Report by the external auditor on the Court of Auditors' accounts for the financial year 2007
Date: 2008-12-12
Institutions: European Court of Auditors
Subjects: European Court of Auditors, auditing, budgetary control, financial year, report, self-employed person

12.12.2008

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Official Journal of the European Union

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IV

(Notices)

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

COURT OF AUDITORS

REPORT BY THE EXTERNAL AUDITOR ON THE COURT OF AUDITORS’ ACCOUNTS FOR
THE FINANCIAL YEAR 2007

(2008/C 318/01)

NOTE TO READERS

Without prejudice to the provisions of Article 248 of the Treaty establishing the European Community, which
gives the Court of Auditors responsibility for auditing all of the Community’s revenue and expenditure, and
the provisions of Article 276 of the said Treaty on the granting of the discharge, the Court of Auditors has had
its revenue and expenditure accounts audited by an external auditor every year since the close of the financial
year 1987.

The reports which the external auditor of the Court of Auditors drew up in respect of the Court’s accounts for
the financial years 1987 to 1991 were sent only to the Chairman of the European Parliament’s Budgetary Con-
trol Committee.

Pursuant to a decision taken by the Members of the Court of Auditors at the Court meeting of 8 July 1993, the
external auditor’s reports have since been published in the Official Journal of the European Union, starting with
the report on the financial year 1992.

For the Court of Auditors
Michel HERVÉ
Secretary-General of the European Court of Auditors

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Official Journal of the European Union

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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2007

CONTENTS

Report of the Independent Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Economic outturn account

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cash flow statement

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statement of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounting policies and notes to the financial statements

1. Regulations and presentation of the accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

Significant accounting policies and presentation of the financial statements . . . . . . . . . . . . . . . . . . . . . .

3. Notes to the balance sheet

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Notes to the economic outturn account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Off balance sheet

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Independent assurance report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pages

3

4

5

6

7

8

8

9

11

11

13

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Independent Auditor’s report

To the Management of the
European Court of Auditors

We have audited the accompanying financial statements of the European Court of Auditors, which comprise
the balance sheet as at 31 December 2007, the economic outturn account, statement of changes in equity and
cash flow statement for the year then ended and a summary of significant accounting policies and other
explanatory notes.

Management’s responsibility for the financial statements

The Management of the European Court of Auditors are responsible for the preparation and fair presentation
of these financial statements in accordance with Council Regulation (EC, Euratom) No 1605/2002 of
25 June 2002, Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down
detailed rules for the implementation of the said Council Regulation, and the European Court of Auditors’
Accounting Rules. This responsibility includes: designing, implementing and maintaining internal control rel-
evant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting
estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with International Standards on Auditing as adopted by the ‘Institut des Réviseurs
d’Entreprises’. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the Auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the Auditor considers internal control relevant to the entity’s preparation and fair presenta-
tion of the financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Management of the European Court of Auditors, as well as evaluating the
overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.

Opinion

In our opinion, these financial statements give a true and fair view of the financial position of the European
Court of Auditors as of 31 December 2007, and of its financial performance and its cash flows for the year
then ended in accordance with Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002, Commis-
sion Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the imple-
mentation of the said Council Regulation and the European Court of Auditors’ Accounting Rules.

Luxembourg, 1 July 2008

PricewaterhouseCoopers S.à r.l.
Réviseur d’entreprises
Represented by
Marianne WEYDERT

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Official Journal of the European Union

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Balance sheet as of 31 December 2007

Assets

Note

31 December 2007

31 December 2006

(EUR)

Intangible fixed assets

Tangible fixed assets

Long-term receivables

Short-term receivables

Cash and cash equivalents

209 449

591 516

3.1.

33 283 667

35 620 496

550

74

Total non-current assets

33 493 666

36 212 086

Total current assets

3.2.

3.3.

1 679 772

2 012 791

3 692 563

1 992 778

1 807 092

3 799 870

Total assets

37 186 229

40 011 956

Liabilities

Note

31 December 2007

31 December 2006

Capital

– 13 098 711

– 11 418 315

(EUR)

Accumulated deficit

Economic result of the year — profit+/loss–

Employee benefits

Other long-term liabilities

Total non-current liabilities

Provisions for risks and charges

Accounts payable

Total current liabilities

3.4.

3.5.

3.6.

3.7.

– 11 418 315

– 11 450 318

– 1 680 396

32 003

41 867 460

44 146 971

175 000

201 995

42 042 460

44 348 966

1 927 531

6 314 949

8 242 480

2 008 320

5 072 985

7 081 305

Total liabilities

37 186 229

40 011 956

The accompanying notes form an integral part of these financial statements.

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Economic outturn account for the year ended 31 December 2007

Funds transferred from the Commission to other institutions

Revenues from administrative operations

Other operating revenue

Note

4.1.

4.2.

4.3.

(EUR)

2007

2006

90 474 401

82 296 774

16 339 509

15 907 326

210 887

355 529

Total operating revenue

107 024 797

98 559 628

Administrative expenses

Staff expenses

Fixed asset related expenses

Other administrative expenses

Operational expenses

– 109 022 598

– 99 847 625

4.4.

– 84 209 144

– 78 717 811

3.1 & 4.5

– 3 426 683

– 3 637 514

4.6.

– 21 386 771

– 17 492 300

– 32 486

– 19 493

Total operating expenses

– 109 055 084

– 99 867 118

Surplus/(deficit) from operating activities

– 2 030 287

– 1 307 490

Financial revenues

Financial expenses

4.7.

4.8.

Movement in pensions (- expense, + revenue)

3.4. & 4.9.

Surplus/(deficit) from non operating activities

105 517

– 15 096

259 470

349 891

80 199

– 15 025

1 274 319

1 339 493

Economic result of the year

– 1 680 396

32 003

The accompanying notes form an integral part of these financial statements.

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Official Journal of the European Union

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Cash flow statement for the year ended 31 December 2007

Cash flows from ordinary activities

Surplus/(deficit) from ordinary activities

Operating activities — Adjustments

Amortization (intangible fixed assets) (+)

Depreciation (tangible fixed assets) (+)

Increase/(decrease) in provisions for risks and liabilities

(Increase)/decrease in long-term receivables

(Increase)/decrease in short-term receivables

(Increase)/decrease in receivables EC entities

Increase/(decrease) in other long-term liabilities

Increase/(decrease) in accounts payable

Increase/(decrease) in liabilities related to consolidated EC

(Gains)/losses on sale of property, plant and equipment

(EUR)

2007

2006

– 1 680 396

32 003

55 323

268 240

3 321 950

2 440 049

– 80 789

– 23 290

– 475

309 862

3 144

– 26 995

—

769 309

15 444

26 995

1 192 756

378 360

49 208

– 1 010 845

666 205

—

Net cash flow from operating activities

3 809 793

2 896 265

Cash flows from investing activities

Purchase of tangible and intangible fixed assets (–)

Proceeds from tangible and intangible fixed assets (+)

– 1 362 613

– 1 314 108

38 030

925 007

Net cash flow from investing activities

– 1 324 583

– 389 101

Increase/(decrease) in employee benefits

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

The accompanying notes form an integral part of these financial statements.

– 2 279 511

– 3 546 954

205 699

– 1 039 790

1 807 092

2 846 882

2 012 791

1 807 092

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Statement of changes in equity for the year ended 31 December 2007

Capital

Accumulated
deficit

Economic result
of the year the
year

(EUR)

Capital (total)

Balance as of 31 December 2006

– 11 450 318

32 003

– 11 418 315

Allocation of the economic result of previous year

32 003

– 32 003

—

Economic result of the year

—

– 1 680 396

– 1 680 396

Balance as of 31 December 2007

– 11 418 315

– 1 680 396

– 13 098 711

The accompanying notes form an integral part of these financial statements.

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Official Journal of the European Union

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ACCOUNTING POLICIES AND NOTES TO THE FINANCIAL STATEMENTS

1. Regulations and presentation of the accounts

2.2. Valuation of foreign currency balances and transactions

The European Court of Auditors (hereafter the Court) was
established by the Treaty of Brussels of 22 July 1975 and
started operating as an external Community audit body in
October 1977, with its headquarters in Luxembourg.

Monetary items denominated in currencies other than EUR
are translated into EUR at the exchange rate effective at the
reporting date.

The Court is the EU institution established by the Treaty to
carry out the audit of EU finances. As the EU’s external audi-
tor it contributes to improving EU financial management
and acts as the independent guardian of the financial inter-
ests of the citizens of the European Union.

The Court renders audit services through which it assesses
the collection and spending of EU funds.
It examines
whether financial operations have been properly recorded
and disclosed, legally and regularly executed and managed
so as to ensure economy, efficiency and effectiveness. The
Court communicates the results of its audits in clear, rel-
evant and objective reports. It also provides its opinion on
financial management issues.

The Court promotes accountability and transparency and
assists the European Parliament and Council in overseeing
the implementation of the EU budget, particularly during the
discharge procedure.

The financial year of the Court runs from 1 January
to 31 December.

2.

Significant accounting policies and presentation of the
financial statements

2.1. Basis of presentation

The accounts of the Court are drawn up in accordance with
the provisions of Council Regulation (EC, Euratom)
No 1605/2002 of 25 June 2002 on the Financial Regulation
applicable to the general budget of the European Commu-
nities and with the Commission Regulation (EC, Euratom)
No 2342/2002 of 23 December 2002 laying down detailed
rules for the implementation of the said financial Council
Regulation.

The financial statements are prepared in accordance with the
Accounting Rules of the European Communities, which
have been inspired by International Public Sector Account-
ing Standard (IPSAS). These Accounting Rules are adopted
by the Accounting Officer of the Commission after a con-
sultation of the other institutions.

Non-monetary items carried at a historical cost denominated
in a currency other than EUR are reported using the
exchange rate at the date of acquisition.

Non-monetary items carried at a fair value denominated in
a currency other than EUR are reported using the exchange
rates that existed when the values were determined.

2.3. Intangible and tangible fixed assets

The intangible and tangible fixed assets are stated at histori-
cal cost less depreciation/amortisation and impairment. Low
value items below EUR 420 are accounted as expenses dur-
ing the year of acquisition. Assets delivered during the
accounting year but not paid at year-end are reported as
‘under construction’.

Depreciation/amortisation is calculated by the straight-line
method, starting the month of acquisition and charged over
their estimated useful lives, as follows:

Intangible (Licences for computer software)

Buildings

Plant, machinery and tools

Furniture and vehicle fleet

Computer hardware

Fittings specific to leased buildings

Other fixtures and fittings

4 years

25 years

4, 8 years

4, 8, 10 years

4 years

The duration
of the lease

6 years

2.4. Employee benefit

Employee benefits represent the future pension rights of the
Members of the Court. Under Article 19 of Council Regula-
tion (EEC, Euratom, ECSC) No 2290/77 of 18 October 1977

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determining the emoluments of the Members of the Court
of Auditors (OJ L 268, 20.10.1977, p. 1), the benefits pro-
vided for in this pension scheme are entered in the budget
of the Communities and the Member States jointly guaran-
tee their payment.

The amounts guaranteed by the Member States are based, on
the one hand, on the Accounting Rule No 12 ‘Employee
benefits’ adopted by a decision of the Commission’s account-
ing officer pursuant to Article 133 of the Financial Regula-
tion applicable to the general budget of the European
Communities, and, on the other hand, on the basis of an
actuarial analysis carried out by the experts of the special-
ised PMO unit at the Commission.

2.5. Provisions for liabilities and charges

Provisions for liabilities and charges are intended to cover
losses or debts the nature of which is clearly defined and
which, at the date of the balance sheet are either likely to be
incurred or certain to be incurred but uncertain as to their
amount or as to the date on which they will arise.

3. Notes to the balance sheet

3.1. Tangible fixed assets

The movements in tangible fixed assets during the year 2007
were:

Gross book value
1 January 2007

Additions

Disposals

Gross book value
31 December 2007

Accumulated
depreciation
31 December 2007

Net book value
31 December 2007

(EUR)

Land

Buildings

776 630

52 074 987

—

—

—

—

776 630

—

776 630

52 074 987

– 21 887 128

30 187 859

Plant, machinery and tools

1 198 673

126 083

– 68 534

1 256 222

– 917 760

338 462

Computer hardware

3 867 333

921 863

– 426 784

4 362 412

– 3 268 464

1 093 948

Furniture and vehicle fleet

1 845 083

95 793

– 225 307

1 715 569

– 1 179 800

535 769

Other fixtures and fittings

1 043 800

—

—

1 043 800

– 782 848

260 952

Assets under construction

199 254

90 047

– 199 254

90 047

—

90 047

Total

61 005 760

1 233 786

– 919 879

61 319 667

– 28 036 000

33 283 667

3.2. Short-term receivables

3.3. Cash and cash equivalents

(EUR)

31 Decem-
ber 2007

31 Decem-
ber 2006

Current receivables due to the transfer
of national pension rights by staff

628 778

846 304

Deferred charges for building rentals
and IT contracts

Sundry receivables mainly related to
payroll and mission advances

Receivable from EC entities (Publica-
tions Office)

560 782

296 449

485 079

841 749

5 133

8 276

Total 1 679 772

1 992 778

31 December 2007

31 December 2006

(EUR)

Imprest account

Bank

1 000

2 011 791

Total

2 012 791

1 000

1 806 092

1 807 092

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3.4. Employee benefits

Since 2006, the calculation for future pension payments
obligations is computed net of the taxes recovered on the
future pension payments. In the financial statements as at
31 December 2006, all institutions of the Communities had
used a tax rate of 12,4 %. As at 31 December 2007, all insti-
tutions were instructed to fine-tune the computation based

on their own historical data over the last three years. This
reassessment of the tax rate for the Court leads to an aver-
age tax rate of 17,7 %. Although the general computation
method of the pension liability remains the same, the revised
tax rate impacts on the variation in 2007 of the pension
liability. As indicated in the table below, the pension provi-
sion decreases by EUR 2 279 511 instead of an increase of
EUR 416 693 had the tax rate remained unchanged.

Pension liability and effect of the revised tax rate

(EUR)

Financial statements
31.12.2006
(12,4 %)

p.m.
31.12.2007
(12,4 %)

Financial statements
31.12.2007 (17,7 %)

50 396 086

50 871 762

50 871 762

12,40 %

12,40 %

17,70 %

6 249 115

6 308 098

9 004 302

44 146 971

44 563 664

41 867 460

Variation in 2007 of net pension liability

– 416 693

2 279 511

Gross amount

Tax rate (%)

Taxes

Net amount

3.5. Long-term liabilities

The amount of EUR 175 000 is contractually due at the termination of the rental of the building K9.

3.6. Provision for risks and charges

The amount corresponds to the value, net of taxes, of untaken holidays owed to staff as at
31 December 2007.

3.7. Accounts payable

31 December 2007

31 December 2006

(EUR)

Accrued charges consist of expenses incurred but not yet invoiced
of which EUR 1 100 000 was booked in 2007 to cover the
expenses incurred for the preparation of the building K3

Sundry payables to staff (statutory rights, staff medical insurance)

Current payables to suppliers

5 250 342

3 706 745

522 592

484 724

557 087

801 070

Accounts payable against consolidated EC entities mainly to the
European Parliament and to the Translation Centre

57 291

8 083

Total

6 314 949

5 072 985

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4. Notes to the economic outturn account

5.2. Commitments for future funding

4.1. It corresponds to the monthly calls for funds made by the
Court to the Commission to replenish its bank account.

4.2. For the most part, this heading is made up of deductions
from the salaries of Members and staff in respect of tax and
social contributions.

4.3.

‘Other operating revenue’ arises among others from the sales
of publications by the Publications Office.

4.4. The salaries of Members and staff of the Court represent
96 % of this amount. The rest includes the salaries of the
contractual agents and temporary staff.

4.5. The

fixed assets

the
related expenses
depreciation/amortisation of the tangible and intangible
assets.

consist of

4.6. The most significant items in this heading are:

— buildings’ rental and associated charges including costs

for the K3,

— IT and telecommunications,

— missions expenses,

— cleaning and security services.

4.7. Bank interest earned on the Court’s current account.

4.8. Bank charges levied on the Court’s current account.

4.9. This amount includes:

Pension payments of the year

Variation of Members’ net pension liability

(EUR)

– 2 020 041

2 279 511

Total

259 470

5. Off balance sheet

5.1. Contingent assets

The following bank guarantees have been given by suppliers
following contractual obligations:

— Travel agency

— Car pool leasing

— Insurance company

(EUR)

2007

50 000

75 000

1 361

Total

126 361

In respect of current office rental contracts, the outstanding
rental commitments amount to EUR 6 347 948, detailed as
follows:

— K8 building

— K9 building

— Brussels ‘Antenne’

— Other (Cetrel, parking, Maison de l’Europe)

(EUR)

2007

3 243 684

2 894 873

61 833

147 558

Subtotal

6 347 948

Operating lease for cars and copy machines

1 174 806

Commitments against appropriations not yet con-
sumed -RAL-, after deduction of accruals for 2007

2 859 584

Total

10 382 338

5.3. The Court’s buildings projects

As concerns its major buildings projects, the Court con-
cluded on 15 December 1999 a framework contract with the
Luxembourg State covering the construction of one or more
extensions to the Court’s building and a first extension has
been built (the K2 building).

The Luxembourg State agreed to cede to the Court the right
to use the land made available for building this first exten-
sion for a period of 49 years and for a price of EUR 1.

Any further building leases on other land needed for the
other extensions must not exceed the expiry date of the
building lease granted for the first extension.

The Luxembourg State also undertook to sell the land at any
time at the market rate determined by a joint expert opinion.

For its part, the Court undertook to do all it can to purchase
the land from the Luxembourg State. It would ask the bud-
getary authority for the necessary funds.

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The Court has decided to go ahead with the construction of
a second extension (the K3 building) and, because of differ-
ent arrangements for carrying out the project, the Luxem-
bourg State and the Court have concluded a new framework
agreement on 22 February 2008. On signing it, the Court
became liable to reimburse the State an amount of
EUR 1 058 560 committed on the Court’s behalf for the
studies of the architect and engineers. Reimbursement will be
made on the basis of amounts paid by the State and for which
supporting documents are presented. An accrual of
EUR 1 100 000 is included in the accounts to cover this
liability.

Court for a symbolic 1 euro. For its part, should the Court
ever consider ceding one or other of the buildings to a third
party other than a Community body or institution, the Court
will return the land to the ownership of the State in return
for a symbolic 1 euro, the latter disposing also of an option
to buy the building at a price to be determined by an inde-
pendent expert. In case the State decides not to exercise this
option, it would provide a right to use the land to the pur-
chasers of the building.

5.4. Potential liability for litigations

As regards the two pieces of land relative to the two exten-
sions mentioned above, the State will now sell these to the

None.

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Independent assurance report

To the Members of the
European Court of Auditors

We have examined that the financial resources assigned to the European Court of Auditors (hereafter the Court)
have been used for their intended purposes and that the control procedures put in place by the authorising
officers provide the necessary guarantees to ensure the compliance of financial operations with the applicable
rules and regulations for the financial resources made available and used for the period from 1 January to
31 December 2007.

The maintenance of books and records and the establishing and maintaining of appropriate controls are the
responsibility of the Management of the Court. Our responsibility is to express our opinion based on our
examination.

We conducted our examination in accordance with the International Standard on Assurance Engagements
‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’ (ISAE 3000) as
adopted by the ‘Institut des Réviseurs d’Entreprises’. This standard requires that we plan and perform our
examination such that misuse of the resources materially affecting the books of the Court are detected with
reasonable assurance. Our work consisted primarily of examining on a test and sample basis, evidence sup-
porting the fact that:

— the resources assigned to the Court have been used for their intended purposes,

— the control procedures put in place provide the necessary guarantees to ensure the compliance of finan-

cial operations with the applicable rules and regulations.

The criteria used for our examination are the following rules and regulations:

— Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable
to the general budget (hereafter the Budget) of the European Communities (hereafter the Financial
Regulation),

— Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 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 (hereafter the Imple-
menting Rules),

— Decision No 36/2007 of the European Court of Auditors relating to the Internal Rules for the implemen-
tation of its Budget adopted on 12 and 19 July 2007. These provisions form part of the procedures estab-
lished by the Treaties, or agreements made by virtue thereof, which concern the operational process linked
to the implementation of the Budget.

In particular, the following Internal Rules have been used as criteria:

— Article 7 — Signatures — ‘Each of the parties involved in the drafting, control and registration of opera-
tions to establish and recover revenue or to commit sums and make payments shall sign and date their
involvement’,

— Article 9 — Building projects — ‘Before the Court gives its approval to any contractual undertaking con-
cerning such a project, the service responsible shall submit an explanatory document justifying the com-
patibility of the project with the financial framework’,

— Article 16 — Making payments — ‘The accounting officer shall execute the payment orders defined in
Article 80 of the Financial Regulation after he has checked the mandatory details described in
Articles 103(1) and 104 of the Implementing Rules’,

— Article 23.1 — Transfers of appropriations — ‘Pursuant to Article 21 of the Financial Regulation, appro-
priations shall be earmarked for specific purposes by title and chapter; the chapters shall be further sub-
divided into articles and items’,

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12.12.2008

— Article 23.2 — Transfers of appropriations — ‘All requests for transfer shall explain why the appropria-

tions are insufficient. The request for transfer shall be signed by the responsible director’,

— Article 24 — Carry-overs of appropriations — ‘The responsible authorising officer shall prepare a listing
showing the available balance of commitments; this balance, shall be adjusted in the budgetary accounts
by taking into consideration the appropriations to be cancelled, and shall show the appropriations to be
carried forward’,

— Article 26 — Property inventories — ‘The inventory of tangible assets shall be kept in a database’,

— Article 27 — Minimum management and internal control procedures — ‘The management and internal
control procedures are drawn up by the authorising officers in accordance with the minimum internal
control standards adopted by the Court. Each budget operation is handled (…) by the person responsible
for ex ante verification. (…) If the person responsible for ex ante verification establishes that the operation
in question satisfies the requirements of Article 47(3) of the Implementing Rules, he validates it and docu-
ments this validation’.

We believe our examination provides a reasonable basis for our opinion.

Based on our work described in this report, nothing has come to our attention that causes us to believe that in
all material respects and based on the criteria described above:

(a)

the resources assigned to the Court have not been used for their intended purposes;

(b)

the control procedures in place do not provide the necessary guarantees to ensure the compliance of finan-
cial operations with the applicable rules and regulations.

Our report is solely for the purpose set forth in the first paragraph and for your information and is not to be
used for any other purpose or to be distributed to any other parties.

Luxembourg, 1 July 2008

PricewaterhouseCoopers S.à r.l.
Réviseur d’entreprises
Represented by
Marianne WEYDERT