Annual Report on the activities funded by the sixth, seventh, eighth and ninth European Development Funds (EDFs), together with the institutions' replies
Date: 2005-09-28
Institutions: European Court of Auditors
Subjects: European Court of Auditors, European Development Fund, activity report, financial year

30.11.2005

EN

Official Journal of the European Union

C 301/249

ANNUAL REPORT ON THE ACTIVITIES
FUNDED BY THE SIXTH, SEVENTH,
EIGHTH AND NINTH EUROPEAN
DEVELOPMENT FUNDS (EDFS)

(2005/C 301/02)

30.11.2005

EN

Official Journal of the European Union

C 301/251

TABLE OF CONTENTS

Page

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254

Chapter I — Implementation of the sixth, seventh, eighth and ninth EDFs . . . . . . . . . . . . . . . . . . . . . . . . . . 256

Chapter II — Statement of Assurance by the Court of Auditors concerning the EDFs . . . . . . . . . . . . . . . . . . 261

Chapter III — Follow-up to previous observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273

Chapter IV — Main observations set out in Special Reports published by the Court since the last discharge pro-

cedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275

30.11.2005

EN

Official Journal of the European Union

C 301/253

ANNUAL REPORT ON THE ACTIVITIES FUNDED BY THE SIXTH, SEVENTH,
EIGHTH AND NINTH EUROPEAN DEVELOPMENT FUNDS (EDFs)

TABLE OF CONTENTS

Introduction

Chapter I — Implementation of the sixth, seventh, eighth and ninth EDFs

Late forwarding of the report on financial management

Need for additional explanations over key issues

Need for a better indication of action to be taken

Need to improve communication on financial management

Conclusions

Chapter II — Statement of Assurance by the Court of Auditors on the EDFs

Statement of Assurance by the Court of Auditors on the sixth, seventh, eighth and ninth Euro-
pean Development Funds (EDFs) for the financial year 2004

Information in support of the Statement of Assurance

Reliability of the accounts

Legality and regularity of the transactions

Changes in the performance of supervisory and control systems

Chapter III — Follow-up to previous observations

Infrastructure work financed by the EDF

The Discharge Authority’s position

Follow-up by the Commission

Conclusion

Paragraph

1-6

7-12

7

8

9-10

11

12

13-42

I-III

13-42

13-16

17-41

42

43-51

43-51

44

45-50

51

Chapter IV — Main observations set out in Special Reports published by the Court since the last
discharge procedure

52-55

Special Report No 10/2004 concerning the devolution of EC external aid management to the
Commission Delegations

52

Special Report No 2/2005 concerning EDF budget aid to ACP countries: the Commission’s man-
agement of the public finance reform aspect

53-55

C 301/254

EN

Official Journal of the European Union

30.11.2005

THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

INTRODUCTION

1. The European Development Funds (EDFs) are the result of
international conventions or agreements (1) between the Member
States of the European Union and certain African, Caribbean and
Pacific (ACP) States, and of Council Decisions on the association
of overseas countries and territories (OCT).

2. The Commission has responsibility for and takes charge of
the management of the major part of the EDFs — the grant part
— in association with the ACP States. Since 1 April 2003, the EIB
has been fully responsible for implementing the remaining part of
the EDF — the investment facility — which is not taken into
account by the Court’s Statement of Assurance or the European
Parliament’s discharge procedure (2) (3) (4).

3. The financial allocation for each of the four EDFs being
implemented in 2004, with the exception of the instruments now
under the EIB’s sole management, is mainly assigned to:

(a) programmable aid (5) intended for the implementation of
development projects (roughly half of the total allocations);

(b) programmable aid (5) intended to provide budget support for
the beneficiary States (almost a quarter of the total alloca-
tions);

(c) non-programmable aid intended for specific fields of coop-
eration such as humanitarian and emergency assistance, sup-
port for export earnings (Stabex and Sysmin or, now, FLEX)
or financial contributions such as venture capital (6) and aid
for debt relief (just over a quarter of the total allocations).

(1) The Yaoundé I Convention dates back to 1964. The most recent agree-
ment (Cotonou) dates from 23 June 2000 and has been revised in Lux-
embourg on 25 June 2005.

(2) See Articles 96, 103 and 112 of

the Financial Regulation of
27 March 2003 applicable to the ninth EDF (OJ L 83, 1.4.2003, p. 1).
In its Opinion No 12/2002 on the proposal for this Regulation
(OJ C 12, 17.1.2003), the Court underlined that those provisions
reduce the scope of the European Parliament’s powers of discharge.

(3) Thus, under the ninth EDF,

the initial allocation amounted to
13 800 million euro, of which the EIB is responsible for 2 200 mil-
lion euro.

(4) The Court nonetheless retains overall responsibility for the EDF audit.
In the case of the operations under EIB management, it performs this
task as provided for in a tripartite agreement between the EIB, the
Commission and the Court (Article 112 of the Regulation referred
to above).

(5) Programmable aid is defined within the framework of national and
regional indicative programmes (NIPs and RIPs) and of intra-ACP
funded projects and programmes.

(6) As regards the sixth, seventh and eighth EDFs, these operations con-
tinue to be implemented by the EIB under the Commission’s
responsibility.

30.11.2005

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Official Journal of the European Union

C 301/255

THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

4. Once programming is complete, the EDFs’ resources are
mobilised in two stages. When a request is received from an ACP
State, the Commission, as chief authorising officer, takes financ-
ing decisions (shown in the accounts as financial commitments)
after receiving the favourable opinion of the EDF Committee (7)
(composed of representatives of the Member States). Then, within
the framework of financing agreements, the Commission and the
ACP State lay down the rules for the implementation of these
decisions by the national authorising officer (8) of the country
concerned. The latter concludes contracts (shown in the accounts
as individual legal commitments) and authorises payments, which
will be checked and executed by the Commission in accordance
with the procedures for implementing the EDF.

5. Budget support is not subject to this system of management.
The Commission remains the sole authorising officer. Financing
agreements constitute legal commitments and give rise to pay-
ments without the conclusion of other legal commitments. Once
the Commission has checked that the conditions of the Cotonou
Agreement and the financing agreement have been met, it makes
an initial transfer of funds, on the basis of its signature alone, to
the budgets of the beneficiary countries. Once they have been
transferred, these funds merge into the budget of the ACP States,
where they are used and audited in accordance with the laws and
procedures pertaining in the beneficiary States. The Commission
and the other main international donors assess both the improve-
ments made to the management of public finances in these coun-
tries and the results in terms of poverty reduction. Before disburs-
ing further tranches, the Commission checks that the conditions
laid down in the financing agreement have been met.

In 2000, the Commission decided to devolve a sizeable pro-
6.
portion of
its functions and resources (except notably the
approval of financing proposals, the decision of payment for bud-
get support and the management of intra-ACP projects) to its
Delegations in the ACP States. Thus, some 80 % of the EDF pay-
ments were to be performed in a devolved way. At the end
of 2004, regarding ACP countries, only four Delegations out
of 44 still had to be devolved.

(7) For amounts below 8 million euro, the Committee’s assent is, in prin-

ciple, not necessary.

(8) In general, the national authorising officer’s powers are vested in the

Finance Ministers of the ACP States.

6. As of July 2005, all the ACP delegations have been devolved.

C 301/256

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Official Journal of the European Union

30.11.2005

THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

CHAPTER I — IMPLEMENTATION OF THE SIXTH, SEVENTH,
EIGHTH AND NINTH EDFS (9)

Late forwarding of the report on financial management

7. The financial management report for the financial year 2004
concerning the sixth, seventh, eighth and ninth EDFs was for-
warded by the Commission to the Court on 7 July 2005, after the
31 May deadline laid down in Articles 102 and 135 of the Finan-
cial Regulation applicable to the ninth EDF.

Need for additional explanations over key issues

8. The report conveys the main features of the EDF manage-
ment during the year 2004. It compared the achievements of
2004 with the objectives and the results of the previous year, in
terms of financial commitments, legal commitments, and pay-
ments (see Tables 1 and 2), and details the specific events that
impacted on the financial management in all areas of Commis-
sion management. The report could be made still clearer and
more precise, and its informative value would be greater if cer-
tain facts were placed more clearly in context. In particular, the
following points were significant in relation to financial manage-
ment of the EDF in 2004 and would have deserved to be described
in the report:

7. The Commission will endeavour to respect the deadline.

8. The report now covers 35 pages including eight annexes relating to
specific cumulative requests for additional information and analyses from
the Court of Auditors and the European Parliament in the context of the
annual discharge procedures. However, the Commission indicates in its
replies below that it will provide additional information on certain
points in next year’s report.

(a)

the key elements that increased the resources of the ninth
EDF (an extra 105 million euro for the Democratic Republic
of Congo);

(a) The financial management report highlights the most significant
events and detailed information is displayed in the financial state-
ments which the report accompanies (concerning the increase of the
resources of the ninth EDF for the Democratic Republic of Congo,
see note 1 to the accounts).

(b)

the high level of payments (2 414 million euro net in 2004)
which was, as in previous years, partly due to instruments
which permit a prompt disbursement of large amounts (bud-
get support, debt alleviation, etc.);

(b) Figures for payments in respect of budget support are given in the
table on page 16 of the report, and developments in the use of bud-
get support are presented in section 2.2. The record level of pay-
ments in 2004 reflects improvements in the management of all the
instruments. In fact the share of budget support, debt alleviation,
etc. was lower in 2004 than in 2003. Approximately 724 mil-
lion euro were paid (gross) in 2004 under the HIPC, Stabex,
Global Health Fund and macroeconomic budgetary support
instruments. Corresponding figures
years are:
2003 — 976 million euro; 2002 — 567 million euro;
2001 — 1 021 million euro.

for previous

(9) This chapter summarises the results of a limited review by the Court
of the financial management report for the financial year 2004.

30.11.2005

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Official Journal of the European Union

C 301/257

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C 301/258

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Official Journal of the European Union

30.11.2005

Table 2 — Budgetary implementation in the financial years 2000-2004 inclusive

2000

2001

2002

2003 (1)

2004 (1)

(million euro)

1. Financial commitments

3 757,4

1 554,2

1 768,4

3 395,8

2 375,2

2. Individual legal commitments

2 296,2

2 263,4

2 142,9

2 742,7

2 746,3

3. Payments

1 547,7

2 067,9

1 852,7

2 293,1

2 413,9

(1) To be consistent with the financial statements and with the report on financial implementation produced by the Commission, these data exclude the operations now man-
aged autonomously by the EIB (at end 2003: 366 million euro of financial committements, 140 million euro of individual legal commitments and 4 million euro of
payments).

Source: Court of Auditors.

(c)

the proposed solutions to the recurrent problem of treasury
shortages;

(c) The Financial Regulation (ninth EDF) in force until the end of
2007 does not allow for significant modifications. For the future
(post ninth EDF), the Commission has proposed the ‘budgetisation’
of the EDF. EDF financing is made through three instalments per
year which, compared to the general budget, triples the risk of this
type of treasury shortages.

It should be underlined that providing for the necessary financial
resources is the joint responsibility of the Commission and of Mem-
ber States. Indeed, Member States have to decide and to pay the
contributions within the legally binding deadlines. Part of the
shortage at the end of year 2003 and the shortage at the end
of 2004 were due to the too-late payment of contributions by
Member States.

The Commission has taken measures to improve the forecasts of dis-
bursements and in 2005 the calls for contributions have been
adapted consequently.

(d)

the increasingly significant amounts involved in the activi-
ties with major international organisations (some 300 mil-
lion euro of new legal commitments in 2004);

(d) The Commission will include this information in the next financial

management report.

(e) The Commission is addressing this question in its report on the
follow-up of the 2003 discharge. Administrative costs linked to the
implementation of development aid in ACP countries (EDF and
budget headings) are mostly included under policy area 21 ‘Devel-
opment and Relations with the ACP countries’ of the general EU
budget. The
this policy area amounted
to 238,9 million euro in 2004. This figure includes the expendi-
ture related to staff at headquarters, in delegations, as well as exter-
nal staff, plus expenditure on buildings and related expenditure.

costs under

total

(e)

the administrative costs of running the EDF, for which no
overview is provided, whereas the Union’s general budget is
structured by activity so as to permit such an overview of
management costs, despite the Commission’s agreement to
study this orientation (10).

(10) The Commission’s reply to the Annual report on the European Devel-

opment Funds for the financial year 2003.

30.11.2005

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Official Journal of the European Union

C 301/259

THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

However, as activities related to the EDF are integrated into the
Commission’s other activities concerning development aid and
political relations with developing countries, the total administra-
tive costs charged to the general budget cannot be divided between
EDF activities and other activities in a meaningful way.

Moreover, it should be noted that the ninth EDF made it possible
to fund some administrative costs directly from the EDF. These costs
amount to a total of 233 million euro covering the whole five-year
period of the ninth EDF.

9. Action has indeed been taken and will be reported fully in the 2005
report. The Commission delegations are under instructions to ensure that
the annual reports of the ACP States are prepared following a set for-
mat. Local auditors are generally recruited to prepare the report when the
national Authorising Officers’own staff are not able to take on the task.
Quality control is of course an important aspect of this exercise. The
Commission has set, as its working priority, the finalisation of all Sta-
bex ‘primary’ commitments, implying the approval of any new frame-
works of mutual obligations (FMO), the revision of current FMOs and
the closure of former or obsolete FMOs. For this to be successfully under-
taken, it is a precondition that the 43 Stabex-receiving countries should
provide reliable annual accounts on the use of Stabex.

10. This matter is briefly mentioned in section 5.1.1.2 of the 2004
Financial Management Report. Progress on the accruals-based account-
ing (ABAC) project will be further reported in the 2005 Report.

Need for a better indication of action to be taken

9. As to the status of Stabex funds, the consulting firm that the
Commission mandated to conduct an inventory concluded in its
final report, which has been available since September 2004, that
‘of the total transfers […] of 2 164 million euro at 31 Decem-
ber 2002, no data has yet been provided in respect of transfers to
nine countries totalling 46,5 million euro […]. For the other
36 countries, only a few have been able to supply complete and
reliable data’. A lot of the information required will never be avail-
able. The report fails to indicate what actions the Commission
will undertake to address those reservations (see also para-
graph 16 on the reliability of the accounts). Moreover, the Court,
in its annual report for 2003, stressed the key importance of the
report on the use of funds that the recipient ACP State has to send
to the Commission (Article 212 of the revised Lomé convention).
There is no indication in the report as to the action taken by the
Commission to get these reports prepared.

10. The EDF is to shift to accruals-based accounting with a view
to adhering to the IPSAS (11) standards by 1 January 2005. Besides
the useful and detailed technical content given by the Commis-
sion in its quarterly progress reports to the European Parliament
and to the Council, this report on financial management should
have briefly included the steps taken during 2004 with regard to
that crucial deadline, specifically the preparation of the opening
balance of the financial year 2005.

(11) IPSAS, International Public Sector Accounting Standards.

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THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

Need to improve communication on financial management

11. The report on financial management comments upon the
financial data set out in the annual accounts. In the current prac-
tice (articles 102 and 135 of the Financial Regulation of the ninth
EDF), the report is already in its definitive version as of 31 May,
based on the provisional accounts established on 30 April. The
accounts are published in their definitive form on 31 October. It
may therefore appear that the financial data in the report on
financial management are no longer consistent with the defini-
tive published accounts. The Court recommends that the final
version of the report be based on the definitive accounts and be
published at the same time as the EDF’s annual accounts.

11. The deadlines set out in the EDF Financial Regulation imply that
this report accompany the provisional and not the final accounts.

The Financial Management Report is essentially a management report
on the performance of the EDFs for the year in question in relation to
the objectives set.

Conclusions

12. The Court mainly notes that:

12.

(a) a number of key items of information deserve to be included,
or complemented, or better put in their context, in the report
on the financial management;

(a) The financial management report highlights the most significant
events and the detailed information is displayed in the financial
statements.

(b)

the Commission has not set out in the report the main
actions remaining to be taken as a result of the Stabex inven-
tory in the ACP States;

(b) The Commission has given instructions and set priorities for its del-
egations, which have to work with the National Authorising Offi-
cers of the 43 Stabex-receiving countries in order to obtain the nec-
essary data, and also ensure proper use of the Stabex funds still to
be disbursed. Given the variable quality of the information received
it is difficult to report globally on the results so far achieved.

(c)

it would be more appropriate for the report on financial
management to be consistent with final data and be pub-
lished at the same time as the definitive annual accounts.

(c) See reply to paragraph 11.

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CHAPTER II — STATEMENT OF ASSURANCE BY THE COURT OF AUDITORS ON THE EDFS

Statement of Assurance by the Court of Auditors on the sixth, seventh, eighth and ninth European Development Funds (EDFs) for the financial year
2004

I. The European Court of Auditors (the Court) has examined the accounts of the sixth, seventh, eighth and ninth EDFs and the
underlying transactions for the financial year ending 31 December 2004. These accounts comprise the financial statements, the
reports on financial implementation, and the financial statements and information supplied by the European Investment Bank
(EIB) (12). Pursuant to the financial regulations the Court is required to provide the European Parliament and the Council with a
Statement of Assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions in respect
of the part of the EDF resources for whose financial management the Commission is responsible (13). The Court carried out the
audit in accordance with its auditing policies and standards. These are based on generally accepted international audit standards
that have been adapted to the context of the EDFs. The Court thus obtained a reasonable basis for the opinions expressed below.

II.

Reliability of the accounts

Except for the effects of the problems concerning:

(a)

the incompleteness of the assets, as the Commission has not sufficiently investigated which part of the outstanding advances
are to be reimbursed by the debtors to the EDF (see paragraph 14);

(b)

the incompleteness of the provisions on doubtful debts, which do not reflect the real level of bad debts (see paragraph 15);

(c)

the unreliability of the balance of Stabex funds disclosed in a report joined to the financial statements (832 million euro)
(see paragraph 16);

the Court is of the opinion that the reports on financial implementation for the financial year 2004 and the financial statements
at 31 December 2004 reliably reflect the revenue and expenditure relating to the sixth, seventh, eighth and ninth EDFs for the
financial year and their financial situation at the end of the year.

III.

Legality and regularity of the underlying transactions

Analysis of the supervisory and control systems

The Court examined the implementation of the Commission’s internal control standards and tested the effectiveness of the super-
visory and control systems. While progress has been achieved, further improvements need to be made in the following areas:

(a)

risk management (see paragraphs 20 to 22);

(b) control framework (see paragraphs 23 to 33);

(12) Pursuant to the provisions of Articles 96(1), 100, 101 and 125(2) of the Financial Regulation applicable to the ninth EDF; in practice, this refers,
firstly, to the balance sheets and associated statements prepared by the accounting officer and, secondly, to the management accounts comprising
the tables prepared by the principal authorising officer in consultation with the accountant. These financial statements are presented for each of
the four EDFs and in a comprehensive, consolidated form. The financial statements and information supplied by the EIB are not covered by this
Statement (see footnote 13).

(13) Pursuant to Article 103(3) of the above-mentioned Financial Regulation; taken together with Article 1 of the same Regulation, this means that the

Statement does not extend to the part of the ninth EDF resources that is managed by the EIB and for which it is responsible.

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(c) accountability for internal control of Delegations (see paragraphs 34 and 35);

(d) Activity Report of the Director General of EuropeAid (see paragraph 36).

Audit of transactions

The Court examined a number of transactions on the basis of documentation available at the Commission central services and
Delegations and also on-the-spot checks down to the level of implementing entities in the beneficiary ACP states. The examina-
tion aimed to verify compliance with the regulations and to ascertain the reality of works, supplies and services. As regards bud-
get support expenditure, the examination stopped at the stage where the aid was paid to the beneficiary countries’ budgets. The
Court found that the frequency and financial impact of the errors detected are not material (see paragraphs 37 to 41).

Conclusion on the legality and regularity of the underlying transactions

The Court is of the opinion that the revenue, the EDF allocations, the commitments and the payments of the financial year are,
taken as a whole, legal and regular.

28 September 2005

Hubert WEBER
President

European Court of Auditors
12, rue Alcide De Gasperi, L-1615 Luxembourg

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THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

Information in support of the Statement of Assurance

Reliability of the accounts

13. The observations in paragraph II of the Statement of Assur-
ance are based on the following findings.

14. The sum of 18 million euro of recovery orders issued and
not yet collected at the end of 2004 does not represent the total
value of receivables. As the Commission has not sufficiently (14)
investigated all the advances paid to beneficiaries, it cannot iden-
tify the amounts to be recovered. As regards outstanding advances
to be investigated (15), the Commission has not quantified the
amount at end 2004 (16).

14.
In accordance with the Financial Regulation, the Commission has
analysed and systematically monitored the advances to be recovered. This
monitoring work is given a separate chapter in the management report.

The Commission will continue its efforts to identify which advances must
be recovered in this way.

15. The Commission agrees with the Court’s observation and has
planned to carry out this work for the financial year 2005.

16. The Commission is seeking, through its delegations, to obtain a
clearer picture of the utilisation of Stabex funds by means of the annual
Stabex reports, in standard format to facilitate global reporting. Now
that the inventory of Stabex funds has been completed, a country-by-
country approach is being followed, in line with the Commission’s policy
of devolution of authority to its delegations in the ACP countries, in
order to clarify the situation and to commit and disburse all remaining
Stabex funds.

15. The balance of provisions for doubtful debts recorded in the
accounts (0,03 million euro) does not reflect the real level of bad
debts (17) within the 18 million euro of recovery orders issued.
With the adoption of accruals-based accounting from 2005
onwards, it will be even more necessary to identify the bad debts
and related provisions (16).

16.
In 2004 the Commission completed the inventory of the
Stabex funds. These funds, although already belonging to the ACP
states, are disclosed in a report joined to the financial state-
ments (18) since the Commission co-manages them and autho-
rises the disbursements from the local bank accounts. The inven-
tory of the Stabex funds concluded that there are ACP States
where no further information will be forthcoming, and others
where the information required, in the form of bank statements
or disbursements records, may not be available, largely due to the
passage of time. As a consequence, an unknown part of the bank
balance claimed of 832 million euro has not been ascertained by
the Commission on the basis of reliable documents.

(14) The Commission investigated the outstanding advances during mis-
sions in four countries, and concluded by issuing a total of 115 recov-
ery orders amounting to 10 million euro.

(15) Advances paid to the projects, use of which should normally have
been justified by the beneficiaries at the latest 18 months after the
start of the project or of the contract. The amount to be investigated
was 400 million euro at end 2003.

(16) Like in 2003, the Director-General for Budgets expressed a reserva-
tion on its declaration for the EDF 2004 about the inadequate pre-
sentation of the assets and liabilities and of the financial position of
the EDF (see also paragraph 1.9 of Chapter 1, General Budget section).
(17) Including 2,6 million euro of recovery orders older than two years,
where the Commission has obvious difficulties in recovering
1,5 million.

(18) Accounts 2004, Report on financial

implementation (version of

22 August 2005) Table 4.2.5.

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THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

Legality and regularity of the transactions

17. The observations expressed in paragraph III of the State-
ment of Assurance are based on:

(a)

evaluation of the supervisory and control systems at both
Commission central services in Brussels (headquarters), in
particular EuropeAid, and in four Delegations (Ouaga-
dougou, Conakry, Abuja and Georgetown) (19);

(b) detailed audit of transactions based on files and on-the-spot

examination;

(c)

examination of the Annual Activity Report and declaration
of the Director-General of EuropeAid and the process for its
preparation.

18. The Court underlines that the cases of deliberate irregular-
ity and corruption committed outside the Commission’s control
environment cannot, by their nature, be systematically detected
through application of the Court’s auditing policies and stan-
dards.

Evaluation of supervisory and control systems

General improvement of the supervisory and control systems

19.
Implementation of the Commission’s internal control stan-
dards (ICS) in both headquarters and Delegations continued
steadily in 2004 and contributed to a better functioning of the
supervisory and control systems. However improvements still
need to be made in the following areas (see paragraphs 20 to 36).

Risk management: improved but still too global

20. Around 2 500 million euro is spent every year through a
myriad of entities. This highly complex environment encom-
passes five Directorates-General (External Relations, EuropeAid,

20. The Commission is aware that EDF management involves a num-
ber of risks. These risks can be kept to a minimum through the intro-
duction of tighter systems of control, monitoring and regular audits.

(19) Responsible for six countries (Burkina Faso, Guinea, Nigeria, Guyana,

Trinidad and Tobago, Suriname).

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ECHO, Development and Budget (20)), 44 Delegations (almost all
devolved) (21), 76 partner countries that are among the world’s
poorest countries, with structural administrative weaknesses (22),
and thousands of implementing entities of varying management
capabilities (private contractors, NGOs, International organisa-
tions, local management units, etc.).

21.
EuropeAid has made efforts to improve its operational and
financial risk management by following the relevant Commission
instructions. In 2003 it carried out a global risk assessment on
external action as a whole (including the EDF) and a self-
assessment of risks was carried out by senior managers. Europe-
Aid has thus identified risks associated with its reorganisation
(which took effect in mid-March 2005) and with the implemen-
tation of infrastructure projects.

22. However, specific financial risks (project portfolio and staff
capability, NAOs’ office capability, and project management capa-
bility) are not sufficiently identified by each Delegation. Delega-
tions may be informed of such risks but are not instructed on
how to assess and report them. Exposure to residual specific
risks (23) may therefore not be properly identified, nor addressed.

(20) DG External Relations is responsible for the Delegations’ human and
material resources, DG Development for programming the aid (in
other words the determination of the amount of aid to be distributed
among ACP states), EuropeAid and ECHO (humanitarian aid) for
implementation of the aid, and DG Budget is the accountant and pay-
master of the EDF.

(21) A Delegation is devolved when it has received delegation of powers
from EuropeAid to make individual financial commitments and pay-
ments. Eight Delegations were devolved in 2002, seven in 2003,
24 in 2004 and five in 2005.

(22) In several countries there are difficulties of dialogue and cooperation

with the local authorities, partly due to their poor capacity.

(23) The residual risk is the risk of not achieving management’s objectives
after the carrying out of controls. Management assesses whether the
level of risk is acceptable, taking account of the potential financial
impact of the risk and the cost of reducing it further (Internal control
standard no 11).

it

should be noted that

22. The Commission has already taken steps to identify the risks men-
tioned by Court, notably by introducing a standardised methodology for
delegations’risk self assessment in 2004 to be applied from 2005
the process of
onwards. Moreover,
project/programme identification and financing includes an analysis of
the constraints and conditions which are necessary for the successful
implementation of
including sustainability
aspects (capacity of the final beneficiary). Regular monitoring and in
cursu reviews of projects allow the Commission to take appropriate mea-
sures to correct or re-address projects.

the project/programme,

Verification missions before devolution assess all necessary prerequisites,
including the delegation’s capability. Where necessary the NAO’s capa-
bility is supported by the Commission through specific capacity building
actions.

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THE COMMISSION’S REPLIES

23. The Commission is constantly working at further strengthening
and improving the functioning and articulation of its risk-management
approach.

The Commission considers that all the control systems for the EDF men-
tioned by the Court will ensure the legality and regularity of underlying
operations. This system allows action to be taken to remedy any short-
comings on the part of the local authorities. Moreover, the Court’s con-
trol of transactions has confirmed that the nature of errors is not
material.

Control framework needs better risk management

23.
Ensuring the legality and regularity of transactions depends
mostly on the effective operation of the following systems: tech-
nical and financial supervision by the ACP States, Delegations and
EuropeAid, ex ante and ex post controls at EuropeAid, audits
launched by Delegations and EuropeAid and Internal Audit Capa-
bility of EuropeAid. An enhanced risk management would allow
to set up a more coherent and adequate control framework.

Improvements in technical and financial monitoring

24. With devolution, primary responsibility regarding techni-
cal and financial monitoring of projects was transferred to Del-
egations, whereas EuropeAid is responsible for overall monitor-
ing. Monitoring comprises a wide range of activities from desk to
on-the-spot examination of documentation, analysis of data in
the accounting system and the evaluation of management at all
levels. Many tools are available to both Delegations and Europe-
Aid: external aid management reports (EAMR), computer infor-
mation system (CRIS), annual seminars for the headquarters and
Delegations of each of the six geographical areas, daily contacts
between Delegations and the geographical coordinators at the
headquarters, checklists, missions of headquarters staff to Delega-
tions and vice versa.

25. Thanks to these tools, the effectiveness of monitoring is glo-
bally satisfactory. However, a clearer and more detailed definition
of tasks and roles of both headquarters and Delegations would
improve their effectiveness.

25. The objective of the reorganisation of EuropeAid in early 2005 is
to improve the monitoring and support role of headquarters.

Satisfactory second level ex ante control

26.
EuropeAid established an optional ex ante control in the lat-
ter part of 2003. It includes an examination of the files of a daily
sample of payments and commitments, randomly selected from
those ready to be authorised for execution, after completion of
the standard checks (24) carried out under the control of the
authorising officer. Such second level control has been attached
to the Direction responsible for ACP countries, thereby assuring

(24) These standard checks comprise the initiation and the verification of
transactions
regarding the operational and financial aspects
(Article 24(1) of the Financial Regulation of 27 March 2003 appli-
cable to the ninth EDF).

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independence from the authorising officer in the vast majority of
cases (except transactions authorised by the Director himself,
notably budget support). The purpose of this control is to help
bring about an effective transition from the fully centralised to a
fully decentralised financial control (i.e. under the control of the
authorising officer), and the establishment of effective ex post con-
trol. The optional ex ante control was discontinued in 2005, fol-
lowing the reorganisation of EuropeAid.

27. The ex ante control checked 6 % of transactions effected in
2004 and identified various types of errors in 6 % of them, allow-
ing corrective action to be taken. Although these errors were not
ranked according to their potential impact, it appears that in most
cases they are due to non-compliance with less significant inter-
nal procedures. The Court reviewed a random sample of 23 trans-
actions checked by the second-level ex ante control and found
that, except in cases of minor importance, the control operated
effectively.

Ex post control needs to be better documented

28.
EuropeAid established an ex post control in June 2004 for
the verification of transactions already processed. The control,
resulting from the desk examination of supporting documenta-
tion only, has the objective of checking 3 % of payments, includ-
ing clearances of advances (25), so as to identify one-off and recur-
rent errors, identify the potential for improving procedures and
provide additional assurance that payments are regular and legal.
The extent of the checks is more focused than that of the optional
ex ante control.

29. Due to insufficient staff resources, only the first three quar-
ters of the 2004 quota had been checked at end of January 2005
representing 1 % of payment transactions compared with the
objective of 3 %.

29. Although below the target of 3 % of the number of financial
transactions passing through the information systems, the ex post con-
trols covered 14 % of the total financial volume of 2004 transactions.

30. The Court reviewed a sample of 51 transactions out of the
transactions checked by ex post control and found that, except in
cases of minor importance, the control operated sufficiently effec-
tively. However, the control would have provided further assur-
ance if checks had been extended to the financial commitments
and detailed checklists had been established, thereby ensuring
consistent and documented checks.

30. The decision to introduce a centralised system of ex post trans-
actional control and the description of its characteristics arise from an
assessment of the residual risk and the dovetailing of the ex post trans-
actional control with the other components of the control system.

The operational procedure calls for data on both the control and all the
stages of implementation to be entered in a monitoring file.

(25) The clearance of advances is a procedure whereby an advance pay-
ment, which is made to the project management in advance, is cleared
and made definitive against proofs of the actual expenditure.

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THE COMMISSION’S REPLIES

Audit as a part of management control activities

32.
EuropeAid has indeed continued its efforts to report and consoli-
date information on the audits. A monitoring exercise has also been
established and this is managed centrally.

Errors of compliance with regulations, resulting in ineligible
31.
expenditure, mainly occur at the level of project management,
since in most cases this is carried out by ACP countries’ admin-
istrations where management capacity is poor. Audits in the form
of ‘certification of accounts’ are a key tool for detecting such
errors and ‘systems audits’ for advising project management on
how to improve financial management and reduce the risk of
future errors. Audits may be launched by the project management
itself, the NAO, Delegation or headquarters and can be funded by
the project in the first two cases and by EDF administrative funds
in the last two (26). Financial agreements with the ACP countries
increasingly provide for audits launched by the project manage-
ment and NAO, especially those aimed at obtaining the certifica-
tion of the programme estimate’s accounts. In addition, the new
general conditions for contracts (27) provide that Delegations and
headquarters may use project funds for launching audits of ninth
EDF projects.

32.
EuropeAid improved its audit function in 2004. It set up a
comprehensive audit strategy to be applied by both EuropeAid
and Delegations to ninth EDF projects, defined risk criteria for the
identification of audits to be undertaken, issued standard terms of
reference for the auditors, carried out six audit support missions
to Delegations, prepared two activity reports and put in place
CRIS-Audit, a computerised system for supporting and monitor-
ing audits. The audits finalised by EuropeAid in 2004 (28) revealed
a rate of ineligible expenditure of 2 %. Further audits based on
specific suspicions of irregularities revealed high rates of ineligi-
bility or lack of documentation. These audits contribute to pro-
vide better knowledge of the legality and regularity of the imple-
mentation of the EDF.

(26) Funds covering administration of the EDF by the Commission (Inter-
nal Agreement, Article 1(2)(a)(iii) (OJ L 317, 15.12.2000, p. 355)).
(27) Decision No 2/2002 of the ACP-EC Council of Ministers (OJ L 320,
23.11.2002, p. 1), point 9 of the Annex: ‘Audit and […] are always
concluded by the Commission acting for and on behalf of the ACP
State […]’.

(28) As of June 2005, 33 audits out of 35 provided for in the 2004 audit

plan had been finalised.

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THE COMMISSION’S REPLIES

33. However, the rate of coverage of the audits launched by the
Delegations and the national authorising officers, and their time-
liness are not centrally consolidated. The follow-up of all these
audits is not centrally monitored and it is not possible to effec-
tively identify cases of insufficient action following an audit (for
example absence of a recovery order in cases of overpayment
detected by the auditors). The risk analysis for launching audits is
mainly based on qualitative criteria. CRIS-Audit might have tack-
led some of the weaknesses identified above, especially as regards
coverage of audits and follow-up. Although claimed to be at a
pilot stage in 2003, CRIS-Audit is still not delivering all the
expected results.

33. The rate of cover of the 2004 audit plan, based on risk analysis
and managed centrally, is more than the 5 % of the volume of payments
recommended in the methodology developed by EuropeAid. The 2004
audit plan comprised 35 audits at headquarters, while the delegations’
audit plans totalled 426 audits.

The monitoring of audits and the possible issue of a recovery order are
the responsibility of the devolved delegation. However, EuropeAid ensures
that these audits are of sufficient quality and are followed up (with the
possible issue of a recovery order) by examining a sample.

CRIS audit which was indeed at a pilot stage during 2003, became
operational in April 2004, and was made available to users from June
2004. The Delegations in ACP countries will be able to make full use
of the module once the EDF accounting system has also migrated
to CRIS.

Accountability for internal control of Delegations needs to be
more consistent with the Financial Regulation

34.
Following the principle of line management, the Director-
General of EuropeAid has delegated to a Director the powers and
the responsibility of the financial implementation of the EDF. In
turn, in the context of devolution, the latter has delegated most
powers and responsibility, except for the decision of payment for
budget support, to the Heads of Delegation. According to the
same principle, the Heads of Delegation are accountable to that
Director, who in turn is accountable to the Director-General of
EuropeAid (see Articles 21(1) and 25 of the Financial Regulation).
The duty of accountability covers, among other aspects, the effec-
tive functioning of the internal control system, which is based on
the Commission’s internal control standards.

35. Delegations carry out a self-assessment of internal control
but, contrary to the above-mentioned principle of line manage-
ment, the Heads of Delegation are not accountable for it to the
Director of EuropeAid, but to a Director of Directorate-General
External Relations, to whom all staff at the Delegations are hier-
archically attached for administrative purposes. The reason for
this is that the internal control of a Delegation covers not only
operational (which is the most significant part) but also adminis-
trative expenditure, and Delegations’ staff might take instructions
from other Directorates-General, notably Development and
Trade. Therefore, as EuropeAid is responsible for the implemen-
tation of internal control in Delegations without being in charge
of the reporting for it, the related weaknesses may not be
adequately tackled.

35. Due to the sharing of responsibilities among different DGs, the
current arrangement for the internal control self-assessment exercise
ensures a unique and consistent set of instructions to delegations.

The methodology for the self-assessment of the internal control of Del-
egations was decided by DG External Relations with the support of the
central financial service and was based on the work of an inter-service
group to which EuropeAid participated. The results of the exercise are
communicated to all concerned services (DG External Relations,
EuropeAid, DG Development, etc.) for appropriate follow-up.

The annual exercise of self-assessment is not the sole element substanti-
ating the accountability of the Head of Delegation, as Authorising
Officer by subdelegation, to the competent Director at EuropeAid.

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THE COMMISSION’S REPLIES

According to the provisions set out in the Charter of the Authorising
Officers by sub-delegation, the Head of Delegation has the obligation to
regularly inform headquarters on the implementation of the activities and
resources for which he has sub-delegated powers, as well as of any prob-
lems arising in the functioning of the management and control mecha-
nisms he has put in place to discharge his responsibilities.

EuropeAid monitors internal control in delegations and is accountable
for tackling potential weaknesses relating to the implementation of the
external aid.

EAMRs are the object of a regular follow-up by the competent
36.
authorising department at headquarters. When necessary, corrective
actions are agreed with the delegations and implemented. Authorising
Officers by sub-delegation at headquarters (Directors) report on the
follow-up given to the major issues raised by delegations, highlighting
where appropriate, any problems requiring special attention by the Direc-
tor General of EuropeAid.

The Activity Report of the Director-General of EuropeAid does
not mention significant internal control weaknesses

36. As in previous years for the EDF, the Director-General of
EuropeAid declared that he had obtained reasonable assurance as
regards the legality and regularity of the underlying transactions.
As for the activity report, it would however have been worth
mentioning the most significant internal control weaknesses like
those identified by the Court’s audit (see paragraphs 19 to 35) and
those reported by the Delegations in their External Activity Man-
agement Reports (EAMR). There were 52 such reports in 2004.
Delegations drew attention to, inter alia, insufficient audits and
follow-up and the weaknesses of NAOs’ management capability,
with increased workload on Delegations’ staff. However the pro-
cedure of consolidating these issues has not assured their adequate
and comprehensive disclosure in the Activity Report of the
Director-General of EuropeAid. As a result, their impact on inter-
nal control may not have been fully considered in this activity
report.

Audit of transactions

37. The sample of 74 payments and the corresponding finan-
cial commitments selected from those subject to the ex ante (23)
and ex post (51) controls (see paragraphs 27 and 30) was also used
by the Court for checking legality and regularity on the basis of
supporting documentation only. A further judgmental sample of
26 payments and the corresponding financial commitments was
also selected by the Court from those made in six ACP States in
2004 and checked for legality and regularity on the spot down to
the level of the implementing entity with a view to ascertain also
the reality of works, supplies and services.

30.11.2005

EN

Official Journal of the European Union

C 301/271

THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

Errors on individual legal commitments and payments are not
material

38. The errors found checking the legality and regularity of the
legal commitments and payments are not material in terms of
their frequency and financial impact. They are accompanied by a
series of more common errors relating to the implementation of
procedures. Taken together they corroborate the internal control
weaknesses identified above and indicate where improvements
are still necessary.

39. As regards individual financial commitments, the types of
errors found were as follows: derogation to the rule of carrying
out open tendering without appropriate prior authorisation; con-
tracts signed after the deadline set out in the financial agreement
or not duly signed; programme estimates with imprecise eligibil-
ity criteria.

40. As regards payments, the types of errors were as follows:
money advanced to the management of programme estimates
temporarily invested without authorisation; ineligible expendi-
ture; late payments with a potential risk of receiving claims for
late interest; grant expenditure not documented.

Budget support operations

41. As far as budget support is concerned, the legal framework
of the EDFs offers considerable scope for interpretation and
exemptions. Thus, the checks of the Court in respect of the legal-
ity and regularity of the underlying transactions consist of veri-
fying that the relevant conditions have been properly assessed by
the Commission. The initial assessments carried out when finan-
cial commitments are adopted are still insufficiently formalised in
terms of the individual criteria listed in Article 61(2) of the Coto-
nou Agreement. Such formalities are essential, especially as
regards the transparency, reliability and effectiveness of the man-
agement of public finances, otherwise it is subsequently impos-
sible to ascertain whether management has improved, a prereq-
uisite for further aid.

Changes in the performance of supervisory and control
systems

42. All the above observations are to be included in a table of
indicators so that changes in the performance of supervisory
and control systems can be evaluated (see Table 3).

38-40.
EuropeAid is aware of the risk environment in which the EDF
is implemented and regularly reviews and adjusts its approach to risk
and its financial circuits in order to improve the quality and effectiveness
of its internal control. The resulting effectiveness is confirmed by the lim-
ited number of errors noted by the Court.

41. The conditionality employed by the Commission partly consists of
objectively verifiable and measurable indicators, reducing the margin of
discretion.

An effort will be made to obtain more clarity in the financing proposals
as regards the eligibility of the beneficiary country under Article 61(2)
of the Cotonou Agreement. At present, all financing proposals contain
an annex analysing the main aspects of public finance management and
the problems to be resolved in this connection. The criteria set out in that
Article are thus covered de facto, although it is true that this could be
done more explicitly.

42. The Commission would make the following observations:

— as regards point 1.2 of table 3: in accordance with the Financial
Regulation, the Commission has analysed and systematically moni-
tored the advances to be recovered. In future, with the adoption of
accrual-based accounting, it intends to calculate the provision for
doubtful debts,

C 301/272

EN

Official Journal of the European Union

30.11.2005

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30.11.2005

EN

Official Journal of the European Union

C 301/273

THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

— as regards point 1.6 of table 3: the coverage rate of the 2004 audit
plan based on risk analysis and managed centrally is more than the
5 % of the volume of payments recommended in the methodology
developed by EuropeAid. The 2004 audit plan comprised 35 audits
at headquarters, while the delegations’ audit plans
totalled
426 audits.

CHAPTER III — FOLLOW-UP TO PREVIOUS OBSERVATIONS

Infrastructure work financed by the EDF

43.
In Special Report No 8/2003 (29) concerning the execution
of infrastructure work financed by the EDF, the Court highlighted
the need to improve supervision of the implementation of works
contracts and, in particular, reduce the divergences that were
found between contracts and their actual implementation. To this
end, it recommended that the Commission should:

(a) provide a better framework for and increase the responsibil-
ity of the consultants who carry out the studies upon which
contracts are based;

(b) place greater emphasis on changes made while works are in
progress and handle implementation problems and com-
plaints more quickly;

(c)

reorganise its central departments so as to provide greater
support for the Delegations as part of the decentralisation
process;

(d) pay greater attention to accompanying measures which have
an impact on the viability and durability of the works and
re-examine the general conditions for the implementation of
works contracts (30).

The Discharge Authority’s position

44. The European Parliament noted the Court’s recommenda-
tions and the Council (31) welcomed the fact that the Commis-
sion had already started to follow them up. It specifically recom-
mended that support for ACP States should be increased (in

(29) OJ C 181, 31.7.2003.
(30) Decision No 3/90 of the ACP-EEC Council of Ministers of 29 March
1990 adopting the general regulations, general conditions and pro-
cedural rules on conciliation and arbitration for works, supply and
service contracts financed by the European Development Fund (EDF)
and concerning their application.

(31) Council document No 14530/03 approved on 17 November 2003

(Minutes No 14882/03 of 10.2.2004).

C 301/274

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Official Journal of the European Union

30.11.2005

THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

46-49.
Following the Court’s Special Report of July 2003 on infra-
structure projects, the Commission, in February 2004, called on the Del-
egations to pursue the following four measures to avoid any recurrence
of the problems mentioned by the Court: 1. complete all studies before
the financing proposal is presented to the EDF Committee; 2. use the
same consultant for project design and supervision; 3. use the suspen-
sion clause if necessary; and 4. deal with firms’ complaints as they arrive.

particular so as to maintain the infrastructure created) and that
checks in respect of preparatory studies should be improved (as
regards the financial liability of consultants, closer supervision
and more specific terms of reference).

Follow-up by the Commission

45. The Commission’s report on the financial management of
the sixth, seventh, eighth and ninth European Development Funds
for 2003 and the limited review of this area carried out by the
Court show that the Commission intended to follow the Court’s
main recommendations.

46.
It now gives consultants greater responsibility by employ-
ing the same consultant to both design and supervise the work. It
also decided to complete all the studies before the financing pro-
posals were submitted to the EDF Committee. However, some
Delegations were reluctant to adopt this new approach as it delays
the accounting commitment of the transactions. Head Office nev-
ertheless decided to compel the Delegations to comply with this
measure by postponing several financing decisions for projects
whose studies had not been completed. The amount of commit-
ments fell as a result.

47.
It is still too early to tell whether the recommendation about
the early handling of disputes has been followed: the computer-
ised management system (CRIS) contains no information and
Head Office has not monitored this area.

48. As regards the reorganisation of the various departments of
EuropeAid, the new arrangements came into effect on 16 March
2005. An ‘Infrastructure’ unit is chiefly responsible for advising
and supporting the Delegations. This reorganisation is a useful
addition to the decentralisation process which is coming to an
end and, together with the training provided, should make it
easier to implement the Court’s recommendations.

49. As regards the Court’s recommendation, which was taken
up by the Council, regarding accompanying measures (mainte-
nance, the checking of axle loads, road safety and the environ-
ment), the Commission did not introduce new rules as it felt the
measures had already been implemented. Although the resources
of the Road Funds (special road maintenance funds) are not
always sufficient, they are generally made available, a process
which the Commission checks, in particular in the context of
budgetary aid. These Funds do, however, come up against signifi-
cant organisational problems (e.g. where they are used to finance
rather than maintain the infrastructure).

30.11.2005

EN

Official Journal of the European Union

C 301/275

THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

50.
Lastly, the Court recommended that the regulations should
be reviewed, which would have made it possible, in particular, to
publish ‘works’ calls for tenders with a suspension clause before
the financing proposals were submitted to the EDF Committee.
The fact is that the current regulations (32) restrict the use of the
suspension clause to exceptional and duly justified cases. This
review, which began in 2002, was still not complete by the end
of 2004.

50. The revision of the Cotonou Agreement of June 2005 includes a
new Article 19b which goes in the direction recommended by the Court
(tender procedure with suspension clause).

Conclusion

Initially, the Commission did define the main measures
51.
needed to implement the Court’s recommendations. It should
ensure without further delay that all the measures decided upon
are actually implemented and should consider in more concrete
terms the Council’s recommendation that the beneficiary coun-
tries should be provided with institutional support so as to con-
solidate their administrative and technical capacity.

51. The Commission totally subscribes to this recommendation and
has taken and is taking the lines of action described above. The consid-
eration of institutional support measures is systematically analysed in the
project’s identification/formulation phase. When justified, as is very fre-
quently the case, it is systematically included in the project content.

CHAPTER IV — MAIN OBSERVATIONS SET OUT IN SPECIAL
REPORTS PUBLISHED BY THE COURT SINCE THE LAST
DISCHARGE PROCEDURE

Special Report No 10/2004 concerning the devolution of EC external
aid management to the Commission Delegations

52. This Special Report is summarised in chapter 7 of the
Court’s Annual Report on the activities financed from the general
budget.

Special Report No 2/2005 concerning EDF budget aid to ACP
countries: the Commission’s management of the public finance reform
aspect

53. The Commission is transferring budget aid to certain ACP
countries, provided that reforms are put in place to improve their
financial management systems. The Commission has devised
tools with the aim of making an initial diagnosis of the quality of
public finance management and the proposed reforms, but also
of evaluating management changes and the progress of those
reforms.

(32) Article 5 of Decision No 2/2002 of the ACP-EC Council of Ministers
of 7 October 2002 regarding the implementation of Articles 28, 29
and 30 of Annex IV to the Cotonou Agreement.

C 301/276

EN

Official Journal of the European Union

30.11.2005

THE COURT’S OBSERVATIONS

THE COMMISSION’S REPLIES

54. These analytical and follow-up tools, which the Commis-
sion applies in coordination with the other donors, in particular
with the World Bank and the IMF, provide relatively comprehen-
sive information that enables it to take appropriate action. How-
ever, the tools do not make enough provision for more cogent
diagnosis and follow-up reports; in addition, its implementation
is not sufficiently coordinated with other donors at local level.

55. The Court recommends that
the Commission update
and complete its Methodological Guide relating to budget aid,
inter alia where the monitoring reports are concerned; give clearer
evidence for the eligibility of beneficiary countries; employ
enhanced-incentive public finance performance indicators; fina-
lise the new public finance management performance measure-
ment tool and do its utmost to have it adopted by the various
donors; strengthen local cooperation between donors; and
strengthen its relations with the parliaments and Supreme Audit
Institutions of beneficiary countries.

54.

1. The Commission has undertaken to take account of the Court’s sug-
gestions to boost the public finances aspect of the financing pro-
posals and turn the delegations’ six-monthly reports into more
dynamic instruments of analysis.

2. Coordination with the other donors is one of the Commission’s con-
stant concerns, both at headquarters and local level. A large num-
ber of joint frameworks, bringing together budget aid donors for the
purpose of close coordination, have been established on the Com-
mission’s initiative.

55.

1. The Guide is now being updated and reworked, particularly as
regards the six-monthly reports and the analysis of public finances
in the financing proposals (see reply to paragraph 41), the latter
covering eligibility criteria.

2. The Commission attaches considerable importance to the incentives
presented by the conditions/indicators selected in the field of public
finances as elsewhere.

3. The PEFA (public expenditure financial accountability) analysis
framework was finalised at the end of the first half of 2005. The
Commission will do all it can to ensure that it is put into general
use and replaces other diagnostic tools.

4.

Increasing coordination at local level: see reply to previous point.

5. The Commission is aware of the important role played by Parlia-
ments and the SAIs. However, the possibility of it approaching
these institutions must be examined with caution and with due
regard for national sovereignty and the national rules governing the
distribution and the balance of powers between the institutions. It
should also be studied from the point of view of the Cotonou
Agreement.

30.11.2005

EN

Official Journal of the European Union

C 301/277

30.11.2005

EN

Official Journal of the European Union

I

ANNEXES TO THE ANNUAL REPORT ON
THE IMPLEMENTATION OF THE BUDGET

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ANNEX I

Financial information

CONTENTS

PRELIMINARY NOTES

Sources of financial data

Monetary unit

Abbreviations and symbols

BACKGROUND INFORMATION ON THE BUDGET

1. Origin of the budget

2.

Legal basis

3. Budgetary principles laid down in the Treaties and the Financial Regulation

4. Content and structure of the budget

5.

Financing of the budget (budgetary revenue)

6. Types of budget appropriation

7.

Implementation of the budget

7.1. Responsibility for implementation

7.2. Implementation of revenue

7.3. Implementation of expenditure

7.4. The consolidated statements on budgetary implementation and determination of the balance of the financial year

8.

Presentation of the accounts

9.

External audit

10. Discharge and follow-up

DIAGRAMS

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SOURCES OF FINANCIAL DATA

PRELIMINARY NOTES

The financial data contained in this Annex have been drawn from the annual accounts of the European Communities (1) and from other
financial records provided by the Commission. The geographical distribution is in accordance with the country codes in the Commis-
sion’s system of accounting information (Sincom2). As the Commission points out, all the figures given by Member State - for both rev-
enue and expenditure - are the result of arithmetic that gives an incomplete view of the benefits that each State derives from the Union.
They must therefore be interpreted with circumspection.

MONETARY UNIT

All the financial data are presented in millions of euro. The totals are rounded from each exact value and will not therefore necessarily
represent the sum of the rounded figures.

ABBREVIATIONS AND SYMBOLS
AFC

Appropriations for commitments

AFP

AT

BE

CA

CY

CZ

DA

DE

DIA

DK

Appropriations for payments

Austria

Belgium

Commitment appropriations

Cyprus

Czech Republic

Differentiated appropriations

Germany

Diagram referred to within other diagrams (e.g. DIA III)

Denmark

EAEC or Euratom

European Atomic Energy Community

EC

EE

EEC

EFTA

EL

ES

EU

EU-25

FI

FR

FR

GNI

HU

IE

IT

LT

LU

European Community(ies)

Estonia

European Economic Community

European Free Trade Association

Greece

Spain

European Union

Total for the 25 Member States of the European Union

Finland

France

Financial Regulation of 25 June 2002

Gross National Income

Hungary

Ireland

Italy

Lithuania

Luxembourg

(1) In the case of the financial year 2004: final annual accounts relating to operations under the 2004 budget [SEC(2005) 1158].

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V

LV

MT

NDA

NL

OJ

PA

PL

PT

S

SE

Sl

SK

T

UK

VAT

0,0

—

%

Latvia

Malta

Non-differentiated appropriations

Netherlands

Official Journal of the European Union

Payment appropriations

Poland

Portugal

Budgetary section

Sweden

Slovenia

Slovakia

Budgetary title

United Kingdom

Value added tax

Data between zero and 0,05

Lack of data

Percentage

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BACKGROUND INFORMATION ON THE BUDGET

1.

ORIGIN OF THE BUDGET

The budget comprises the expenditure of the European Community and the European Atomic Energy Community (Euratom). It also
includes administrative expenditure on cooperation in the fields of ‘justice and home affairs’ and the common foreign and security policy,
as well as all other expenditure that the Council considers should be borne by the budget for the purpose of implementing these policies.

2.

LEGAL BASIS

The budget is governed by the financial provisions of the Rome Treaties (2) (3) (Articles 268 to 280 EC and Articles 171 to 183 Euratom)
and by the financial regulations (4).

3.

BUDGETARY PRINCIPLES LAID DOWN IN THE TREATIES AND THE FINANCIAL REGULATION

All items of Community revenue and expenditure are to be included in a single budget (unity and accuracy). The budget is authorised for
one financial year only (annuality). Budgetary revenue and expenditure must balance (equilibrium). The accounts are established, imple-
mented and presented in euro (unit of account). Revenue is to be used without distinction to finance all expenditure and, like the expen-
diture, is to be entered in full in the budget and subsequently in the financial statements without any adjustment of one item against
another (universality). The appropriations are earmarked for specific purposes by title and chapter; the chapters are further subdivided
into articles and items (specification). The budgetary appropriations are used in accordance with the principles of sound financial man-
agement, i.e. in accordance with the principles of economy, efficiency and effectiveness (sound financial management). The budget is estab-
lished and implemented and the accounts are presented in observance of the principle of transparency (transparency). There are some
exceptions to these general principles.

4.

CONTENT AND STRUCTURE OF THE BUDGET

The budget consists of a ‘Summary statement of revenue and expenditure’ and sections divided into ‘Statements of revenue and expen-
diture’ for each institution. The eight sections are: (I) Parliament; (II) Council; (III) Commission; (IV) Court of Justice; (V) Court of Auditors;
(VI) Economic and Social Committee; (VII) Committee of the Regions; (VIII) European Ombudsman and European Data-protection
Supervisor.

Within each section, items of revenue and expenditure are classified under budget headings (titles, chapters, articles and, where appli-
cable, items) according to their type or the use to which they are to be applied.

(2) Treaty of Rome (25 March 1957): Treaty establishing the European Economic Community (EEC).
(3) Treaty of Rome (25 March 1957): Treaty establishing the European Atomic Energy Community (Euratom).
(4) Mainly the Financial Regulation (FR) of 25 June 2002 (OJ L 248, 16.9.2002).

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5.

FINANCING OF THE BUDGET (BUDGETARY REVENUE)

The budget is mainly financed from the Communities’ own resources: agricultural duties, sugar and isoglucose levies; customs duties; own
resources accruing from VAT and GNI-based own resources (5).

Besides own resources, there are other, marginal items of revenue (see Diagram I).

6.

TYPES OF BUDGET APPROPRIATION

To cover estimated expenditure, the following types of budget appropriation are distinguished in the budget:

(a) differentiated appropriations (DA) are used to finance multiannual activities in certain budgetary areas. They comprise commitment

appropriations (CA) and payment appropriations (PA):

— commitment appropriations make it possible to enter into legal obligations during the financial year for activities whose imple-

mentation extends over several financial years;

— payment appropriations make it possible to cover expenditure arising from commitments entered into during current and pre-

ceding financial years;

(b) non-differentiated appropriations (NDA) make it possible to ensure the commitment and payment of expenditure relating to annual

activities during each financial year.

It is thus important to establish the following two totals for each financial year:

(a)

the total of appropriations for commitments (AFC) (6) = non-differentiated appropriations (NDA) + commitment appropriations
(CA) (6);

(b)

the total of appropriations for payments (AFP) (6) = non-differentiated appropriations (NDA) + payment appropriations (PA) (6).

(5) Principal legal acts relating to own resources: Council Decision 2000/597/EC, Euratom of 29 September 2000 (OJ L 253, 7.10.2000); Council Regu-
lation (EC, Euratom) No 1150/2000 of 22 May 2000 (OJ L 130, 31.5.2000); Council Regulation (EEC, Euratom) No 1553/89 of 29 May 1989
(OJ L 155, 7.6.1989); Sixth Council Directive of 17 May 1977, common system of VAT: uniform assessment basis (OJ L 145, 13.6.1977); Council
Directive 89/130/EEC, Euratom of 13 February 1989 on the harmonisation of the compilation of GNI (OJ L 49, 21.2.1989), Council Regulation (EC,
Euratom) No 1287/2003 of 15 July 2003 on the harmonisation of gross national income at market prices (OJ L 181, 19.7.2003).

(6) It is important to note the differences between ‘appropriations for commitments’ and ‘commitment appropriations’ and between ‘appropriations for
payments’ and ‘payment appropriations’. The two terms ‘commitment appropriations’ and ‘payment appropriations’ are used exclusively in the context
of differentiated appropriations.

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Revenue raised in the budget is intended to cover the total appropriations for payments. Commitment appropriations do not need to be
covered by revenue.

The following simplified presentation (with illustrative amounts) shows the impact of these types of appropriations in each budget year.

Year 1: AFC: 150

Year 2: AFC: 180

Year 3: AFC: 215

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7.

IMPLEMENTATION OF THE BUDGET

7.1.

Responsibility for implementation

The Commission implements the budget on its own responsibility in accordance with the Financial Regulation and within the limits of
the allotted appropriations; it also confers upon the other institutions the requisite powers for the implementation of the sections of the
budget relating to them (7). The Financial Regulation lays down the implementation procedures and, in particular, the responsibilities of
the authorising officers, accounting officers, administrators of imprest accounts and internal auditors of the institutions. In two main spe-
cific areas (EAGGF-Guarantee and Structural Funds) the management of Community funds is shared with the Member States.

7.2.

Implementation of revenue

The estimated revenue is entered in the budget subject to changes deriving from amending budgets.

The budgetary implementation of revenue consists of establishing the entitlements and recovering the revenue due to the Communities
(own resources and other revenue). It is governed by certain special provisions (8). The actual revenue of a financial year is defined as the
total of sums collected against entitlements established during the current financial year and sums collected against entitlements still to be
recovered from previous financial years.

7.3.

Implementation of expenditure

The estimated expenditure is entered in the budget.

The budgetary implementation of expenditure, i.e. the evolution and utilisation of appropriations, may be summarised as follows:

(a) appropriations for commitments:

(i)

evolution of appropriations: the total appropriations for commitments available in a financial year are made up as follows: initial
budget (NDA and CA) + amending budgets + assigned revenue + transfers + commitment appropriations carried over from the
preceding financial year + non-automatic carry-overs from the preceding financial year not yet committed + released commit-
ment appropriations from preceding financial years which have been made available again;

(ii) utilisation of appropriations: the final appropriations for commitments are available in the financial year for use in the form of

commitments entered into (appropriations for commitments utilised = amount of commitments entered into);

(iii) carry-overs of appropriations from one financial year to the next financial year: appropriations belonging to the financial year which
have not been utilised may be carried over to the next financial year following a decision by the institution concerned. Appro-
priations available as assigned revenue are automatically carried over;

(iv) cancellation of appropriations: the balance is cancelled;

(7) See Articles 274 of the EC Treaty, 179 of the Euratom Treaty and 50 of the FR.
(8) See Articles 69 to 74 of the FR and Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 (OJ L 130, 31.5.2000).

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(b) appropriations for payments:

(i)

evolution of appropriations: the total appropriations for payments available in a financial year are made up as follows: initial bud-
get (NDA and PA) + amending budgets + assigned revenue + transfers + appropriations carried over from the previous financial
year in the form of automatic carry-overs or non-automatic carry-overs;

(ii) utilisation of appropriations of the financial year: the appropriations for payments of the financial year are available in the financial
year for use as payments. They do not include appropriations carried over from the previous financial year (utilised appropria-
tions for payments = amount of payments made against the appropriations of the financial year);

(iii) carry-overs of appropriations from one financial year to the next financial year: non-utilised appropriations of the financial year may be
carried over to the next financial year following a decision by the institution concerned. Appropriations available as assigned
revenue are automatically carried over;

(iv) cancellation of appropriations: the balance is cancelled;

(v)

total payments during the financial year: payments against appropriations for payments of the financial year + payments against
appropriations for payments carried over from the preceding financial year;

(vi) actual expenditure charged to a financial year: expenditure in the consolidated statements on budgetary implementation (see para-
graph 7.4) = payments against appropriations for payments of the financial year + appropriations for payments of the financial
year carried over to the following financial year.

7.4.

The consolidated statements on budgetary implementation and determination of the balance of the financial year

The consolidated statements on budgetary implementation are drawn up after the closure of each financial year. They determine the bal-
ance of the year, which is entered in the budget of the next financial year through an amending budget.

8.

PRESENTATION OF THE ACCOUNTS

The accounts for a given financial year are forwarded not later than 1 May of the following financial year to the Parliament, the Council
and the Court of Auditors; these accounts comprise financial statements and statements on budgetary implementation, together with a
report on the budgetary and financial management.

9.

EXTERNAL AUDIT

Since 1977 the external audit of the budget has been carried out by the Court of Auditors of the European Communities (9). The Court
of Auditors examines the accounts of all revenue and expenditure of the budget. It must provide the European Parliament and the Coun-
cil with a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions. It also
considers whether revenue has been received and expenditure incurred in a lawful and regular manner, and whether the financial man-
agement has been sound. The audits may be carried out before the closure of the financial year in question and are performed on the basis
of records and, where necessary, on the spot in the institutions of the Communities, in the Member States and in third countries. The
Court of Auditors draws up an annual report for each financial year and may also, at any time, submit its observations on specific ques-
tions and deliver opinions at the request of any of the institutions of the Communities.

(9) See Articles 246, 247 and 248 of the EC Treaty, 160a, 160b and 160c of the Euratom Treaty and Articles 139 to 147 of the FR.

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10.

DISCHARGE AND FOLLOW-UP

Since 1977 the following provisions have been applicable (10): Parliament, on the recommendation of the Council, gives, before 30 April
of the second year following the financial year in question, discharge to the Commission in respect of its implementation of the budget.
To this end, the Council and Parliament in turn examine the accounts presented by the Commission and the annual report and special
reports of the Court of Auditors. The institutions must take appropriate action in response to the comments appearing in the decisions
giving discharge and report on the measures taken.

DIAGRAMS

BUDGET FOR THE FINANCIAL YEAR 2004 AND BUDGETARY IMPLEMENTATION DURING THE FINANCIAL YEAR
2004
DIA I

2004 budget — Estimated revenue and final appropriations for payments

DIA II

DIA III

DIA IV

DIA V

DIA VI

2004 budget — Appropriations for commitments

Appropriations for commitments available in 2004 and utilisation thereof

Appropriations for payments available in 2004 and utilisation thereof

Own resources in 2004 — Actual revenue by Member State

Payments made in 2004, in each Member State

HISTORICAL DATA IN RESPECT OF THE IMPLEMENTATION OF THE BUDGET (2000-2004)
DIA VII

Evolution and utilisation of appropriations for payments for the period 2000 to 2004, by
financial perspective heading

(10) See Articles 276 of the EC Treaty and 180b of the Euratom Treaty.

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Diagram III
Appropriations for commitments available in 2004 and utilisation thereof

Final appropriations

Utilisation of appropriations

(million euro and %)

Sections (S) and titles (T) corresponding to the 2004
budgetary nomenclature and financial perspective
headings

Financial
perspective

Amount (1)

Rate
(%)

Commit-
ments
entered
into

(a)

(b)

(b)/(a)

(c)

Budgetary nomenclature
Parliament (S. I)
Council (S. II)
Commission (S. III)
Economic and financial affairs (T. 01)
Enterprise (T. 02)
Competition (T. 03)
Employment and social affairs (T. 04)
Agriculture and rural development (T. 05)
Energy and transport (T. 06)
Environment (T. 07)
Research (T. 08)
Information society (T. 09)

I
II
III
III.1
III.2
III.3
III.4
III.5
III.6
III.7
III.8
III.9
III.10 Direct research (T. 10)
III.11 Fisheries (T. 11)
III.12 Internal market (T. 12)
III.13 Regional policy (T. 13)
III.14 Taxation and customs union (T. 14)
III.15 Education and culture (T. 15)
III.16 Press and communication (T. 16)
III.17 Health and consumer protection (T. 17)
III.18 Justice and home affairs (T. 18)
III.19 External relations (T. 19)
III.20 Trade (T. 20)
III.21 Development and relations with ACP States

(T. 21)

III.22 Enlargement (T. 22)
III.23 Humanitarian aid (T. 23)
III.24 Fight against fraud (T. 24)
III.25 Commission’s policy coordination and legal

advice (T. 25)
III.26 Administration (T. 26)
III.27 Budget (T. 27)
III.28 Audit (T. 28)
III.29 Statistics (T. 29)
III.30 Pensions (T. 30)
III.31 Reserves (T. 31)
IV
V
VI
VII
VIII

Court of Justice (S. IV)
Court of Auditors (S. V)
Economic and Social Committee (S. VI)
Committee of the Regions (S. VII)
European Ombudsman and European
Data-protection Supervisor (S. VIII)

1 311,0
562,7
109 025,1
482,2
334,5
86,5
10 900,2
48 861,6
1 424,0
365,8
3 658,3
1 334,3
530,9
975,3
74,0
26 639,7
112,3
1 176,7
181,9
583,7
536,9
3 808,5
77,0
1 246,4

1 426,1
536,6
55,1
206,9

726,1
1 474,4
9,6
136,9
841,8
221,0
236,3
97,4
107,7
73,9
7,7

1 275,9
540,1
106 982,7
431,4
285,5
83,9
10 779,1
48 470,9
1 344,7
344,6
3 513,9
1 249,0
328,8
943,3
67,1
26 557,9
96,3
1 063,6
155,7
571,4
512,4
3 704,3
71,8
1 196,3

1 289,9
536,2
51,3
199,4

700,1
1 471,2
9,3
111,9
841,7
—
221,3
86,1
95,6
64,1
6,7

Utilis-
ation
rate
(%)

(c)/(b)

97,3
96,0
98,1
89,5
85,4
97,0
98,9
99,2
94,4
94,2
96,1
93,6
61,9
96,7
90,7
99,7
85,8
90,4
85,6
97,9
95,4
97,3
93,2
96,0

90,4
99,9
93,2
96,4

96,4
99,8
96,4
81,7
100,0
—
93,7
88,4
88,8
86,7
86,4

Carry-overs
to 2005 (2)

Rate
(%)

Cancel-
lations

(d)

(d)/(b)

(e) = (b)
– (c) – (d)

Rate
(%)

(e)/(b)

7,4
12,3
1 043,0
1,3
25,0
0,9
90,0
77,5
46,6
7,1
142,8
77,8
201,9
3,9
0,8
10,3
5,8
101,6
1,6
6,8
6,3
81,9
0,8
38,4

89,4
0,2
0,0
3,0

13,0
0,6
0,1
8,0
—
—
2,9
0,3
0,3
0,1
—

0,6
2,2
1,0
0,3
7,5
1,1
0,8
0,2
3,3
1,9
3,9
5,8
38,0
0,4
1,0
0,0
5,2
8,6
0,9
1,2
1,2
2,1
1,0
3,1

6,3
0,0
0,0
1,4

1,8
0,0
0,9
5,8
—
—
1,2
0,3
0,3
0,1
—

27,6
10,3
999,4
49,5
24,0
1,6
31,1
313,2
32,7
14,0
1,6
7,6
0,3
28,2
6,1
71,5
10,1
11,6
24,6
5,6
18,3
22,3
4,4
11,7

46,9
0,2
3,7
4,6

13,1
2,6
0,3
17,1
0,1
221,0
12,1
11,0
11,8
9,7
1,1

2,1
1,8
0,9
10,3
7,2
1,9
0,3
0,6
2,3
3,8
0,0
0,6
0,0
2,9
8,3
0,3
9,0
1,0
13,5
1,0
3,4
0,6
5,7
0,9

3,3
0,0
6,8
2,2

1,8
0,2
2,6
12,5
0,0
100,0
5,1
11,3
10,9
13,2
13,6

Grand total appropriations for commitments

115 434,0

111 421,8

96,5

109 272,6

98,1

1 066,3

1,0

1 082,9

1,0

Financial perspective
Agriculture
Structural actions
Internal policies
External actions
Administration
Reserves
Pre-accession strategy
Compensation

1
2
3
4
5
6
7
8

49 305,0
41 035,0
8 722,0
5 082,0
5 983,0
442,0
3 455,0
1 410,0

45 122,3
41 045,6
9 835,4 (1)
5 368,4 (1)
6 361,2 (1)
442,0
1 837,4
1 409,5

91,5
100,0
112,8
105,6
106,3
100,0
53,2
100,0

44 760,5
40 833,5
9 009,9
5 198,4
6 161,2
181,9
1 717,5
1 409,5

99,2
99,5
91,6
96,8
96,9
41,1
93,5
100,0

49,8
115,5
619,1
121,2
70,1
—
90,6
—

Grand total appropriations for commitments

115 434,0

111 421,8

96,5

109 272,6

98,1

1 066,3

Grand total appropriations for payments

111 380,0

105 032,1

94,3

100 139,4

95,3

2 829,9

0,1
0,3
6,3
2,3
1,1
—
4,9
—

1,0

2,7

311,9
96,7
206,4
48,8
129,8
260,1
29,3
—

1 082,9

2 062,7

0,7
0,2
2,1
0,9
2,0
58,9
1,6
—

1,0

2,0

(1) Final budget appropriations after taking account of transfers between budget headings, appropriations corresponding to assigned revenue or similar and appropriations

carried over from the previous financial year. As a consequence the ceiling for some financial perspective headings is exceeded by the available appropriations.
Including appropriations corresponding to assigned revenue or similar.

(2)

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Diagram IV
Appropriations for payments available in 2004 and utilisation thereof

(million euro and %)

Sections (S) and titles (T) corresponding to the 2004 budgetary
nomenclature and financial perspective headings

Final
appropriations
(1)

Payments
made in 2004

(a)

(b)

Utilis-
ation
rate
(%)

(b)/(a)

Utilisation of appropriations

Carry-overs
to 2005

Rate
(%)

Cancellations

(c)

(c)/(a)

(d) =
(a) – (b) – (c)

Budgetary nomenclature
Parliament (S. I)
Council (S. II)
Commission (S. III)
Economic and financial affairs (T. 01)
Enterprise (T. 02)
Competition (T. 03)
Employment and social affairs (T. 04)
Agriculture and rural development (T. 05)
Energy and transport (T. 06)
Environment (T. 07)
Research (T. 08)
Information society (T. 09)

I
II
III
III.1
III.2
III.3
III.4
III.5
III.6
III.7
III.8
III.9
III.10 Direct research (T. 10)
Fisheries (T. 11)
III.11
Internal market (T. 12)
III.12
Regional policy (T. 13)
III.13
Taxation and customs union (T. 14)
III.14
III.15
Education and culture (T. 15)
Press and communication (T. 16)
III.16
III.17 Health and consumer protection (T. 17)
Justice and home affairs (T. 18)
III.18
External relations (T. 19)
III.19
III.20
Trade (T. 20)
III.21 Development and relations with ACP States (T. 21)
III.22
III.23 Humanitarian aid (T. 23)
Fight against fraud (T. 24)
III.24
Commission’s policy coordination and legal advice
III.25
(T. 25)

Enlargement (T. 22)

III.26 Administration (T. 26)
III.27
Budget (T. 27)
III.28 Audit (T. 28)
III.29
III.30
III.31
IV
V
VI
VII
VIII

Statistics (T. 29)
Pensions (T. 30)
Reserves (T. 31)
Court of Justice (S. IV)
Court of Auditors (S. V)
Economic and Social Committee (S. VI)
Committee of the Regions (S. VII)
European Ombudsman and European Data-protection
Supervisor (S. VIII)

1 524,5
630,4
102 328,4
427,6
335,5
86,5
9 404,5
47 837,8
1 268,8
334,4
3 079,5
1 445,8
527,1
1 069,4
71,3
22 099,6
98,2
1 180,6
172,3
852,6
520,6
3 690,3
76,3
1 109,3
2 175,6
535,5
57,8
212,9

983,5
1 474,8
9,6
127,7
841,8
221,0
245,2
103,0
113,4
79,0
8,2

1 166,4
506,8
98 003,9
348,7
246,4
77,2
9 286,0
47 445,8
1 008,4
252,1
2 605,8
1 248,3
320,6
841,0
56,4
21 880,1
81,3
989,2
136,7
447,2
436,2
3 316,8
65,8
975,7
1 987,3
514,1
43,7
185,4

801,5
1 460,2
8,6
97,3
840,1
—
216,3
84,2
92,3
63,2
6,2

76,5
80,4
95,8
81,6
73,5
89,3
98,7
99,2
79,5
75,4
84,6
86,3
60,8
78,6
79,1
99,0
82,7
83,8
79,3
52,5
83,8
89,9
86,2
88,0
91,3
96,0
75,6
87,1

81,5
99,0
89,5
76,2
99,8
—
88,2
81,8
81,4
80,0
75,4

314,4
105,8
2 371,2
14,0
40,5
7,4
24,5
75,9
71,9
42,9
459,7
166,2
203,5
52,8
7,7
152,9
7,5
171,6
15,3
361,6
19,4
152,2
6,7
80,8
60,7
5,2
4,6
20,4

118,0
12,0
0,8
13,1
1,6
—
15,9
7,2
8,8
5,7
0,9

20,6
16,8
2,3
3,3
12,1
8,6
0,3
0,2
5,7
12,8
14,9
11,5
38,6
4,9
10,8
0,7
7,7
14,5
8,9
42,4
3,7
4,1
8,8
7,3
2,8
1,0
7,9
9,6

12,0
0,8
7,9
10,3
0,2
—
6,5
7,0
7,8
7,2
10,8

43,7
17,8
1 953,3
64,9
48,6
1,9
93,9
316,2
188,5
39,5
14,0
31,3
3,1
175,6
7,1
66,7
9,4
19,9
20,3
43,8
65,0
221,4
3,8
52,8
127,6
16,2
9,5
7,1

64,0
2,6
0,3
17,3
0,1
221,0
13,0
11,5
12,3
10,1
1,1

Rate
(%)

(d)/(a)

2,9
2,8
1,9
15,2
14,5
2,2
1,0
0,7
14,9
11,8
0,5
2,2
0,6
16,4
10,0
0,3
9,6
1,7
11,8
5,1
12,5
6,0
4,9
4,8
5,9
3,0
16,5
3,3

6,5
0,2
2,6
13,5
0,0
100,0
5,3
11,2
10,8
12,8
13,8

Grand total appropriations for payments

105 032,1

100 139,4

95,3

2 829,9

2,7

2 062,7

2,0

Financial perspective
Agriculture
Structural actions
Internal policies
External actions
Administration
Reserves
Pre-accession strategy
Compensation

1
2
3
4
5
6
7
8

44 308,3
34 635,1
8 992,1
5 098,0
6 927,2
442,0
3 219,9
1 409,5

43 579,4
34 198,3
7 255,2
4 605,8
5 856,4
181,9
3 052,9
1 409,5

98,4
98,7
80,7
90,3
84,5
41,1
94,8
100,0

397,9
197,0
1 152,1
175,6
849,6
—
57,8
—

0,9
0,6
12,8
3,4
12,3
—
1,8
—

331,0
239,7
584,8
316,6
221,2
260,1
109,2
—

0,7
0,7
6,5
6,2
3,2
58,9
3,4
—

Grand total appropriations for payments

105 032,1

100 139,4

95,3

2 829,9

2,7

2 062,7

2,0

(1) Final budget appropriations after taking account of transfers between budget headings, appropriations relating to assigned revenue or similar and appropriations carried

over from the previous financial year.

XVI

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Official Journal of the European Union

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30.11.2005

EN

Official Journal of the European Union

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XVIII

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Official Journal of the European Union

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30.11.2005

EN

Official Journal of the European Union

XIX

Reports and Opinions adopted by the Court of Auditors since 2000

ANNEX II

The Court of Auditors is required by the terms of the Trea-
ties to produce an annual report. It is also required, by the
Treaties and other legislation at present in force, to produce
special annual reports on certain Community bodies and

activities. The Treaties also give the Court the power to sub-
mit observations on specific questions and to deliver opin-
ions at the request of one of the institutions. The reports and
opinions adopted by the Court since 2000 are listed below.

Title

Publication

Annual Reports and Statements of Assurance

Twenty-third annual report concerning the financial year 1999:

OJ C 342, 1.12.2000

— Report and Statement of Assurance on the activities financed from the general budget

— Report and Statement of Assurance on the activities of the sixth, seventh and eighth EDFs

Twenty-fourth annual report concerning the financial year 2000:

— Report and Statement of Assurance on the activities financed from the general budget

— Report and Statement of Assurance on the activities of the sixth, seventh and eighth EDFs

OJ C 359, 15.12.2001,
OJ C 92, 17.4.2002 and
OJ C 36, 15.2.2003

Twenty-fifth annual report concerning the financial year 2001:

OJ C 295, 28.11.2002

— Report and Statement of Assurance on the activities financed from the general budget

— Report and Statement of Assurance on the activities of the sixth, seventh and eighth EDFs

Twenty-sixth annual report concerning the financial year 2002:

OJ C 286, 28.11.2003

— Report and Statement of Assurance on the activities financed from the general budget

— Report and Statement of Assurance on the activities of the sixth, seventh and eighth EDFs

Twenty-seventh annual report concerning the financial year 2003:

OJ C 293, 30.11.2004

— Report and Statement of Assurance on the activities financed from the general budget

— Report and Statement of Assurance on the activities of the sixth, seventh, eighth and ninth EDFs

Twenty-eighth annual report concerning the financial year 2004:

Published in this OJ

— Report and Statement of Assurance on the activities financed from the general budget

— Report and Statement of Assurance on the activities of the sixth, seventh, eighth and ninth EDFs

Special Reports

Own resources

— Special Report No 17/2000 on the Commission’s control of the reliability and comparability of

OJ C 336, 27.11.2000

the Member States’ GNP data

— Special Report No 23/2000 concerning valuation of imported goods for customs purposes (cus-

OJ C 84, 14.3.2001

toms valuation)

http: //www.eca.eu.int

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Official Journal of the European Union

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Title

Publication

Common agricultural policy

— Special Report No 1/2000 on classical swine fever

OJ C 85, 23.3.2000

— Special Report No 8/2000 on the Community measures for the disposal of butterfat

OJ C 132, 12.5.2000

— Special Report No 11/2000 on the support scheme for olive oil

— Special Report No 14/2000 on ‘Greening the CAP’

OJ C 215, 27.7.2000

OJ C 353, 8.12.2000

— Special Report No 20/2000 concerning the management of the common organisation of the

OJ C 50, 15.2.2001

market for sugar

— Special Report No 22/2000 on evaluation of the reformed clearance of accounts procedure

OJ C 69, 2.3.2001

— Special Report No 4/2001 on the audit of the EAGGF — Guarantee — the implementation of

OJ C 214, 31.7.2001

the integrated administration and control system (IACS)

— Special Report No 6/2001 on milk quotas

OJ C 305, 30.10.2001

— Special Report No 7/2001 concerning export refunds — destination and placing on the market OJ C 314, 8.11.2001

— Special Report No 8/2001 concerning refunds for the production of potato and cereal starch

OJ C 294, 19.10.2001

and potato starch aid

— Special Report No 14/2001 — Follow up to Special Report No 19/98 on BSE

OJ C 324, 20.11.2001

— Special Report No 5/2002 on extensification premium and payment schemes in the common

OJ C 290, 25.11.2002

organisation of the market for beef and veal

— Special Report No 6/2002 on the audit of the Commission’s management of the EU oilseeds

OJ C 254, 22.10.2002

support scheme

— Special Report No 7/2002 on the sound financial management of the common organisation of

OJ C 294, 28.11.2002

markets in the banana sector

— Special Report No 1/2003 concerning the prefinancing of export refunds

OJ C 98, 24.4.2003

— Special Report No 4/2003 concerning rural development: support for less-favoured areas

OJ C 151, 27.6.2003

— Special Report No 9/2003 concerning the system for setting the rates of subsidy on exports of

OJ C 211, 5.9.2003

agricultural products (export refunds)

— Special Report No 12/2003 on the sound financial management of the common organisation

OJ C 298, 9.12.2003

of the market in dried fodder

— Special Report No 13/2003 concerning production aid for cotton

OJ C 298, 9.12.2003

— Special Report No 14/2003 on the measurement of farm incomes by the Commission

OJ C 45, 20.2.2004

(Article 33(1)(b) of the EC Treaty)

— Special Report No 2/2004 concerning pre-accession aid: — ‘Has Sapard been well managed?’ OJ C 295, 30.11.2004

— Special Report No 3/2004 on recovery of irregular payments under the common agricultural

OJ C 269, 4.11.2004

policy

— Special Report No 6/2004: The organisation of the system for the identification and registra-

OJ C 29, 4.2.2005

tion of bovine animals in the European Union

— Special Report No 7/2004 on the common organisation of the market in raw tobacco

OJ C 41, 17.2.2005

http: //www.eca.eu.int

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Official Journal of the European Union

XXI

Title

Publication

— Special Report No 8/2004 on the Commission’s management and supervision of the measures

OJ C 54, 3.3.2005

to control foot-and-mouth disease and of the related expenditure

— Special Report No 9/2004 on forestry measures within rural development policy

OJ C 67, 18.3.2005

— Special Report No 3/2005 concerning rural development: The verification of agri-environment

OJ C 279, 11.11.2005

expenditure

Structural measures

— Special Report No 3/2000 on the European Social Fund and the European Agricultural Guid-
ance and Guarantee Fund (Guidance section) — Measures to assist the employment of young
persons

OJ C 100, 7.4.2000

— Special Report No 7/2000 on the International Fund for Ireland and the Special Support Pro-
gramme for peace and reconciliation in Northern Ireland and the border counties of Ireland
(1995-1999)

OJ C 146, 25.5.2000

— Special Report No 15/2000 on the Cohesion Fund

OJ C 279, 2.10.2000

— Special Report No 1/2001 concerning the URBAN Community initiative

OJ C 124, 25.4.2001

— Special Report No 10/2001 concerning the financial control of the Structural Funds, Commis-

OJ C 314, 8.11.2001

sion Regulations (EC) No 2064/97 and (EC) No 1681/94

— Special Report No 12/2001 concerning certain structural measures to improve the employment
situation: the impact of ERDF aid on employment and ESF measures to combat long-term unem-
ployment

OJ C 334, 28.11.2001

— Special Report No 3/2002 concerning the Community initiative employment — Integra

OJ C 263, 29.10.2002

— Special Report No 4/2002 on local actions for employment

OJ C 263, 29.10.2002

— Special Report No 7/2003 on the implementation of assistance programming for the period

OJ C 174, 23.7.2003

2000 to 2006 within the framework of the Structural Funds

— Special Report No 4/2004 on the programming of the Community initiative concerning trans-

OJ C 303, 7.12.2004

European cooperation — Interreg III

Internal policies

— Special Report No 9/2000 concerning trans-European-networks (TEN) — telecommunications OJ C 166, 15.6.2000

— Special Report No 10/2000 on the public contracts awarded by the Joint Research Centre

OJ C 172, 21.6.2000

— Special Report No 9/2001 on the Training and Mobility of Researchers Programme

OJ C 349, 10.12.2001

— Special Report No 2/2002 on the Socrates and Youth for Europe Community action pro-

OJ C 136, 7.6.2002

grammes

— Special Report No 11/2003 concerning the Financial Instrument for the Environment (LIFE)

OJ C 292, 2.12.2003

— Special Report No 1/2004 on the management of indirect RTD actions under the fifth frame-

OJ C 99, 23.4.2004

work programme (FP5) for research and technological development (1998 to 2002)

External action

— Special Report No 2/2000 on aid given by the European Union to Bosnia-Herzegovina with a

OJ C 85, 23.3.2000

view to restoring peace and the rule of law

— Special Report No 4/2000 on rehabilitation actions for ACP countries as an instrument to pre-

OJ C 113, 19.4.2000

pare for normal development aid

http: //www.eca.eu.int

XXII

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Official Journal of the European Union

30.11.2005

Title

Publication

— Special Report No 12/2000 on the management by the Commission of European Union sup-

OJ C 230, 10.8.2000

port for the development of human rights and democracy in third countries

— Special Report No 16/2000 on tendering procedures for service contracts under the Phare and

OJ C 350, 6.12.2000

Tacis programmes

— Special Report No 18/2000 concerning the programme to supply agricultural products to the

OJ C 25, 25.1.2001

Russian Federation

— Special Report No 19/2000 on the management by the Commission of the programme of assis-

OJ C 32, 31.1.2001

tance to Palestinian society

— Special Report No 21/2000 on the management of the Commission’s external aid programmes
(in particular on country programming, project preparation and the role of Delegations)

OJ C 57, 22.2.2001

— Special Report No 2/2001 concerning the management of emergency humanitarian aid for the

victims of the Kosovo crisis (ECHO)

OJ C 168, 12.6.2001 and
OJ C 159, 3.7.2002

— Special Report No 3/2001 concerning the Commission’s management of the international fish-

OJ C 210, 27.7.2001

eries agreements

— Special Report No 5/2001 on counterpart funds from structural adjustment support earmarked

OJ C 257, 14.9.2001

for budget aid (seventh and eighth EDFs)

— Special Report No 11/2001 concerning the Tacis cross-border cooperation programme

OJ C 329, 23.11.2001

— Special Report No 13/2001 on the management of the common foreign and security policy

OJ C 338, 30.11.2001

(CFSP)

— Special Report No 1/2002 concerning macrofinancial assistance (MFA) to third countries and

OJ C 121, 23.5.2002

structural adjustment facilities (SAF) in the Mediterranean countries

— Special Report No 2/2003 on the implementation of the food security policy in developing

OJ C 93, 17.4.2003

countries financed by the general budget of the European Union

— Special Report No 5/2003 concerning PHARE and ISPA funding of environmental projects in

OJ C 167, 17.7.2003

the candidate countries

— Special Report No 6/2003 concerning twinning as the main instrument to support institution-

OJ C 167, 17.7.2003

building in candidate countries

— Special Report No 8/2003 concerning the execution of infrastructure work financed by the EDF OJ C 181, 31.7.2003

— Special Report No 10/2003 concerning the effectiveness of the Commission’s management of

OJ C 211, 5.9.2003

development assistance to India in targeting the poor and ensuring sustainable benefits

— Special Report No 15/2003 concerning the audit of microproject programmes financed by the

OJ C 63, 11.3.2004

EDF

— Special Report No 5/2004 concerning Phare support to prepare candidate countries for man-

OJ C 15, 20.1.2005

aging the Structural Funds

— Special Report No 10/2004 concerning the devolution of EC external aid management to the

OJ C 72, 22.3.2005

Commission delegations

— Special Report No 2/2005 concerning EDF budget aid to ACP countries: the Commission’s man-

OJ C 249, 7.10.2005

agement of the public finance reform aspect

— Special Report No 4/2005 concerning the Commission’s management of economic coopera-

OJ C 260, 19.10.2005

tion in Asia

http: //www.eca.eu.int

30.11.2005

EN

Official Journal of the European Union

XXIII

Title

Publication

Administrative expenditure

— Special Report No 5/2000 on the Court of Justice’s expenditure on buildings (annex buildings

OJ C 109, 14.4.2000

Erasmus, Thomas More and Annex C)

— Special Report No 13/2000 on the expenditure of the European Parliament’s political groups OJ C 181, 28.6.2000

— Special Report No 3/2003 on the invalidity pensions scheme of the European institutions

OJ C 109, 7.5.2003

— Special Report No 1/2005 concerning the management of the European Anti-Fraud Office

OJ C 202, 18.8.2005

(OLAF)

— Special Report No 5/2005: Interpretation expenditure incurred by the Parliament, the Commis-

Being published

sion and the Council

Financial instruments and banking activities

— Special Report No 6/2000 concerning the granting by the Community of interest subsidies on
loans by the European Investment Bank to small and medium-sized enterprises, through its tem-
porary lending facility

OJ C 152, 31.5.2000

Special Annual Reports

Financial statements of the ECSC

— Report on the financial statements of the ECSC at 31 December 1999

OJ C 281, 4.10.2000

— Report on the financial statements of the ECSC at 31 December 2000

OJ C 185, 30.6.2001 and
OJ C 363, 19.12.2001

— Report on the financial statements of the ECSC at 31 December 2001

OJ C 158, 3.7.2002

— Report on the financial statements of the ECSC at 23 July 2002

OJ C 127, 29.5.2003

ECSC annual report

— Annual Report on the ECSC for the financial year 1999

— Annual Report on the ECSC for the financial year 2000

OJ C 347, 4.12.2000

OJ C 366, 20.12.2001

— Annual Report and Statement of Assurance concerning the ECSC for the financial year 2001

OJ C 302, 5.12.2002

— Annual Report and Statement of Assurance concerning the ECSC for the financial year ended

OJ C 224, 19.9.2003

23 July 2002

Euratom Supply Agency

— Report on the financial statements of the Euratom Supply Agency for the financial year 1999 Not published in OJ

— Report on the financial statements of the Euratom Supply Agency for the financial year ended

Not published in OJ

31 December 2000

— Report on the financial statements of the Euratom Supply Agency for the financial year 2001 Not published in OJ

— Report on the financial statements of the Euratom Supply Agency for the financial year 2002 Not published in OJ

— Report on the annual accounts of the Euratom Supply Agency for the financial year 2003

Not published in OJ

http: //www.eca.eu.int

XXIV

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Official Journal of the European Union

30.11.2005

Title

Publication

Joint European Torus (JET)

— Report on the 1999 accounts of the JET joint undertaking

— Report on the 2000 accounts of the JET joint undertaking

— Report on the 2001 accounts of the JET joint undertaking

Not published in OJ

Not published in OJ

Not published in OJ

European Foundation for the Improvement of Living and Working Conditions (Dublin Foundation)

— Report on the financial statements of the European Foundation for the Improvement of Living
and Working Conditions (Dublin Foundation) for the financial year ended 31 December 1999

OJ C 373, 27.12.2000

— Report on the financial statements of the European Foundation for the Improvement of Living
and Working Conditions (Dublin Foundation) for the financial year ended 31 December 2000

OJ C 372, 28.12.2001

— Report on the financial statements of the European Foundation for the Improvement of Living

OJ C 326, 27.12.2002

and Working Conditions for the financial year 2001

— Report on the financial statements of the European Foundation for the Improvement of Living

OJ C 319, 30.12.2003

and Working Conditions for the financial year 2002

— Report on the financial statements of the European Foundation for the Improvement of Living

OJ C 324, 30.12.2004

and Working Conditions for the 2003 financial year

European Centre for the Development of Vocational Training (Cedefop, Thessaloniki)

— Report on the financial statements of the European Centre for the Development of Vocational

OJ C 373, 27.12.2000

Training (Cedefop, Thessaloniki) for the financial year ended 31 December 1999

— Report on the financial statements of the European Centre for the Development of Vocational

OJ C 372, 28.12.2001

Training (Cedefop, Thessaloniki) for the financial year ended 31 December 2000

— Report on the financial statements of the European Centre for the Development of Vocational

OJ C 326, 27.12.2002

Training for the financial year 2001

— Report on the financial statements of the European Centre for the Development of Vocational

OJ C 319, 30.12.2003

Training for the financial year 2002

— Report on the annual accounts of the European Centre for the Development of Vocational Train-

OJ C 324, 30.12.2004

ing for the 2003 financial year

European Schools

— Report on the financial statements of the European Schools for the financial year ended

Not published in OJ

31 December 1999

— Report on the financial statements of the European Schools for the financial year ended

Not published in OJ

31 December 2000

— Report on the financial statements of the European Schools for the financial year 2001

Not published in OJ

— Report on the financial statements of the European Schools for the financial year 2002

Not published in OJ

— Report on the annual accounts of the European Schools for the financial year 2003

Not published in OJ

http: //www.eca.eu.int

30.11.2005

EN

Official Journal of the European Union

XXV

Title

Publication

European Monetary Institute and European Central Bank

— Report on the audit of the operational efficiency of the management of the European Central

OJ C 47, 13.2.2001

Bank for the financial year 1999

— Report on the audit of the operational efficiency of the management of the European Central

OJ C 341, 4.12.2001

Bank for the financial year 2000

— Report on the audit of the operational efficiency of the management of the European Central

OJ C 259, 25.10.2002

Bank for the financial year 2001

— Report on the audit of the operational efficiency of the management of the European Central

OJ C 45, 20.2.2004

Bank for the financial year 2002

— Report on the audit of the operational efficiency of the management of the European Central

OJ C 286, 23.11.2004

Bank for the financial year 2003

Management of the ‘Schengen contracts’

— Special Annual Report on the financial statements relating to the management by the Secretary-
General/High Representative of the Council of contracts concluded by him on behalf of certain
Member States and concerning the installation and functioning of the Help desk Server of the
Management Unit and of the Sirene network Phase II (Schengen contracts) for the period 3 May
to 31 December 1999

— Special Annual Report on the financial statements relating to the management by the Secretary-
General/High Representative of the Council of contracts concluded by him on behalf of certain
Member States and concerning the installation and functioning of the Help Desk Server of the
Management Unit and of the Sirene Network Phase II (Schengen contracts) for the financial year
ended 31 December 2000

— Special Annual Report on the financial statements relating to the management by the Secretary-
General/High Representative of the Council of contracts concluded by him on behalf of certain
Member States and concerning the installation and functioning of the Help Desk Server of the
management unit and of the Sirene Network Phase II (Schengen contracts) for the financial year
ended 31 December 2001

Not published in OJ

Not published in OJ

Not published in OJ

— Special Annual Report on the 2002 financial statements relating to the ‘Schengen contracts’

Not published in OJ

Management of ‘Sisnet contracts’

— Special Annual Report on the financial statements in respect of the management, by the Deputy
Secretary-General of the Council, of contracts concluded in his name on behalf of certain Mem-
ber States, relating to the installation and the functioning of the communication infrastructure
for the Schengen environment, known as ‘Sisnet’, for the financial year ended 31 December
2000

— Special Annual Report on the financial statements in respect of the management, by the Deputy
Secretary-General of the Council, of contracts concluded in his name on behalf of certain Mem-
ber States, relating to the installation and the functioning of the communication infrastructure
for the Schengen environment, known as ‘Sisnet’, for the financial year ended 31 December
2001

— Special Annual Report on the 2002 financial statements relating to ‘Sisnet’

— Special Annual Report on the 2003 financial statements relating to ‘Sisnet’

— Special Annual Report on the 2004 financial statements relating to ‘Sisnet’

Not published in OJ

Not published in OJ

Not published in OJ

Not published in OJ

Not published in OJ

Community Plant Variety Office (CPVO, Angers)

— Report on the financial statements of the Community Plant Variety Office (CPVO-Angers) for

OJ C 373, 27.12.2000

the financial year ended 31 December 1999

http: //www.eca.eu.int

XXVI

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Official Journal of the European Union

30.11.2005

Title

Publication

— Report on the financial statements of the Community Plant Variety Office (CPVO-Angers) for

OJ C 372, 28.12.2001

the financial year ended 31 December 2000

— Report on the financial statements of the Community Plant Variety Office for the financial year

OJ C 326, 27.12.2002

2001

— Report on the financial statements of the Community Plant Variety Office for the financial year

OJ C 319, 30.12.2003

2002

— Report on the annual accounts of the Community Plant Variety Office for the 2003 financial

OJ C 324, 30.12.2004

year

Office for Harmonization in the Internal Market (OHIM-Alicante)

— Report on the financial statements of the Office for Harmonization in the Internal Market

OJ C 373, 27.12.2000

(OHIM-Alicante) for the financial year ended 31 December 1999

— Report on the financial statements of the Office for Harmonization in the Internal Market

OJ C 372, 28.12.2001

(OHIM-Alicante) for the financial year ended 31 December 2000

— Report on the financial statements of the Office for Harmonization in the Internal Market for

OJ C 326, 27.12.2002

the financial year 2001

— Report on the financial statements of the Office for Harmonization in the Internal Market for

OJ C 319, 30.12.2003

the financial year 2002

— Report on the annual accounts of the Office for Harmonization in the Internal Market for the

OJ C 324, 30.12.2004

2003 financial year

European Agency for Safety and Health at Work (EASH-Bilbao)

— Report on the financial statements of the European Agency for Safety and Health at Work

OJ C 373, 27.12.2000

(EASH-Bilbao) for the financial year ended 31 December 1999

— Report on the financial statements of the European Agency for Safety and Health at Work

OJ C 372, 28.12.2001

(EASH-Bilbao) for the financial year ended 31 December 2000

— Report on the financial statements of the European Agency for Safety and Health at Work for

OJ C 326, 27.12.2002

the financial year 2001

— Report on the financial statements of the European Agency for Safety and Health at Work for

OJ C 319, 30.12.2003

the financial year 2002

— Report on the annual accounts of the European Agency for Safety and Health at Work for the

OJ C 324, 30.12.2004

2003 financial year

European Environment Agency (EEA, Copenhagen)

— Report on the financial statements of the European Environment Agency (EEA-Copenhagen) for

OJ C 373, 27.12.2000

the financial year ended 31 December 1999

— Report on the financial statements of the European Environment Agency (EEA-Copenhagen) for

OJ C 372, 28.12.2001

the financial year ended 31 December 2000

— Report on the financial statements of the European Environment Agency for the financial year 2001 OJ C 326, 27.12.2002

— Report on the financial statements of the European Environment Agency for the financial year 2002 OJ C 319, 30.12.2003

— Report on the annual accounts of the European Environment Agency for the 2003 financial year OJ C 324, 30.12.2004

European Monitoring Centre for Drugs and Drug Addiction (EMCDDA-Lisbon)

— Report on the financial statements of the European Monitoring Centre for Drugs and Drug

OJ C 373, 27.12.2000

Addiction (EMCDDA-Lisbon) for the financial year ended 31 December 1999

— Report on the financial statements of the European Monitoring Centre for Drugs and Drug

OJ C 372, 28.12.2001

Addiction (EMCDDA-Lisbon) for the financial year ended 31 December 2000

— Report on the financial statements of the European Monitoring Centre for Drugs and Drug

OJ C 326, 27.12.2002

Addiction for the financial year 2001

http: //www.eca.eu.int

30.11.2005

EN

Official Journal of the European Union

XXVII

Title

Publication

— Report on the financial statements of the European Monitoring Centre for Drugs and Drug

OJ C 319, 30.12.2003

Addiction for the financial year 2002

— Report on the annual accounts of the European Monitoring Centre for Drugs and Drug Addic-

OJ C 324, 30.12.2004

tion for the 2003 financial year

European Agency for the Evaluation of Medicinal Products (EAEMP-London)

— Report on the financial statements of the European Agency for the Evaluation of Medicinal Prod-

OJ C 373, 27.12.2000

ucts (EAEMP-London) for the financial year ended 31 December 1999

— Report on the financial statements of the European Agency for the Evaluation of Medicinal Prod-

OJ C 372, 28.12.2001

ucts (EAEMP-London) for the financial year ended 31 December 2000

— Report on the financial statements of the European Agency for the Evaluation of Medicinal Prod-

OJ C 326, 27.12.2002

ucts concerning the financial year 2001

— Report on the financial statements of the European Agency for the Evaluation of Medicinal Prod-

OJ C 319, 30.12.2003

ucts concerning the financial year 2002

— Report on the annual accounts of the European Agency for the Evaluation of Medicinal Prod-

OJ C 324, 30.12.2004

ucts concerning the 2003 financial year

Translation Centre for the bodies of the European Union (TCBEU-Luxembourg)

— Report on the financial statements of the Translation Centre for Bodies of the European Union

OJ C 373, 27.12.2000

(TCBEU-Luxembourg) for the financial year ended 31 December 1999

— Report on the financial statements of the Translation Centre for Bodies of the European Union

OJ C 372, 28.12.2001

(TCBEU-Luxembourg) for the financial year ended 31 December 2000

— Report on the financial statements of the Translation Centre for Bodies of the European Union

OJ C 326, 27.12.2002

for the financial year 2001

— Report on the financial statements of the Translation Centre for Bodies of the European Union

OJ C 319, 30.12.2003

for the financial year 2002

— Report on the annual accounts of the Translation Centre for the bodies of the European Union

OJ C 324, 30.12.2004

for the 2003 financial year

European Training Foundation (ETF-Turin)

— Report on the financial statements of the European Training Foundation (ETF-Turin) for the

OJ C 373, 27.12.2000

financial year ended 31 December 1999

— Report on the financial statements of the European Training Foundation (ETF-Turin) for the

OJ C 372, 28.12.2001

financial year ended 31 December 2000

— Report on the financial statements of the European Training Foundation for the financial year

OJ C 326, 27.12.2002

2001

— Report on the financial statements of the European Training Foundation for the financial year

OJ C 319, 30.12.2003

2002

— Report on the annual accounts of the European Training Foundation for the 2003 financial year OJ C 324, 30.12.2004

European Monitoring Centre on Racism and Xenophobia (Vienna)

— Report on the financial statements of the European Monitoring Centre on Racism and Xeno-

OJ C 373, 27.12.2000

phobia (Vienna) for the financial year ended 31 December 1999

— Report on the financial statements of the European Monitoring Centre on Racism and Xeno-

OJ C 372, 28.12.2001

phobia (Vienna) for the financial year ended 31 December 2000

http: //www.eca.eu.int

XXVIII

EN

Official Journal of the European Union

30.11.2005

Title

Publication

— Report on the financial statements of the European Monitoring Centre on Racism and Xeno-

OJ C 326, 27.12.2002

phobia for the financial year 2001

— Report on the financial statements of the European Monitoring Centre on Racism and Xeno-

OJ C 319, 30.12.2003

phobia for the financial year 2002

— Report on the annual accounts of the European Monitoring Centre on Racism and Xenophobia

OJ C 324, 30.12.2004

for the 2003 financial year

European Agency for Reconstruction (Thessaloniki)

— Report on the financial accounts of the European Agency for Reconstruction and the imple-

OJ C 355, 13.12.2001

mentation of aid for Kosovo for the year 2000

— Report on the financial statements of the European Agency for Reconstruction for the financial

OJ C 326, 27.12.2002

year 2001

— Report on the financial statements of the European Agency for Reconstruction for the financial

OJ C 319, 30.12.2003

year 2002

— Report on the annual accounts of the European Agency for Reconstruction for the financial year

OJ C 41, 17.2.2005

2003

European Maritime Safety Agency

— Report on the annual accounts of the European Maritime Safety Agency for the 2003 financial

OJ C 324, 30.12.2004

year

European Aviation Safety Agency

— Report on the annual accounts of the European Aviation Safety Agency for the 2003 financial

OJ C 324, 30.12.2004

year

European Food Safety Authority

— Report on the annual accounts of the European Food Safety Authority for the 2003 financial

OJ C 324, 30.12.2004

year

Eurojust

— Report on the financial statements of Eurojust for the financial year 2002

OJ C 319, 30.12.2003

— Report on the annual accounts of Eurojust for the 2003 financial year

OJ C 324, 30.12.2004

Convention

— Report on the accounts drawn up by the Secretary-General of the Convention on the future of
the European Union for the financial year 2002 (started on 21 February and ended on
31 December 2002)

OJ C 122, 22.5.2003

— Report on the accounts drawn up by the Secretary-General of the Convention on the future of

OJ C 157, 14.6.2004

the European Union for the financial year ended 31 December 2003

Galileo Joint Undertaking

— Report on the accounts of the Galileo Joint Undertaking for the financial year ended 31 Decem-

Not published in OJ

ber 2003

— Report on the accounts of the Galileo Joint Undertaking for the financial year ended 31 Decem-

Not published in OJ

ber 2004

http: //www.eca.eu.int

30.11.2005

EN

Official Journal of the European Union

XXIX

Title

Publication

Opinions

— Opinion No 1/2000 on a proposal for a Council Regulation amending the Financial Regulation
of 21 December 1977 and separating the internal audit function from the ex ante financial con-
trol function

OJ C 327, 17.11.2000

— Opinion No 2/2000 on a proposal to amend the Financial Regulation of the Community Plant

Not published in OJ

Variety Office (CPVO-Angers)

— Opinion No 1/2001 on a proposal for a Council Regulation amending Council Regulation (EC)
No 1258/1999 on the financing of the common agricultural policy as well as various other
regulations relating to the common agricultural policy

OJ C 55, 21.2.2001

— Opinion No 2/2001 on a proposal for a Council Regulation on the Financial Regulation appli-

OJ C 162, 5.6.2001

cable to the general budget of the European Communities

— Opinion No 3/2001 on a proposal for a Council Regulation introducing special measures to ter-
minate the service of officials of the Commission of the European Communities as part of the
reform of the Commission

OJ C 162, 5.6.2001

— Opinion No 4/2001 on a proposal for a Council Regulation amending Regulation (Euratom,
ECSC, EEC) No 549/69 determining the categories of officials and other servants of the Euro-
pean Communities to whom the provisions of Article 12, the second paragraph of Article 13
and Article 14 of the Protocol on the Privileges and Immunities of the Communities apply (pur-
pose: taxation of those entitled to the allowance provided for in the event of termination of ser-
vice)

OJ C 162, 5.6.2001

— Opinion No 5/2001 on a proposal to amend the Financial regulation of the Office for Harmo-

Not published in OJ

nization in the Internal Market (OHIM-Alicante)

— Opinion No 6/2001 concerning a draft Commission Regulation (Euratom, ECSC, EC) amend-
ing Commission Regulation 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

Not published in OJ

— Opinion No 7/2001 on a proposal for a Council Regulation amending Regulation (EEC, Eura-
tom, ECSC) No 259/68 laying down the Staff Regulations of officials and the conditions of
employment of other servants of the European Communities

Not published in OJ

— Opinion No 8/2001 on a proposal for a Council Regulation laying down the statute for execu-
tive agencies to be entrusted with certain tasks in the management of Community programmes

OJ C 345, 6.12.2001

— Opinion No 9/2001 on a proposal for a Directive of the European Parliament and of the Coun-
cil on the criminal-law protection of the Community’s financial interests (ref. 2001/0115 (COD
— COM(2001) 272 final)

OJ C 14, 17.1.2002

— Opinion No 1/2002 on a proposal to amend the financial regulation of the Office for Harmo-

Not published in OJ

nization in the Internal Market (OHIM-Alicante)

— Opinion No 2/2002 on an amended proposal for a Council Regulation on the Financial Regu-

OJ C 92, 17.4.2002

lation applicable to the general budget of the European Communities

— Opinion No 3/2002 concerning a proposal for the Financial Regulation applicable to the bud-

Not published in OJ

get of Eurojust

— Opinion No 4/2002 on an amended proposal for a Council Regulation amending Regulation
(Euratom, ECSC, EC) No 549/69 determining the categories of officials and other servants of the
European Communities to whom the provisions of Article 12, the second paragraph of
Article 13 and Article 14 of the Protocol on the Privileges and Immunities of the Communities
apply

OJ C 225, 20.9.2002

— Opinion No 5/2002 on a proposal for a Council Regulation introducing special measures to ter-
minate the service of officials of the Commission of the European Communities as part of the
reform of the Commission

OJ C 236, 1.10.2002

http: //www.eca.eu.int

XXX

EN

Official Journal of the European Union

30.11.2005

Title

Publication

— Opinion No 6/2002 on a proposal for a Council Regulation introducing special measures to ter-
minate the service of officials of the General Secretariat of the Council of the European Union

OJ C 236, 1.10.2002

— Opinion No 7/2002 on an amended proposal for a Council Regulation introducing special mea-
sures to terminate the service of European Parliament officials and temporary staff working in
the Political Groups

OJ C 236, 1.10.2002

— Opinion No 8/2002 concerning a proposal for a revised Financial Regulation applicable to the

Not published in OJ

budget of the European Agency for Reconstruction

— Opinion No 9/2002 concerning the financing of the common agricultural policy

OJ C 285, 21.11.2002

— Opinion No 10/2002 on a Commission proposal for amendment of the constituent acts of

OJ C 285, 21.11.2002

Community Bodies following the adoption of the new Financial Regulation

— Opinion No 11/2002 on a proposal for a Commission regulation on the framework financial
regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom)
No 1605/2002 on the Financial Regulation applicable to the general budget

OJ C 12, 17.1.2003

— Opinion No 12/2002 on the proposal for a Council regulation on a Financial Regulation appli-
cable to the ninth European Development Fund under the ACP/EU Partnership Agreement
signed at Cotonou on 23 June 2000

OJ C 12, 17.1.2003

— Opinion No 13/2002 concerning a draft Commission regulation laying down detailed rules for
the implementation of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on
the Financial Regulation applicable to the general budget of the European Communities

OJ C 12, 17.1.2003

— Opinion No 14/2002 on a proposal for a Council Regulation amending the Staff Regulations of

OJ C 21, 28.1.2003

officials and the Conditions of Employment of other servants of the European Communities

— Opinion No 1/2003 on a proposal for a regulation for the Budget Committee of the Office for
Harmonization in the Internal Market (Trade Marks and Designs) laying down the financial pro-
visions applicable to the Office (‘Financial Regulation’)

Not published in OJ

— Opinion No 2/2003 on a proposal for a regulation of the Administrative Council of the Com-
munity Plant Variety Office laying down the financial provisions applicable to the Office (‘Finan-
cial Regulation’)

Not published in OJ

— Opinion No 3/2003 concerning the draft financial regulation of the European Food Safety

Not published in OJ

Authority

— Opinion No 4/2003 concerning a draft financial regulation applicable to the Translation Centre

Not published in OJ

for bodies of the European Union

— Opinion No 5/2003 on a proposal for a Council Regulation introducing, on the occasion of the
accession of Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slo-
vakia and Slovenia, special temporary measures for recruitment of officials of the European
Communities

OJ C 224, 19.9.2003

— Opinion No 6/2003 concerning the draft financial regulation of the European Agency for the

Not published in OJ

Evaluation of Medicinal Products

— Opinion No 7/2003 on a proposal for a Council Regulation amending Regulation (EC, Eura-
tom) No 1150/2000 implementing Decision 2000/597/EC, Euratom on the system of the Com-
munities’ own resources

OJ C 318, 30.12.2003

— Opinion No 8/2003 on a proposal for a Decision of the European Parliament and of the Coun-
cil establishing a Community action programme to promote activities in the field of the pro-
tection of the Community’s financial interests

OJ C 318, 30.12.2003

http: //www.eca.eu.int

30.11.2005

EN

Official Journal of the European Union

XXXI

Title

— Opinion No 9/2003 on a draft Commission Regulation on a standard financial regulation for
the executive agencies pursuant to Council Regulation (EC) No 58/2003 laying down the stat-
ute for executive agencies to be entrusted with certain tasks in the management of Community
programmes

Publication

OJ C 19, 23.1.2004

— Opinion No 10/2003 on a proposal for a Council Regulation amending Regulation (EC, Eura-

OJ C 19, 23.1.2004

tom) No 2728/94 establishing a Guarantee Fund for external actions

— Opinion No 1/2004 on an amended proposal for a Council Regulation amending the Staff
Regulations of officials and the Conditions of Employment of other servants of the European
Communities

OJ C 75, 24.3.2004

— Opinion No 2/2004 on the ‘single audit’ model (and a proposal for a Community internal con-

OJ C 107, 30.4.2004

trol framework)

— Opinion No 1/2005 on the proposal for a Council Regulation on the financing of the common

agricultural policy

OJ C 121, 20.5.2005 and
OJ C 167, 7.7.2005

— Opinion No 2/2005 on the proposal for a Council Regulation laying down general provisions
on the European Regional Development Fund, the European Social Fund and the Cohesion Fund

OJ C 121, 20.5.2005

— Opinion No 3/2005 on the draft Regulation (EC) of the Commission amending Regulation (EC,
Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implemen-
tation of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial
Regulation applicable to the general budget of the European Communities

OJ C 124, 23.5.2005

— Opinion No 4/2005 on a proposal for a Council Decision on the system of the European Com-
munities’ own resources and on a proposal for a Council Regulation on the implementing mea-
sures for the correction of budgetary imbalances in accordance with Articles 4 and 5 of the
Council Decision of (…) on the system of the European Communities’ own resources

OJ C 167, 7.7.2005

— Opinion No 5/2005 on the draft Amendment of the Financial Regulation of the Community
Plant Variety Office adopted by the Administrative Council of the Office on 16 September 2004

Not published in OJ

— Opinion No 6/2005 on a proposal for a Regulation of the European Parliament and of the
Council amending Regulations (EC) No 1073/1999 and (Euratom) No 1074/1999 concerning
investigations conducted by the European Anti-Fraud Office (OLAF)

OJ C 202, 18.8.2005

— Opinion No 7/2005 on a draft Commission Regulation amending Regulation (EC)

OJ C 249, 7.10.2005

No 1653/2004 as regards the post of accounting officers of executive agencies

http: //www.eca.eu.int