Report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2007 together with the Centre's replies
Date: 2008-09-18
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 311/116

EN

Official Journal of the European Union

5.12.2008

REPORT

on the annual accounts of the Translation Centre for the Bodies of the
European Union for the financial year 2007 together with the Centre’s
replies

(2008/C 311/17)

CONTENTS

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

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

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

Paragraph

1-2

3-6

7-8

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

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

Page

117

117

117

118

121

5.12.2008

EN

Official Journal of the European Union

C 311/117

INTRODUCTION

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 taken from the financial statements drawn up by the
Centre for the financial year 2007 are presented in Tables 2, 3
and 4for 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.

The Centre’s accounts for the financial year ended
4.
31 December 2007 (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 a statement of assurance on their
reliability and on the legality and regularity of the underlying
transactions.

The Court has thus obtained a reasonable basis for the

6.
statement set out below:

Reliability of the accounts

The Centre’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 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

7.
In one case, the audit of procurement procedures showed
that the evaluation of the award criteria was not appropriately
documented because the Centre did not make a cost/benefit
analysis of the different alternatives proposed to justify the final
choice.

5.
The Court conducted its audit in accordance with the IFAC
and ISSAI (4) 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.

8.
There was a lack of due diligence in the way in which one
of the six recruitment procedures audited was implemented. The
file examined showed various anomalies (errors in the evaluation
sheets, dates not correctly registered as required, imprecision of
the supporting documents). This situation did not ensure the
transparency of the procedure.

This report was adopted by the Court of Auditors in Luxembourg at
18 September 2008.

its meeting of

For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
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 16 June 2008 and received by the

Court on 3 July 2008.

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

dards of Supreme Audit Institutions (ISSAI).

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

Governance

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

Products and services provided during the
financial year 2007
(Data for 2006)

Objectives

Tasks

1. Management Board

Final budget:

Number of pages translated

The
the
representatives of
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
the
operation of the bodies and
services whose
seats were
established by the Decision of
29 October 1993.

for

To provide the necessary translation
services for the operation of the fol-
lowing bodies:

— To make arrangements
for cooperation with the
bodies and institutions.

— To participate in the
work of the Interinstitu-
tional Translation Com-
mittee.

— the

European

Environment

Agency,

— the European Training Founda-

tion,

— the European Monitoring Centre

for Drugs and Drug Addiction,

— the European Medicines Agency,

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

— the European Agency for Health

and Safety at Work,

— the Office for Harmonization 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 European 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 supplied by the Centre.

Composition

46,12 (40,88) million euro.

732 673 (546 735)

— one representative per

Staff at 31 December 2007:

Number of pages by language

200 (189) posts provided for in the
establishment plan,

— official

languages:

729 286

(537 797)

posts occupied: 176 (169).

— other languages: 3 387 (8 938)

Assigned to the following duties:

Number of pages per client

— operational: 88 (80)

— bodies: 711 131 (531 454)

— administrative: 88 (89)

— institutions: 21 542 (15 281)

Number
freelance

of

pages

translated

395 701 (260 303)

MemberState;

— two

representatives
from the Commis-
sion;

— one

representative
from each body or
institution
calling
upon the Centre’s ser-
vices.

Task

Adopts the Centre’s annual
work
and
programme
annual report.

2. Director

Appointed by the Manage-
ment Board on a proposal
from the Commission.

3. External audit

Court of Auditors.

4.

Internal audit

Commission’s
auditor.

internal

5. Discharge authority

Parliament acting on a rec-
ommendation from the
Council.

C
3
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1
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Translation Centre for the Bodies of the European Union (Luxembourg) — Implementation of the budget for the financial year 2007

Table 2

Source of revenue

Revenue

Revenue entered in
the final budget for
the financial year

Revenue received

Allocation of expenditure

Own revenue

Interest

37 967

40 291

450

1 301

Balance for the previous financial year

16 994

16 994

Reimbursement to clients

Other revenue

– 9 295

0

Total

46 116

– 9 295

12

49 303

Title I
Staff

Title II
Administration

Title III
Operating activities

Title X
Reserve

Expenditure

Final budget appropriations

(1 000 euro)

Appropriations carried over from
the previous financial year

entered

com-
mitted

paid

carried
over

cancelled

available

paid

cancelled

17 285

15 614

15 430

185

1 670

196

168

4 983

4 215

2 757

1 457

769

1 215

1 124

14 753

13 385

11 102

2 283

1 368

1 475

1 473

9 095

0

0

0

9 095

0

0

28

91

2

0

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.

Total

46 116

33 214

29 289

3 925

12 902

2 886

2 765

121

.

.

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9

C 311/120

EN

Official Journal of the European Union

5.12.2008

Translation Centre for the Bodies of the European Union (Luxembourg) — Economic outturn account for the
financial years 2007 and 2006

Table 3

(1 000 euro)

2007

2006

Operating revenue

Own resources

Other revenue

Operating expenditure

Staff expenditure

Fixed-asset-related expenditure

Other administrative expenditure

Operational expenditure

41 317

211

Total (a)

41 528

15 476

3 875

2 229

12 810

34 390

7 138

1 301

4

1 297

8 435

32 817

126

32 943

13 713

4 195

2 021

8 757

28 686

4 257

844

3

841

5 099

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

Total (b)

Revenue from financial operations (e)

Expenditure on financial operations (f)

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

Economic result for the year (h = c + g)

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

up on an accrual basis.

Translation Centre for the Bodies of the European Union (Luxembourg) — Balance sheet at 31 December 2007
and 2006

Table 4

(1 000 euro)

2007

2006

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

Reserve

Reserves

Accumulated surplus/deficit

Economic result for the year

539

551

390

6 900

34 930

43 310

12 829

2 436

15 265

28 045

10 760

8 849

8 435

Total assets

Total liabilities

Net assets

Net capital

28 045

267

391

313

5 907

34 618

41 496

10 600

1 991

12 591

28 905

9 761

14 045

5 099

28 905

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

up on an accrual basis.

5.12.2008

EN

Official Journal of the European Union

C 311/121

THE CENTRE’S REPLIES

The Centre takes full note of the Court’s observation and will strengthen its ex-ante control by ensuring
7.
that cost-benefit analysis becomes an integral part of all activities that entail significant expenditure when dif-
ferent possible options are available.

8.

The Centre takes full note of the Court’s observation and the procedures will be adapted accordingly.