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Document 52015TA1209(04)
Report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2014, together with the Centre’s reply
Report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2014, together with the Centre’s reply
Report on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2014, together with the Centre’s reply
OJ C 409, 9.12.2015, p. 33–38
(BG, ES, CS, DA, DE, ET, EL, EN, FR, HR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
9.12.2015 |
EN |
Official Journal of the European Union |
C 409/33 |
REPORT
on the annual accounts of the Translation Centre for the Bodies of the European Union for the financial year 2014, together with the Centre’s reply
(2015/C 409/04)
INTRODUCTION
1. |
The Translation Centre for the Bodies of the European Union (hereinafter ‘the Centre’, aka ‘CDT’), which is located in Luxembourg, was created by Council Regulation (EC) No 2965/94 (1). The Centre’s task is to provide any European Union institutions and bodies which call upon its services with the translation services necessary for their activities (2). |
INFORMATION IN SUPPORT OF THE STATEMENT OF ASSURANCE
2. |
The audit approach taken by the Court comprises analytical audit procedures, direct testing of transactions and an assessment of key controls of the Centre’s supervisory and control systems. This is supplemented by evidence provided by the work of other auditors and an analysis of management representations. |
STATEMENT OF ASSURANCE
The management’s responsibility
The auditor’s responsibility
Opinion on the reliability of the accounts
Opinion on the legality and regularity of the transactions underlying the accounts
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10. |
The comments which follow do not call the Court’s opinions into question. |
OTHER COMMENTS
11. |
Cash and short-term deposits held by the Centre further increased from 40 million euro at the end of 2013 to 44 million euro at the end of 2014 (budgetary surplus and reserves increased from 37,5 million euro to 40,4 million euro). This indicates scope to reduce prices, as was the case in previous years. |
FOLLOW-UP OF PREVIOUS YEARS’ COMMENTS
12. |
An overview of the corrective actions taken in response to the Court’s comments from the previous years is provided in Annex I. |
This Report was adopted by Chamber IV, headed by Mr Milan Martin CVIKL, Member of the Court of Auditors, in Luxembourg at its meeting of 8 September 2015.
For the Court of Auditors
Vítor Manuel da SILVA CALDEIRA
President
(1) OJ L 314, 7.12.1994, p. 1.
(2) Annex II summarises the Centre’s competences and activities. It is presented for information purposes.
(3) These include the balance sheet and the statement of financial performance, the cash flow table, the statement of changes in net assets and a summary of the significant accounting policies and other explanatory notes.
(4) These comprise the budgetary outturn account and the annex to the budgetary outturn account.
(5) Articles 39 and 50 of Commission Delegated Regulation (EU) No 1271/2013 (OJ L 328, 7.12.2013, p. 42).
(6) The accounting rules adopted by the Commission’s accounting officer are derived from the International Public Sector Accounting Standards (IPSAS) issued by the International Federation of Accountants or, where relevant, the International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board.
(7) Article 107 of Regulation (EU) No 1271/2013.
(8) Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (OJ L 298, 26.10.2012, p. 1).
ANNEX I
Follow-up of previous years’ comments
Year |
Court's comment |
Status of corrective action (Completed/Ongoing/Outstanding/N/A) |
Since 2012 (merged) |
Since 2012, the Centre’s cash and short-term deposits and its budgetary surplus and reserves have been excessive. This indicates scope to reduce prices. |
Outstanding |
2012 |
The Founding Regulation of 20 regulatory agencies audited by the Court in 2012 requires them to use the Centre for all their translation needs (the Centre’s Founding Regulation stipulates the same for four other agencies). Other agencies are not obliged to use the Centre. For non-technical documents agencies could reduce their costs by using local services. In the Court’s opinion the legislator should consider allowing all agencies to do so. |
Ongoing |
2013 |
In 2008 the Centre concluded 472 framework contracts with translation services providers for a maximum period of 4 years. In order to obtain better conditions for the new framework contracts to be signed in 2012, the Centre wanted to participate in the Commission’s ongoing procurement procedure for translation services. However, no agreement on the contract terms could be reached with the Commission. Instead, the Centre extended its existing framework contracts for 1 more year. Although based on a derogation duly approved by the Centre’s Director, such an extension is not in compliance with the implementing rules for the Centre’s Financial Regulation, which provide for a maximum period of 4 years for framework contracts. |
Completed |
2013 |
Formal delegations (sub-delegations) from authorising officers (authorising officers by delegation) are not always consistent with the authorisation rights for transactions in the ABAC accounting system. |
Completed |
2013 |
The Centre became operational in 1994 and has, to date, worked on the basis of correspondence and exchanges with the host Member State. However, there is no comprehensive headquarters agreement between the Centre and the Member State. Such an agreement would further promote transparency in respect of the conditions under which the Centre and its staff operate. |
Completed |
ANNEX II
Translation Centre for the Bodies of the European Union (Luxembourg)
Competences and activities
Areas of Union competence deriving from the Treaty |
The representatives of the 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 for the operation of the bodies and services whose seats were established by the Decision of 29 October 1993. |
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Competences of the Centre (Council Regulation (EC) No 2965/94, as last amended by Regulation (EC) No 1645/2003 |
Objectives To provide the necessary translation services for the operation of the following bodies:
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. Tasks
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Governance |
Management Board Composition
Tasks To adopt the Centre’s annual budget and work programme, establishment plan and annual reports. Director Appointed by the Management Board on a proposal from the Commission. External audit European Court of Auditors. Internal audit European Commission’s Internal Audit Service (IAS). Discharge authority European Parliament, acting on a recommendation from the Council. |
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Resources made available to the Centre in 2014 (2013) |
Final Budget: 56,268(52,194) million euro Staff: 203 (206) posts provided for in the establishment plan, of which 191 (193) were occupied. +28 (23) contract staff Total staff: 219 (216), undertaking the following tasks: operational: 120 (118) administrative: 99 (98) |
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Products and services 2014 (2013) |
Number of pages translated: 7 58 061(8 04 986) Number of pages by languages:
Number of pages per client:
Number of pages translated by freelances: 5 03 153(5 12 524) |
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Source: Annex supplied by the Centre. |
THE CENTRE’S REPLY
11. |
The Centre is aware of the high level of cash and recurrent budgetary surpluses and has taken various steps to reverse this trend. The Centre decreased the 2014 prices and a further decrease in prices was introduced in the 2015 budget. In 2015 the Centre also reimbursed to clients part of the reserve for stability pricing, amounting to 2,3 million euro. To avoid any further increase in the surplus, the Centre has introduced an automatic reimbursement of the budget surplus to clients. Based on this new mechanism the budget result of 2014, amounting to 2,6 million euro, will be paid back to clients after approval of the second amending budget for 2015. |