NoC348/8 OfficialJournaloftheEuropeanCommunities 28.12.93
COURTOFAUDITORS
OPINIONNo9/93OFTHECOURTOFAUDITORS OFTHEEUROPEAN
COMMUNITIES
onaproposalforaCouncilRegulation(ECSC,EEC,Euratom)arendingtheFinancial
Regulationof21December1977applicabletothegeneralbudgetoftheEuropean
Comnunities
(93/C348/05)
THECOURTOFAUDITORS OFTHEEUROPEAN
COMMUNITIES ,1.2Now,anydecisionbytheCommissiontoimpose
fines,periodicpenaltypaymentsandotherpenalties
onthebasisoftherelevantrulesisenforceable
underArticle192oftheECTreaty.Revenue
receivedbywayofsuchfines,periodicpenalty
paymentsandotherpenaltiesmustthereforebe
creditedtothebudget,irrespectiveofanyappeal
proceedingsthatmightbetakenbytheparties
concerned.Itisthereforeunnecessaryforthe
FinancialRegulationtobeamendedonthispoint
andtheexistingtextmustberetained.
2.Provisionsdesignedtoclarifyandenhancetheroleof
theFinancialControllerHavingregardtotheTreatyestablishingtheEuropean
CoalandSteelCommunity,andinparticularArticle78h
thereof,
HavingregardtotheTreatyestablishingtheEuropean
AtomicEnergyCommunity,andinparticularArticle183
thereof,
HavingregardtotheTreatyestablishingtheEuropean
Community,andinparticularArticle209thereof,
HavingregardtotheFinancialRegulationof21
December1977applicabletothegeneralbudgetofthe
EuropeanCommunities (*),aslastamendedbyRegu­
lation(ECSC,EEC,Euratom)No610/90of13March
1990,
HavingregardtotheproposalforaCouncilRegulation
(ECSC,EEC,Euratom)amendingtheFinancialRegu­
lationof21December1977applicabletothegeneral
budgetoftheEuropeanCommunities ,presentedbythe
CommissionoftheEuropeanCommunitieson16July
1993,2.1TheaimoftheamendmenttoArticle36(1)isto
makeitclearthatapprovalbytheFinancial
Controllerisrequiredpriortoanylegal
commitmentonthepartoftheauthorizingofficer.
Ontheotherhand,shiftingtheburdenofresponsi­
bilityforthecommitmenttotheinstitution
constitutesawatering-down oftheprinciplelaid
downinArticle73oftheFinancialRegulation
concerningthepersonalliabilityofauthorizing
officers.TheCourtthereforeproposesthatthe
word'institution'bedeleted.
3. HavingregardtotherequestbytheCouncilforthe
CourtofAuditors'opinionontheproposal,receivedby
theCourton31August1993,
3.1
HASADOPTEDTHEFOLLOWING OPINION :
PARTONE
GeneralobservationsClarificationoftheprovisionconcerningforward
estimates'ofdebtsowing
Initspresentform,theFinancialRegulation
providesfortwotypesofdocumenttobeusedby
theauthorizingofficerindealingwithbudgetary
revenue :
—theproposalfortheestablishmentofadebtdue
(Article28(1)),and
—therecoveryorder(Article28(2)).
Thesedocumentsconstitutethepapersupportfora
formofmanagementintwostages,consistingin
essenceoftheidentification oftheexistenceofa
debtthatisdue,theestablishment ofthatdebtand
therecoveryofthesumsowing.Thepresent
wordingofArticle28,however,failstospecifythe
proceduresbywhichtheactofestablishment isto
beimplemented,andtheactitselfisnotspecifically
identified .1.
3.2
1.1.Provisionsdesignedtoensureappropriateaccounting
andbudgetarytreatmentoffines
TheproposedamendmentstoArticle5andthe
introduction ofanewArticle28aconstitute
departuresfromthesystemforbookingitemstothe
budgetprovidedforintheTinancialRegulation .
OOJNoL356,31.12.1977.

28.12.93 OfficialJournaloftheEuropeanCommunities NoC348/9
—adefinitionoftheproceduresforestablishing
debtsdue,and
—aspecificprocedureforownresourcesestab­
lishedbytheMemberStates.
4.Detailsconcerningtheend-of-yearclosureofaccounts
4.1.TheCommissionproposesallowinganytransaction
whichdoesnotaffecttheCommunities'financial
positiontobeenteredintheaccountsuptill31
Marchofthefollowingyear.
4.2.Inordertoensurethatthepresentationofthe
financialstatementsisfull,trueandfair,itmustbe
possibleforcorrectionsandadjustmentstobemade
aftertheendofthefinancialyear.However,for
auditpurposes,anyentrythatismadeinthe
accountsafter31Decembermustshowclearlythe
reasonswhythenewclausewasinvokedandthe
truedateonwhichtheentriesweremade.A
provisiontothiseffectmustbeincludedinthe
detailedrulesfortheimplementation ofthe
FinancialRegulation .Moreover,withreferenceto
Article79,thedateof31Marchcannotbeusedfor
alltheinstitutions .Thatiswhy,forthesakeof
consistency,andwithdueregardtothe
Commission'saims,thephrase'theclosuredate'is
preferable .
4.3.Itisimportantthattheproposedamendmentshould
notpermitadefactowaiveroftheprincipleof
annualityenshrinedinArticle6oftheFinancial
Regulation .Forthatreason,areferencetoArticle6
isneededinArticle72andthetermsofArticle6
mustbestrictlyobserved.3.3.TheCommission'sproposalaimstoreplacethe
proposalfortheestablishmentofadebtlaiddown
inArticle28(1)byamereforwardestimateofa
debt,insuchawaythatthewordingofArticle28
(1)willcoverallthesituationsitrefersto.This
simplificationoftheprocedureattheregulation
levelisnotjustifiedandiscertainlynotappropriate
intheeventthataninstitutionshouldbeina
positionitselftoestablishtheamountowingtoit.
3.4.TheCommissiondidnotseeanypointinincluding
provisionsconcerningtheestablishmentofdebtsdue
inArticle28;whereasinfactthisisanessential
stageintheprocedurefortheformalreceiptof
revenue,bymeansofwhichtheauthorizingofficer
checks,inparticular,thatthedebtsinquestionare
'certain,liquidanddue.Generallyspeaking,the
Courttakestheviewthatthisprocedureoughttobe
betterstructured,alongthelinesoftheprocedure
fortheimplementation ofexpenditure .
3.5.Ontheotherhand,astheCourthasalready
mentionedinitsannualreportonthefinancialyear
1991('),thegeneralsystemfortheestablishmentof
debtsdueoughttobecompletedbytheadditionof
specificprovisionstocoverthecaseoftraditional
ownresourcesthatareestablishedbytheauthorities
oftheMemberStates.Inthesecases,infact,the
Commissiondoesnotitselfestablishthedebtowed
bythedebtor,andtheCommunityauthorizing
officerisnotthereforeinapositiontodrawupa
proposalfortheestablishmentofadebtbeforethe
fundsaremadeavailable.Whenthelatterarepaid
overbytheMemberState,itwouldbeenoughifa
simplebook-entryweremadebytheaccountantand
arecoveryorderissuedbytheauthorizingofficer.A
specialprocedureshouldthereforebeintroduced,
onethatissuitedtothespecificnatureofthetradi­
tionalownresourcesandwhichcorrespondstothe
stageofreceiptofsumsthataremadeavailable
directly.
3.6.Inshort,therefore,theCourtconsidersthatit
wouldbepreferable,subjecttocertainclarifications ,
toretainthepresentformofArticle28andtoadd
theelementsthataremissing,namely:PARTTWO
Examination oftheArticles
TheCourt'samendmentstotheCommissionproposal,
whichwereadumbratedinPartOne,arenowsetoutin
tabularform: OOJNoC330,15.12.1992,paragraph1.24.

THECOMMISSION 'SPROPOSAL THECOURTSPROPOSAL COMMENTS
Article1NoC348/10
Deletethephrase,'SubjecttoArticle28a'. Theobjectistorestoretheinitialtext. Article5(1)isreplacedbythefollowing:
'1.SubjecttoArticle28a,norevenueshallbe
collectedandnoexpenditureeffectedunless
creditedtoorchargedagainstanarticleinthe
budget.'
Article28istobeamendedasfollows:
(a)Deletethereplacementof'aproposal'by'a
forwardestimate'.Thereisnoreasontoreplacetheproposaltoestablish
adebtdue.Article28isamendedasfollows:
(a)inthefirstsubparagraphofparagraph 1,the
words'orsituations'areinsertedafterthewords
'allmeasures'andthewords'byaproposal'are
replacedbythewords'byaforwardestimateof
theamountinvolved';
(b)Delete.OfficialJournaloftheEuropeanCommunities(b)inthesecondsubparagraphofparagraph1,the
words'suchproposals'arereplacedbythewords
'suchforwardestimates';
(c)theintroductory sentenceofthethird
subparagraphofparagraph 1isreplacedbythe
following:
'Theyshallmention,inparticular,thetypeof
revenueandthebudgetitemtowhichitistobe
bookedand,ifpossible,theestimatedamount
andthedescriptionofthedebtor.Thepurposeof
theapprovaloftheFinancialControllershallbe
toestablishthat:'
(d)Delete. (d)inpoint(b)ofthethirdsubparagraphof
paragraph 1,theword'proposal'isreplacedby
thewords'forwardestimate';
is (e)thefourthsubparagraph ofparagraph 1
deleted;Acleardefinitionof'establishment'isindispensable
forthepurposeofidentifyingdebts.(e)Retaintheexistingfourthsubparagraph .
Afterparagraph1,anewparagraphshouldbeadded
specifyingtheactofestablishmentofdebtsoncethey
arecertain,liquidanddue.28.12.93

THECOMMISSION 'SPROPOSAL THECOURT'SPROPOSAL COMMENTS28.12.93
(f)inthefirstsubparagraphofparagraph2the
words'suchrecoveryorders'arereplacedbythe
words'suchdebts';
(g)thefollowingsubparagraph isinsertedafterthe
firstsubparagraphofparagraph2:
'Provisionalestablishments maybemadefor
certainroutinerevenueitemsinaccordancewith
theimplementingmeasuresprovidedforinArticle
126.'Thedesirabilityofkeepingthisprovisionshouldbe
re-examinedbytheCommissioninthelightofthe
Commission'sproposalunder(e).
Afterparagraph2addaparagraphdealingwiththe
specificsituationofownresourcesestablishedbythe
authoritiesoftheMemberStatesunderCouncil
Regulation(EEC,Euratom)of29May1989
implementing DecisionNo88/376/EEC,Euratom
concerningthesystemoftheCommunities'own
resources .OfficialJournaloftheEuropeanCommunities DeletethisArticle. IntheCourt'sopiniontheremustbenoderogation
fromtheprincipleofbudgetarymanagementofall
revenueandexpenditure .ThefollowingArticleisinserted:
'Article28a
Revenuereceivedbywayoffines,periodicpenalty
paymentsandotherpenaltiesimposedbythe
Commission ....'
Replacethefirstsentencebythefollowing:
'...aproposalforcommitmentand...maynotenter
intoanylegallybindingcommitmentwiththird
partiesuntiltheFinancialControllerhasgiven
approval...'Theword'institution'isdeletedinorderto
emphasizetheauthorizingofficer'spersonallegal
liability.Article36(1)isreplacedbythefollowing:
'Inrespectofanymeasurewhichmaygiveriseto
expenditurechargeabletothebudget,theauthorizing
officermustdrawupaproposalforcommitmentand
theinstitutionmaynotenterintoanylegallybinding
commitmentwiththirdpartiesuntiltheFinancial
Controllerhasgivenapproval.Aprovisional
commitmentmaybeenteredintoinrespectofroutine
expenditure.'NoC348/11

THECOMMISSION 'SPROPOSAL THECOURT'SPROPOSAL COMMENTSNoC348/12AccordingtoArticle79,theclosuredatefortheother
institutionsis1March.Thenewdateof31March
would,therefore,conflictwiththatArticle.A
referencetoArticle6ispreferable .Article72isamendedasfollows:
'2.Anyoperationaftertheclosureoftheaccountsfor
thefinancialyearwhich,withoutaffectingthe
Community'sfinancialposition,isnecessaryforafull
andtrueandfairpresentationofthefinancial
statements,maybeimplementedandapprovedbythe
FinancialControllerupto31Marchofthefollowing
year.'Amendthetextasfollows:
'Anycorrectionaftertheclosureoftheaccountsfor
thefinancialyearwhich,withoutaffectingthe
Community'sfinancialposition,isnecessaryforafull,
trueandfairpresentationofthefinancialstatements,
maybeeffecteduptilltheclosuredate,without
prejudicetotheapplicationofArticle6oftheFinancial
Regulation.'
ThisopinionwasadoptedbytheCourtofAuditorsinLuxembourgattheCourtmeetingof4
November1993.
FortheCourtofAuditors
AndreJ.MIDDELHOEK
PresidentOfficialJournaloftheEuropeanCommunities 28.12.93