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

C 309/94

EN

Official Journal of the European Union

19.12.2007

REPORT

on the annual accounts of the Translation Centre for the Bodies of the
European Union for the financial year 2006 together with the Centre’s
replies

(2007/C 309/16)

CONTENTS

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

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

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

1-2

3-6

7-9

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

The Centre’s replies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

95

95

95

96

98

Paragraph

Page

19.12.2007

EN

Official Journal of the European Union

C 309/95

INTRODUCTION

The Court has thus obtained a reasonable basis for the

6.
Statement set out below:

1.
The Translation Centre for the Bodies of the European
Union (hereinafter ‘the Centre’) was established by Council Regu-
lation (EC) No 2965/94 (1). The Centre’s role is to provide the EU
bodies, and any other EU Institutions and Bodies which call upon
its services, with the translation services necessary for their
activities.

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

STATEMENT OF ASSURANCE

3.
This Statement is addressed to the European Parliament
and the Council in accordance with Article 185(2) of Council
Regulation (EC, Euratom) No 1605/2002 (2); it was drawn up fol-
lowing an examination of the Centre’s accounts, as required by
Article 248 of the Treaty establishing the European Community.

4.
The Centre’s accounts for the financial year ended
31 December 2006 (3) were drawn up by its Director, pursuant
to Article 14 of Regulation (EC) No 2965/94, and sent to the
Court, which is required to give its opinion 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.

Reliability of the accounts

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

Legality and regularity of the underlying transactions

The transactions underlying the Centre’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.

OBSERVATIONS

The accumulated budget

for 2006 was
7.
16,9 million euro. In 2005 it was 10,5 million euro and in 2004
it was 3,5 million euro. In 2007, the Centre will refund 9,3 mil-
lion euro to its clients. Such an accumulation of surpluses showed
that the method for pricing its translations is not precise enough.

surplus (4)

In one case (5), a legal commitment was made prior to the

8.
budget commitment, in breach of the Financial Regulation.

Written guidelines necessary for the assessment of candi-
9.
dates did not exist. In a recruitment procedure for translators, the
Centre failed to provide written evidence of the rules applied for
the evaluation of the candidates files.

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) OJ L 314, 7.12.1994, p. 1.
(2) OJ L 248, 16.9.2002, p. 1.
(3) These accounts were drawn up on 1 July 2007 and received by the

(4) The budgetary result is calculated on the basis of a modified cash
method and not on the basis of the accruals principle used for the eco-
nomic result (see table 3).

Court on 3 July 2007.

(5) Value: 320 000 euro.

Translation Centre for the Bodies of the European Union (Luxembourg)

Table 1

Areas of Community
competence

Competences of the Centre
Council Regulation (EC) No 2965/94 of 28 November 1994

Governance

Resources made available
to the Centre in 2006
(2005 data)

Products and services provided
during the financial year 2006
(2005 data)

Objectives

Tasks

1. Management Board

Final budget

Number of pages translated

To provide the necessary translation ser-
vices for the operation of the following
bodies:

— the

European

Environment

Agency

— the European Training Foundation

— the European Monitoring Centre
for Drugs and Drug Addiction

— To make arrangements
for cooperation with
the bodies and institu-
tions

— To participate in the
work of the Interinsti-
Translation
tutional
Committee.

Composition

40,88 (27,9) million euro

546 735 (505 438).

— one representative per Member

Staff as at 31 December 2006

Number of pages by language

State;

— two representatives from the Com-

mission;

189 (181) posts listed in the
establishment plan

— official languages: 537 797

(501 475);

posts occupied: 169 (163)

— other

languages: 8 938

— one representative from each body
or institution calling upon the Cen-
tre’s services.

Assigned to:

— the European Medicines Agency

Task

— operational
(114);

duties:

80

The representatives of
the
Member States’ governments
adopted by mutual agreement
a declaration concerning the
creation, under the aegis of
the Commission’s translation
departments in Luxembourg,
of a Translation Centre for the
bodies of the Union, which
would provide the necessary
translation services for the
operation of the bodies and
services whose seats were
established by the Decision of
29 October 1993

(Council Decision taken on the
basis of Article 235 of
the
Treaty).

(3 963).

Number of pages per client

— bodies:

531 454

(496 665);

— institutions
(8 773).

15 281

Number of pages translated
freelance

260 301 (226 822)

— the European Agency for Health

and Safety at Work

— the Office for Harmonisation in
the Internal Market (Trademarks
and Designs)

— the

European

Police Office
(Europol) and the Europol Drugs
Unit.

Bodies set up by the Council other than
the above may use the Centre’s services.
The institutions and bodies of the Euro-
pean Union which already have their
own Translation Services may, if need
be, call upon the Centre’s services on a
voluntary basis.

The Centre plays a full part in the work
of
the Interinstitutional Translation
Committee.

Source:

Information forwarded by the Centre.

Adopts the Centre’s annual work pro-
gramme and annual report.

— administrative duties: 89

(57);

2. Director

— mixed duties: 0 (4).

Appointed by the Management Board
on a proposal from the Commission.

3. External control

Court of Auditors.

4.

Internal audit

Commission’s internal auditor.

5. Discharge authority

Parliament on a recommendation from
the Council.

C
3
0
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Translation Centre for the Bodies of the European Union (Luxembourg) — 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

Expenditure

Final budget appropriations

(1 000 euro)

Appropriations carried over from the
previous financial year

entered

committed

paid

carried
over

cancelled

available

paid

cancelled

Own revenue

29 731

32 359

Other revenue

Interest
Balance for the previ-
ous financial year

Total

0

600

10 545
40 876

93

844

10 545
43 841

Title I
Staff
Title II
Administration
Title III
Operating activities
Title X
Reserve

15 464

13 989

13 793

196

1 475

4 421

3 949

2 734

1 215

472

106

755

99

673

10 739

8 909

7 434

1 475

1 830

1 291

1 288

Total

10 252
40 876

0
26 847

0
23 961

0
2 886

10 252
14 029

0
2 151

0
2 060

7

82

3

0
92

Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its annual accounts. Revenue collected and payments are estimated on a cash basis.

Translation Centre for the Bodies of the European Union (Luxembourg) — Economic outturn
account for the financial years 2006 and 2005

Translation Centre for the Bodies of the European Union (Luxembourg) — Balance sheet at
31 December 2006 and 2005

Table 3

Table 4

Operating revenue
Own resources
Other revenue (1)

Operating expenditure
Staff expenditure
Fixed asset-related expenditure
Other administrative expenditure
Operational expenditure

(1 000 euro)

2006

2005

32 817
126
32 943

30 408
372
30 780

Total (a)

13 713
4 195
2 021
8 757
28 686
4 258
844
3
841
5 099

13 200
3 547
1 849
7 397
25 993
4 787
429
4
425
5 212

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

Current liabilities
Provisions for risks and charges
Accounts payable (1)

Net assets
Reserves
Accumulated surplus/deficit
Economic result for the year

(1 000 euro)

2006

2005

267
391

313
5 907
34 618
41 496

10 600
11 286
21 886

343
356

279
6 184
27 392
34 554

9 330
1 418
10 748

Total assets

Total liabilities

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

Revenue from financial operations (e) (2)
Expenditure on financial operations (f)

Surplus/(deficit) from non-operating activities (g = e – f)
Economic result for the year (h = c + g)
In 2005, the Centre included translation work in progress (279 452 euro) in its Balance Sheet for the first time. In
2006, by contrast, only the variation in the volume of this work in progress (33 215 euro) is recorded in the eco-
nomic outturn account.
In 2006, there was an increase in the available financial assets, resulting in an increase in interest received.

(1)

(2)

Total net assets
Total liabilities and net assets
(1) This amounts includes 9 292 000 euro to be repaid to the Centre’s clients and disclosed as a reserve in the Centre’s

Financial Statements (see Centre’s reply to point 7).

466
14 045
5 099
19 610
41 496

9 761
8 833
5 212
23 806
34 554

Source: Data supplied by the Centre — This table summarises the data provided by the Centre in its internal accounts: these accounts are drawn up on an accrual basis.

.

1
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C 309/98

EN

Official Journal of the European Union

19.12.2007

THE CENTRE’S REPLIES

The Centre is aware of the increase of its budget surpluses
7.
and has decided to refund EUR 9,3 million to its clients in 2007.
To prevent this situation from arising in the future, the Centre will
do its utmost to improve the method for calculating prices. More-
over, as this method requires an estimate of the foreseen demand
for translation, the Centre will encourage its clients to improve
their forecasts.

The Centre has adapted its procedure to prevent the rep-

8.
etition of the situation described by the Court.

The Centre will study ways to improve its recruitment pro-

9.
cedure to take into account the Court’s remark.