Report by the external auditor on the Court of Auditors’ accounts for the financial year 2008
Date: 2009-06-26
Institutions: European Court of Auditors
Subjects: European Court of Auditors, auditing, budgetary control, financial year, report, self-employed person








C_2009254EN.01000101.xml










23.10.2009   


EN


Official Journal of the European Union


C 254/1






REPORT BY THE EXTERNAL AUDITOR ON THE COURT OF AUDITORS’ ACCOUNTS FOR THE FINANCIAL YEAR 2008

(2009/C 254/01)
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 Control 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

Eduardo RUIZ GARCÍA


Secretary-General of the European Court of Auditors





FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008
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.


General










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


Independent Auditor’s report
To the Management of
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 2008, 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.
Managements’ 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, the 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 relevant 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 presentation 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 2008 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 and 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.

Luxembourg, 26 June 2009.


PricewaterhouseCoopers SARL


Réviseur d'entreprises


Represented by

Marianne WEYDERT





 
Balance sheet as of 31 December 2008
The accompanying notes form an integral part of these financial statements.








(EUR)




Assets


Note


31 December 2008


31 December 2007




Intangible fixed assets


3.1.


417 792


209 449




Tangible fixed assets


3.2.


35 080 585


33 283 667




Long-term receivables


 


525


550





Total non-current assets



 



35 498 902




33 493 666





Short-term receivables


3.3.


1 455 781


1 679 772




Cash and cash equivalents


3.4.


1 488 625


2 012 791





Total current assets



 



2 944 406




3 692 563






Total assets



 



38 443 308




37 186 229
















(EUR)




Liabilities


Note


31 December 2008


31 December 2007





Capital



 



–22 012 092




–13 098 711





Accumulated deficit


 


–13 098 711


–11 418 315




Economic result of the year — profit+/loss–


 


–8 913 381


–1 680 396




Employee benefits


3.5.


52 533 398


41 867 460




Other long-term liabilities


3.6.


175 000


175 000





Total non-current liabilities



 



52 708 398




42 042 460





Provisions for risks and charges


3.7.


—


—




Accounts payable


3.8.


7 747 002


8 242 480





Total current liabilities



 



7 747 002




8 242 480






Total liabilities



 



38 443 308




37 186 229





Economic outturn account for the year ended 31 December 2008








(EUR)




 


Note


2008


2007




Funds transferred from the Commission to other institutions


4.1.


97 366 264


90 474 401




Revenues from administrative operations


4.2.


17 487 342


16 339 509




Other operating revenue


4.3.


143 540


210 887





Total operating revenue



 



114 997 147




107 024 797





Staff expenses


4.4.


–88 868 529


–84 209 144




Fixed asset related expenses


3.1.-3.2. & 4.5.


–3 307 315


–3 426 683




Other administrative expenses


4.6.


–19 074 703


–21 386 771




Operational expenses


 


–74 871


–32 486





Total operating expenses



 



– 111 325 418




– 109 055 084






Surplus/(deficit) from operating activities



 



3 671 729




–2 030 287





Financial revenues


4.7.


193 432


105 517




Financial expenses


4.8.


–15 067


–15 096




Movement in pensions (– expense, + revenue)


3.5. & 4.9.


–12 763 475


259 470





Surplus/(deficit) from non operating activities



 



–12 585 110




349 891






Economic result of the year



 



–8 913 381




–1 680 396





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







Cash flow statement for the year ended 31 December 2008







(EUR)




 


2008


2007





Economic result of the year




–8 913 381




–1 680 396






Operating activities — Adjustments





Amortisation (intangible fixed assets)


131 022


55 323




Depreciation (tangible fixed assets)


2 073 498


3 321 950




Increase/(decrease) in provisions for risks and liabilities


0


–80 789




Increase/(decrease) in value reduction for doubtful debt


1 790


0




(Increase)/decrease in long-term receivables


25


– 475




(Increase)/decrease in short-term receivables


219 123


309 862




(Increase)/decrease in receivables EC entities


3 078


3 144




Increase/(decrease) in other long-term liabilities


0


–26 995




Increase/(decrease) in accounts payable


– 545 311


1 192 756




Increase/(decrease) in liabilities related to consolidated EC


49 834


49 208




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


1 360


666 205






Net cash flow from operating activities





–6 978 962




3 809 793






Cash flows from investing activities





Purchase of tangible and intangible fixed assets (–)


–5 439 210


–1 362 613




Proceeds from tangible and intangible fixed assets (+)


1 228 068


38 030






Net cash flow from investing activities





–4 211 142




–1 324 583







Increase/(decrease) in Employee benefits





10 665 938




–2 279 511





Net increase/(decrease) in cash and cash equivalents


– 524 166


205 699






Cash and cash equivalents at the beginning of the period





2 012 791




1 807 092







Cash and cash equivalents at the end of the period





1 488 626




2 012 791





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







Statement of changes in equity for the year ended 31 December 2008








(EUR)




Capital


Accumulated deficit


Economic result of the year


Capital (total)





Balance as of 31 December 2007




–11 418 315




–1 680 396




–13 098 711





Allocation of the economic result of previous year


–1 680 396


1 680 396


—




Economic result of the year


 


–8 913 381


–8 913 381





Balance as of 31 December 2008




–13 098 711




–8 913 381




–22 012 092





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






ACCOUNTING POLICIES AND NOTES TO THE FINANCIAL STATEMENTS
1.   General
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.
Mission of the European Court of Auditors
The Court is the EU Institution established by the Treaty to carry out the audit of EU finances. As the EU’s external auditor it contributes to improving EU financial management and acts as the independent guardian of the financial interests 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, relevant 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 Court is committed to being an efficient organisation at the forefront of developments in public audit and administration.
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 Communities 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 Accounting Standard (IPSAS). These Accounting Rules are adopted by the Accounting Officer of the Commission after a consultation of the other institutions.
2.2.   Valuation of foreign currency balances and transactions
Monetary items denominated in currencies other than EUR are translated into EUR at the exchange rate effective at the reporting date. 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 historical cost less depreciation/amortisation and impairment. Low value items below EUR 420 are accounted as expenses during 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)


4 years




Buildings


25 years




Plant, machinery and tools


4, 8 years




Furniture and vehicle fleet


4, 8, 10 years




Computer hardware


4 years




Fittings specific to leased buildings


the duration of the lease




Other fixtures and fittings


6 years




2.4.   Employee benefits
Employee benefits represent the future pension rights of the Members of the Court. Under Article 19 of Council Regulation (EEC, Euratom, ECSC) No 2290/77 of 18 October 1977 determining the emoluments of the Members of the Court of Auditors (OJ L 268, 20.10.1977, p. 1), the benefits provided for in this pension scheme are entered in the budget of the Communities and the Member States jointly guarantee 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 accounting officer pursuant to Article 133 of the Financial Regulation 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 specialised unit at Eurostat.
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.   Intangible fixed assets
The movements in intangible fixed assets during the year 2008 were:












(EUR)




 


Gross book value 1 January 2008


Additions


Disposals


Other changes


Gross book value 31 December 2008


Accumulated depreciation 31 December 2008


Net book value 31 December 2008




Computer Software


290 514


339 366


—


—


629 880


– 212 088


417 792





Total




290 514




339 366




0




0




629 880




– 212 088




417 792





3.2.   Tangible fixed assets
The movements in tangible fixed assets during the year 2008 were:












(EUR)




 


Gross book value 1 January 2008


Additions


Disposals


Transfer between headings


Gross book value 31 December 2008


Accumulated depreciation 31 December 2008


Net book value 31 December 2008




Land


776 630


—


—


—


776 630


—


776 630




Buildings


52 074 987


—


—


—


52 074 987


–24 039 665


28 035 322




Plant, machinery and tools


1 256 222


3 815


–1 566


–1 126 868


131 603


– 101 469


30 134




Computer hardware


4 362 412


706 392


– 816 204


–65 458


4 187 142


–3 034 323


1 152 819




Furniture and vehicle fleet


1 715 569


274 711


– 237 754


290 074


2 042 600


–1 318 473


724 127




Other fixtures and fittings


1 043 800


37 171


–83 856


902 252


1 899 367


–1 615 568


283 799




Assets under construction


90 048


4 077 754


–90 048


—


4 077 754


—


4 077 754





Total




61 319 668




5 099 843




–1 229 428




0




65 190 083




–30 109 498




35 080 585





The ‘Transfer between headings’ are reclassifications of assets from one category to another on 1 January 2008.
‘Assets under construction’ are usually assets delivered but not yet invoiced at year end. When the invoice is received, the related assets will appear in the additions under the correct asset category and ‘disposals’ under ‘assets in construction’.
Assets under construction are also major building projects still in process at year-end which was the case as at 31 December 2008 for the new building K3 (studies), the health and safety works for building K1 and a new conference room.
3.3.   Short-term receivables
Short-term receivable







(EUR)




 


31 December 2008


31 December 2007




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


504 166


628 778




Deferred charges for building rentals and IT contracts


614 114


560 782




Sundry receivables mainly related to payroll and mission advances


335 446


485 079




Receivable from EC entities (Publications Office)


2 055


5 133





Total




1 455 781




1 679 772





3.4.   Cash and cash equivalents
Cash and cash equivalents







(EUR)




 


31 December 2008


31 December 2007




Imprest account


1 000


1 000




Current bank account


1 487 625


2 011 791





Total




1 488 625




2 012 791





3.5.   Employee benefits
The calculation for future pension payments obligations is computed net of the taxes recovered on the future pension payments. The tax rate is updated based on the effective average tax rate during the last 3 years.
Pension liability and effect of the tax rate







(EUR)




 


31 December 2008


31 December 2007




Gross amount


63 730 921


50 871 762




Tax rate (%)


17,57 %


17,70 %




Taxes


11 197 523


9 004 302





Amount net of taxes




52 533 398




41 867 460





 


 


 





Variation in 2008 of net pension liability




10 665 938



 




The employee benefits liability is calculated based on entitlements earned by Members pursuant to different rights acquired, such as life pensions and transitional allowances, as well as on beneficiary status categories assigned.
For the year 2008 Eurostat was for the first time responsible for the calculation of the liability. The actuarial commitment was calculated in conformity with EC accounting rule 12 ‘Employee benefits’.
The 2008 increase of EUR 10,7 million net of taxes arises primarily from the:






—


inclusion for the first time in 2008 of the earned transitional allowance benefits of active Members of the Court in the calculation of the liability, reflecting a change in accounting method to comply with accounting rule 12, which amounted to EUR 4,7 million,










—


the normal evolution of the employee benefits liability, due to, for example, changes in the interest rate and life tables, and the addition of new beneficiaries and benefits, which amounted to EUR 4,5 million, and










—


changes and corrections to the staff database (marital status etc.).




The disclosure departs from the presentation laid out in the EC accounting rule 12 ‘Employee benefits’ due to the fact that the necessary detailed actuarial calculations were not provided by Eurostat.
3.6.   Long-term liabilities
The amount of EUR 175 000 is contractually due at the termination of the rental of the building K9.
3.7.   Provision for risks and charges
The amount corresponding to the value, net of taxes, of untaken holidays owed to staff was considered in the past as ‘Provision for risks and charges’. From 2008, untaken annual leave are considered as ‘accrued charges’ (and not provisions). In the balance sheet as at 31 December 2007, the amount of EUR 1 927 531 was shown under ‘Provisions for risks and charges’. It is now reclassified as ‘Accrued charges’ and shown in ‘Accounts payable’:

Provisions for risks and charges as of 31 December 2007







(EUR)




 


31 December 2007




Provision for risks and charges in balance sheet 31.12.2007


1 927 531




Reclassification provisions for risks and charges


–1 927 531





Provision for risks and charges in balance sheet 31.12.2007 after reclassification




0








Accounts payable as of 31 December 2007






(EUR)




 


31 December 2007




Accounts payable in balance sheet 31.12.2007


6 314 949




Reclassification provisions for risks and charges


1 927 531





Accounts payable in balance sheet 31.12.2007 after reclassification




8 242 480





3.8.   Accounts payable
Account payable







(EUR)




 


31 December 2008


31 December 2007




Accrued charges consist of expenses incurred but not yet invoiced. The amount of the untaken holidays is also included here for both 2007 and 2008 (see Note 3.7 above)


6 672 098


7 177 873




Sundry payables related to staff


427 175


522 592




Current payables to suppliers


540 605


484 724




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


107 124


57 291





Total




7 747 002




8 242 480





4.   Notes to the economic outturn account
4.1.   ‘Funds transferred from the Commission to other institutions’: the amount corresponds to the monthly calls for funds made by the Court to the Commission to replenish its bank account.
4.2.   ‘Revenues from administrative operations’: 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.   ‘Staff expenses’: 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 related expenses’ consist of the depreciation/amortisation of the tangible and intangible assets.
4.6.   The most significant items of the ‘other administrative expenses’:






—


buildings’ rental and associated charges,










—


IT and telecommunications,










—


missions expenses,










—


cleaning and security services.




4.7.   ‘Financial revenues’ consists of bank interest earned on the Court’s current account.
4.8.   ‘Financial expenses’ are bank charges levied on the Court’s current account.
4.9.   ‘Movements in pension’ includes:
Movements in pension






(EUR)




 


2008




Pension payments of the year


–2 097 537




Variation of members' net pension liability


–10 665 938





Total




–12 763 475





5.   Off balance sheet
5.1.   Contingent assets
The following bank guarantees have been given by suppliers following contractual obligations:
Bank guarantee received






(EUR)




 


2008




Travel agency


50 000




Car pool leasing


75 000




Insurance company


1 361




Telecommunications


20 000





Total




146 361





5.2.   Commitments for future funding
Commitments for future fundings






(EUR)




 


31 December 2008




K7 building


2 455 000




K8 building


2 229 333




K9 building


7 384 000




Brussels 'Antenne'


54 000




Foyer européen — Maison de l'Europe


50 565





Subtotal




12 172 898





Operating lease for cars and copy machines


640 251




Other (Cetrel, …)


89 698





Subtotal




12 902 847





Commitments against appropriations not yet consumed — RAL ('Restant à liquider') — after deduction of accruals for 2008


7 548 508





Total




20 451 355





5.3.   The Court’s buildings projects
The Court occupied its headquarters building (the ‘K1’ building) in 1988 and purchased it and the land it stands on outright in 1990. In 1999, the Court signed a framework agreement with the Luxembourg State through which it was given the right to use a second parcel of land for 49 years (renewable once) for the construction of an extension (the ‘K2’ building) in return for a payment of one euro.
The Court has decided to go ahead with the construction of a second extension, the ‘K3’ building, and because of different arrangements for carrying out the project, the Luxembourg State and the Court concluded a new framework agreement on 22 February 2008.
As regards the two pieces of land relative to the two extensions mentioned above, the State has sold these to the Court for a symbolic one 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 one euro, the latter disposing also of an option to buy the building at a price to be determined by an independent expert. In case the State decides not to exercise this option, it would provide a right to use the land to the purchasers of the building.
The ‘K2’ building was occupied in November 2003. Construction work for the ‘K3’ building is scheduled to commence towards the end of 2009.
5.4.   Potential liability for litigations
None.


Independent Assurance report
To the Management of the
European Court of Auditors
We have examined that the financial resources assigned by the European Commission 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 2008 to 31 December 2008.
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 supporting 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 financial 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 Implementing Rules);










—


Decision No 36/2007 of the European Court of Auditors relating to the Internal Rules for the implementation of its Budget adopted on 12 July and 19 July 2007. These provisions form part of the procedures established 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 operations 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 concerning such a project, the service responsible shall submit and explanatory document justifying the compatibility 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 Article 103(1) and Article 104 of the Implementing Rules.’










—


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










—


Article 23.2 — Transfers of appropriations — ‘All requests for transfer shall explain why the appropriations 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 documents 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 financial 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, except for publication in the European Official Journal.

Luxembourg, 26 June 2009.


PricewaterhouseCoopers SARL.


Réviseur d’entreprises


Represented by

Marianne WEYDERT