Report on the annual accounts of Eurojust for the financial year 2006 together with the Eurojust's replies
Date: 2007-09-27
Institutions: European Court of Auditors
Subjects: Eurojust, European Court of Auditors, administration of the Institutions, financial control, implementation of the budget, powers of the institutions (EU), report

19.12.2007

EN

Official Journal of the European Union

C 309/111

on the annual accounts of Eurojust for the financial year 2006 together
with the Eurojust’s replies

REPORT

(2007/C 309/19)

CONTENTS

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

STATEMENT OF ASSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

OBSERVATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph

1-2

3-6

7-9

Tables 1 to 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Eurojust’s replies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page

112

112

112

113

115

C 309/112

EN

Official Journal of the European Union

19.12.2007

INTRODUCTION

Legality and regularity of the underlying transactions

by

up

set

Eurojust was

1.
Council Decision
No 2002/187/JHA (1) with a view to stepping up the fight against
serious organised crime. Its objective is to improve the coordina-
tion of investigations and prosecutions covering the territories of
several Member States of the European Union, as well as that of
non-member States.

The transactions underlying Eurojust’s annual accounts, taken
as a whole, are legal and regular.

The observations which follow do not call the Court’s State-
ment into question.

2.
Table 1 summarises Eurojust’s competences and activities.
Key data summarised from the financial statements drawn up by
Eurojust for the financial year 2006 is presented in Tables 2, 3
and 4 for information purposes.

OBSERVATIONS

STATEMENT OF ASSURANCE

3.
This statement is addressed to the European Parliament
and the Council pursuant to Article 36 of Council Decision
2002/187/JHA.

4.
Eurojust’s accounts for the financial year ended 31 Decem-
ber 2006 (2) were drawn up by its Administrative Director, pur-
suant to Article 36 of Council Decision No 2002/187/JHA, and
sent to the Court, which is required to give a statement of assur-
ance on their reliability and on the legality and regularity of the
underlying transactions.

5.
The Court conducted its audit in accordance with the IFAC
and INTOSAI International Auditing Standards and Codes of Eth-
ics, insofar as these are applicable in the European Community
context. The audit was planned and performed to obtain reason-
able assurance that the accounts are reliable and that the under-
lying transactions are legal and regular.

The Court has thus obtained a reasonable basis for the

6.
Statement set out below.

7.
The commitment rate for appropriations entered in the
budget for the financial year 2006 was 96 %. The carryover rate
was 33 % for administrative expenditure (Title II), and 30 % for
operational expenditure (Title III). The management of the bud-
get showed a high number of transfers of appropriations between
budget lines and in many cases the supporting documentation
was insufficiently detailed. Thus, the budgetary principles of
annuality and specification were not strictly observed.

8.
The rules for procurement were not strictly implemented.
Four framework contracts were concluded for a maximum dura-
tion of more than four years. For the procurement of courier ser-
vices (3) no appropriate procedure had been launched at the time
of the audit (November 2006). For translation services, a bureau
was instructed to use translators chosen by Eurojust instead of its
own staff. This situation was not in line with the competition
principle and it resulted in a price increase of 45 000 euro as
compared to contractual tariffs.

Reliability of the accounts

Eurojust’s accounts for the financial year ended 31 Decem-
ber 2006 are, in all material respects, reliable.

9.
The data concerning fixed assets were compiled using a
spreadsheet and other software tools. This did not guarantee the
integrity of the data recorded. A fixed assets register which
includes all assets and their values was not established and used
to monitor the Eurojust’s property.

This report was adopted by the Court of Auditors in Luxembourg at
27 September 2007.

its meeting of

For the Court of Auditors
Hubert WEBER
President

(1) Decision of 28 February 2002 setting up Eurojust (OJ L 63, 6.3.2002,

p. 1).

(2) These accounts were drawn up on 27 June 2007 and received by the

Court on 4 July 2007.

(3) Value of the contracts: more than 100 000 euro.

Areas of competence deriving from
the Treaty on European Union

Competences of Eurojust as defined in the Council Decision
2002/187/JAI

Governance

Resources made available
to Eurojust in 2006
(2005)

Products and services supplied
in 2006
(2005)

Table 1

Eurojust (The Hague) — 2006

Third pillar body created by
Council Decision.

The Union’s objective is to pro-
vide citizens with a high level of
safety within an area of freedom,
security and justice.

The Council encourages coopera-
tion through Eurojust by enabling
it to facilitate proper coordination
between the Member
States’
national prosecuting authorities.

(extracts from Articles 29 and 31)

Eurojust’s main areas of responsi-
bility are the same as Europol’s,
that is, the fight against terrorism,
organised crime,
in particular
drug-trafficking, illegal immigra-
tion, illicit vehicle trafficking, traf-
ficking in human beings,
the
counterfeiting of money, traffick-
ing in radioactive substances,
computer crime, acts detrimental
to the Union’s financial interests
and money-laundering.

Objectives
Article 3
Eurojust Decision

Tasks
Articles 5, 6 and 7
Eurojust Decision

— To stimulate and improve the
coordination, between the
competent national authori-
ties of the Member States, of
investigations and prosecu-
tions.

To organise
cooperation
between the various national
legal systems, Eurojust acts:

— through its national

members; or

— as a College.

If the competent authorities
of the Member State con-
cerned decide not to respond
to the requests which Euro-
just has issued as a College,
they shall inform Eurojust of
the reasons for their deci-
sion.

— To improve cooperation, in
particular by facilitating the
information,
exchange of
mutual
legal assistance and
the implementation of extra-
dition requests.

— To support the competent
authorities of
the Member
States in order to render their
investigations and prosecu-
tions more effective.

— To provide support with pro-
cedures involving a Member
State and a non-member
State.

— To provide support with pro-
cedures involving a Member
State and the Community.

Source:

Information supplied by Eurojust.

1. The College is responsible for the
organisation and operation of Eurojust.

Final budget

is

2. The College
composed of
national members who are seconded
by each Member State in accordance
with its legal system and who are pros-
judges or police officers of
ecutors,
equivalent competence.

14,7 million euro (13 million euro)

Community
(100 %)

subsidy:

100 %

Number of meetings: 89 (73)

Standard cases (*): 270 out of
361

Complex cases: 91 out of 361

Staff numbers at 31 Decem-
ber 2006

Total number of cases: 771
(588)

3. The College elects its President
from among the national members.

Number of posts in the establish-
ment plan: 112 (87)

Fraud: 175 (120)

4. The Joint Supervisory Body
checks the processing of personal data

5. The Administrative Director is
unanimously appointed by the College.

6. External audit: the European Court
of Auditors.

Posts occupied: 93 (70)

+ 21 (15) other posts:

(2 contract
national experts,
employment agency staff)

staff, 5 seconded
local staff, 14

Total staff numbers: 114 (85)

7. Discharge is given by the Parlia-
ment on the Council’s recommendation.

assigned to the following tasks:

Drug trafficking: 170 (135)

Terrorism: 44 (25)

Murder: 59 (43)

Trafficking in persons: 32 (33)

(*) New type of classification
as of 1 July 2006, valid for the
361 cases opened between
this date and 31 Decem-
ber 2006.

operational: 56 (31)

administrative: 49 (41)

mixed: 9 (13)

.

1
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EUROJUST (The Hague) — Implementation of the budget for the financial year 2006

Table 2

Source of revenue

Revenue

Revenue entered
in the final budget
for the financial year

Revenue received

Allocation of expenditure

Community subsidies

14 700

Other revenue

—

14 700

1 004

Title I
Staff

Title II
Administration

Title III
Operating activities

Expenditure

Appropriations under the final budget

(1 000 euro)

Appropriations carried over from
the previous financial year(s)

entered

committed

paid

carried
over

cancelled

entered

paid

cancelled

6 844

6 601

6 412

189

243

3 384

3 295

2 214

1 082

89

4 472

4 189

2 940

112

722

1 280

2 114

96

571

1 153

1 819

16

151

127

295

Total

14 700

15 704

Total

14 700

14 086

11 566

NB: Variations in totals are due to the effects of rounding.
Source: Data supplied by Eurojust. This table summarises the data supplied by Eurojust in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Table 3

1 320

2 591

211

543

Table 4

EUROJUST (The Hague) — Economic outturn account for the financial
years 2006 and 2005

EUROJUST (The Hague) — Balance sheet at 31 December 2006
and 2005

Operating revenue

Community subsidies

Other revenues

Operating expenditure

Staff expenditure

Fixed-asset related expenditure

Other administrative expenditure

Operational expenditure

(1 000 euro)

2006

2005

12 858

11 991

973

59

Total (a)

13 831

12 050

6 581

674

2 202

3 297

5 149

508

2 800

2 054

10 511

1 539

3

– 3

Non-current assets
Intangible fixed assets
Tangible fixed assets
Current assets
Short-term receivables
Cash and cash equivalents

Current liabilities
Provisions for risks and charges
Accounts payables

Net assets
Accumulated surplus/deficit
Economic result for the year

(1 000 euro)

2006

2005

556
1 674

372
4 749
7 351

134
2 762
2 896

3 378
1 077
4 455
7 351

167
1 606

159
3 130
5 062

85
1 599
1 684

1 842
1 536
3 378
5 062

Total assets

Total liabilities

Total net assets
Total liabilities and net assets

Surplus/(deficit) from operating activities (c = a – b)

1 077

Total (b)

12 754

Other charges (d)

Surplus /(deficit) from non-operating activities (e = – d)

—

0

Source: Data supplied by Eurojust. This table summarises the data provided by Eurojust in its annual accounts: these accounts are drawn up on a accrual basis.

Economic result for the year (f = c + e)

1 077

1 536

C
3
0
9
/
1
1
4

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.

1
9
1
2
2
0
0
7

.

19.12.2007

EN

Official Journal of the European Union

C 309/115

THE EUROJUST’S REPLIES

For Title II, the level of carry over is mostly due to a project

7.
managed by the host State and started very late in the year.

For Title III, Eurojust has reduced the rate since 2005 (from 33 %
to 30 %). Eurojust has reviewed its Budget transfer policy in view
to lower the number and volume of transfers and improve their
documentation.

Eurojust has adopted appropriate measures to replace
8.
framework contracts within their fourth year of duration at the
latest. An open procurement procedure for courier services has
been launched and is ongoing.

The translation of the Annual Report of Eurojust entails very
strict constraints as regards both timetable and quality require-
ments. Unfortunately, no supplier with whom Eurojust has a con-
tract was able to provide the quality of service required within the
timeframe necessary which led to the situation described by the
Court. Nevertheless, Eurojust has taken into account the com-
ment of the Court and is preparing a new procurement procedure
to be launched before the end of 2007.

9.
Eurojust is working to resolve this situation by the end of
2007 by which time ABAC Assets will be in place and a link to
the current software used for physical inventory will have the
capacity to provide the information requested by the financial
regulation.