Report on the financial statements of the European Agency for the Evaluation of Medicinal Products (EAEMP- London) for the financial year ended 31 December 1997, together with the Agency's reply
Date: 1998-10-29
Institutions: European Court of Auditors
Subjects: European Medicines Agency, financial control, financial year, management audit, report

28.12.98

EN

Official  Journal  of  the  European  Communities

C  406/29

on  the  financial  statements  of  the  European  Agency  for  the  Evaluation  of  Medicinal  Products
(EAEMP  —  London)  for  the  financial  year  ended  31  December  1997,  together  with  the
Agency’s reply

REPORT

(98/C  406/05)

1.1. This  report  is  addressed  to  the  Management  Board
of  the  European  Agency  for  the  Evaluation  of  Medicinal
Products  in  conformity  with  Article  57(10),  of  Council
Regulation  (EEC)  No  2309/93 (1).

1.2. The Court has examined the financial statements of
the  European  Agency  for  the  Evaluation  of  Medicinal
Products for the financial year ended 31 December 1997.
In  accordance  with  Article  57(7),  of  Council  Regulation
(EEC)  No  2309/93,  the  budget  was  implemented  on  the
responsibility 
the  Executive  Director.  This
responsibility  included  the  drawing-up  and  presentation
of  the  financial  statements (2)  in  accordance  with  the
internal  financial  provisions,  as  provided  for  in  Article
57(11),  of  Council  Regulation  (EEC)  No  2309/93.  The
Court  of  Auditors  is  required  under  Article  188c  of  the
Treaty establishing the European Community to examine
these  accounts.

of 

1.3. The  Court  performed  its  audit  in  accordance  with
its  auditing  policies  and  standards.  These  have  been
adapted  from  generally  accepted  international  auditing
standards  to  reflect  the  specific  characteristics  of  the
Community  context.  Accordingly,  the  Court  carried  out
such  tests  of  the  accounting  records  and  other  audit
procedures  as  it  deemed  necessary  in  the  circumstances.
By  means  of  this  audit,  the  Court  obtained  a  reasonable
basis  for  the  opinion  expressed  below.

1.4. This  examination  has  enabled  the  Court  to  obtain
reasonable  assurance  that  the  annual  accounts  for  the
financial  year  which  ended  on  31  December  1997  are
reliable  and  that  the  underlying  transactions,  taken  as  a
whole,  are  legal  and  regular.

This  report  was  adopted  by  the  Court  of  Auditors  in  Luxembourg  at  the  Court  meeting  of
29 October  1998.

For  the  Court  of  Auditors

Bernhard  FRIEDMANN

President

(1)  OJ  L  214,  24.8.1993,  p.  1.
(2)  As required under Article 57(9) of Council Regulation (EEC)
No  2309/93,  the  accounts  for  all  the  Agency’s  revenue  and
expenditure for the financial year 1997 were drawn up on 24
March  1998  and  forwarded  to  the  Agency’s  Management
Board,  the  Commission  and  the  Court  of  Auditors.  These
accounts  were  received  by  the  Court  on  31  March  1998.  A
summarised version of these financial statements is presented
in  the  tables  attached  to  this  report.

C  406/30

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Official  Journal  of  the  European  Communities

28.12.98

Table  1

Balance  sheet  for  the  financial  year  1997

Assets

1997

1996

Liabilities

1997

1996

(ECU  1 000)

Fixed  assets
Equipment  and  furniture

Sub-total

3 257

3 257

1 893

1 893

Fixed  capital
Own  capital
Out-turn  to  be  carried  over

Sub-total

3 257
1 166

4 423

1 893
4 583

6 476

Current  assets
Sundry  accounts  receivable
VAT  to  be  recovered
Expenditure  to  be  charged

759
576
48

Sub-total

1 383

147
728
113

988

Cash  accounts
Banks  —  demand  accounts
Banks  —  deposit  accounts

422
8 165

8 587

756
10 074

10 830

Sub-total

Current  liabilities
Non-automatic  carry-overs  of
appropriations
Automatic  carry-overs  of
appropriations
Re-use  accounts
Salary deductions
Sundry  accounts  due
VAT  refunds
Differentiated  sums  due
Exchange-rate  profits  not  realised

Sub-total

1 398

3 797

981
33
224
576
1 795
0

8 804

1 620

3 152

328
8
190
728
895
314

7 235

Total  assets

13 227

13 711

Total liabilities

13 227

13 711

Source:  Prepared  by  the  Court  of  Auditors  on  the  basis  of  the  Agency’s  data.

28.12.98

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Official  Journal  of  the  European  Communities

C  406/31

Table  2

Revenue  and  expenditure  account  for  the  financial  year  1997

(ECU  1 000)

1997

1996

14 000
12 945
552

11 000
7 004
372

Total  revenue

27 497

18 376

Revenue
Subsidy  received  from  the  Commission
Sums  due
Miscellaneous revenue

Expenditure
Staff  expenditure  —  Title  I
Payments
Appropriations  carried  forward

Buildings,  equipment  and  miscellaneous  operating  expenditure  —  Title  II
Payments
Appropriations  carried  forward

Operational  expenditure  —  Title  III
Payments
Appropriations  carried  forward

10 778
392

4 344
1 157

6 726
3 646

6 593
263

2 858
1 698

3 650
2 811

Total  expenditure

27 043

17 873

Out-turn  for  the  financial  year
Out-turn  carried  over  from  the  previous  year
Exchange-rate  losses
Exchange-rate  profits
Commission  repayments
Appropriations  carried  forward  from  the  previous  financial  year  and
cancelled

454
4 583

75
− 4 583

637

Out-turn  to  be  carried  over

1 166

503
1 551
− 138
0
0

2 667

4 583

Source:  Prepared  by  the  Court  of  Auditors  on  the  basis  of  the  Agency’s  data.

C  406/32

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Official  Journal  of  the  European  Communities

28.12.98

REPLY  OF  THE  AGENCY

The  document  entitled  ‘Preliminary  observations  with  a  view  to  drawing  up  a  report  on  the
financial  statements  of  the  European  Agency  for  the  Evaluation  of  Medicinal  Products  for  the
financial  year  ending  on  31  December  1997’  does  not  call  for  any  comments  from  us  and  we
can  accept  it  without  any  modification.