Source: EURLEX
Language: en
Format: md

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| 19.12.2007 | EN | Official Journal of the European Union | C 309/141 |

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REPORT

on the annual accounts of the Office for Harmonisation in the Internal Market for the financial year 2006 together with the Office's replies

(2007/C 309/24)

CONTENTS

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| 1-2 | INTRODUCTION |

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| 3-6 | STATEMENT OF ASSURANCE |

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| 7-9 | OBSERVATIONS |

Tables 1 to 4

The Office's replies

INTRODUCTION

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| 1. | The Office for Harmonisation in the Internal Market (hereinafter ‘the Office’) was set up by Council Regulation (EC) No 40/94[(1)](#ntr1-C_2007309EN.01014101-E0001) of 20 December 1993. Its mandate is to implement the Community legislation on trade marks and designs, which gives undertakings uniform protection throughout the entire area of the European Union. |

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| 2. | Table 1 summarises the Office's competences and activities. Key data summarised from the financial statements drawn up by the Office for the financial year 2006 is presented in Tables 2, 3 and 4 for information purposes. |

STATEMENT OF ASSURANCE

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| 3. | This Statement is addressed to the Office Budget Committee in accordance with Article 137 of Council Regulation (EC) No 40/94. |

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| 4. | The Office's accounts for the financial year ended 31 December 2006[(2)](#ntr2-C_2007309EN.01014101-E0002) were drawn up by its President, pursuant to Article 119 of Council Regulation (EC) No 40/94, and sent to the Court, which is required to provide a statement on their reliability and on the legality and regularity of the underlying transactions. |

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| 5. | The Court conducted its audit in accordance with the IFAC and INTOSAI International Auditing Standards and Codes of Ethics, insofar as these are applicable in the European Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and that the underlying transactions are legal and regular. |

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| 6. | The Court has thus obtained a reasonable basis for the Statement set out below.  Reliability of the accountsThe Office's accounts for the financial year ended 31 December 2006 are, in all material respects, reliable.Legality and regularity of the underlying transactionsThe transactions underlying the Office's annual accounts, taken as a whole, are legal and regular.The observations which follow do not call the Court's Statement into question. |

OBSERVATIONS

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| 7. | Implementation of the budget was characterised by a significant increase in revenue (27 % higher than the initial budget) and a lower overall level of expenditure resulting in a budgetary surplus of 69 million euro. The implementation rates for the commitment and payment appropriations were 92,7 % and 72,6 % respectively. Around 15 % of the appropriations for administrative expenditure (Title II) for the year and those carried over from the previous financial year were cancelled. More than one third of the commitments for the 2006 financial year were carried over. A high number of budgetary transfers were made[(3)](#ntr3-C_2007309EN.01014101-E0003). All transfers initiated in one day or within defined short periods are not processed for approval together. Thus, the budgetary principles of annuality and specification were not strictly observed. |

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| 8. | The accumulated surplus in 2006 reached 200 million euro, the equivalent of the annual budget. On the basis of the recent analysis made, there was a need for the Office to propose to the Commission a level of fees which more accurately reflects its real costs[(4)](#ntr4-C_2007309EN.01014101-E0004). |

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| 9. | The examination of procedures for recruiting staff showed the following shortcomings: a lack of formal decisions in appointing selection boards, selection board incomplete once having been set up, parity of members of the selection board not assured and no minutes of the selection board meetings. Written procedures and guidelines for the recruitment of temporary staff have not yet been adopted and implemented[(5)](#ntr5-C_2007309EN.01014101-E0005). |

This report was adopted by the Court of Auditors in Luxembourg at its meeting of 27 September 2007.

For the Court of Auditors

Hubert WEBER

President

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