Report on the financial statements of The European Environment Agency (EEA-Copenhagen) for the financial year ended 31 December 1997 together with the Agency's reply
28. 12. 98 EN Official Journal of the European Communities C 406/25 on the financial statements of The European Environment Agency (EEA — Copenhagen) for the financial year ended 31 December 1997 together with the Agency’s reply REPORT (98/C 406/04) 1. 1. This report is addressed to the Management Board of the European Environment Agency in conformity with Article 13(4) of Council Regulation (EEC) No 1210/90 (1). 1. 2. The Court has examined the financial statements of the European Environment Agency for the financial year ended 31 December 1997. In accordance with Article 14(1), of Council Regulation (EEC) No 1210/90, the budget was implemented on the responsibility of the included the Executive Director. This responsibility drawing-up financial presentation statements (2) in accordance with the internal financial provisions, as provided for in Article 14 of Council Regulation (EEC) No 1210/90. The Court of Auditors is required under Article 188c of the Treaty establishing the European Community to examine these accounts. and the of 1. 3. The Court performed its audit in accordance with its auditing policies and standards. These have been adapted from generally accepted international auditing standards to reflect the specific characteristics of the Community context. Accordingly, the Court carried out such tests of the accounting records and other audit procedures as it deemed necessary in the circumstances. By means of this audit, the Court obtained a reasonable basis for the opinion expressed below. 1. 4. This examination has enabled the Court to obtain reasonable assurance that the annual accounts for the financial year which ended on 31 December 1997 are reliable and that the underlying transactions, taken as a whole, are legal and regular. This report was adopted by the Court of Auditors in Luxembourg at the Court meeting of 29 October 1998. For the Court of Auditors Bernhard FRIEDMANN President (1) OJ L 120, 11. 5. 1990, p. 1. (2) As required under Article 13(3) of Council Regulation (EEC) No 1210/90, the accounts for all the Agency’s revenue and expenditure in respect of the financial year 1997 were drawn up on 18 March 1998 and forwarded to the Agency’s Management Board, the Commission and the Court of Auditors. These accounts were received by the Court on 24 March 1998. A summarised version of these financial statements is presented in the tables attached to this report. C 406/26 EN Official Journal of the European Communities 28. 12. 98 Table 1 Balance sheet for the financial year 1997 Assets 1997 1996 Liabilities 1997 1996 (ECU 1 000) Fixed assets Equipment and furniture Office supplies Stock Sub-total Current assets Sundry accounts receivable VAT to be recovered Recovery order Budget payments for the following financial year Commission subsidy to be received Cash accounts Bank accounts Imprest accounts Sub-total Sub-total 153 2 501 15 2 669 1 164 210 9 177 9 552 3 107 74 3 181 155 2 457 17 2 629 28 10 219 6 392 6 649 2 494 279 2 773 Fixed capital Own capital (1) Out-turn to be carried forward Sub-total (2) 2 669 − 5 500 − 2 831 2 629 − 3 387 − 758 Current liabilities Non-automatic carry-overs of appropriations Automatic carry-overs of appropiations Re-use accounts Payments pending Salary deductions Sundry accounts due VAT refunds Recovery order Revenue to be received 89 6 126 129 15 20 28 10 6 392 6 767 348 1 747 8 164 22 9 177 Sub-total 18 233 12 809 Total assets 15 402 12 051 Total liabilities 15 402 12 051 (1) The amount corresponds to fixed assets. (2) The negative balance of the out-turn to be carried forward and of own capital does not constitute a loss of capital. It is the result of the application of the Financial Regulation in respect of revenue (only receipts) and expenditure (payments plus appropriations carried over). Source: Drawn up by the Court on the basis of data provided by the Agency. 28. 12. 98 EN Official Journal of the European Communities C 406/27 Table 2 Revenue and expenditure account for the financial year 1997 (ECU 1 000) 1997 1996 Revenue Subsidy received from the Commission Miscellaneous revenue Expenditure Staff expenditure — Title I Payments Appropriations carried forward Buildings, equipment and miscellaneous administrative expenditure — Title II Payments Appropriations carried forward Operating expenditure — Title III Payments Appropriations carried forward Miscellaneous expenditure not included in the budget Exchange-rate losses 14 012 126 Total revenue 14 138 8 329 157 8 486 4 500 235 2 099 193 1 465 5 786 5 179 131 2 146 551 2 712 6 084 23 20 Total expenditure 16 826 14 298 Out-turn for the financial year (1) Out-turn carried over from the previous year Appropriations carried over from the previous year and cancelled Adjustment of entries as of 31 December 1996 − 2 688 − 3 387 545 30 − 5 812 1 844 581 Out-turn to be carried over (1) − 5 500 − 3 387 (1) The negative balance of the out-turn and of own capital does not constitute a capital loss. It is the result of the application of the Financial Regulation in respect of revenue (only receipts) and expenditure (payments plus appropriations carried over). Source: Drawn up by the Court on the basis of data provided by the Agency. C 406/28 EN Official Journal of the European Communities 28. 12. 98 THE EUROPEAN ENVIRONMENT AGENCY’S REPLY In view of the Court’s observations of point 1. 4, the Agency has no further comments