Report on the annual accounts of the Community Plant Variety Office for the financial year 2007 together with the Office's replies
Date: 2008-09-18
Institutions: European Court of Auditors
Subjects: Community Plant Variety Office, European Court of Auditors, administration of the Institutions, financial control, implementation of the budget, powers of the institutions (EU), report

C 311/172

EN

Official Journal of the European Union

5.12.2008

REPORT

on the annual accounts of the Community Plant Variety Office for the
financial year 2007 together with the Office’s replies

(2008/C 311/25)

CONTENTS

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

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

OBSERVATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph

1-2

3-6

7

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

The Office’s replies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page

173

173

173

174

177

5.12.2008

EN

Official Journal of the European Union

C 311/173

INTRODUCTION

1.
The Community Plant Variety Office (hereinafter the
Office) was created by Council Regulation (EC) No 2100/94 of
27 July 1994 (1). Its main task is to register and examine applica-
tions for the grant of Community industrial property rights for
plant varieties and to ensure that the necessary technical exami-
nations are carried out by the competent offices in the Member
States.

2.
Table 1 summarises the Office’s competences and activi-
ties. Key data taken from the financial statements drawn up by the
Office for the financial year 2007 are presented in Tables 2, 3
and 4 for information purposes.

STATEMENT OF ASSURANCE

This Statement is addressed to the Administrative Council
3.
of the Office in accordance with Article 111 of Council Regula-
tion (EC) No 2100/94.

The Office’s accounts for

the financial year ended
4.
31 December 2007 (2) were drawn up by its President, pursuant
to Article 112 of Regulation (EC) No 2100/94, and sent to the
Court, which is required to give a Statement of Assurance 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 ISSAI (3) International Auditing Standards and Codes of Eth-
ics, in so far 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:

Reliability of the accounts

The Office’s accounts for the financial year ended 31 Decem-
ber 2007 are, in all material respects, reliable.

Legality and regularity of the underlying transactions

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

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

OBSERVATION

7.
In order to obtain higher interest than on a standard sav-
ings account, the Office bought shares in investment funds for 3
to 6 months for amounts varying from 2 to 10 million euro (4).
In February 2007, it also invested 5 million euro in a two-year
investment fund. The Office should adopt a treasury management
policy before investing in such financial instruments.

This Report was adopted by the Court of Auditors in Luxembourg at its meeting of
18 September 2008.

For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
President

(1) OJ L 227, 1.9.1994, p. 27.
(2) These accounts were drawn up on 27 June 2008 and received by the

Court on 1 July 2008.

(3) International Federation of Accountants (IFAC) and International Stan-

dards of Supreme Audit Institutions (ISSAI).

(4) At the year-end 2007, all those investments had been settled.

Table 1

Community Plant Variety Office (Angers)

Areas of Community competence
deriving from the Treaty

Competences of the Office as defined in Council Regulation (EC)
No 2100/94

Governance

Resources made available to the
Office in 2007
(Data for 2006)

Products and services supplied in 2007
(Data for 2006)

Free movement of goods

Objectives

Tasks

1. The President

Final budget:

Applications heard: 2 977 (2 751)

of

industrial

Prohibitions or restrictions jus-
tified on grounds of the protec-
tion
and
commercial property shall not
constitute a means of arbitrary
discrimination or a disguised
restriction on trade between
the Member States.

(Extract from Article 30 of the
Treaty)

— To apply the system of
Community plant vari-
ety rights as the sole and
exclusive form of Com-
munity industrial prop-
erty rights
for plant
varieties.

— To decide whether

to
refuse or grant applica-
tions
Community
for
plant variety rights.

— To decide on objections.

— To decide on appeals.

— To decide on the revoca-
tion or cancellation of a
Community plant variety
right.

Directs the Office. He is appointed by
the Council from a list of candidates
proposed by the Commission after
obtaining the opinion of the Admin-
istrative Council.

2. The Administrative Council

Oversees
the Office’s work pro-
gramme and draws up rules governing
the Office’s working methods. It is
composed of one representative of
each MemberState and one represen-
tative of the Commission, plus their
alternates.

3. Decisions regarding the grant of
Community plant variety rights are
adopted by Committees composed
of three members of staff of the Office
and by the Board of Appeal in appeal
proceedings.

13,4 (13,0) million euro

Rights granted: 2 616 (2 289)

Community
rights
31 December 2007: 14 598 (12 933)

force

in

at

Staff
31 December 2007:

numbers

as

at

Number of posts in establish-
ment plan: 42 (41)

Posts occupied: 42 (41)

+ 2,5 (4) other posts (auxiliary
contracts, national experts on
secondment,
staff,
employment-agency staff)

local

Total staff: 44,5 (45)

Assigned to the
duties:

following

Operational: 17,5

Administrative: 21

4. Control of the legality of the
Office’s acts

Mixed: 6

Review by the Commission of the
legality of the acts of the Office’s Presi-
dent in respect of which Community
law does not provide for any control
on legality by another body and of the
acts of the Administrative Council
relating to the Office’s budget.

5. External audit

Court of Auditors.

6. Discharge authority

Administrative Council.

Source:

Information supplied by the Office.

C
3
1
1
/
1
7
4

E
N

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f
f
i
c
i
a
l

J
o
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n
a
l

o
f

t
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a
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n
o
n

i

.

.

5
1
2
2
0
0
8

Community Plant Variety Office (Angers) — Budget implementation for the financial year 2007

Table 2

Source of revenue

Own revenue

Accumulated surplus

Community subsidies

Other revenue

Revenue

Revenue entered in the
final budget for the
financial year (1)

8 991

3 545

172

707

Revenue collected

Allocation of expenditure

8 999

0

0

575

Title I
Staff (NDA)

Title II
Administration (NDA)

Title III

Operating activities (DA)

Expenditure

Final budget appropriations

(1 000 euro)

Appropriations carried over from the
previous financial year

entered

committed

paid

carried
over

cancelled

available

paid

cancelled

4 857

4 556

4 508

48

301

53

51

2 857

6 896

5 701

— CA

— PA

2 477

5 458

Total CA

14 610

12 492

997

1 481

5 161

5 505

0

0

1 528

1 528

380

1 438

540

2 118

1 221

852

—

—

905

408

—

459

2

444

—

—

446

Total

13 415

9 574

Total PA

13 415

7 033

10 666

(1) The published budget states 13 405 (000) as total revenue and 13 399 (000) as total payment appropriations. The correct amount, however, should have been 13 415 (000). This table works with the correct amounts.
NDA: non-differentiated appropriations (commitment appropriations equal payment appropriations).
DA:
CA:
PA:
Source: Data supplied by the Office. This table summarises the data provided by the Office in its annual accounts. Revenue collected and payments are estimated on a cash basis.

differentiated appropriations (commitment appropriations may differ from payment appropriations).
commitment appropriations in a system of differentiated appropriations.
payment appropriations in a system of differentiated appropriations.

.

.

5
1
2
2
0
0
8

E
N

O

f
f
i
c
i
a
l

J
o
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n
a
l

o
f

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i

C
3
1
1
/
1
7
5

C 311/176

EN

Official Journal of the European Union

5.12.2008

Community Plant Variety Office (Angers) — Economic outturn account for the financial years 2007 and 2006

Table 3

Operating revenue

Fees collected

Other revenue

Operating expenditure

Staff expenditure

Fixed-asset-related expenditure

Other administrative expenditure

Operational expenditure

Total (a)

Total (b)

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

Revenue from financial operations (e)

Expenditure on financial operations (f)

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

Extraordinary income

Extraordinary expenditure

Surplus/(deficit) from extraordinary activities

Economic result for the year

(1 000 euro)

2007

2006

8 983

387

9 370

4 554

184

1 130

4 814

10 682

– 1 312

602

8

594

0

7

– 7

– 725

8 844

29

8 873

4 398

191

1 031

4 535

10 155

– 1 282

495

0

495

7

38

– 31

– 818

Source: Data supplied by the Office. This table summarises the data provided by the Office in its annual accounts: these accounts are drawn

up on an accrual basis.

Community Plant Variety Office (Angers) — Balance sheet at 31 December 2007 and 2006

Table 4

Non-current assets

Intangible fixed assets

Tangible fixed assets

Financial fixed assets

Current assets

Short-term receivables

Cash and cash equivalents

Accounts payable

Reserve

Accumulated surplus/deficit

Provisions for risks and liabilities

Economic result for the year

(1 000 euro)

2007

2006

269

3 677

5 003

2 644

11 905

23 498

8 591

8 591

Total assets

Total liabilities

Net assets

14 907

15 373

259

– 725

Net capital

14 907

43

3 316

3

1 866

18 487

23 715

8 342

8 342

15 373

16 191

0

– 818

15 373

Source: Data supplied by the Office. This table summarises the data provided by the Office in its annual accounts: these accounts are drawn

up on an accrual basis.

5.12.2008

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Official Journal of the European Union

C 311/177

THE OFFICE’S REPLIES

The Office takes note of the observation. Investment decisions were made on basis of analysis and infor-

7.
mation presented by the accountant to management. The latter co-signed all subscription orders.

From October 2007 onward, available treasury has been invested only in fixed term accounts. The Office will
formalise a treasury management policy.