FINANCIAL STATEMENTS OF THE EUROPEAN COURT OF AUDITORS FOR THE FINANCIAL YEAR 2012

2013/C 288/01

TABLE OF CONTENTS

Certification for the final accounts 2012 of the European Court of Auditors

Independent auditor’s report

Financial statements and explanatory notes

Balance sheet as of 31 December 2012

Economic outturn account for the year ended 31 December 2012

Cash flow table for the year ended 31 December 2012

Statement of changes in net assets for the year ended 31 December 2012

Accounting policies and notes to the financial statements

Budget information — financial year 2012

Independent assurance report

Certification for the final accounts 2012 of the European Court of Auditors

The annual accounts of the European Court of Auditors for the year 2012 have been prepared in accordance with the Financial Regulation applicable to the general budget of the European Union and the accounting rules adopted by the Commission’s Accounting Officer, as are to be applied by all the institutions, agencies and joint undertakings.

I acknowledge my responsibility for the preparation and presentation of the annual accounts of the European Court of Auditors in accordance with art 68 of the Financial Regulation.

I have obtained from the authorising officer, who certified its reliability, all the information necessary for the production of the accounts that show the European Court of Auditors’ 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, I have a reasonable assurance that the accounts present fairly, in all material aspects, the financial position, the results of the operations and the cash-flow of the European Court of Auditors.

In our opinion, the financial statements give a true and fair view of the financial position of the European Court of Auditors as of 31 December 2012, and its financial performance and its cash flows for the year then ended in accordance with provisions of Council Regulation (EU, Euratom) No 966/2012 of 25 October 2012 on the Financial Regulation applicable to the general budget of the Union and with the Commission delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of the Financial Regulation

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the “Réviseur d’entreprises agréé” including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the “Réviseur d’entreprises agréé” considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier”. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

The Management is responsible for the preparation and fair presentation of these financial statements in accordance with provisions of Council Regulation (EU, Euratom) No 966/2012 of 25 October 2012 on the Financial Regulation applicable to the general budget of the Union and with the Commission delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of the Financial Regulation, and for such internal control as the Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

We have audited the accompanying financial statements of the European Court of Auditors, which comprise the balance sheet as at 31 December 2012, the economic outturn account, the cash flow table and the statement of changes in net assets and for the year then ended and a summary of significant accounting policies and other explanatory notes, which starts on page 4 and ends on page 16.

FINANCIAL STATEMENTS AND EXPLANATORY NOTES

Balance sheet as of 31 December 2012

(euro) Note 31 December 2012 31 December 2011 Non-current assets Intangible assets 3.1. 2 271 343 799 634 Property, plant and equipment 3.2. 95 437 237 55 724 407 Long-term receivables 25 25 97 708 605 56 524 066 Current assets Short-term receivables 3.3. 1 587 108 423 944 Cash and cash equivalents 3.4. 23 625 043 48 109 130 25 212 151 48 533 074 Total assets 122 920 756 105 057 140 Non-current liabilities Employee benefits 3.5. 58 935 308 53 664 443 Other long-term liabilities 3.6. 175 000 175 000 59 110 308 53 839 443 Current liabilities Short-term provisions 3.7. 3 066 916 898 000 Accounts payable 3.8. 23 702 306 10 858 973 26 769 222 11 756 973 Total liabilities 85 879 530 65 596 416 Net assets 37 041 227 39 460 724 Accumulated surplus/deficit 39 460 724 33 044 880 Economic outturn for the year (2 419 498) 6 415 844 Net assets 37 041 226 39 460 724

The accompanying notes form an integral part of these financial statements.

Economic outturn account for the year ended 31 December 2012

(euro) Note 2012 2011 Funds transferred from the Commission to other institutions 4.1. 117 795 049 115 620 434 Revenue from administrative operations 4.2. 19 304 343 19 079 500 Other operating revenue 4.3. 45 439 38 707 Total operating revenue 137 144 831 134 738 641 Staff expenses 4.5. (103 441 065) (99 838 855) Assets related expenses 3.1.-3.2. and 4.6. (3 351 126) (2 894 307) Other administrative expenses 4.7. (23 543 939) (22 109 488) Operational expenses 4.8. (18 586) (52 733) Total operating expenses (130 354 716) (124 895 383) Surplus/(deficit) from operating activities 6 790 116 9 843 258 Financial revenue 4.9. 59 336 380 229 Financial expenses 4.10. (20 025) (20 025) Movement in pensions (– expense, + revenue) 3.5. and 4.11. (9 248 924) (3 787 618) Surplus/(deficit) from non operating activities (9 209 613) (3 427 414) Economic outturn of the year (2 419 498) 6 415 844

The accompanying notes form an integral part of these financial statements.

Cash flow table for the year ended 31 December 2012

(euro) 2012 2011 Economic outturn of the year (2 419 498) 6 415 844 Operating activities — adjustments Amortisation 209 828 244 685 Depreciation 3 139 253 2 646 567 Increase/(decrease) in provisions for risks and charges 2 168 917 898 000 (Increase)/decrease in short-term receivables (1 164 040) 99 583 (Increase)/decrease in receivables EU entities 876 7 712 Increase/(decrease) in accounts payable 12 852 333 3 176 197 Increase/(decrease) in liabilities related to EU entities (9 000) 22 218 Net cash flow from operating activities 14 778 669 13 510 806 Cash flows from investing activities Purchase of tangible and intangible assets (–) (44 535 664) (21 019 575) Proceeds from tangible and intangible assets (+) 2 043 3 055 Net cash flow from investing activities (44 533 621) (21 016 520) Increase/(decrease) in employee benefits 5 270 865 347 058 Net increase/(decrease) in cash and cash equivalents (24 484 087) (7 158 656) Cash and cash equivalents at the beginning of the year 48 109 130 55 267 786 Cash and cash equivalents at the end of the year 23 625 043 48 109 130

The accompanying notes form an integral part of these financial statements.

Statement of changes in net assets for the year ended 31 December 2012

(euro) Net assets 2012 2011 Balance at the start of the year 39 460 724 33 044 880 Economic outturn of the year (2 419 498) 6 415 844 Balance at the end of the year 37 041 226 39 460 724

The accompanying notes form an integral part of these financial statements.

Accounting policies and notes to the financial statements

1. General

The European Court of Auditors (hereafter the ‘Court’) was established by the Treaty of Brussels of 22 July 1975 and started operating as an external Union audit body in October 1977, with its headquarters in Luxembourg.

Mission of the European Court of Auditors

The Court is the EU Institution established by the Treaty to carry out the audit of EU finances. As the EU external auditor it contributes to improving EU financial management and acts as the independent guardian of the financial interests of the citizens of the European Union.

The Court renders audit services through which it assesses the collection and spending of EU funds. It examines whether financial operations have been properly recorded and disclosed, legally and regularly executed and managed so as to ensure economy, efficiency and effectiveness. The Court communicates the results of its audits in clear, relevant and objective reports. It also provides its opinion on financial management issues.

The Court promotes accountability and transparency and assists the European Parliament and Council in overseeing the implementation of the EU budget, particularly during the discharge procedure. The Court is committed to being an efficient organisation at the forefront of developments in public audit and administration.

The financial year of the Court runs from 1 January to 31 December.

2. Legal basis and accounting rules

2.1. Basis of presentation

The accounts of the Court are drawn up in accordance with the provisions of Council Regulation (EU, Euratom) No 966/2012 of 25 October 2012 on the Financial Regulation applicable to the general budget of the Union and with the Commission delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of the Financial Regulation.

2.2. Accounting principles

According to Article 144 of the Financial Regulation, the financial statements shall present information, including information on accounting policies, in a manner that ensures it is relevant, reliable, comparable and understandable. The budgetary accounts shall respect the budgetary principles laid down in the Financial Regulation. They shall present a true and fair view of the budgetary revenue and expenditure operations.

The financial statements are drawn up in accordance with the accounting rules of the European Union (EU accounting rules), based on internationally accepted accounting standards for the public sector. These accounting rules are adopted by the Accounting Officer of the Commission after a consultation of the other institutions.

2.3. Valuation of foreign currency balances and transactions

Foreign currency transactions are translated into euro using the exchange rate prevailing at the date of the transaction.

Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the economic outturn account.

Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into euro on the basis of the exchange rates applying on 31 December.

2.4. Intangible assets

Acquired computer software licences are stated at historical cost less accumulated amortisation and impairment losses. The assets are amortised on a straight-line basis over four years. Internally developed intangible assets are capitalised when the relevant criteria of the EU accounting rules are met. The costs that can be capitalised include all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by management. Costs associated with research activities, not capitalised development costs and maintenance costs are recognised as expenses as incurred.

2.5. Property, plant and equipment

All property, plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition or construction of the asset.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits or service potential associated with the item will flow to the Court and its cost can be measured reliably. Repairs and maintenance costs are charged to the economic outturn account during the financial period in which they are incurred. As the Court does not borrow money to fund the acquisition of property, plant and equipment, there are no borrowing costs related to such purchases.

Land and works of art are not depreciated as they are deemed to have an indefinite useful life. Assets under construction are not depreciated as these assets are not yet available for use. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:

Buildings 25 years or expected useful life Plant, machinery and tools 4, 8 years Furniture and vehicle fleet 4, 8, 10 years Computer hardware 4 years Fittings specific to leased buildings the duration of the lease Other fixtures and fittings 4, 6, 8 years

2.6. Employee benefits

Employee benefits represent the future pension rights of the Members of the Court in accordance with Article 19 of Council Regulation (EC, Euratom, ECSC) No 2290/77 of 18 October 1977 determining the emoluments of the Members of the Court of Auditors (1), the benefits provided for in this pension scheme are entered in the budget of the Union and the Member States jointly guarantee their payment.

The liability for these future pension payments is accounted and disclosed in accordance with EU accounting rule 12 ‘Employee Benefits’. The methodology to calculate the liability takes account of characteristics of the pension scheme as defined in accounting rule IPSAS 25.

IPSAS 25 requires that the cost of post-employment benefits be assessed in the present (i.e. when the Member acquires his pension rights). The actuarial commitment is determined on an ongoing basis, taking into account both the promised benefits during the active lifetime and foreseeable increase in salaries. The actuarial valuation method used to calculate the liability is ‘the projected unit credit method’.

The liability is reduced by the estimated amount of taxes that will be applied to future pension payments since these taxes revert to the EU budget as revenue.

The pension liability is recomputed every year at reporting date. In the economic outturn account, the pension expense for the year consists of the pensions paid during the year and of the adjustment of the pension liability at year-end, both net of taxes. Actuarial gains and losses are recognised in the ‘economic outturn account’.

Regarding potential ‘plan assets’, the Court does not currently have any assets devoted to financing pension commitments.

2.7. Provisions

Provisions are recognised when the Court has a present legal or constructive obligation towards third parties as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses. The amount of the provision is the best estimate of the expenditures expected to be required to settle the present obligation at the reporting date.

2.8. Recognition of expenses

According to the European Union accounting rules, transactions and events are recognised in the financial statements in the period to which they relate. At the end of the accounting period, accrued expenses are recognised based on an estimated amount of the transfer obligation of the period. The calculation of accrued expenses is done in accordance with detailed operational and practical guidelines which aim at ensuring that the financial statements reflect a true and fair view.

3. Notes to the balance sheet

NON-CURRENT ASSETS

3.1. Intangible assets

The movements in intangible assets during the year 2012 were:

(euro) Gross carrying amounts 1 January 2012 Additions Gross carrying amounts 31 December 2012 Accumulated amortisation and impairment 31 December 2012 Net carrying amounts 31 December 2012 Computer Software 1 280 384 122 962 1 403 346 (1 066 430) 336 916 Intangible assets under construction 375 852 1 558 575 1 934 427 1 934 427 Total 1 656 236 1 681 537 3 337 773 (1 066 430) 2 271 343

In 2012 no costs associated with research activities were recognised.

3.2. Property, plant and equipment

The movements in Property, plant and equipment during the year 2012 were:

(euro) Gross carrying amounts 1 January 2012 Additions Disposals Transfer Gross carrying amounts 31 December 2012 Accumulated amortisation and impairment 31 December 2012 Net carrying amounts 31 December 2012 Land 776 631 776 631 776 631 Buildings 58 014 262 42 377 64 803 349 122 859 988 (32 625 657) 90 234 331 Plant and equipment 301 916 371 089 (20 158) 652 847 (205 087) 447 760 Computer hardware 4 334 320 660 234 (263 787) 4 730 767 (3 759 898) 970 869 Furniture and vehicle 2 083 118 2 386 015 (22 607) 4 446 526 (1 503 520) 2 943 006 Other fixtures and fittings 1 879 098 27 301 (14 571) 1 891 828 (1 831 287) 60 541 Tangible assets under construction 25 440 337 39 367 111 — (64 803 349) 4 099 4 099 Total 92 829 682 42 854 127 (321 123) — 135 362 686 (39 925 449) 95 437 237

The K3 building entered into service on 15 November 2012 and at this date was transferred from ‘Assets under construction’ to ‘Buildings’ (see point 5.3).

CURRENT ASSETS

3.3. Short-term receivables

(euro) 31 December 2012 31 December 2011 Current receivables mainly due to the transfer of national pension rights by staff 2 030 4 222 Sundry receivables mainly related to payroll and mission advances 200 942 127 949 Deferred charges for building rentals and IT contracts 1 382 757 289 518 Receivable from EU entities 1 379 2 255 Total 1 587 108 423 944

3.4. Cash and cash equivalents

(euro) 31 December 2012 31 December 2011 Petty cash 1 000 1 000 Bank current account 2 627 191 1 113 170 Fiduciary account 20 996 852 46 994 960 Total 23 625 043 48 109 130

A fiduciary account was opened on 27 January 2010 between the European Court of Auditors and the Banque et Caisse d’Epargne de l’Etat, Luxembourg. This fiduciary account allows the Court to manage the budget granted by the budgetary authority in relation to the K3 building project (see point 5.3).

The fiduciary account is used by the Court only under certain conditions disclosed in the contract with the Banque et Caisse d’Epargne de l’Etat, Luxembourg.

The exclusive beneficiary of payments made from this fiduciary account is the operational bank account of the consortium acting as project manager. This operational account is used exclusively by the project manager to pay the invoices of the construction companies.

NON-CURRENT LIABILITIES

3.5. Employee benefits

The computation of the liability is performed by Eurostat assisted by a qualified independent expert with regard to the implementation of the methodology and to the definition of the corresponding actuarial assumptions.

The liability for future pension payments obligations is net of the taxes which will be recovered on the future pension payments (see also 2.6).

(euro) 31 December 2012 31 December 2011 Gross amount 72 804 580 66 526 128 Tax rate (%) (2) 19,05 % 19,33 % Taxes 13 869 273 12 861 685 Amount net of taxes 58 935 308 53 664 443 Variation of members’ net pension liability 5 270 865 347 058

The pension plan devoted to the members is a defined benefit plan. The defined benefits in this context are:

— transitional allowance (paid at the end of the mandate for three years),

— retirement pension,

— invalidity pension and allowance,

— survivor’s pension (paid after the death of the Member whether this happens during or before retirement).

The categories of beneficiaries, for which the liability needs to be calculated, are:

— the active members,

— the non-active members with a transitional allowance,

— the non-active members after the transition period (deferred pension),

— the retired members,

— permanently disabled,

— temporarily disabled,

— the surviving spouses,

— the orphans.

The assessment of the pension liability requires the handling of variables related to economic and demographic aspects. The main actuarial assumptions are:

Actuarial assumption 31 December 2011 31 December 2012 Average age difference between married men and women 3 years 3 years Probability of being married for men Marital status at reference date Marital status at reference date Probability of being married for women Marital status at reference date Marital status at reference date Marital status Status at the reference date Status at the reference date Coefficient for orphan’s and divorced spouse’s pension 0 % 0 % Assumed retirement age 65 65 Expected inflation rate over the duration of the scheme 1,6 % 1,7 % Nominal Discount rate (NDR) 4,6 % 3,3 % Real Discount rate (RDR) 3,0 % 1,6 % General salary growth (GSG) 0,0 % 0,0 % General pension revaluation (GPR) 0,0 % 0,0 % Individual salary progression (ISP) None (except if new appointment) None (except if new appointment) Mortality table healthy people 2008 ICSLT (3) 2008 ICSLT (3) Mortality table for invalids Rate corresponding to a healthy person aged of 3 years more Rate corresponding to a healthy person aged of 3 years more

3.6. Other long-term liabilities

The amount of 175 000 euro is contractually due at the termination of the rental of the building K9.

CURRENT LIABILITIES

3.7. Short-term provisions

On 11 January 2012, the Commission decided to bring an action against the Council in the Court of Justice for not adopting the 2011 annual adjustment to remuneration of EU staff. Following this decision a short-term provision has been booked for the outstanding 1,7 % salary payments net of taxes and pension deduction. The same applies for the 2012 salary adjustment of 1,7 % related to the period July-December 2012.

A second short-term provision concerns the outstanding pension contribution reduction probably to be refunded to the staff:

— As from 1 July 2011 — reduction from 11,6 % to 11,0 %

— As from 1 July 2012 — further reduction from 11,0 % to 10,6 %

3.8. Accounts payable

(euro) 31 December 2012 31 December 2011 Current payables 445 830 100 012 Sundry payables related to payroll and staff 344 427 478 469 Accrued charges 22 864 727 10 224 170 Accounts payable against consolidated EU entities mainly to the European Council and Parliament 47 322 56 322 Total 23 702 306 10 858 973

4. Notes to the economic outturn account

4.1. ‘Funds transferred from the Commission to other institutions’: the amount corresponds to the monthly calls for funds made by the Court to the Commission to replenish its bank account.

4.2. ‘Revenue from administrative operations’: for the most part, this heading is made up of deductions from the salaries of members and staff in respect of tax and social contributions.

4.3. ‘Other operating revenue’ arises among others from exchange rate gains.

4.4. Revenues were generated from exchange and non-exchange transactions as follows: (euro) 2012 2011 Revenue from exchange transactions 41 910 12 301 Revenue from non-exchange transactions 137 102 921 134 726 340 Total revenue 137 144 831 134 738 641

4.5. ‘Staff expenses’ include the salaries of members, statutory staff, contractual agents and temporary staff. The transitional allowances for previous members and the taxes related to the members’ pensions and transitional allowances are also part of the item ‘Movement in pension’ (see 4.11).

4.6. The ‘Assets related expenses’ consist of the depreciation/amortisation of the tangible and intangible assets.

4.7. The most significant items of the ‘other administrative expenses’ were: — buildings’ rental and associated charge, — IT and telecommunications, — missions expenses, — cleaning and security services.

4.8. ‘Operational expenses’ arise among others from exchange rate losses.

4.9. ‘Financial revenue’ consist of bank interest earned on the Court’s current and fiduciary accounts.

4.10. ‘Financial expenses’ are bank charges levied on the Court’s current and fiduciary accounts.

4.11. The item ‘Movement in pensions’ includes all expenses linked to the pensions of the Members of the Court. This covers the pensions and transitional allowances paid during the year and the adjustment at year end of the liability for all future pension payments which explains the difference between the two years. (euro) 2012 2011 Variation of members’ net pension liability 5 270 865 347 058 Life pension paid 2 590 511 2 506 455 Survivor pensions paid 350 485 373 724 Transitional allowances paid 1 785 937 1 192 009 Invalidity pensions paid 23 809 71 494 Sub-total pension paid during the year 4 750 742 4 143 682 Correction coefficient 163 476 121 472 Taxes deducted from payments (936 159) (824 594) Total movement in pensions 9 248 924 3 787 618

5. Other significant disclosures

5.1. Contingent assets

The following bank guarantees have been given by suppliers following contractual obligations:

(euro) 31 December 2012 31 December 2011 Travel agency 50 000 50 000 Renovation building K1 2 500 2 500 Project management building K3 7 096 680 6 765 339 Car pool leasing — 60 000 Insurance company 1 361 — Telecommunication 20 000 20 000 Total 7 170 541 6 897 839

5.2. Commitments for future funding

(euro) 31 December 2012 31 December 2011 Operational lease for buildings 2 579 580 6 336 852 Operational lease for IT material, cars and other equipment 1 044 344 862 449 Subtotal 3 623 924 7 199 301 Commitments against appropriations not yet consumed — RAL (Restant à liquider) — after deduction of accruals for 2012 1 385 871 8 258 004 Total 5 009 795 15 457 305

The RAL is an element of budgetary accounting representing the value of outstanding commitments. This is the difference between commitments entered into and payments, which is due to the time-lag between entering into a commitment and proceeding to the related payment.

5.3. The Court’s buildings projects

The Court occupied its headquarters building (the ‘K1’ building) in 1988 and purchased it and the land it stands on outright in 1990. In 1999, the Court signed a framework agreement with the Luxembourg State through which it was given the right to use a second parcel of land for 49 years (renewable once) for the construction of an extension (the ‘K2’ building) in return for a payment of one euro. However for the second extension, the ‘K3’ building, due to different arrangements for carrying out the project it was necessary that the Luxembourg State and the Court concluded a new framework agreement on 22 February 2008.

As regards the two pieces of land relative to the two extensions (‘K2’ and ‘K3’) mentioned above, the state has sold these to the Court for a symbolic one euro.

For its part should the Court ever consider ceding one or other of the buildings to a third party other than the Community body or institution, the Court will return the land to the ownership of the State in return for a symbolic one euro, the latter disposing also of an option to buy the building at a price to be determined by an independent expert. In case the state decides not to exercise this option, it would provide a right to use the land to the purchasers of the building.

In Luxembourg, the use of office buildings is authorised for a period of 15 years, after which they must be modernised to bring them into conformity with the prevailing health, safety and environmental standards. These required health and safety works were performed on the K1 building. The work is finalised, the formal final acceptance was confirmed in 2010. The K2 building entered into service in November 2003 and has thus an authorisation (‘autorisation d’exploitation’) valid until 2018.

The works for the construction of the K3 building started in March 2010. The first tranche amounted to 55 million euro, the second tranche amounted to 11 million euro, the third tranche in 2011 amounted to 7 million euro and the first part of the fourth tranche in 2012 amounted 3 million. Part of this fourth tranche was spent in 2012 and the difference is included in the ‘Restant à liquider’ (see point 5.2).

On 15 June 2009 following an open call for tender, the Court signed a service contract with a consortium to be the project manager for the construction of the K3 building. Amongst other things it is the responsibility of the project manager to procure and sign contracts with the construction companies on behalf of the Court, to monitor the execution of the works and to check the relevant invoices before payment. Once the invoices are verified and authorised for payment by the responsible services of the Court it is the responsibility of the project manager to pay the construction companies. Within the above context, the project manager enters into financial commitments towards the construction companies. As a counter-balance to this, the contract between the Court and the project manager requires the Court to have sufficient funds, within the limits of what is available in the budget, to cover the liabilities of the project manager vis-à-vis the construction companies. To ensure this, the Court has signed a fiduciary contract with a local bank and thus holds the funds made available by the budgetary authority. The financial interest of the Union is at the same time protected by the use of the fiduciary contract.

On 15 November 2012 the K3 building entered into service.

5.4. Potential significant liability for litigations (4)

None.

(1) OJ L 268, 20.10.1977, p. 1.

(2) Rounded.

(3) International Civil Servants Life Table.

(4) EU accounting rule No 10 Provisions, contingent liabilities and contingent assets.