Communication from the Commission to the Court of Auditors - Provisional accounts for the financial year 2007 of the 7th, 8th and 9th European development funds /* SEC/2008/0418 final */





[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES | Brussels, 28-III-2008 SEC(2008) 418 COMMUNICATION FROM THE COMMISSION TO THE COURT OF AUDITORS PROVISIONAL ACCOUNTS FOR THE FINANCIAL YEAR 2007 OF THE 7TH, 8TH AND 9TH EUROPEAN DEVELOPMENT FUNDS TABLE OF CONTENTS 1. FINANCIAL STATEMENTS 3 1.1. EUROPEAN DEVELOPMENT FUND 3 1.2. FINANCIAL STATEMENTS 5 1.3. NOTES TO THE FINANCIAL STATEMENTS 18 1.4. OFF BALANCE SHEET ITEMS 35 2. RAPPORT SUR L'EXÉCUTION FINANCIÈRE 36 2.1. DOTATIONS AU 31.12.2007 44 2.2. COMPTES CONSOLIDES 52 2.3. SITUATION PAR PAYS ET PAR INSTRUMENT 59 2.4. AUTRES INFORMATIONS DE GESTION 61 3. FINANCIAL INFORMATION EIB 68 3.1. INCOME STATEMENT INVESTMENT FACILITY 69 3.2. BALANCE SHEET INVESTMENT FACILITY 70 3.3. CASH FLOW STATEMENT INVESTMENT FACILITY 71 3.4. STATEMENT OF CHANGES IN EQUITY INVESTMENT FACILITY 72 3.5. NOTES TO THE FINANCIAL STATEMENTS 73 4. APPENDIX – Situation by country and by instrument 93 FINANCIAL STATEMENTS EUROPEAN DEVELOPMENT FUND The European Development Fund (EDF) is the main instrument for providing community aid for development cooperation in the African, Caribbean and Pacific (ACP) States and Overseas Countries and Territories (OCTs). The 1957 Treaty of Rome made provision for its creation with a view to granting technical and financial assistance, initially to African countries which at that time were still colonised and with which some Member States had historical links. Even though a heading has been reserved for the Fund in the Community budget since 1993 following a request by the European Parliament, the EDF does not yet come under the Community's general budget. It is funded by the Member States, is subject to its own financial rules and is managed by a specific committee. The geographic aid granted to ACP States and OCTs will continue to be mainly funded by the EDF for the period 2008-2013. Each EDF is concluded for a period of around five years. Since the conclusion of the first partnership convention in 1964, the EDF cycles have generally followed the partnership agreement/convention cycles. The present 9th EDF will expire on the entry into force of the 10th EDF during 2008. Council decision 2007/792/EC[1] of 26 November 2007 establishes a transitory period for the prolongation of the 9th EDF from 1st January 2008 until the entry into force of the 10th EDF. Each EDF is governed by its own Financial Regulation which imposes the preparation of financial statements for each individual EDF. Accordingly, financial statements are prepared separately for each EDF in respect of the part that is managed by the European Commission. These financial statements are also presented in an aggregated way so as to provide a global view of the financial situation of the resources for which the European Commission is responsible. Given the clear division of responsibilities set out in Article 1 of the 9th EDF Financial Regulation[2], the financial statements of the Commission and the European Investment Bank – the entities entrusted with the management of EDF resources – have not been consolidated. Closure of the 6th EDF Given the state of progress of the 6 th EDF, the Authorising Officer decided to close this fund on 31st July 2006. In the absence of a legal basis for the closure of EDFs, the balance remaining was transferred to the 9th EDF according to the provisions of Part 3 of the Financial regulation applicable to the 9th EDF. Presentation of annual accounts The annual accounts for 2007 are presented as follows: - The financial statements - The reports on financial implementation - The financial statements and information supplied by the European Investment Bank (EIB) FINANCIAL STATEMENTS BALANCE SHEET for the 7th, 8th and 9th EDF (EUR Millions) | Notes | 31.12.2007 | 31.12.2006 | CURRENT ASSETS | Receivables | 1 | 188.32 | 216.83 | Net Pre-financing | 2 | 2 576.20 | 2 808.88 | Other current assets | 3 | -2.65 | 0.95 | Cash and cash equivalents | 388.22 | 291.50 | STABEX security accounts | 5 | 99.61 | 191.60 | RD Congo special fund | 6 | 3.36 | 3.42 | Cash at bank | 7 | 285.24 | 96.48 | TOTAL ASSETS | 3 150.09 | 3 318.17 | CURRENT LIABILITIES | Payables | 8 | 2 504.49 | 2 095.86 | TOTAL LIABILITIES | 2 504.49 | 2 095.86 | NET ASSETS | 645.60 | 1 222.31 | FUNDS & RESERVES | Called fund capital | 9 | 25 019.17 | 29 900.00 | Results carried forward from previous years | -22 410.59 | -26 787.49 | Result for the year | -3 255.88 | -2 924.04 | Reserves | 10 | 1 292.89 | 1 033.84 | NET ASSETS | 645.60 | 1 222.31 | ECONOMIC OUTTURN ACCOUNT for the 7th, 8th and 9th EDF (EUR Millions) | Notes | cash basis expenditure 2007 | increase in pre-financing | increase in accrued expenditure | accrual basis expenditure 2007 | accrual basis expenditure 2006 | Operating interest | 1.1 | 0.02 | 0.02 | 0.06 | OPERATING REVENUE (1) | 0.02 | 0.02 | 0.06 | Programmable aid | 495.57 | -35.36 | 106.59 | 637.53 | 749.57 | Macro-economic support | 421.36 | 3.86 | 9.09 | 426.59 | 407.82 | Sectoral policy | 1 211.70 | 307.06 | 244.22 | 1 148.85 | 911.24 | Intra ACP Projects | 277.97 | -75.78 | 27.91 | 381.66 | 339.36 | Interest-rate subsidies | 0.95 | 0.95 | 1.20 | Emergency aid | 153.00 | 50.06 | 51.87 | 154.81 | 130.12 | Refugee aid | 1.31 | -0.49 | -7.38 | -5.58 | 6.68 | Risk Capital | 57.81 | 57.81 | 63.11 | Stabex | 98.37 | 98.37 | 189.52 | Sysmin | 23.36 | -14.73 | -6.51 | 31.58 | 29.80 | Transfers from former EDFs | 6.18 | -8.32 | -9.68 | 4.82 | 15.16 | Structural adjustment | 0.02 | 6.47 | 0.15 | -6.30 | 0.89 | Debt relief -HIPC and World Bank | -12.62 | -504.21 | -311.72 | 179.87 | 17.42 | Institutional Support | 42.40 | 24.98 | 12.99 | 30.41 | 32.34 | Compensation export receipts | 57.63 | 2.28 | 28.56 | 83.91 | 52.82 | R.D. Congo Fund | 0.19 | 17.06 | 17.25 | -13.39 | Operating expenses | 2 835.19 | -244.19 | 163.15 | 3 242.52 | 2 933.67 | Administrative and financial expenses | 11 | 38.78 | -13.66 | -20.76 | 31.68 | 23.79 | Total Expenses (cash basis) | 12 | 2 873.97 | Accrual adjustments | 13 | 399.89 | -257.84 | 142.39 | -0.34 | -0.14 | TOTAL EXPENSES / Accrual basis (2) | 14 | 3 273.86 | 3 273.86 | 2 957.31 | SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (2-1) | 3 273.83 | 3 273.83 | 2 957.26 | Financial revenue | 15 | 18.65 | 18.65 | 31.61 | Financial expenses | 16 | -0.34 | -0.34 | -0.14 | Impairment of receivables | 1.6 | -0.35 | -0.35 | 1.75 | Surplus/(deficit) from financial activities (3) | 17.96 | 17.96 | 33.22 | ECONOMIC RESULT (1-2+3) | -3 255.88 | -3 255.88 | -2 924.04[3] | CASH FLOW STATEMENT for the 7th, 8th and 9th EDF (EUR Millions) | notes | 31.12.2007 | 31.12.2006 | Economic result | -3 255.88 | -2 924.04 | Impairment of receivables | 1.6 | 0.35 | -1.75 | Financial revenue adjustment | 15 | -0.11 | 0.07 | Operational revenue adjustment | 1.1 | 2.88 | 0.04 | Accrual adjustments | 13 | 399.89 | 195.39 | Financial expenses | 16 | 0.34 | 0.14 | Bank charges to be refund | 1 | 0.02 | -0.04 | Decrease in advances for study grants and other current assets | 3 & 2.2 | 3.81 | 2.73 | Cash flows from operating activities | -2 848.69 | -2 727.46 | Contributions from member states | 2 886.76 | 2 525.82 | Cash flows from financing activities | 2 886.76 | 2 525.82 | Net increase/decrease in cash and cash equivalents | 38.07 | -201.64 | Treasury balance at beginning of period | 7 | 96.48 | 270.55 | Stabex security accounts at beginning of period | 5 | 191.60 | 371.88 | Congo Account | 6 | 3.42 | 19.67 | SWIFT Account | 8.2 | 49.73 | -119.23 | Cash and cash equivalent at beginning of period | 341.23 | 542.87 | Treasury balance at end of period | 7 | 285.24 | 96.48 | Stabex security accounts at end of period | 5 | 99.61 | 191.60 | Congo Account | 6 | 3.36 | 3.42 | SWIFT Account | 8.2 | -8.92 | 49.73 | Cash and cash equivalent at end of period | 379.30 | 341.23 | STATEMENT OF CHANGES IN NET ASSETS for the 7th, 8th and 9th EDF (EUR Millions) | Fund Capital | Uncalled Funds | Called funds capital | Cumulative reserves | Reserves | Total Net Assets | (a) | (b) | (c)=(a)-(b) | (e) | (d) | (h)=(e)+(d)+(c) | Notes | 9 | 9 | 9 | 10 | Closing balance 2005 | 42 877.15 | 15 487.15 | 27 390.00 | -26 787.49 | 1 033.84 | 1 636.35 | Contributions | -2 510.00 | 2 510.00 | 2 510.00 | Capital increase | 122.00 | 122.00 | Transfers from former EDF | Economic result | -2 924.04 | -2 924.04 | Closing balance 2006 | 42 999.15 | 13 099.15 | 29 900.00 | -29 711.53 | 1 033.84 | 1 222.31 | Contributions | -2 640.00 | 2 640.00 | 2 640.00 | Capital increase | 40.17 | 1.00 | 39.17 | 39.17 | Transfers from former EDF | Economic result | -3 255.88 | -3 255.88 | Closure of 6th EDF | -7 560.00 | -7 560.00 | 7 300.94 | 259.06 | 0.00 | Closing balance 2007 | 35 479.32 | 10 460.15 | 25 019.17 | -25 666.46 | 1 292.89 | 645.60 | 7th EDF BALANCE SHEET (EUR Millions) | Notes | 31.12.2007 | 31.12.2006 | CURRENT ASSETS | Receivables | 1 | 12.02 | 17.06 | Net Pre-financing | 2 | 137.53 | 203.75 | Other current assets | 3 | Liaison accounts | 4 | 2 279.31 | 2 279.31 | Cash and cash equivalents | STABEX security accounts | 5 | RD Congo special fund | 6 | Cash at bank | 7 | TOTAL ASSETS | 2 428.86 | 2 500.12 | CURRENT LIABILITIES | Payables | 8 | 91.66 | 92.62 | Liaison accounts | 4 | 2 037.08 | 1 868.50 | TOTAL LIABILITIES | 2 128.74 | 1 961.12 | NET ASSETS | 300.11 | 539.00 | FUNDS & RESERVES | Called fund capital | 9 | 10 940.00 | 10 940.00 | Results carried forward from previous years | -9 715.19 | -9 527.36 | Result for the year | -166.97 | -187.83 | Reserves | 10 | -757.73 | -685.81 | NET ASSETS | 300.11 | 539.00 | 7th EDF ECONOMIC OUTTURN ACCOUNT (EUR Millions) | Notes | cash basis expenditure 2007 | increase in pre-financing | increase in accrued expenditure | accrual basis expenditure 2007 | accrual basis expenditure 2006 | Operating interest | 1.1 | OPERATING REVENUE (1) | Programmable aid | 63.04 | -31.95 | 29.57 | 124.56 | 105.55 | Macro-economic support | Sectoral policy | Intra ACP Projects | 8.67 | Interest-rate subsidies | -0.49 | -0.49 | -0.01 | Emergency aid | 0.00 | -0.10 | 0.18 | 0.28 | -0.21 | Refugee aid | -0.33 | -0.06 | 0.28 | -0.66 | Risk Capital | 5.28 | 5.28 | 5.46 | Stabex | 8.23 | 8.23 | 51.71 | Sysmin | 20.21 | -14.81 | -8.01 | 27.01 | 16.59 | Transfers from former EDFs | 0.39 | -1.79 | 1.37 | 3.56 | 0.46 | Structural adjustment | 6.62 | -6.62 | 0.03 | Debt relief -HIPC and World Bank | -28.97 | -24.01 | 4.96 | 0.06 | Institutional Support | Compensation export receipts | R.D. Congo Fund | Operating expenses | 96.66 | -71.34 | -0.95 | 167.05 | 187.66 | Administrative and financial expenses | 11 | Total Expenses (cash basis) | 12 | 96.66 | Accrual adjustments | 13 | 70.39 | -71.34 | -0.95 | TOTAL EXPENSES / Accrual basis (2) | 14 | 167.05 | 167.05 | 187.66 | SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (2-1) | 167.05 | 167.05 | 187.66 | Financial revenue | 15 | Financial expenses | 16 | Impairment of receivables | 1.6 | 0.08 | 0.08 | -0.18 | Surplus/(deficit) from financial activities (3) | 0.08 | 0.08 | -0.18 | ECONOMIC RESULT (1-2+3) | -166.97 | -166.97 | -187.83 | STATEMENT OF CHANGES IN NET ASSETS for the 7th EDF (EUR Millions) | Fund Capital | Uncalled Funds | Called funds capital | Cumulative reserves | Reserves | Total Net Assets | (a) | (b) | (c)=(a)-(b) | (e) | (d) | (h)=(e)+(d)+(c) | Notes | 9 | 9 | 9 | 10 | Closing balance 2005 | 10 940.00 | 0.00 | 10 940.00 | -9 527.36 | -559.14 | 853.50 | Contributions | Capital increase | Transfers to 9th EDF | -126.67 | -126.67 | Economic result | -187.83 | -187.83 | Closing balance 2006 | 10 940.00 | 0.00 | 10 940.00 | -9 715.19 | -685.81 | 539.00 | Contributions | Capital increase | Transfers to 9th FED | -71.91 | -71.91 | Economic result | -166.97 | -166.97 | Closing balance 2007 | 10 940.00 | 0.00 | 10 940.00 | -9882.16 | -757.73 | 300.11 | 8th EDF BALANCE SHEET (EUR Millions) | Notes | 31.12.2007 | 31.12.2006 | CURRENT ASSETS | Receivables | 1 | 27.59 | 70.61 | Net Pre-financing | 2 | 355.22 | 888.93 | Other current assets | 3 | Liaison accounts | 4 | 3 301.13 | 2 450.58 | Cash and cash equivalents | STABEX security accounts | 5 | RD Congo special fund | 6 | Cash at bank | 7 | TOTAL ASSETS | 3 683.94 | 3 410.12 | CURRENT LIABILITIES | Payables | 8 | 377.54 | 651.73 | Liaison accounts | 4 | 2 065.45 | 2 065.45 | TOTAL LIABILITIES | 2 443.00 | 2 717.19 | NET ASSETS | 1 240.94 | 692.93 | FUNDS & RESERVES | Called fund capital | 9 | 12 840.00 | 11 295.00 | Results carried forward from previous years | -8 724.21 | -7 851.95 | Result for the year | -779.79 | -872.26 | Reserves | 10 | -2 095.06 | -1 877.85 | NET ASSETS | 1 240.94 | 692.93 | 8th EDF ECONOMIC OUTTURN ACCOUNT (EUR Millions) | Notes | cash basis expenditure 2007 | increase in pre-financing | increase in accrued expenditure | accrual basis expenditure 2007 | accrual basis expenditure 2006 | Operating interest | 1.1 | OPERATING REVENUE (1) | Programmable aid | 298.39 | -95.96 | -0.83 | 393.52 | 575.43 | Macro-economic support | 1.73 | 0.39 | 1.46 | 2.79 | 13.07 | Sectoral policy | 18.83 | 1.68 | 3.79 | 20.95 | 23.21 | Intra ACP Projects | Interest-rate subsidies | 1.45 | 1.45 | 1.21 | Emergency aid | -0.15 | -0.15 | 0.98 | Refugee aid | 1.31 | -0.16 | -7.33 | -5.86 | 7.29 | Risk Capital | 52.52 | 52.52 | 57.65 | Stabex | 90.14 | 90.14 | 137.80 | Sysmin | 3.15 | 0.08 | 1.50 | 4.57 | 13.17 | Transfers from former EDFs | Structural adjustment | 0.02 | -0.16 | 0.15 | 0.32 | 0.86 | Debt relief -HIPC and World Bank | -14.22 | -475.24 | -287.71 | 173.31 | 15.36 | Institutional Support | Compensation export receipts | 29.51 | -6.48 | 13.50 | 49.49 | 30.80 | R.D. Congo Fund | Operating expenses | 482.67 | -575.84 | -275.46 | 783.04 | 876.83 | Administrative and financial expenses | 11 | 0.75 | 0.07 | 1.27 | 1.95 | 4.64 | Total Expenses (cash basis) | 12 | 483.42 | Accrual adjustments | 13 | 301.57 | -575.76 | -274.19 | TOTAL EXPENSES / Accrual basis (2) | 14 | 784.99 | 784.99 | 881.47 | SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (2-1) | 784.99 | 784.99 | 881.47 | Financial revenue | 15 | 6.18 | 6.18 | 9.13 | Financial expenses | 16 | Impairment of receivables | 1.6 | -0.97 | -0.97 | 0.08 | Surplus/(deficit) from financial activities (3) | 5.20 | 5.20 | 9.20 | ECONOMIC RESULT (1-2+3) | -779.79 | -779.79 | -872.26 | STATEMENT OF CHANGES IN NET ASSETS for the 8th EDF (EUR Millions) | Fund Capital | Uncalled Funds | Called funds capital | Cumulative reserves | Reserves | Total Net Assets | (a) | (b) | (c)=(a)-(b) | (e) | (d) | (h)=(e)+(d)+(c) | Notes | 9 | 9 | 9 | 10 | Closing balance 2005 | 12 840.00 | 4 055.00 | 8 785.00 | -7 851.95 | -1 603.43 | -670.38 | Contributions | -2 510.00 | 2 510.00 | 2 510.00 | Capital increase | Transfers to 9th EDF | -274.42 | -274.42 | Economic result | -872.26 | -872.26 | Closing balance 2006 | 12 840.00 | 1 545.00 | 11 295.00 | -8 724.21 | -1 877.85 | 692.93 | Contributions | -1 545.00 | 1 545.00 | 1 545.00 | Capital increase | Transfers to 9th EDF | -217.21 | -217.21 | Economic result | -779.79 | -779.79 | Closing balance 2007 | 12 840.00 | 0.00 | 12 840.00 | -9 504.00 | -2 095.06 | 1 240.94 | 9th EDF BALANCE SHEET (EUR Millions) | Notes | 31.12.2007 | 31.12.2006 | CURRENT ASSETS | Receivables | 1 | 148.72 | 129.17 | Net Pre-financing | 2 | 2 083.45 | 1 716.20 | Other current assets | 3 | -2.65 | 0.95 | Liaison accounts | 4 | 2 037.08 | 1 868.50 | Cash and cash equivalents | 388.22 | 291.50 | STABEX security accounts | 5 | 99.61 | 191.60 | RD Congo special fund | 6 | 3.36 | 3.42 | Cash at bank | 7 | 285.24 | 96.48 | TOTAL ASSETS | 4 654.81 | 4 006.32 | CURRENT LIABILITIES | Payables | 8 | 2 035.28 | 1 351.49 | Liaison accounts | 4 | 3 514.98 | 2 664.43 | TOTAL LIABILITIES | 5 550.27 | 4 015.92 | NET ASSETS | -895.45 | -9.62 | FUNDS & RESERVES | Called fund capital | 9 | 1 239.17 | 105.00 | Results carried forward from previous years | -3 971.18 | -2 117.60 | Result for the year | -2 309.12 | -1 853.59 | Reserves | 10 | 4 145.68 | 3 856.56 | NET ASSETS | -895.45 | -9.62 | 9th EDF ECONOMIC OUTTURN ACCOUNT (EUR Millions) | Notes | cash basis expenditure 2007 | increase in pre-financing | increase in accrued expenditure | accrual basis expenditure 2007 | accrual basis expenditure 2006 | Operating interest | 1.1 | 0.02 | 0.02 | 0.06 | OPERATING REVENUE (1) | 0.02 | 0.02 | 0.06 | Programmable aid | 134.14 | 92.54 | 77.85 | 119.44 | 56.78 | Macro-economic support | 419.63 | 3.46 | 7.63 | 423.80 | 394.75 | Sectoral policy | 1 192.87 | 305.39 | 240.43 | 1 127.91 | 888.03 | Intra ACP Projects | 277.97 | -75.78 | 27.91 | 381.66 | 328.96 | Interest-rate subsidies | Emergency aid | 153.16 | 50.16 | 51.69 | 154.68 | 129.35 | Refugee aid | Risk Capital | Stabex | Sysmin | Transfers from former EDFs | 5.79 | -6.52 | -11.05 | 1.26 | 14.49 | Structural adjustment | Debt relief -HIPC and World Bank | 1.60 | 1.60 | 2.00 | Institutional Support | 42.40 | 24.98 | 12.99 | 30.41 | 32.34 | Compensation export receipts | 28.12 | 8.76 | 15.07 | 34.42 | 22.02 | R.D. Congo Fund | 0.19 | 17.06 | 17.25 | -13.39 | Operating expenses | 2 255.86 | 402.99 | 439.56 | 2 292.43 | 1 855.34 | Administrative and financial expenses | 11 | 38.03 | -13.73 | -22.03 | 29.73 | 19.15 | Total Expenses (cash basis) | 12 | 2 293.89 | Accrual adjustments | 13 | 27.93 | 389.26 | 417.53 | -0.34 | -0.14 | TOTAL EXPENSES / Accrual basis (2) | 14 | 2 321.82 | 2 321.82 | 1 874.34 | SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (2-1) | 2 321.80 | 2 321.80 | 1 874.29 | Financial revenue | 15 | 12.47 | 12.47 | 22.49 | Financial expenses | 16 | -0.34 | -0.34 | -0.14 | Impairment of receivables | 1.6 | 0.54 | 0.54 | -1.65 | Surplus/(deficit) from financial activities (3) | 12.67 | 12.67 | 20.70 | ECONOMIC RESULT (1-2+3) | -2 309.12 | -2 309.12 | -1 853.59 | STATEMENT OF CHANGES IN NET ASSETS for the 9th EDF (EUR Millions) | Fund Capital | Uncalled Funds | Called funds capital | Cumulative reserves | Reserves | Total Net Assets | (a) | (b) | (c)=(a)-(b) | (e) | (d) | (h)=(e)+(d)+(c) | Notes | 9 | 9 | 9 | 10 | Closing balance 2005 | 11 537.15 | 11 432.15 | 105.00 | -2 117.60 | 3 379.41 | 1 366.81 | Contributions | Capital increase | 122.00 | 122.00 | Transfers from other EDF | 477.15 | 477.15 | Economic result | -1 853.59 | -1 853.59 | Closing balance 2006 | 11 659.15 | 11 554.15 | 105.00 | -3 971.18 | 3 856.56 | -9.62 | Contributions | -1 095.00 | 1 095.00 | 1 095.00 | Capital increase | 40.17 | 1.00 | 39.17 | 39.17 | Transfers from other EDF | 289.12 | 289.12 | Economic result | -2 309.12 | -2 309.12 | Closing balance 2007 | 11 699.32 | 10 460.15 | 1 239.17 | -6 280.30 | 4 145.68 | -895.45 | NOTES TO THE FINANCIAL STATEMENTS Accounting Policies Legal provisions and the financial regulation The financial statements were drawn up in accordance with the Financial Regulation applicable to the 9th European Development Fund[4] (EDF). The relevant documents must be presented to the Court of Auditors as provided for in Articles 69, 70 and 71 of the Financial Regulation applicable to the 7th EDF[5], Articles 66, 67 and 68 of the Financial Regulation applicable to the 8th EDF[6] and Articles 102 and 103 of the Financial Regulation applicable to the 9th EDF. Article 102 (9th EDF) stipulates that the Commission shall send the provisional accounts to the Court of Auditors by 31 March of the following year. The Court of Auditors shall in turn make its observations on the accounts known to the Commission by 15 June (Article 103). On the basis of these observations, the Commission approves the final accounts by 31 July and sends them to the European Parliament, the Council and the Court of Auditors. The accounts are then published in the Official Journal by 31 October together with the statement of assurance given by the Court of Auditors in respect of the part of the EDF resources for which the Commission is responsible for financial management. In accordance with the provisions of article 99 of the 9th EDF Financial Regulation, financial statements are prepared in respect of the principle of accrual based accounting. The accounting information provided by the present IT accounting system (OLAS) has been adjusted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the Authorising Officer. These financial statements have been drafted in conformity with accounting rules and methods for the EDF drawn up on the basis of International Public Sector Accounting Standards (IPSAS) or by default, International Financial Reporting Standards (IFRS) as respectively issued by the International Public Sector Accounting Standard Board (IPSASB) and International Accounting Standard Board (IASB). The rules of valuation and accounting methods adopted by the Accounting Officer of the European Development Fund have been applied in respect of the part of the EDF resources for which the European Commission is responsible for financial management. Accounting Principles The objectives of financial statements are to provide information about the financial position, performance and cash flows of an entity that is useful to a wide range of users. For 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. If they are to present a true and fair view, financial statements must not only supply relevant information to describe the nature and range of the activities, explain how it is financed and supply definitive information on its operations, but do so in a clear and comprehensible manner which allows comparisons between financial years. It is with these goals in mind that the present document has been drawn up. The accounting system of the European Development Funds comprises general accounts and financial accounts. Both sets of accounts are kept in euro on the basis of the calendar year. The general accounts allow for the preparation of the financial statements as they show all charges and incomes for the financial year and are designed to establish the financial position in the form of a balance sheet at 31 December. The financial accounts give a detailed picture of the use of EDF resources. They are based on the cash accounting principle. Article 98 of the 9th EDF Financial Regulation sets out the accounting principles to be applied in drawing up the financial statements, as follows: - going concern basis; - prudence; - consistent accounting methods; - comparability of information; - materiality; - no netting; - reality over appearance, and - accrual-based accounting. Currency and basis for conversion The financial statements are presented in millions of euros, which is the European Communities' functional and reporting currency. Values in the tables may not add up, due to rounding. Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates of the underlying transactions. Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into euros on the basis of the exchange rates applying on 31 December: EURO Exchange Rate | 31.12.2007 | 31.12.2006 | GBP 0.7148 | GBP 0.6743 | Balance sheet Receivables Receivables are carried at original amount less write-down for impairment. A write-down for impairment of receivables is established when there is objective evidence that the EDF will not be able to collect all amounts due according to the original terms of the receivables. The amount of the write-down is the difference between the asset's carrying amount and the recoverable amount, being the present value of expected future cash flows, discounted at the market rate of interest for similar borrowers. The amount for write-down is recognised in the economic outturn account. Also recognised is a general write-down in value of 20% per year for outstanding recovery orders not already subject to a specific write-down. Pre-financing amounts Pre-financing is a payment intended to provide the beneficiary with a cash advance, i.e. a float. It may be split into a number of payments over a period defined in the particular pre-financing agreement. The float or advance is repaid or used for the purpose for which it was provided during the period defined in the agreement. If the beneficiary does not incur sufficient eligible expenditure, he has the obligation to return, in whole or in part, the pre-financing advance to the European Development Fund. The amount of the pre-financing is reduced (wholly or partially) by the acceptance of eligible costs and amounts returned. At year-end outstanding pre-financing amounts are valued at the original amount(s) paid to the beneficiary less: any amounts returned, eligible amounts cleared and the estimated eligible amounts not yet cleared at year-end. Guarantees related to pre-financing amounts are disclosed as contingent assets (see note 1.4) and as such they are not accounted for in the financial statements (IPSAS 19). Cash & cash equivalents Cash and cash equivalents include accounts held with financial institutions in the ACP states and the OCTs, and with financial institutions in the Member States. For the purpose of the cash flow statement, cash and cash equivalents include the current account with the general budget of the EU presented under accounts payable in the balance sheet (see note 8). Payables A significant amount of payables of the EDF are not related to the purchase of good or services – instead they are unpaid cost claims from beneficiaries of grants or other funding. They are recorded as payables for the requested amount when the cost claim/request for payment is received and, after verification, accepted as eligible by the relevant financial agents. At this stage they are valued at the accepted and eligible amount. The EDF has current liabilities for amounts already due to beneficiaries for which no invoices were received at the reporting date. The recognition criteria foresee that a charge is recognised by the EDF for the amount of the estimated payment due for the period, that is to say the portion of the incurred eligible expenses due to the beneficiaries at the reporting date. Material amounts are recognised as an accrued expense (accrued expenditure) on the basis of estimates (e.g. the degree of execution of contracts) provided by the Authorising Officer. In 2007 the methodology for the determination of the accrued expenditure have been adapted to incorporate to the analysis the type of contract. Following the provisions of IPSAS 3, 2006 estimations have not been recalculated. Economic outturn Account Revenue The only source of income for the funds is derived from interest generated on various cash balances held with commercial Banks (see notes to the accounts) or on late payment of entitlements to the EDF. Expenditure Expenditure should be recognised in the EDF financial statements as expenditure of the period that the events giving rise to a payment occurred, as long as: - A contract has been signed which authorises the payment; - Eligibility criteria, if any, have been met by the beneficiary; and, - A reasonable estimate of the amount due can be made based on, for example, invoices sent by the beneficiary, degree of execution of contracts etc.. As expenditure incurred by Commission Delegations is not finally entered into the EDF accounts until it has been validated by both the Authorising Officer and the Accounting Officer, any expenditure which was not validated at year end is shown under the heading of "unallocated expenses" on the balance sheet (see table 3). Cash basis expenditure includes all payment orders executed by the banks up to 31 December 2007. In order to comply with accrual accounting principles the cash basis expenditure provided by the present IT accounting system (OLAS) has been adjusted with the additional information provided by the Authorising Officer about pre-financing and accrued expenditure. Contingent assets and liabilities Contingent assets A contingent asset is a possible asset that arises from past events and of which the existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the European Communities. A contingent asset is disclosed when an inflow of economic benefits or service potential is probable. Contingent assets are assessed continually to ensure that developments are appropriately reflected in the financial statements. If it has become virtually certain that an inflow of economic benefits or service potential will arise and the asset’s value can be measured reliably, the asset and the related revenue are recognised in the financial statements of the period in which the change occurs. Guarantees Guarantees are possible assets or obligations that arise from past events and whose existence will be confirmed by the occurrence or non-occurrence of the object of the guarantee. Guarantees thus qualify as contingent assets or liabilities. A guarantee is settled when the object of the guarantee no longer exists. It is crystallised when the conditions are fulfilled for calling a payment from the guarantor. Recording of operations Entitlements due from the Member States (mainly contributions which have not yet been called or interest due on the late payment of called funds) must be entered in the accounts. These items are set out in the balance sheets for the various EDFs. In accordance with the principles of accrual-based accounting, the financial statements show the financial charges and income for the financial year regardless of the date of payment or collection. Use of estimates In accordance with generally accepted accounting principles, the financial statements necessarily include amounts based on estimates and assumptions by management based on the most reliable information available. Significant estimates include, but are not limited to, provisions for future charges, financial risk on accounts receivable, accrued income and charges. Actual results could differ from those estimates. Changes in estimates are reflected in the period in which they become known. Notes to the balance sheet 1. Receivables table 1 | EUR millions | Receivables | notes | 7th | 8th | 9th | Total at 31.12.2007 | Total at 31.12.2006 | Contributions to be received | 0.00 | 0.00 | 0.00 | Interest receivable on late contributions | 1.1 | 0.00 | 2.09 | Interest receivable on late contributions - STABEX | 1.2 | 0.00 | 0.79 | Interest receivable - European banks | 1.3 | 1.19 | 1.19 | 0.88 | Interest receivable - STABEX security | 1.3 | 0.41 | 0.41 | 0.61 | Banks charges to be refund | 0.00 | -0.02 | Recovery orders to be issued | 1.4 | 9.90 | 24.95 | 144.97 | 179.82 | 196.58 | Open recovery orders | 1.5 | 4.90 | 3.72 | 3.25 | 11.88 | 20.48 | - Impairment of receivables | 1.6 | -2.79 | -1.09 | -1.10 | -4.98 | -4.63 | TOTAL | 12.02 | 27.59 | 148.72 | 188.32 | 216.83 | In accordance with the provisions of the Cotonou Agreement, interest income relates to the 9th EDF. Such funds can be used according to the provisions of articles 1.3, 4 and 9 of the Internal Agreement applicable to 9th EDF (see note 11). The sole exception is the interest earned in STABEX security accounts which relates to the 8th EDF as this aid instrument does not feature in the 9th EDF (see notes 5 and 15). (1.1) Interest receivable on late contributions In accordance with Article 40(4) of the 9th EDF Financial Regulation, interest is charged to the Member States in the event of late payment of the called-up contributions. This interest results in an effective increase in the Funds’ overall appropriations and represents its only source of operating revenue (see economic outturn account). table 1.1 | EUR millions | Interest on late payment of EDF contributions | Balance at 31.12.2006 | Late interest revenue 2007 | Interest received 2007 | Balance at 31.12.07 | France | 1.00 | -1.00 | 0.00 | Netherlands | 0.02 | -0.02 | 0.00 | Spain | 0.06 | 0.00 | -0.06 | 0.00 | United Kingdom | 1.02 | -1.02 | 0.00 | TOTAL | 2.09 | 0.02 | -2.11 | 0.00 | (1.2) Interest receivable European banks and STABEX main account This amount represents interest earned on the European bank accounts and the STABEX current account during the financial year 2007, for which the payment will be received in 2008. (1.3) Interest receivable STABEX security accounts This amount represents interest earned on the STABEX security accounts during the financial year 2007, for which the payment will be received in 2008. This interest is the property of the relevant beneficiary countries. (1.4) Recovery orders to be issued In order to apply accrual accounting principles, the Authorising Officer has estimated the amount of advances to be recovered for which recovery orders have yet to be issued. Table 1.4 | EUR millions | Recovery orders to be issued | 7th EDF | 8th EDF | 9th EDF | TOTAL | Total at 31.12.07 | 9.90 | 24.95 | 144.97 | 179.82 | Total at 31.12.06 | 14.54 | 62.38 | 119.67 | 196.58 | Increase (Decrease) | -4.64 | -37.42 | 25.30 | -16.76 | (1.5) Open recovery orders The closing balance for recovery orders represents the value of recovery orders issued but unpaid at the year end. (1.6) Impairment of receivables In compliance with IPSAS 19, the Accounting Officer has established a provision for doubtful debts based on two variables: - Age of the debt, applying a provision of 20% of the euro value for each year the debt is outstanding - The evaluation of the non recovery risk, in collaboration with the Authorising Officer. Potential exchange rate losses (on recovery orders not issued in euro) are not taken into account for this calculation, as these are not considered to be material. table 1.6 | EUR millions | Impairment of receivables | 7th EDF | 8th EDF | 9th EDF | TOTAL | Balance at 31.12.2007 | 2.79 | 1.09 | 1.10 | 4.98 | Balance at 31.12.2006 | 2.87 | 0.11 | 1.65 | 4.63 | Increase (Decrease) | -0.08 | 0.97 | -0.54 | 0.35 | 2. Net Pre-financing Following the principles of accrual accounting, advance payments made by the EDF are classified as assets. The figures for open pre-financing have been provided by the Authorising Officer (see table 2.1). The pre-financing is presented net of the open recovery orders concerning advances and the estimated recovery orders to be issued. table 2 | EUR millions | Net pre-financing | notes | 7th EDF | 8th EDF | 9th EDF | TOTAL 31.12.2007 | TOTAL 31.12.2006 | Pre-financing | 2.1 | 152.34 | 383.89 | 2 230.29 | 2 766.52 | 3 024.37 | Advances for study grants management | 2.2 | 1.38 | 1.38 | 1.58 | -Open recovery orders | 1.5 | -4.90 | -3.72 | -3.25 | -11.88 | -20.48 | -Recovery orders to be issued | 1.4 | -9.90 | -24.95 | -144.97 | -179.82 | -196.58 | TOTAL | 137.53 | 355.22 | 2 083.45 | 2 576.20 | 2 808.88 | (2.1) Pre-financing Many contracts provide for payments of advances before the commencement of works, deliveries of supplies or the provision of services. Sometimes the payment schedules of contracts foresee payments on account on the basis of progress reports. Advances, which normally are paid in the currency of the country or territory where the project is executed, are kept separate in the accounts of the Authorising Officer to allow them to be cleared. The table below summarises outstanding advances (except for structural adjustment programmes and direct budgetary support programmes) registered in the Authorising Officer's accounts at the end of the year. Conversion into EUR is made using the official exchange rate of December 31 (see point 1.3.3). table 2.1 | EUR millions | Pre-financing | 7th EDF | 8th EDF | 9th EDF | TOTAL | Total at 31.12.2007 | 152.35 | 383.89 | 2 230.29 | 2 766.52 | Total at 31.12.2006 | 223.67 | 959.66 | 1 841.04 | 3 024.37 | Increase (Decrease) | -71.34 | -575.76 | 389.26 | -257.84 | (2.2) Advances for study grants management This amount corresponds to advances paid to external bodies for the management of study awards. 3. Other current assets This amount comprises all payments/receipts awaiting final allocation to the appropriate projects and economic outturn account. table 3 | EUR millions | Other current assets | 9th EDF | Total at 31.12.07 | Total at 31.12.06 | Unallocated expenses | 1.19 | 1.19 | 2.65 | Devaluation | 0.00 | 0.00 | 0.00 | Unallocated revenue | -4.55 | -4.55 | -2.12 | Partial off-settings | 0.70 | 0.70 | 0.42 | TOTAL | -2.65 | -2.65 | 0.95 | 4. Liaison accounts For reasons of efficiency, there is a single treasury for all the EDFs being implemented; this leads to operations between the various EDFs, which are balanced out in the liaison accounts between the various balance sheets. table 4 | EUR millions | Liaison accounts | 7th EDF | 8th EDF | 9th EDF | Total at 31.12.07 | Total at 31.12.06 | to/from 6th EDF | 2 279.31 | -2 065.45 | -213.85 | 0.00 | to/from 7th EDF | 2 037.08 | -242.23 | -410.80 | to/from 8th EDF | -3 301.13 | -1 235.68 | -385.12 | to/from 9th EDF | -2 037.08 | 3 301.13 | 1 477.91 | 795.93 | 242.23 | 1 235.68 | -1 477.91 | 0.00 | 0.00 | table 4.1 | EUR Millions | Liaison accounts | 7th EDF | 8th EDF | 9th EDF | TOTAL | 2007 | assets | 2 279.31 | 3 301.13 | 2 037.08 | 9 896.82 | liabilities | 2 037.08 | 2 065.45 | 3 514.98 | 9 896.82 | Total 2007 | 242.23 | 1 235.68 | -1 477.91 | 0.00 | 2006 | assets | 2 279.31 | 2 450.58 | 1 868.50 | 8 877.69 | liabilities | 1 868.50 | 2 065.45 | 2 664.43 | 8 877.69 | Total 2006 | 410.80 | 385.12 | -795.93 | 0.00 | 5. STABEX Security accounts The STABEX is the acronym for a European Commission compensatory finance scheme to stabilise export earnings of the ACP countries. It was first introduced in the first Lomé Convention (1975) with the purpose of remedying the harmful effects of the instability of export revenue from agricultural products. The balance on the STABEX security accounts represents the total of STABEX funds available and which will be transferred to the relevant beneficiary ACP State at a future date. This total amount concerns the 8th EDF, with the exception of EUR 3 million allocated to Sudan, which fell under the 7th EDF. In addition to these funds, there are other STABEX funds held by beneficiary ACP States. Once the Commission and the beneficiary (ACP) State have reached agreement on how the STABEX funds are to be utilised, a transfer convention is signed by both parties. In accordance with the provisions of Article 211 of the Lomé IV Agreement[7] (as revised), the funds are transferred into an interest bearing double signature account (Commission official and Beneficiary State) opened in the name of the ACP State. The Commission official retains the power of signature over the account in order to ensure that the funds are disbursed as intended. Details on these accounts are however provided in the annual EDF Financial Management Report. As these funds are the property of the ACP State, they are not recorded as assets in the EDF Annual Accounts and the transfers are recorded as payments. table 5 | EUR millions | STABEX security accounts | EDF | Balance at 31.12.2006 | Interest | Payments | Balance at 31.12.2007 | BENIN | 8th | 0.05 | 0.00 | 0.05 | BURKINA FASO | 8th | 0.78 | 0.01 | 0.78 | 0.01 | BURUNDI | 7th/8th | 26.62 | 1.05 | 26.99 | 0.68 | CAMEROUN | 8th | 5.52 | 0.04 | 5.54 | 0.02 | COMOROS | 8th | 0.06 | 0.00 | 0.06 | DOMINICA | 8th | 0.26 | 0.01 | 0.19 | 0.08 | ETHIOPIA | 8th | 0.93 | 0.04 | 0.96 | GAMBIA | 8th | 1.03 | 0.04 | 1.07 | GRENADA | 8th | 0.34 | 0.01 | 0.35 | GUINEA-BISSAU | 8th | 0.34 | 0.01 | 0.35 | COTE D'IVOIRE | 8th | 15.85 | 0.44 | 14.73 | 1.57 | JAMAICA | 8th | 0.60 | 0.02 | 0.62 | MADAGASCAR | 8th | 0.65 | 0.03 | 0.68 | MALAWI | 8th | 0.94 | 0.04 | 0.97 | MAURITANIA | 8th | 18.22 | 0.72 | 18.56 | 0.38 | PAPUA-NEW GUINEA | 8th | 0.68 | 0.03 | 0.70 | RWANDA | 8th | 5.89 | 0.23 | 6.12 | SENEGAL | 8th | 10.33 | 0.41 | 10.74 | SIERRA LEONE | 8th | 3.13 | 0.12 | 3.19 | 0.07 | SAINT LUCIA | 8th | 14.05 | 0.56 | 14.60 | SOLOMON ISLANDS | 8th | 0.08 | 0.00 | 0.08 | 0.00 | SUDAN | 7th/8th | 54.52 | 1.94 | 7.83 | 48.62 | ST VINCENT & GRENADINES | 8th | 4.05 | 0.16 | 4.21 | TANZANIA | 8th | 14.00 | 0.26 | 10.70 | 3.56 | TONGA | 8th | 0.09 | 0.00 | 0.09 | UGANDA | 8th | 9.72 | 0.07 | 9.78 | 0.00 | ZIMBABWE | 8th | 2.90 | 0.11 | 3.01 | TOTAL STABEX | 191.60 | 6.38 | 98.37 | 99.61 | 6. Special D.R. Congo account This balance represents the amounts available for D.R. Congo in accordance with the provisions of Council Decision 2003/583/EC[8]. 7. Cash at banks In accordance with Article 129 of the 9th EDF Financial Regulation the treasury is presented in the balance sheet of the 9th EDF. table 7 | EUR millions | Cash and cash equivalents | Notes | Balance at 31.12.07 | Balance at 31.12.06 | Treasury accounts | 7.1 | 208.09 | 3.55 | Local Paying Agents | 7.2 | 54.67 | 59.37 | European Paying Agents | 7.3 | 13.06 | 21.29 | STABEX current account | 7.4 | 8.47 | 12.17 | Cash in transit | 7.5 | 0.95 | 0.10 | TOTAL | 285.24 | 96.48 | (7.1) Treasury accounts These are accounts held with the central banks of the Member States into which EDF contributions are paid. The Accounting Officer makes transfers from these accounts to the European paying agents. (7.2) Local paying agents These are amounts held in bank accounts within ACP States and OCTs used for making payments in local currency within the beneficiary state. The accounts are generally kept in euros, but may also be kept in a currency of a Community Member State. (7.3) European paying agents These accounts are held with commercial banks established in the EU-15 Member States and with the EIB. The accounts are kept in euros and are used for payments to beneficiaries within the Union and elsewhere. Payments are generally made in euros, but may also be made in other currencies. These funds are also used to replenish local paying agent accounts and the liaison account with the General Budget of the EU. (7.4) STABEX current account This amount represents the cash balance remaining on the STABEX main account. EUR 8 million will be made available for Togo by way of transfer to a security account, once instructions have been received from the Authorising Officer. The decrease of EUR 4 million compared to 2006 represents the transfer to the EDF main account (allocation to the general long term development reserve) in the course of 2007. The interest earned in this account is periodically transferred to the EDF main account to be used in accordance with Articles 1.3 and 9 of the Internal Agreement applicable to 9th EDF. (7.5) Cash in transit Some replenishment sent before the year end were only registered by the beneficiary bank in 2008. 9. Payables table 8 | EUR millions | Payables | notes | 7th EDF | 8th EDF | 9th EDF | Total at 31.12.2007 | Total at 31.12.2006 | Deferred income | 8.1 | 211.08 | 211.08 | 3.49 | Liaison a/c with General Budget of the EU | 8.2 | 8.92 | 8.92 | -49.73 | Accrued Expenses | 91.66 | 377.54 | 1 815.28 | 2 284.49 | 2 142.10 | Non finalised payments | 8.3 | 4.22 | 15.85 | 62.04 | 82.11 | 110.29 | Eligibility to be confirmed | 8.4 | 3.76 | 30.00 | 81.19 | 114.96 | 107.19 | Invoices to be received | 8.5 | 83.69 | 331.69 | 1 672.04 | 2 087.42 | 1 924.62 | TOTAL | 91.66 | 377.54 | 2 035.28 | 2 504.49 | 2 095.86 | (8.1) Deferred income Table 8.1 | EUR millions | Contributions received in advance | Balance at 31.12.2007 | Balance at 31.12.2006 | Ireland | 1.00 | 3.49 | United Kingdom | 208.09 | Finland | 2.00 | TOTAL | 211.08 | 3.49 | (8.2) Liaison account with the General Budget of the EU As from the beginning of financial year 2005, payments to beneficiaries within the Union are executed through SWIFT by the General Budget of the European Union. For this purpose, a current account has been opened. This account is presented in the cash flow statement as cash equivalent. Accrued expenses The accounting information provided by the present IT accounting system (OLAS) has been adjusted in order to provide figures which comply with accrual accounting principles. Additional information has been provided by the Authorising Officer. This item includes non finalised payments, eligibility to be confirmed and an estimation of invoices to be received based in the degree of advancement of projects. (8.3) Non finalised payments These are payments authorised before 31 December 2007 but executed by the bank in 2008. The amounts registered in the accounts of the Authorising Officer are shown in table 8.3. table 8.3 | EUR millions | Non finalised payments | 7th EDF | 8th EDF | 9th EDF | TOTAL | Total at 31.12.07 | 4.22 | 15.85 | 62.04 | 82.11 | Total at 31.12.06 | 4.02 | 26.58 | 79.69 | 110.29 | Increase (Decrease) | 0.19 | -10.72 | -17.65 | -28.18 | (8.4) Eligibility to be confirmed These are invoices which arrived before the end of the financial year 2007 but which had still not been analysed at the yearly closure. The amounts registered in the accounts of the Authorising Officer are shown in table 8.4. Table 8.4 | EUR millions | Eligibility to be confirmed | 7th EDF | 8th EDF | 9th EDF | TOTAL | Total at 31.12.07 | 3.76 | 30.00 | 81.19 | 114.96 | Total at 31.12.06 | 9.31 | 42.99 | 54.89 | 107.19 | Increase (Decrease) | -5.55 | -12.99 | 26.30 | 7.77 | (8.5) Invoices to be received These figures reflect expenditure which has been incurred but has not yet been invoiced (e.g. work in progress on capital projects). The amounts estimated by the Authorising Officer are shown in table 8.5. table 8.5 | EUR millions | Invoices to be received | 7th EDF | 8th EDF | 9th EDF | TOTAL | Total at 31.12.07 | 83.69 | 331.69 | 1 672.04 | 2 087.42 | Total at 31.12.06 | 79.29 | 582.17 | 1 263.17 | 1 924.62 | Increase (Decrease) | 4.40 | -250.48 | 408.87 | 162.80 | Funds and Reserves 10. Called fund Capital table 9 | EUR millions | Capital 2007 | 6th EDF | 7th EDF | 8th EDF | 9th EDF | Total EDF | Funds Capital (a) | 0.00 | 10 940.00 | 12 840.00 | 11 699.32 | 35 479.32 | Uncalled funds (b) | 0.00 | 0.00 | 0.00 | 10 460.15 | 10 460.15 | Called fund capital (a)-(b) | 0.00 | 10 940.00 | 12 840.00 | 1 239.17 | 25 019.17 | Capital 2006 | Funds Capital (a) | 7 560.00 | 10 940.00 | 12 840.00 | 11 659.15 | 42 999.15 | Uncalled funds (b) | 0.00 | 0.00 | 1 545.00 | 11 554.15 | 13 099.15 | Called fund capital (a)-(b) | 7 560.00 | 10 940.00 | 11 295.00 | 105.00 | 29 900.00 | The fund capital represents the total amount receivable from the Member States for the relevant EDF fund as laid down in each of the Internal Agreement[9] between the Member States and the beneficiary ACP States and OCTs. The initial allocation for the (current) 9th EDF, which originally totalled EUR 10,555 million, has since been increased by an amount of EUR 105 million in 2004, which was released by the EIB in accordance with the provisions of Council Decision 2003/583/EC. This additional allocation is in favour of actions to be undertaken in the Democratic Republic of the Congo. Article 2(2) of the Internal Agreement for the 9th EDF set a EUR 1,000 million reserve. Since 2004 a set of Council decisions[10] allowed the release of EUR 999 million. The remaining amount of EUR 1 million has been released during 2007. Following the decision of the joint ACP/EU Council on 25th May 2007[11], the Commisision has decided to launch a call for additional volontary contributions to support the African Peace Facility in the framework of the intra ACP cooperation. Detailed amounts by country are shown in table 9.1 below. Uncalled funds represents the initial allocation not yet receivable from Member States. Called funds capital represents the amount of the initial allocations which has been called up for transfer to the treasury accounts by the Member States in accordance with the procedure in Article 8 of the Financial Regulation, whereby each year the Commission must establish and communicate to the Council a statement of the payments to be made in the following year and a schedule of calls for contributions. The Commission must justify the amount requested on the basis of its capacity to deliver the proposed level of resources effectively. In 2005 Member States decided on a transfer of EUR 20 million from the EIB's EDF treasury to the Commission’s EDF treasury with a consequent reduction of the overall amount of the contributions due from Member States. Details of contributions called up and received during the year 2007 are shown in table 9.1. In 2007 the contributions due under the 8th EDF were fully exhausted and the Authorising Officer started the call for the 9th EDF contributions which were increased by the volontary contributions. Inter-EDF transfers | 7th EDF | 8th EDF | 9th EDF | Consolidate | Total at 31.12.07 | to/from 5th EDF | 526.78 | 526.78 | to/from 6th EDF | 181.76 | 94.00 | 490.36 | 766.12 | to/from 7th EDF | 532.82 | 933.45 | 1 466.26 | 1 466.26 | to/from 8th EDF | -532.82 | 2 721.88 | 2 189.06 | 2 189.06 | to/from 9th EDF | -933.45 | -2 721.88 | -3 655.33 | -3 655.33 | TOTAL | -757.73 | -2 095.06 | 4 145.68 | 0.00 | 1 292.89 | Notes to the Economic Outturn Account 12. Administrative and financial expenses This heading includes administrative and financial expenditure financed by interest and related to the devolution process in application of the provisions of articles 1.3, 4 and 9 of the Internal Agreement applicable to 9th EDF. In addition, following Council Decision 599 on 21st June 2005, a complementary amount of EUR 90 million from the intra ACP allocation has been reallocated to finance devolution. In 2006, expenditure for personnel and infrastructure costs in this heading amounted to EUR 63 million and to EUR 26 million in 2007. 13. Total expenses (cash basis) These amounts represent total payments for the Fund(s) in question during the 2007 financial year on a cash accounting basis, including advance payments and recovery orders. Cumulative figures are shown in the Report on Financial Implementation prepared by the Authorising Officer. 14. Accrual adjustments Total expenditure has been restated to comply with the international accounting standard, IPSAS 3. The accounting information provided by the EDF accounting system has been adapted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the Authorising Officer. table 13 | EUR millions | Accrual adjustments annual increase 2007 | notes | 7th EDF | 8th EDF | 9th EDF | increase 2007 | - Pre-financing | 2 | -71.34 | -575.76 | 389.26 | -257.84 | - Financial expenses | 16 | 0.34 | 0.34 | Accrued Expenses | -0.95 | -274.19 | 417.53 | 142.39 | Non finalised payments | 8.3 | 0.19 | -10.72 | -17.65 | -28.18 | Eligibility to be confirmed | 8.4 | -5.55 | -12.99 | 26.30 | 7.77 | Invoices to be received | 8.5 | 4.40 | -250.48 | 408.87 | 162.80 | Total accruals | 70.39 | 301.57 | 27.93 | 399.89 | 15. Total expenses on an accrual basis Project expenditure by EDF has been restated in accordance with the relevant international accounting standards. The expenditure for each aid instrument will be presented on a full accrual basis as and from the 2009 financial year, once the accounts have been migrated to the new IT (ABAC) system. 16. Financial revenue Interest revenue is related to the 9th EDF. The sole is STABEX security interest which is related to the 8th EDF due to absence of this aid instrument in the 9th EDF. table 15 | EUR millions | Interest earned during 2007 | notes | 8th EDF | 9th EDF | total at 31.12.2007 | total at 31.12.2006 | EIB interest revenue | 15.1 | 2.49 | 2.49 | 10.56 | European banks interest revenue | 15.1 | 9.80 | 9.80 | 11.44 | Interest revenue on recovery orders | 15.2 | 0.04 | 0.04 | 0.00 | Interest revenue on the STABEX security accounts | 15.3 | 6.18 | 6.18 | 9.13 | Interest revenue on the special D R Congo contribution | 15.3 | 0.14 | 0.14 | 0.49 | TOTAL INTEREST | 6.18 | 12.47 | 18.65 | 31.61 | (15.1) EIB and European banks interest revenue This heading represents the amount of interest on deposited funds which can be committed for the financing of such projects. This interest results in an effective increase in the Funds’ overall appropriations. The interest earned on accounts with European paying agents (including the main STABEX account) can be used to finance projects in accordance with Articles 1.3 and 9 of the Internal Agreement applicable to 9th EDF. (15.2) Interest revenue on late payments of recovery orders This is interest earned on late payments of recovery orders by debtors. Such funds can be used for financing projects in accordance with Articles 1.3 and 9 of the Internal Agreement applicable to 9th EDF. This interest results in an effective increase in the Funds’ overall appropriations. (15.3) Interest revenue on the STABEX security accounts and the Special D. R. Congo account This represents the cumulative income generated by the STABEX security accounts and the Special Democratic Republic of the Congo account. Whilst such income appears to increase the total of the Fund it should be borne in mind that any income generated by these accounts is earmarked for a specific purpose and beneficiary state. 17. Financial expenses In the present IT system (OLAS), this category of expenditure is booked as a part of administrative costs. In the interests of transparency these costs are now presented under a separate heading. In 2007 financial expenses amount to EUR 0.34 million. OFF BALANCE SHEET ITEMS Guarantees are held to secure pre-financing and released when the final claim under a project is paid. In accordance with the “prudence” concept and in compliance with the provisions of IPSAS 19, contingent assets are not accounted for in the financial statements. They are disclosed here by way of note in the interests of transparency. There are two values to disclose for this type of guarantee: the "nominal" and the "on-going values". For the "nominal" value the generating event is linked to the existence of the guarantee. The nominal value is disclosed as contingent asset. For the "on-going" value, the guarantee's generating event is the prefinancing payment and/or subsequent clearings. At 31st December 2007 the "nominal" value of guarantees received in respect of prefinancing amounts EUR 576.78 million (see table below) compared to EUR 337.15 million for the "on-going" value. Table 1.11 | EUR Millions | Guarantees | on pre-financing | on guarantee withholding | on performance | TOTAL 31.12.2007 | TOTAL 31.12.2006 | 7th EDF | 56.52 | 17.19 | 32.09 | 105.80 | 111.70 | 8th EDF | 145.57 | 38.35 | 75.42 | 259.34 | 308.71 | 9th EDF | 374.68 | 106.05 | 158.63 | 639.36 | 302.62 | TOTAL | 576.78 | 161.59 | 266.14 | 1 004.50 | 723.02 | RAPPORT SUR L'EXÉCUTION FINANCIÈRE Note introductive FED antérieurs La décision n° 1/2000 du Conseil ACP-CE du 27.7.2000 concernant des mesures transitoires prévoit qu’une partie des ressources non affectées des FED antérieurs soit utilisée conformément aux dispositions y relatives de l’accord de Cotonou, applicables de façon anticipée selon les mesures transitoires. La décision n° 410/2001 de la Commission du 16.3.2001, qui a pour objet de fixer les allocations aux programmes indicatifs pour les pays ACP au titre de l’accord de partenariat ACP-CE, prévoit que les ressources non allouées des FED précédents soient utilisées pour la mise en œuvre conformément aux règles et procédures des FED respectifs pour un montant maximal de 1.200 millions d'euros. Ceci pendant la période précédant l’entrée en vigueur du protocole financier du 9e FED. La décision n° 1033/2001 de la Commission du 15.6.2001 a fixé les allocations aux programmes régionaux et à la coopération intra-ACP dans le cadre du protocole financier de l’accord de partenariat ACP-CE. La décision n° 1252/2002 de la Commission du 11.7.2002 a, d’une part, augmenté l’enveloppe destinée à la coopération intra-ACP de 60 millions d'euros, à partir des réserves générales des 6e et 7e FED et, d’autre part, prévu l’utilisation de ces fonds supplémentaires pendant la période précédant l’entrée en vigueur du protocole financier du 9e FED, conformément aux règles et procédures applicables aux FED d’origine. Enfin, la décision n° 3/2002 du Conseil ACP-CE du 23.12.2002 a notamment prélevé un montant de 25 millions d'euros des ressources non affectées du 8e FED (réserve générale), afin de l’affecter à la coopération régionale au titre de l’accord de partenariat ACP-CE. Comme cela a été fait pour les années précédentes, afin d’assurer une transparence dans la présentation des comptes de l’année 2007, les différents tableaux présentés ci-après reprennent de façon distincte à l’intérieur de chaque FED (7e et 8e FED) la partie utilisée sur la base de la programmation prévue dans les Conventions de Lomé et la partie utilisée sur la base de la programmation prévue dans l’accord de Cotonou. En ce qui concerne cette dernière, l’enregistrement et la présentation des comptes ont été effectués sur la base de l’article 3.2 de l’annexe IV de l’accord de partenariat ACP-CE en ce qui concerne les pays. Cet article prévoit, pour les pays ACP, une enveloppe A destinée à couvrir le soutien macroéconomique et le soutien aux programmes et projets ainsi qu’une enveloppe B destinée à couvrir des besoins imprévus tels que l’aide d’urgence, les initiatives d’allégement de la dette et le soutien destiné à atténuer les effets néfastes de l’instabilité des recettes d’exportation[12]. En ce qui concerne les régions, la présentation est fondée sur la programmation régionale telle que mentionnée dans le chapitre 2 de l’accord de partenariat ACP-CE (programmes indicatifs régionaux et coopération intra-ACP). En application de la décision C(2003)1904 de la Commission du 16 juin 2003 telle que modifiée par les décisions C(2006) 3862 du 24 Août 2006 et C(2007)2149 du 24 mai 2007, tous les reliquats des FED antérieurs à la date d’entrée en vigueur de l’accord de Cotonou, ainsi que tous les montants désengagés après ces dates de projets en cours au titre desdits Fonds, ont été transférés au 9 e FED . Toute ressource ainsi transférée au 9e FED après avoir été précédemment attribuée au programme indicatif d’un État ACP ou d’une région a été attribuée à cet État ou à cette région. Par contre, les ressources non allouées ont été transférées vers des réserves qui ont fait l’objet d’une nouvelle programmation dans le cadre du 9e FED. Le 6e FED ayant été clôturé en 2006, les comptes annuels ne contiennent plus de tableaux d'exécution relatifs à ce FED. Par contre, l'exécution des soldes transférés se retrouvent dans le 9ème FED. 9 e FED L’accord de partenariat ACP-CE, signé le 23 juin 2000 à Cotonou par les États membres de la Communauté européenne et les États d'Afrique, des Caraïbes et du Pacifique (ACP), est entré en vigueur le 1er avril 2003. La décision relative à l’association des pays et territoires d’outre-mer (PTOM) à la Communauté européenne (2001/822/CE), adoptée le 27 novembre 2001 par le Conseil de l’Union européenne (UE), est entrée en vigueur le 2 décembre 2001. L'accord de Cotonou a été conclu pour une période de vingt ans avec une clause de révision ainsi qu'un protocole financier pour chaque période de cinq ans mais qui, pour le premier protocole financier (financé par le 9e FED), après prise en compte des reliquats des FED antérieurs[13], couvre la période jusqu'à fin 2007[14] et, pour le deuxième protocole financier (qui sera financé par le 10e FED), est modifiable (et couvrira de fait 6 ans[15]). Le montant fixé pour le 9e FED est de 13.800 millions d'euros dont 13.500 millions d'euros attribués aux États ACP conformément au premier protocole financier inclus dans l’accord de Cotonou, 175 millions d'euros affectés aux PTOM (prévus par la décision du Conseil de l’UE relative à l’association des PTOM) et 125 millions d'euros réservés à la Commission européenne pour couvrir les frais liés à la mise en œuvre des ressources du 9e FED (prévus par l’accord interne du 9e FED). L’enveloppe du développement à long terme en faveur des États ACP se compose de deux éléments : Une enveloppe A destinée au soutien macroéconomique, aux politiques sectorielles, aux programmes et projets en appui à l’aide communautaire, qui correspond à l’allocation des PIN et de l’ajustement structurel pour les FED antérieurs. Une enveloppe B destinée à couvrir des besoins imprévus tels que l’aide d’urgence, des contributions à des initiatives d’allégement de la dette ainsi qu’un soutien destiné à atténuer les effets néfastes de l’instabilité des recettes d’exportations et qui, d’une manière générale, correspond aux allocations Stabex, Sysmin et aide d’urgence pour les FED antérieurs. Sur le montant total du 9e FED réservé aux États ACP, un montant de 1.000 millions d'euros a été débloqué dans le courant des années 2004 et 2005 après un examen par le Conseil de l’UE, sur la base d’une proposition de la Commission européenne : - 250 millions d'euros ont été débloqués sur la base d’une décision du Conseil (2004/289/CE du 22 mars 2004) et affectés aux fonds intra-ACP (ressources naturelles) pour financer l’action relative à la Facilité pour l'eau. - 18 millions d'euros ont été débloqués sur la base d’une décision du Conseil (10752/05 du 19 juillet 2005) et affectés à l’enveloppe de soutien au développement à long terme pour financer le programme indicatif national du Timor-Oriental durant la période 2006-2007. - 482 millions d'euros ont été débloqués sur la base de la décision du Conseil des ministres (6/2005 du 22 novembre 2006) et affectés à l’enveloppe de soutien au développement à long terme (352 millions d'euros), à l’appui à la coopération et l’intégration régionale (48 millions d'euros) et à la facilité d’investissement (82 millions d'euros). Ces ressources ont été allouées pour financer l’initiative européenne dans le domaine de l’énergie (220 millions d'euros), les contributions à la facilité de financement internationale de la gestion des risques liés aux produits de base (25 millions d'euros), l’adaptation aux nouvelles règles communautaires sanitaires et phytosanitaires en matière d’alimentation animale et humaine (30 millions d'euros), le renforcement de l’Union africaine (50 millions d'euros), une contribution à l’initiative accélérée «Éducation pour tous» (63 millions d'euros), la lutte contre le sida, la malaria et la tuberculose (62 millions d'euros) et les frais de fonctionnement du CDE/CTA (32 millions d'euros). - 250 millions d'euros ont été débloqués sur la base d’une décision du Conseil des ministres (7/2005 du 22 novembre 2005 et rectificatif du 1er février 2006) et affectés à l’enveloppe de soutien au développement à long terme (185 millions d'euros), à l’appui à la coopération et l’intégration régionale (24 millions d'euros) et à la facilité d’investissement (41 millions d'euros). Ces ressources ont été allouées pour financer également l’action relative à la Facilité pour l'eau. Par conséquent, les dotations du 9e FED en faveur des États ACP, en tenant compte du déblocage du milliard conditionnel et des dotations gérées directement par la Banque européenne d’investissement (BEI), peuvent être résumées de la manière suivante: (en millions d'euros) | Dotation 9e FED | Dotations non ouvertes (gestion BEI) | Dotations ouvertes OLAS (gestion CE) | Enveloppe développement long terme | 10.000,00 | (186,85)[16] | 9.813,15 | Enveloppe régionale | 1.300,00 | 1.300,00 | Facilité d’investissement | 2.200,00 | (2.037,00) | 163,00 | Totaux | 13.500,00 | (2.223,85) | 11.276,15 | L’ouverture des dotations PTOM du 9e FED en faveur des PTOM, en tenant compte des dotations gérées directement par la Banque européenne d’investissement (BEI), a été effectuée de la façon suivante : (en millions d'euros) | Dotation 9e FED | Réduction / milliard conditionnel | Dotations non ouvertes (gestion BEI) | Dotations ouvertes OLAS (gestion CE) | Enveloppe développement long terme | 127,10 | 127,10 | 127,10 | Réserve C | 17,90 | (1,00)[17] | 16,90 | 17,90 | Enveloppe régionale | 8,00 | 8,00 | 8,00 | Enveloppe études et assistance technique | 2,00 | 2,00 | 2,00 | Facilité d’investissement | 20,00 | (20,00) | 0,00 | 20,00 | Totaux | 175,00 | (21,00) | 154,00 | 175,00 | La réserve C non allouée en faveur des PTOM est constituée afin de financer l’aide humanitaire, d’urgence et aux réfugiés ainsi que les fluctuations des recettes d’exportation, et correspond à l’enveloppe B pour les pays ACP. La décision du Conseil (2005/599/CE) du 21 juin 2005 a affecté une enveloppe de 90 millions à l'intérieur de l'enveloppe intra-ACP au financement de la déconcentration. En application de la décision E/982/2003 de la Commission du 16 juin 2003, tous les reliquats des FED antérieurs à la date d’entrée en vigueur de l’accord de Cotonou, ainsi que tous les montants désengagés après ces dates de projets en cours au titre desdits Fonds, ont été transférés au 9 e FED . Toute ressource ainsi transférée au 9e FED après avoir été précédemment attribuée au programme indicatif d’un État ACP ou d’une région a été attribuée à cet État ou à cette région. Par contre, les ressources non allouées ont été transférées vers des réserves qui ont fait l’objet d’une nouvelle programmation dans le cadre du 9e FED. Le montant total transféré depuis l'entrée en vigueur du 9ème FED s'élève à 4,1 milliards d'euros. En application de la décision 2/2007 du Conseil des ministres ACP-CE du 25 mai 2007 visant à permettre des contributions bilatérales supplémentaires pour la cooperation intra ACP en appui des objectifs de l'instrument financier pour la paix en Afrique, à gérer par la Commission, le 9ème FED a été augmenté d'un montant de 39,17 millions d'euros qui sont presentés isolés sur un instrument financier spécifique. Les fonds du neuvième FED, y compris les dégagements attendus, ne pouvant plus être engagés au-delà du 31 décembre 2007[18], il convenait de trouver un mécanisme pour engager les reliquats disponibles avant cette date, d'une manière efficace, à l'appui des objectifs globaux de l'accord de partenariat ACP-CE. A cet effet, la décision 1/2007 du Conseil des ministres ACP-CE du 25 mai 2007 prévoit la réaffectation d'une partie de la réserve de l'enveloppe du 9ème FED consacrée au développement à long terme en faveur de la coopération intra-ACP au sein de l'enveloppe du neuvième FED destiné à la coopération et à l'intégration régionales. Les fonds transférés à la réserve pour développement à long terme sur base des dispositions contenues dans les revues de fin de parcours des programmes indicatifs nationaux ainsi que les montants disponibles pour la coopération intra ACP ont été mobilisés conformément aux dispositions de la décision 1/2007 de la façon suivante : 18. une réserve intra-ACP unique ouverte à tous les États ACP pour l'aide d'urgence au titre de l'article 72, paragraphe 3, points a) et b), de l'accord de partenariat ACP-CE de 26,7 millions d'euros; 19. cinq enveloppes B régionalisées s'élevant respectivement à 17,5 millions d'euros pour la région d'Afrique australe, à 48,9 millions d'euros pour la région de l'Afrique orientale et australe et de l'océan Indien, à 31,9 millions d'euros pour la région de l'Afrique occidentale, à 16,1 millions d'euros pour la région de l'Afrique centrale et à 35,4 millions d'euros pour la région des Caraïbes mobilisées pour contribuer à des initiatives d'allégement de la dette adoptées internationalement et à des opérations d'aide humanitaire et d'aide d'urgence conformément aux articles 72 et 73 dudit accord, sur la base de la solidarité régionale; 20. un programme FLEX intra-ACP de 50 millions EUR pour 2006 (exercice d'application 2005) ainsi qu'un programme FLEX intra-ACP d'un montant de 50 millions d'euros pour 2007 (exercice d'application 2006) visant à garantir un soutien minimal aux pays qui subissent les effets néfastes de l'instabilité des recettes d'exportation; 21. renforcement de la Facilité de soutien à la paix pour l'Afrique d'un montant de 100 millions EUR en vue de mener diverses actions de maintien de la paix, de formation et de développement des capacités; 22. soutien institutionnel accordé au secrétariat ACP afin d'assurer la transition jusqu'à l'entrée en vigueur du dixième FED et pour contribuer aux dépenses de fonctionnement du secrétariat ACP en 2008 (1 millions d'euros); 23. renforcement de la Facilité de coopération technique intra-ACP de 2,5 millions d'euros; 24. 4 millions d'euros pour assurer le relais du programme d'éradication de la peste bovine en Afrique (PACE); 25. contribution supplémentaire de 10 millions d'euros au Réseau du savoir et de l'apprentissage dans les Caraïbes (RSAC); 26. couverture des besoins nouveaux et inattendus qui ne peuvent être financés par les enveloppes B pour un montant de 14,87 millions d'euros (montant affecté à une contribution supplémentaire de 3 millions d'euros en faveur du CTA et au financement de projets spécifiques (African Outlook – 1,3 millions; Microfinances – 2,8 millions, Programme Pesticides – 5 millions; Observatoire des investissements – 2,8 millions)); 27. complément du soutien accordé au Fonds mondial de lutte contre le sida, la tuberculose et le paludisme (GFATM) pour un montant de 38 millions d'euros; 28. complément du Fonds fiduciaire UE-ACP pour les infrastructures pour un montant de 48,7 millions d'euros, en tant qu'avance sur les crédits prévus au titre du dixième FED. Les tableaux en annexe, relatifs aux montants décidés, contractés et payés, mentionnent des données nettes . Seul le tableau 2.7 mentionne les montants engagés et dégagés ainsi que les montants payés et récupérés de façon distincte. DOTATIONS AU 31.12.2007 [pic] [pic] [pic] [pic] [pic] [pic] [pic] TABLEAU 1.8 [pic] COMPTES CONSOLIDES [pic] [pic] [pic] [pic][pic] [pic] SITUATION PAR PAYS ET PAR INSTRUMENT Les tableaux correspondants figurent en annexe 2. Notes concernant les comptes de gestion: - Dans les tableaux les chiffres "0,00" indiquent que le montant correspondant est compris entre – 4.999 EUR et 4.999 EUR.L'absence de chiffre signifie que le montant est égal à zéro.Les pays pour lesquels le solde est nul pour toutes les colonnes ne sont pas repris dans les tableaux. - L'intitulé "Tous pays" correspond à des projets qui concernent plusieurs pays, mais qui ne sont pas financés par la coopération régionale. - L'intitulé "Frais administratifs et financiers" correspond aux projets financés par des intérêts du FED et transférés à un instrument financier (subventions, Facilité d'ajustement structurel). 7e FED Dans la première colonne des tableaux 3.2.1 et 3.2.2, l'allocation destinée à la "Coopération régionale" (1081,31 millions d'euros) comprend les montants suivants: Objectif de la Commission en matière de coopération régionale (États ACP uniquement) | 1.125,00 | Dépassement de l’objectif | (5,92) | Transferts de ressources non affectées afin de financer le programme d'aide aux pays ACP en vue de l'intégration dans l'OMC | 67,90 | Montant transféré à la réserve générale dans le courant de 2000, conformément aux mesures transitoires | 10,00 | Montant transféré à la réserve générale dans le courant de 2001, conformément aux mesures transitoires | (8,50) | Montant transféré à la réserve générale dans le courant de 2002, conformément aux mesures transitoires | (2,20) | Montant transféré au 9e FED dans le courant de 2003, après l'entrée en vigueur de Cotonou | (0,70) | Montant transféré au 9e FED dans le courant de 2004, après l'entrée en vigueur de Cotonou | (49,10) | Montant transféré au 9e FED dans le courant de 2005, après l'entrée en vigueur de Cotonou | (8,26) | Montant transféré au 9e FED dans le courant de 2006, après l'entrée en vigueur de Cotonou | (34,41) | Montant transféré au 9e FED dans le courant de 2007, après l'entrée en vigueur de Cotonou | (12,44) | Total au 31.12.2007 | 1081,31 | Tous les montants des dotations correspondent aux montants décidés car les sommes non engagées ont été transférées au 9e FED après l'entrée en vigueur de Cotonou (décision de la Commission du 16 avril 2003). 8e FED Dans la 2ème colonne des tableaux 1 et 2, l'allocation destinée à la «Coopération régionale» (1.374,31 millions d'euros) comprend les montants suivants : Objectif de la Commission en matière de coopération régionale (États ACP uniquement) | 1.300,00 | Décision 3/2000 du Conseil visant à assurer la continuité de plusieurs activités dans l'attente de l'entrée en vigueur du 9e FED | 306,00 | Décision 10/2001 du Conseil du 20.12.2001 sur l'utilisation des ressources non affectées du 8e FED | 180,70 | conformément aux mesures transitoires | (68,00) | Décision 3/2002 du Conseil du 23.12.2002 sur l'utilisation des ressources non affectées du 8e FED | 54,20 | Montant transféré au 9e FED dans le courant de 2003, après l'entrée en vigueur de Cotonou | (317,33) | Montant transféré au 9e FED dans le courant de2004, après l'entrée en vigueur de Cotonou | (5,01) | Montant transféré au 9e FED dans le courant de 2005, après l'entrée en vigueur de Cotonou | (31,62) | Montant transféré au 9e FED dans le courant de 2006, après l'entrée en vigueur de Cotonou | (20,83) | Montant transféré au 9e FED dans le courant de 2007, après l'entrée en vigueur de Cotonou | (23,81) | Total au 31.12.2007 | 1.374.31 | Tous les montants des dotations correspondent aux montants décidés car les sommes non engagées ont été transférées au 9e FED après l'entrée en vigueur de Cotonou (décision de la Commission du 16 avril 2003). 9e FED Dans tous les tableaux, la présentation a tenu compte des ressources financières utilisées (enveloppe A, enveloppe B et coûts de mise en œuvre) et de la nature du projet (soutien macroéconomique, politiques sectorielles, aide d'urgence, etc.). AUTRES INFORMATIONS DE GESTION [pic] TABLE 4.1.2 CLASSIFICATION DES PROJETS DORMANTS "TRO" : A laisser ouvert. 1. Projets Commission (million euro) FED | Pays | Projet | RAL | 7 | Angola | APPUI A LA PRODUCTION DU FILM "COMBOIO DA CANHOCA" | 0,07 | Sao Tome | PROGRAMME DE SOUTIEN AUX INITIATIVES CULTURELLES | 0,00 | 8 | Eritrea | INF. PROGRAMME TO SUPPORT REFUGEES AND INTERNALLY DISPLACED | 0,73 | Eritrea | INF. SUPPORT TO THE VOLUNTARY REPATRIATION AND REINTEGRATION | 0,47 | Burkina Faso | SOUTIEN AUX INITIATIVES CULTURELLES DECENTRALISEES-PHASE 2 | 0,00 | 9 | Benin | ASSAINISSEMENT DES QUARTIERS INONDABLES DE COTONOU OUEST | 20,00 | Burkina Faso | RENFORCEMENT CAPACITES ORGANISATIONS SOCIETE CIVILE (PROS) | 15,00 | Togo | 4EME RECENSEMENT GENERAL DE LA POPULATION ET DE L'HABITAT | 1,98 | Centrafrica | APPUI A LA TRANSITION DEMOCRATIQUE | 0,30 | Bahamas | TECHNICAL COOPERATION FACILITY (TCF) | 0,07 | Malawi | AUGM.PLAFOND 8 ACP MAI 14, SELON NOTE 28571 DU 24/12/2003 DE | 0,04 | Total | 38,67 | 2. Projets BEI (million euro) FED | Pays | Projet | RAL | 7 | ACP TV | DBT II GLOBAL LOAN (8 TV 3) (22440, 22441) | 0,20 | 8 | ACP MAS | Plaines wilhems sewerage project (21396) | 7,46 | ACP SW | Seb iii maguga (22105) | 7,00 | ACP DO | Financial sector gl ii a (21889) | 4,51 | ACP DO | Financial sector gl ii b (21993) | 3,44 | ACP SLU | Bank of st. lucia gl (21432) | 3,00 | ACP SW | Motraco ii | 1,75 | ACP SLU | Bank of st. lucia gl (21435) | 0,84 | ACP MOZ | MOTRACO II | 0,58 | ACP CD | Pret global secteur financier (22120) | 0,50 | ACP ET | DEVELOPMENT OF BANK OF ETHIOPIA (DBE) GL II (22424) | 25,00 | ACP TV | DBT II GLOBAL LOAN | 0,15 | Total | 54,43 | [pic] [pic] Tableau 4.2.3 Cofinancement Italien En 1985, la Commission européenne a signé avec le Gouvernement italien un accord prévoyant le cofinancement de projets de développement gérés par la Commission. L’accord a été successivement prolongé via des échanges des lettres entre le Gouvernement italien et le Commissaire du développement jusqu’au 31 décembre 2004. Ensuite par procédure écrite E/1588/2004 la Commission a pris une décision concernant la mise en œuvre de l’accord cadre de cofinancement. La décision a pour objet d’arrêter le cadre budgétaire et réglementaire des engagements effectués au titre de l’accord. Dans cet esprit la décision de la Commission prévoit que ce cofinancement est mis en œuvre par la Commission conformément aux dispositions édictées dans le règlement financier du FED. Les mêmes ordonnateurs délégués ou sous- délégués du FED sont, en vertu de cette décision, habilités à gérer la contribution de l’Italie à ce cofinancement. Ils sont également habilités à déterminer le délai définitif approprié pour sa mise en œuvre dans le respect des règles applicables. Conformément à ce qui est prévu à l'article 4, point 4 de l'accord intervenu en juillet 1985 entre la Commission européenne et le Gouvernement italien, disposition confirmée au point 3 de l'article 3 de la décision E/1588/2004, le gouvernement italien, par sa lettre du 15/12/2006, a demandé à la Commission le remboursement des soldes des comptes des projets clôturés. Le montant total de ces soldes s'élève à 4.708.867,66 € (* - voir tableau ci-dessous). Ce montant a été versé sur un compte intermédiaire et sera reversé au gouvernement italien, courant 2008. Les intérêts générés par ces comptes s'élevaient à 6.153,92 € et ont été transférés sur le compte intérêts. Fin 2007, la situation des fonds italiens gérés par la Commission pour des projets dans les pays ACP est la suivante (en Euro) : N° project | Country | Project | solde | Contribution | Clôture | paiements | solde | Au total, 52 projets mis en œuvre dans des pays ACP ont été cofinancés par l’Italie depuis la signature de l’accord précité, dont 1 seul, "4e programme de réhabilitation - Somalie", est toujours en cours d'exécution. (**) Solde des comptes clôturés augmenté des intérêts annuels du compte "dépenses administratives" FINANCIAL INFORMATION EIB INCOME STATEMENT INVESTMENT FACILITY Year to | Year to | Notes | 31.12.2007 | 31.12.2006 | Interest and similar income | 5 | 46 580 | 23 816 | Interest and similar expense | 5 | (1 218) | (2 493) | Net interest and similar income | 45 362 | 21 323 | Net fees and commission income | 6 | 1 396 | 4 366 | Net fees and commission income | 1 396 | 4 366 | Net result on financial operations | 7 | (8 005) | (283) | Impairment charge for credit loss | 11 | (2 770) | (1 693) | Member States special contribution to general administrative expenses | 8 | 32 756 | 33 913 | General administrative expenses | 8 | (32 756) | (33 913) | Profit for the year | 35 983 | 23 713 | BALANCE SHEET INVESTMENT FACILITY Notes | 2007 | 2006 | ASSETS | Cash and cash equivalents | 9 | 184 772 | 190 780 | Derivative financial instruments | 10 | 25 279 | 8 592 | Loans and receivables | 11 | 572 530 | 338 997 | Of which accrued interest | 10 779 | 3 784 | Financial investments - available-for-sale | 12 | Equity investment - available-for-sale | 109 363 | 66 449 | Amounts receivable from contributors | 13 | 181 183 | 103 913 | Other assets | 14 | 4 291 | 1 813 | Total assets | 1 077 418 | 710 544 | LIABILITIES AND EQUITY | LIABILITIES | Derivative financial instruments | 10 | 841 | 119 | Deferred income | 15 | 18 030 | 7 908 | Amount owed to third parties | 16 | 131 152 | 134 425 | Other liabilities | 17 | 916 | 1 911 | Total Liabilities | 150 939 | 144 363 | EQUITY | Facility Member States Contribution called | 18 | 830 000 | 515 000 | Retained earnings | 77 167 | 41 184 | Fair value reserve | 19 312 | 9 997 | Total Equity | 926 479 | 566 181 | Total Liabilities and Equity | 1 077 418 | 710 544 | CASH FLOW STATEMENT INVESTMENT FACILITY 2007 | 2006 | OPERATING ACTIVITIES | Profit for the financial year | 35 983 | 23 713 | Adjustments | Impairment on equity investment available-for-sale | 366 | 130 | Impairment on loans | 2 770 | 1 693 | Interest capitalised | (6 747) | (4 303) | Increase in accruals and deferred income | 4 150 | 8 038 | Profit on operating activities before changes in operating assets and liabilities | 36 522 | 29 271 | Net loan disbursements | (286 028) | (157 004) | Repayments | 34 214 | 3 585 | Fair value movement on derivatives | (15 965) | (14 057) | Increase in prepayments and accrued income on loans | - | (1 062) | Increase in equity investments available-for-sale | (43 143) | (31 965) | Proceeds from equity investments available-for-sale | 8 248 | 25 | Increase in other assets | (2 456) | (1 014) | Increase in other liabilities | (518) | 1 463 | Net cash flows from operating activities | (269 126) | (170 758) | FINANCING ACTIVITIES | Paid in by Facility Member States | 315 000 | 145 000 | Increase / (decrease) in amount receivable from contributors | (77 271) | (11 458) | Net increase in amount payable from interest subsidies | (3 273) | 17 312 | Increase in amount payable to third parties | (538) | 1 458 | Net cash flows from/(used in) financing activities | 233 918 | 152 312 | Net increase in cash and cash equivalents | (35 208) | (18 446) | Cash and cash equivalents at beginning of financial year | 190 780 | 194 916 | Effect of exchange rate changes on loans and equity investments | 29 200 | 14 310 | Cash and cash equivalents at end of financial year | 184 772 | 190 780 | STATEMENT OF CHANGES IN EQUITY INVESTMENT FACILITY For the year ended 31 December 2007 | Facility Member States Contribution | Retained earnings | Fair value reserve on AFS investments | Total Equity | At 1 January 2007 | 515 000 | 41 184 | 9 997 | 566 181 | Net changes in equity investments - available-for-sale | - | - | 9 315 | 9 315 | Facility Member States contribution called during the year | 315 000 | - | - | 315 000 | Profit for the year | - | 35 983 | - | 35 983 | Changes in contributors’ resources | 315 000 | 35 983 | 9 315 | 360 298 | At 31 December 2007 | 830 000 | 77 167 | 19 312 | 926 479 | At 1 January 2006 | 370 000 | 17 471 | 6 443 | 393 914 | Net changes in equity investments - available-for-sale | - | - | 3 554 | 3 554 | Facility Member States contribution called during the year | 145 000 | - | - | 145 000 | Profit for the year | - | 23 713 | - | 23 713 | Changes in contributors’ resources | 145 000 | 23 713 | 3 554 | 172 267 | At 31 December 2006 | 515 000 | 41 184 | 9 997 | 566 181 | NOTES TO THE FINANCIAL STATEMENTS 29. General information The Investment Facility has been established within the framework of the Cotonou Agreement (the “Agreement”) on co-operation and development assistance negotiated between the African, Caribbean and Pacific Group of States (the “ACP States”) and the European Union and its Member States on 23 June 2000 and revised on 25 June 2005. The Investment Facility is managed by the European Investment Bank (the “EIB” or the “Bank”). Under the terms of the Agreement up to EUR 2,200 million for ACP and EUR 20 million for OCT (as agreed by the Council Decision of 27 November 2001 on the association of the Overseas Countries and Territories with the European Community) may be allocated to finance the Investment Facility. Within the framework of the Agreement, the EIB also manages loans granted from its own resources. All other financial resources and instruments under the Agreement are administered by the European Commission. 30. Significant accounting policies Basis of preparation In line with the Investment Facility Management Agreement the preparation of the financial statements of the Facility is guided by International Public Sector Accounting Standards or International Financial Reporting Standards, as appropriate. The Facility's financial statements have been prepared on the basis of the following significant accounting principles: Significant accounting judgments and estimates The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Investment Facility’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed. The most significant use of judgments and estimates are as follows: Fair value of financial instruments Where the fair values of financial assets and financial liabilities recorded on the balance sheet cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of mathematical models. The input to these models is taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of liquidity and model inputs such as correlation and volatility for longer dated derivatives. Impairment losses on loans and receivables The Investment Facility reviews its problem loans and receivables at each reporting date to assess whether an allowance for impairment should be recorded in the income statement. In particular, judgment by management is required in the estimation of the amount and timing of future cash flows when determining the level of allowance required. Such estimates are based on assumptions about a number of factors and actual results may differ, resulting in future changes to the allowance. In addition to specific allowance against individually significant loans and receivables, the Investment Facility also makes a collective impairment allowance against exposures which, although not specifically identified as requiring a specific allowance, have a greater risk of default than when originally granted. This collective allowance is based on any deterioration in the internal rating of the loan or investment since it was granted or acquired. These internal ratings take into consideration factors such as any deterioration in country risk, industry, and technological obsolescence, as well as identified structural weaknesses or deterioration in cash flows. Valuation of unquoted available-for-sale equity investments Valuation of unquoted available-for-sale equity investments is normally based on one of the following: - recent arms length market transactions; - current fair value of another instrument that is substantially the same; - the expected cash flows discounted at current rates applicable for items with similar terms and risk characteristics; or - other valuation models. The determination of the cash flows and discount factors for unquoted available-for-sale equity investments requires significant estimation. The Investment Facility calibrates the valuation techniques periodically and tests them for validity using either price from observable current market transactions in the same instrument or from other available observable market data. Impairment of available-for-sale financial investments The Investment Facility treats available-for-sale equity investments as impaired when there has been a significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. The determination of whether a decline is significant or prolonged is based on a judgmental appreciation. Change in accounting policies The accounting policies adopted are consistent with those used in the previous financial years. Summary of significant accounting policies The balance sheet represents assets and liabilities in decreasing order of liquidity and does not distinguish between current and non-current items. 31. Foreign currency translation The Investment Facility uses the Euro (EUR) for presenting its financial statements, which is also the functional and presentational currency. Foreign currency transactions are translated, in accordance with IAS 21, at the exchange rate prevailing on the date of the transaction. Monetary assets and liabilities denominated in currencies other than in Euro are translated into Euro at the exchange rate prevailing at the balance sheet date. The gain or loss arising from such translation is recorded in the income statement. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Exchange differences arising on the settlement of transactions at rates different from those at the date of the transaction, and unrealized foreign exchange differences on unsettled foreign currency monetary assets and liabilities, are recognized in the income statement. The elements of the income statement are translated into Euro on the basis of the exchange rates prevailing at the end of each month. 32. Cash and cash equivalents The Investment Facility defines cash equivalents as current accounts or short-term deposits with original maturities of three months or less. 33. Financial assets other than derivatives Financial assets are accounted for using the settlement date basis. - Loans Loans originated by the Investment Facility are recognized in the assets of the Investment Facility when cash is advanced to borrowers. They are initially recorded at cost (net disbursed amounts), which is the fair value of the cash given to originate the loan, including any transaction costs, and are subsequently measured at amortized cost, using the effective yield method, less any provision for impairment or uncollectability. - Available-for-sale financial investments Available-for-sale financial investments are those which are designated as such or do not qualify to be classified as designated at fair value through profit or loss, held-to-maturity or loans and receivables. They include equity instruments, investments in venture capital funds and other debt instruments. After initial measurement, available-for-sale financial investments are subsequently carried at fair value. Note the following details for the fair value measurement of equity investments, which can not be derived from active markets: a) Venture capital funds The fair value of each venture capital fund will be based on the Net Asset Value (NAV), reported by the fund, if calculated based on international valuation standards. The Investment Facility may however decide to adjust the NAV reported by the fund if there are issues that may affect the valuation. If no internationally recognized fair valuation standard is applied, the valuation will be conducted on the basis of the underlying portfolio. b) Direct equity investments The fair value of the investment will be based on the latest set of financial statements available, re-using, if applicable, the same model as the one used at the acquisition of the participation. Unrealized gains or losses on equity investments are reported in equity until such investments are sold, collected or disposed of, or until such investment are determined to be impaired. If an available-for-sale investment is determined to be impaired, the cumulative unrealized gain or loss previously recognized in equity is included in the income statement. For unquoted investment, the fair value is determined by applying recognized valuation technique. These investments are accounted for at cost when the fair value cannot be reliably measured. - Guarantees Financial guarantees are initially recognized at fair value in the balance sheet under item “Financial guarantees”. Subsequent to initial recognition, the Investment Facility’s liabilities under each guarantee are measured at the higher of the amortized premium and the best estimate of expenditure required to settle any financial obligation arising as a result of the guarantee. Any increase in the liability relating to financial guarantees is taken to the income statement under item “Impairment charge for credit loss”. The premium received is recognized in the income statement under item “Net fee and commission income” using the effective interest rate method over the life of the guarantee. 34. Impairment of financial assets The Investment Facility assesses at each balance sheet date whether there is any objective evidence that a financial asset is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred “loss event”) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the borrower or a group of borrowers is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults. For the loans outstanding at the end of the financial year and carried at amortized cost, impairments are made when presenting objective evidence of risks of non recovery of all or part of their amounts according to the original contractual terms or the equivalent value. If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the assets carrying amount and the present value of estimated future cash flows. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognized in the income statement. Interest income continues to be accrued on the reduced carrying amount based on the effective interest rate of the asset. Loans together with the associated allowance are written off when there is no realistic prospect of future recovery. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. The Investment Facility conducts credit risk assessments based on which there is no need for a collective impairment provision. For the available-for-sale financial investments, the Investment Facility assesses at each balance sheet date whether there is objective evidence that an investment is impaired. Objective evidence would include a significant or prolonged decline in the fair value of the investment below its costs. Where there is evidence of impairment, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognized in the income statement) is removed from equity and recognized in the income statement. Impairment losses on available-for-sale financial investments are not reversed through the income statement; increases in their fair value after impairment are recognized directly in equity. For held-to-maturity investments the Investment Facility assesses individually whether there is objective evidence for impairment. If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows. The carrying amount of the asset is reduced and the amount of the loss is recognised in the income statement. If, in a subsequent year, the amount of the estimated impairment loss decreases because of an event occurring after the impairment was recognised, any amount formerly charged are credited to the ‘Net result on financial operations’. The European Investment Bank’s Risk Management reviews financial assets for impairment at least once a year. Resulting adjustments include the unwinding of the discount in the income statement over the life of the asset, and any adjustments required in respect of a reassessment of the initial impairment. 35. Derivative financial instruments Derivatives include cross currency swaps and cross currency interest rate swaps. In the normal course of its activity, the Investment Facility may enter into swap contracts with a view to hedge specific lending operations, denominated in actively traded currencies other than the Euro, in order to offset any gain or loss caused by foreign exchange rate fluctuations. However, the Investment Facility has not entered into any hedge accounting transactions as at December 31, 2007. Therefore, all derivatives are measured at fair value through the income statement. Fair values are derived primarily from discounted cash flow models, option-pricing models and from third party quotes. Derivatives are recorded at fair value and carried as assets when their fair value is positive and as liabilities when their fair value is negative. Changes in the fair value of derivative financial instruments are included in “Net result on financial operations”. 36. Contributions Contributions from Member States are recognized as receivable in the balance sheet on the date of the Council Decision fixing the financial contribution to be paid by the Member States to the Investment Facility. 37. Interest income on loans Interest on loans originated by the Investment Facility is recorded in the profit and loss account (‘Interest and similar income’) and on the balance sheet (‘Loan and receivables’) on an accrual basis using the effective interest rate, which is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the loan to the net carrying amount of the loan. Once the recorded value of a loan has been reduced due to impairment, interest income continues to be recognized using the original effective interest rate applied to the new carrying amount. 38. Interest subsidies As part of its activity, the Investment Facility manages interest subsidies on behalf of the Member States. The part of the Member States contributions allocated to the payment of interest subsidies is not accounted for in the Investment Facility’s equity but is classified as an amount owed to third parties. 39. Interest income on treasury Under the terms of the Investment Facility and according to the Financial Regulation applicable to the 9th European Development Fund, the funds received by the EIB on behalf of the Investment Facility are recorded in an account in the Commission’s name. Interest on these deposits, placed by the Investment Facility with the EIB, is not accounted for by the Investment Facility as it is payable directly to the European Commission. Reflows, being repayment of principal, interest or commissions stemming from financial operations, and interest calculated on these reflows are accounted for within the Investment Facility. 40. Fees, commissions and dividends Fees received in respect of services provided over a period of time are recognized as income as the services are provided. Commitment fees are deferred and recognized in income using the effective interest method over the period from disbursement to repayment of the related loan. Dividends relating to available-for-sale equity investments are recognized when received. 41. Taxation The Protocol on the Privileges and Immunities of the European Communities, appended to the Treaty of 8 April 1965 establishing a Single Council and a Single Commission of the European Communities, stipulates that the assets, revenues and other property of the Institutions of the Union are exempt from all direct taxes. 42. Reclassification of prior years figures Where necessary, certain prior years figures have been reclassified