
referred to in this Article. There is currently an ambiguity between 
the verifications and inquiries' of para­
graph 1, and the 'inspections' stimulated 
or supported by the Commission in 
paragraph 2. It is desirable that the 're­
ports of inspections' now required by the 
amendment to Article 17 (3) include all 
these activities. 
Clarification to ensure that the monthly 
statement shall include both the date of 
establishment and of rendering to the 
Commission amounts determined in ir­
regularity cases, and shall indicate where 
these derive from any of the forms of 
inspection foreseen in this Article. 
20. 5. 83 Official Journal of the European Communities No C 133/7 
Commission proposal Reasons 
(3) Without prejudice to the inspections 
referred to in paragraph 2, the Commission 
may itself undertake on-the-spot 
inspections. The officials appointed by the 
Commission to undertake these inspections 
shall, to the extent necessary for the correct 
application of this Regulation, have access 
to the supporting documents referred to. 
(4) The inspection measures referred 
to in paragraphs 1, 2, and 3 shall not 
prejudice: 
(a) the inspection measures undertaken 
by Member States in accordance 
with their own provisions laid down 
by law, regulation or administrative; 
(b) the measures provided for in Articles 
206, 206a and 206b of the Treaty 
establishing the European Economic 
Community and Articles 180, 180a 
and 180b of the Treaty establishing 
the European Atomic Energy 
Community; 
(c) the inspection arrangements made 
pursuant to Article 209 (c) of the 
Treaty establishing the European 
Economic Community and Article 
183 (c) of the Treaty establishing the 
European Atomic Energy 
Community. 
(5) The Commission shall from time 
to time report to the European Par­
liament and to the Council on the 
functioning of the inspection 
arrangements. 
This opinion was adopted by the Court of Auditors in its meeting of 16 November 1982. 
Done at Luxembourg, 19 November 1982. 
For the Court of Auditors 
Pierre LELONG 
President