Report by the independent auditor on the court of auditors' accounts for the financial year 2000
Date: 2001-07-20
Institutions: European Court of Auditors
Subjects: European Court of Auditors, auditing, financial year

7.11.2001

EN

Official Journal of the European Communities

C 312/1

I

(Information)

COURT OF AUDITORS

REPORT BY THE INDEPENDENT AUDITOR ON THE COURT OF AUDITORS’ ACCOUNTS FOR
THE FINANCIAL YEAR 2000

(2001/C 312/01)

NOTE TO READERS

Without prejudice to the provisions of Article 248 of the Treaty establishing the European Community, which
gives the Court of Auditors responsibility for auditing all of the Community’s revenue and expenditure, and
the provisions of Article 276 of the said Treaty concerning the granting of discharge, the Court of Auditors
has had its revenue and expenditure accounts audited by an independent auditor every year since the close of
the financial year 1987.

The reports that the independent auditor of the Court of Auditors drew up in respect of the Court’s accounts
for the financial years 1987 to 1991 were only sent to the Chairman of the European Parliament’s Committee
on Budgetary Control.

Pursuant to a decision taken by the Members of the Court of Auditors at the Court meeting of 8 July 1993,
the independent auditor’s reports have been published in the Official Journal of the European Communities since
the report on the financial year 1992.

For the Court of Auditors

Jan O. KARLSSON

President

C 312/2

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Official Journal of the European Communities

7.11.2001

CONTENTS

Certificate concerning the regularity and fairness of the financial statements at 31 December 2000 . . . . .

Report on the administrative and accounting procedures, the soundness of the financial management
and the internal control system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial statements at 31 December 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page

3

4

5

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Official Journal of the European Communities

C 312/3

Certificate concerning the regularity and fairness of the financial statements at 31 December 2000

To the Members of the European Court of Auditors

In accordance with the instructions given to us by the European Court of Auditors, we have examined:

— the accounting data sent by the European Court of Auditors to the Commission for the purpose of draw-
ing up the revenue and expenditure account and the balance sheet of the European Communities for the
financial year 2000,

— the financial statements of the European Court of Auditors at 31 December 2000, which were drawn up
on the basis of the same accounting data and prepared for the purpose of publication in the Official Journal
of the European Communities.

The accounting data and the financial statements are the responsibility of the European Court of Auditors. Our
responsibility is, on the basis of our audit work, to express an opinion on the accounting data and the financial
statements.

We have conducted our work in accordance with international auditing standards. These standards require us
to plan and carry out our work in such a way as to obtain reasonable assurance that the accounting data and
the financial statements do not contain any material misstatement. As required, the audit included an examina-
tion, on the basis of a sample, of the evidence in support of the amounts and information contained in the
accounting data and financial statements. It also included an appraisal of the accounting principles and prac-
tices applied and of the significant estimates used by the European Court of Auditors in drawing up the
accounts, as well as a review of their overall presentation. We think that the audit provided a reasonable basis
for the opinion expressed.

In our opinion, the enclosed accounting data and financial statements give a true and fair view, in accordance
with the Financial Regulation, the implementing rules, generally accepted accounting principles and the Euro-
pean Court of Auditors’ Internal Rules, of the assets and financial position of the European Court of Auditors
at 31 December 2000 and of the economic result and the revenue and expenditure for the financial year then
ended.

Luxembourg, 20 July 2001.

KPMG Audit

Auditors

Stephen NYE

C 312/4

EN

Official Journal of the European Communities

7.11.2001

Report on the administrative and accounting procedures, the soundness of the financial
management and the internal control system

To the Members of the European Court of Auditors

As part of our audit of the annual financial statements of the European Court of Auditors for the financial
year ending 31 December 2000, we examined the administrative and accounting procedures, the soundness
of the financial management and the internal control system. The purpose of our examination was to ensure
that the various departments of the Court of Auditors can be reasonably sure that:

— they have a clear view of the extent to which operational objectives are being achieved,

— the basis on which the published financial statements are drawn up is reliable,

— the financial management of the Court of Auditors complies with current regulations.

The current regulations in question are:

— the Financial Regulation of 21 December 1977 applicable to the general budget of the European Com-

munities, as last amended by Council Regulation (EC, ECSC, Euratom) No 2673/1999,

— Commission Regulation (Euratom, ECSC, EC) No 3418/93 of 9 December 1993 laying down detailed rules

for the implementation of certain provisions of the Financial Regulation of 21 December 1977,

— the Internal Rules of the European Court of Auditors for the implementation of the Court’s budget, laid
down by Court Decision No 97-47 of 4 December 1997 (as last amended by Written Procedure No 3/97
of 16 January 1998).

We therefore examined very closely the control environment, risk evaluation, control activities, information
and communications systems and management procedures of the European Court of Auditors. The initial
descriptive phase was followed by systems’ evaluation based on sample checks of supporting documents and
interviews with staff. The nature and extent of our tests were determined by our appraisal of the control envi-
ronment. We think that our work forms a reasonable basis for our conclusions regarding the European Court
of Auditors’ procedures, the soundness of its financial management and its internal control system.

In our opinion the current internal control rules ensure that the operational objectives are achieved satisfac-
torily, the financial statements are reliably drawn up and the legal framework is complied with.

Luxembourg, 20 July 2001.

KPMG Audit

Auditors

Stephen NYE

7.11.2001

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Official Journal of the European Communities

C 312/5

Financial statements at 31 December 2000

Balance sheet at 31 December 2000 and 1999

Notes

2000

1999

(in EUR 1 000)

ASSETS

Intangible fixed assets

Tangible fixed assets
Land and buildings
Plant, machinery and tools
Furniture and vehicle fleet
Computer hardware
Tangible assets in course of construction, advances and payments on account
in respect of tangible assets

Financial assets
Other financial assets

Stocks

Short-term assets
Current assets
Sundry debtors

Disposable assets

Transitional accounts

LIABILITIES

Own capital
Economic result for the year
Result carried over from previous years

Long-term liabilities
Other long-term liabilities

Short-term liabilities
Other short-term financial liabilities
Current liabilities
— Community institutions and bodies
— Sundry creditors

Transitional accounts

Total assets

2

2

3

4

5

6

7

8

8

48

20 425
14 179
361
472
413

61

16 561
15 109
361
534
557

5 000

—

289
289

124

410
78
332

856

—

493
493

133

443
173
270

867

91

22 152

18 649

20 510
3 613
16 897

27
27

1 365
242
1 123
645
478

250

16 897
—
—

—
—

1 295
—
1 295
900
395

457

The notes annexed hereto form an integral part of these financial statements.

Total liabilities

22 152

18 649

C 312/6

EN

Official Journal of the European Communities

7.11.2001

Statement of economic result at 31 December 2000

(in EUR 1 000)

Notes

2000

Positive adjustments

Decrease in expenditure: increase in assets
— Intangible fixed assets
— Tangible fixed assets

Write-backs of depreciation
Revenue arising from budgetary entitlements acquired during the year and not collected

Negative adjustments

Decrease in revenue: decrease in assets
— Tangible fixed assets
— Stocks
— Collection of entitlements established in previous years

Allocation for depreciation
Non-budgetary expenditure

Economic result for the financial year

The notes annexed hereto form an integral part of these financial statements.

2
2

2
9

2

10

2
11

7

16
5 415

531
28

5 990

(441)
(8)
(143)

(1 669)
(116)

(2 377)

3 613

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Official Journal of the European Communities

C 312/7

Statement of revenue and expenditure at 31 December 2000 and 1999

Notes

2000

1999

(in EUR 1 000)

Revenue

Contribution from the general revenue of the European Communities

55 798

50 240

European Court of Auditors’ own revenue
— Community levies and dues deducted from remuneration
— Revenue accruing from the administrative operation of the institution
— Miscellaneous revenue

Total revenue

Expenditure

Expenditure relating to persons working for the institution
— Members of the institution
— Staff in active employment
— Allowances and miscellaneous contributions relating to termination of

service

— Missions and duty travel
— Other

Operating expenditure
— Expenditure on immovable property
— Expenditure on data processing
— Movable property and associated costs
— Current administrative expenditure
— Publishing and information
— Other

Balance for the financial year

The notes annexed hereto form an integral part of these financial statements.

Total expenditure

12

14

13

14

15

8 572
1 250
63

8 274
637
14

65 683

59 165

5 847
45 739

26
2 078
1 313

5 042
44 255

123
1 531
1 235

55 003

52 186

7 591
999
569
502
857
597

11 115

66 118

(435)

2 590
1 036
583
476
986
484

6 155

58 341

824

C 312/8

EN

Official Journal of the European Communities

7.11.2001

Notes to the financial statements at 31 December 2000

ACCOUNTING PRINCIPLES

with generally accepted accounting principles, including
the principles provided for in Council directives, except
where otherwise provided for by regulation.

1.

The accounts of the European Court of Auditors are kept
and the financial statements drawn up in accordance with
the provisions of the Financial Regulation of 21 December
1977, as last amended by Council Regulation (EC, ECSC,
Euratom) No 2673/1999 of 13 December 1999, and the
provisions of Commission Regulation (Euratom, ECSC, EC)
No 3418/93 of 9 December 1993 laying down detailed rules
for the implementation of certain provisions of the Finan-
cial Regulation.

In accordance with Article 136 of the said implementing
rules, the financial statements are presented in accordance

In addition, the financial statements of the European Court
of Auditors have been modified to take into account the
European Communities’ requirements for consolidation in
accordance with fourth Council Directive 78/660/EEC and
seventh Council Directive 83/349/EEC. In the light of these
requirements, the figures for 1999 have been reprocessed to
enable, in so far as this is possible, a comparison to be made
with those for 2000.

BALANCE SHEET

2.

Intangible and tangible fixed assets

The Court’s tangible and intangible fixed assets are valued at their acquisition value in national currency,
converted into euro at the accounting rate in force at the time of purchase.

The acquisition cost of the land and the net value, calculated after depreciation, of the other tangible
fixed assets are entered on the assets side for the entire period of their use.

Tangible and intangible fixed assets other than land and buildings are not recorded in fixed assets
accounts unless their value is EUR 420 or more (1999: EUR 400), as a result of the Commission Deci-
sion of 16 November 2000 updating, with effect from 1 January 2000, the amounts specified in Regula-
tion (Euratom, ECSC, EC) No 3418/93 laying down detailed rules for the implementation of the Financial
Regulation.

The European Court of Auditors has calculated the depreciation of its fixed assets in accordance with
Commission Regulation (EC) No 2909/2000 of 29 December 2000 on the accounting management of
the European Communities’ non-financial fixed assets.

Changes in value and depreciation data, calculated using the straight-line method and by complete year,
were as follows at the end of the financial year:

7.11.2001

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Official Journal of the European Communities

C 312/9

Land and
buildings

Plant, machinery
and tools

Furniture and
vehicle fleet

Computer
hardware

(in EUR 1 000)

Total

Fixed assets in
course of
construction
and payments
on account

Acquisition value
At end of the previous financial year

Changes over the year:
— acquisitions
— disposals and withdrawals
— variations due to change in

threshold

24 504

960

1 423

1 926

—

28 813

28

—

—

155
(37)

(4)

166
(120)

193
(284)

5 000
—

(59)

(64)

—

5 542
(441)

(127)

At end of the financial year

24 532

1 074

1 410

1 771

5 000

33 787

Depreciation and value adjustments
At end of the preceding financial
year

Changes over the financial year:
— recorded
— cancelled following disposal,

withdrawal

At end of the financial year

(10 353)

(9 396)

(599)

(889)

(1 369)

(957)

—

(155)

41

(713)

(206)

(322)

157

333

(938)

(1 358)

—

—

—

—

(12 253)

(1 640)

531

(13 362)

Net book value at end of the
financial year

14 179

361

472

413

5 000

20 425

The fixed assets in course of construction include an amount of EUR 5 000 000 relating to the planned exten-
sion of the Court building.

The heading ‘intangible fixed assets’ includes computer software packages acquired with a value of more than
EUR 420 that are covered by a site licence or a major account contract.

(in EUR 1 000)

Computer software

Acquisition value
At end of the preceding financial year

Changes over the financial year:
— acquisitions in the financial year

At end of the financial year

Depreciation and reductions in value
At end of the preceding financial year

Changes over the financial year:
— recorded

At end of the financial year

Net book value at end of the financial year

102

16

118

(41)

(29)

(70)

48

C 312/10

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Official Journal of the European Communities

7.11.2001

3.

Financial assets

The heading ‘Other financial assets’ comprises two operat-
ing funds, one of which relates to the Office for Official
Publications of the European Communities, and the other
to the Translation Centre for the bodies of the European
Union.

(in EUR 1 000)

Acquisition
value at
31.12.1999

Changes over
the financial
year

Acquisition
value at
31.12.2000

Guarantees and
advances granted

1. Guarantees
2. Advances
granted

Total

7

486

493

(6)

(198)

(204)

1

288

289

There is no reduction in value to be recorded for the finan-
cial year 2000.

4.

Stocks

For the financial year 2000, the total for own capital com-
prises the economic result for the year and the result car-
ried over from previous years.

The result carried over from previous financial years cor-
responds to own capital and the contra-entry of revenue to
be collected for the financial year 1999.

The economic result for the year comprises the result of the
implementation of the budget for the year and the result of
adjustments.

The result of the implementation of the budget for the year
can only be established on consolidation of the financial
statements by the European Commission.

Consequently, for the other institutions, the economic result
for the financial year is limited to the sum of the positive
and negative adjustments entered in accounts of non-
budgetary expenditure and revenue.

The stocks comprise office supplies and other consumables,
valued at the price of the last supplies entered. Where the
acquisition cost is expressed in national currency, it is con-
verted into euro at the accounting rate used in drawing up
the balance sheet.

8.

Liabilities

8.1.

Long-term liabilities

5.

Short-term assets

The heading ‘Current assets’ at the year-end is broken down
as follows:

The item ‘Other long-term liabilities’ comprises the part of
the architect’s and consulting engineer’s fees withheld as a
performance guarantee for their work in respect of the
extension of the Court building.

(in EUR 1 000)

8.2. Short-term liabilities

Claims relating to Community institu-
tions and bodies
Sundry debtors

Total

2000

1999

57
21

78

86
87

173

The item ‘Other short-term financial liabilities’ comprises
payments effected in accordance with Article 6 of the Finan-
cial Regulation, between 1 and 15 January of the following
financial year (formerly called ‘Payments in hand’).

The item ‘sundry debtors’ consists solely of claims relating
to staff, and mainly concerns advances paid on mission
expenses already incurred but not yet charged.

The item ‘Community institutions and bodies’ comprises
sums due to the European Communities sickness insurance
fund and the balance to be carried forward to the following
financial year.

6.

Transitional accounts — Assets

Due to its being taken into account as an adjustment to the
result for the financial year, the item ‘Miscellaneous expen-
diture to be charged’ no longer appears under the transi-
tional accounts heading.

The item ‘Sundry creditors’ mainly comprises sums due in
respect of social and insurance contributions for staff as
well as mission expenses still to be invoiced by the credit
card organisation.

7.

Own capital

9.

Revenue arising from budgetary entitlements
acquired during the financial year and not collected

In the old presentation of the accounts, own capital was the
contra-entry of tangible and intangible fixed assets and
stocks.

This item concerns revenue established during the financial
year under review and not yet collected.

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Official Journal of the European Communities

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10. Revenue arising from budgetary entitlements

established during previous financial years

This item concerns revenue established in a previous finan-
cial year which has been collected and entered in the
accounts in the financial year under review.

11. Non-budgetary expenditure

This item concerns sundry expenditure which could not be
materially booked to the budget.

year and against the appropriations carried over from the
previous financial year in accordance with the provisions of
the applicable regulations.

In accordance with the sixth subparagraph of Article 6 of
the Financial Regulation, the expenditure for the financial
year is entered in the accounts for that year on the basis of
the expenditure for which authorisation reached the Finan-
cial Controller not later than 31 December and the account-
ing officer not later than 10 January following, and for
which payment was effected by the accounting officer not
later than 15 January.

REVENUE AND EXPENDITURE

14.

Exchange differences

12.

European Court of Auditors’ own revenue

The European Court of Auditor’s own revenue is entered in
the accounts on the basis of the amounts actually received
during the financial year.

The heading ‘Revenue accruing from the administrative
operation of the institution’ comprises mainly:

— revenue accruing from the publication of the European
Court of Auditors’ reports and opinions in the Official
Journal of the European Communities,

— the payment of actuarial reserves by national pension
bodies and provident societies by way of transfers of
officials’ pension rights.

13.

Expenditure

Expenditure for the financial year, which is shown in the
statement of revenue and expenditure, represents the pay-
ments made against the appropriations for the financial

Exchange gains or losses are entered in the statement of rev-
enue and expenditure as ‘Miscellaneous revenue’ or ‘Operat-
ing expenditure — Other’.

15. Balance for the financial year

The balance for the year is the difference between the total
revenue for the year and the expenditure against appropria-
tions specific to the year and appropriations carried for-
ward from the previous year.

The changes in the balance to be carried forward to the fol-
lowing financial year are as follows:

(in EUR 1 000)

2000

1999

Balance carried forward from previous
years
Balance for the year

900
(435)

76
824

Balance to be carried forward to the
following financial year

465

900

16. Budgetary implementation

The implementation of the budget for the financial year 2000 can be divided up into the implementa-
tion of appropriations brought forward and the implementation of appropriations for the financial year.

(a) Appropriations brought forward represent, on the one hand, all the commitments chargeable to the
Court that have been entered into but not settled before the year-end and, on the other hand, appro-
priations which the budgetary authority has decided to carry forward. Appropriations brought for-
ward from the previous year and not used during the following year lapse:

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Official Journal of the European Communities

7.11.2001

(in EUR 1 000)

Payments

Lapsed
appropriations

Appropria-
tions carried
forward from
1999 to 2000

Expenditure relating to persons working for the institu-
tion
— Members of the institution
— Staff in active employment
— Missions and duty travel
— Other

Operating expenditure
— Expenditure on immovable property
— Expenditure on data processing
— Movable property and associated costs
— Current administrative expenditure
— Publishing and information
— Other

67
44
636
324

1 071

5 375
93
95
205
699
215

6 682

Total

7 753

63
43
575
306

987

5 279
92
86
157
665
184

6 463

7 450

4
1
61
18

84

96
1
9
48
34
31

219

303

(b) The implementation of the appropriations for the financial year represents the payments made
against appropriations committed. The unpaid balance of the commitments may be carried forward
to the following financial year. Appropriations still uncommitted at the end of the year usually lapse:

Appropria-
tions for the
year

Commit-
ments
chargeable to
the year

Payments

(in EUR 1 000)

Appropria-
tions carried
forward to
2001

Lapsed
appropria-
tions

Expenditure relating to persons
working for the institution
— Members of the institution
— Staff in active employment
— Allowances and miscellaneous

contributions relating to termination
of service

— Missions and duty travel
— Other

Buildings, equipment and sundry
items of operating expenditure
— Expenditure on immovable property
— Expenditure on data processing
— Movable property and associated

costs

— Current administrative expenditure
— Publishing and information
— Other

5 935
49 432

5 835
45 751

5 784
45 696

28
2 055
1 329

26
1 963
1 271

26
1 503
1 007

58 779

54 846

54 016

7 669
1 014

610
543
1 154
542

7 667
1 013

608
526
1 146
533

2 312
907

483
345
192
337

11 532

11 493

4 576

Total

70 311

66 339

58 592

51
55

—
460
264

830

5 355
106

125
181
954
196

6 917

7 747

100
3 681

2
92
58

3 933

2
1

2
17
8
9

39

3 972

Payments against appropriations carried forward (EUR 7 450 000) and the appropriations for the year
(EUR 58 592 000) totalled EUR 66 042 000 which, with the addition of the total for exchange losses
(EUR 76 000), is equal to the total expenditure shown in the statement of revenue and expenditure for
the financial year 2000.