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Document 52007TA1219(24)
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
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
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
IO C 309, 19.12.2007, p. 141–146
(BG, ES, CS, DA, DE, ET, EL, EN, FR, IT, LV, LT, HU, MT, NL, PL, PT, RO, SK, SL, FI, SV)
19.12.2007 |
EN |
Official Journal of the European Union |
C 309/141 |
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
1-2 |
INTRODUCTION |
3-6 |
STATEMENT OF ASSURANCE |
7-9 |
OBSERVATIONS |
Tables 1 to 4
The Office's replies
INTRODUCTION
1. |
The Office for Harmonisation in the Internal Market (hereinafter ‘the Office’) was set up by Council Regulation (EC) No 40/94 (1) 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. |
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
3. |
This Statement is addressed to the Office Budget Committee in accordance with Article 137 of Council Regulation (EC) No 40/94. |
4. |
The Office's accounts for the financial year ended 31 December 2006 (2) 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. |
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. |
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
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). 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. |
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). |
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). |
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
(2) These accounts were drawn up on 1 July 2007 and received by the Court on 2 July 2007.
(3) During 2006 there were more than 30 transfers.
(4) Article 134(2) of the Council Regulation (EC) No 40/94 of 20 December 1993.
(5) Article 12(5) of the Conditions of Employment of other servants of the EC.
Table 1
Office for Harmonisation in the Internal Market (Alicante)
Area of Community competence deriving from the Treaty |
Competences of the Office as specified in Council Regulation (EC) No 40/94 of 20 December 1993 |
Gouvernance |
Resources made available to the Office in 2006 (2005) |
Products and services supplied in the 2006 financial year |
|||||||||||||||||||||||||||||||||||||||||||||||
Free movement of goods Prohibitions or restrictions justified on grounds of the protection of industrial and commercial property must not constitute a means of arbitrary discrimination or a disguised restriction on trade between Member States. (From Article 30 of the Treaty) Restrictions on freedom to provide services within the Community are prohibited in respect of nationals of Member States who are established in a State of the Community other than that of the person for whom the services are intended. (From Article 49 of the Treaty) |
Objectives To implement the Community legislation on trade marks and designs, which gives undertakings the right to uniform protection throughout the entire area of the European Union. |
Tasks
|
1. Administrative Board Composition
Task
2. President of the Office
3. Budget Committee Composition One representative of each Member State and one representative of the Commission and their alternates Task
4. Decisions in connection with procedures Decisions are taken by:
5. External audit The Court of Auditors 6. Discharge authority The Office's Budget Committee |
Final budget 212 million euro (218 million euro) including a Community subsidy: 0 % (0%) Staff numbers as at 31 December 2006 675 (675) posts in the establishment plan, posts occupied: 603 (611) +72 (78) other staff (auxiliary contracts, seconded national experts, local and employment agency staff) Total staff: 675 (689) assigned to the following duties:
|
Trade marks Number of applications: 77 461 Number of registrations: 66 954 Number of cases of opposition: 13 995 of which cases settled: 13 979 Appeals to the Boards of Appeal: 1 659 Average time for registration (excluding opposition or appeal):
Designs Designs received: 68 500 Designs registered: 69 555 |
||||||||||||||||||||||||||||||||||||||||||||||
Source: Information supplied by the Office. |
Source: Data supplied by the Office. This table summarises the data supplied by the Office in its annual accounts: these accounts are drawn up on an accrual basis.
Table 2
Office for Harmonisation in the Internal Market (Alicante) — Implementation of the budget for the financial year 2006
(1000 euro) |
|||||||||||
Revenue |
Expenditure |
||||||||||
Source of revenue |
Revenue entered in the final budget for the financial year |
Revenue received |
Allocation of expenditure |
Final budget appropriations |
Appropriations carried over from the previous financial year |
||||||
entered |
committed |
paid |
carried over |
cancelled |
available |
paid |
cancelled |
||||
Own revenue |
146 723 |
184 020 |
Title I Staff |
60 431 |
59 348 |
56 758 |
1 390 |
2 283 |
995 |
835 |
160 |
Other revenue |
709 |
553 |
Title II Administration |
37 772 |
31 337 |
20 639 |
10 691 |
6 442 |
9 685 |
8 866 |
819 |
Interest |
4 500 |
7 692 |
Title III Operating activities |
36 541 |
35 371 |
20 963 |
14 407 |
1 170 |
14 226 |
13 015 |
1 212 |
Balance of the previous financial year |
59 797 |
59 296 |
Title X Reserve |
76 985 |
0 |
0 |
0 |
76 985 |
0 |
0 |
0 |
Total |
211 729 |
251 561 |
Total |
211 729 |
126 056 |
98 360 |
26 488 |
86 880 |
24 906 |
22 716 |
2 191 |
Source: Data supplied by the Office. This table summarises the data provided by the Office in its annual accounts. Revenue collected and payments are estimated on a cash basis. |
Table 3
Office for Harmonization in the Internal Market (Alicante) — Economic outturn account for the financial years 2006 and 2005
(1000 euro) |
||
|
2006 |
2005 |
Operating revenue |
||
Revenue from fees |
184 066 |
156 945 |
Revenue from the sale of publications |
285 |
512 |
Other revenue |
172 |
310 |
Total (a) |
184 523 |
157 767 |
Operating expenses |
||
Staff expenses |
58 055 |
56 278 |
Fixed asset related expenses |
3 586 |
3 386 |
Other administrative expenses |
26 833 |
25 224 |
Operational expenses |
34 720 |
35 850 |
Total (b) |
123 194 |
120 738 |
Surplus/(deficit) from operating activities (c = a – b) |
61 329 |
37 029 |
Financial operations revenues (e) |
8 149 |
4 451 |
Financial operations expenses (f) |
63 |
38 |
Surplus/(deficit) from non-operating activities (g = e – f) |
8 086 |
4 413 |
Economic result for the year (h = c + g) |
69 415 |
41 442 |
Table 4
Office for Harmonization in the Internal Market (Alicante) — Balance sheet at 31 December 2006 and 2005
(1000 euro) |
||
|
2006 |
2005 |
Non-current assets |
||
Intangible fixed assets |
1 023 |
829 |
Tangible fixed assets |
25 948 |
26 627 |
Current assets |
||
Short-term pre-financing |
190 |
185 |
Short-term receivables |
2 453 |
2 011 |
Cash and cash equivalents |
281 510 |
208 020 |
Total assets |
311 125 |
237 672 |
Non-current liabilities |
||
Provisions for risks and charges |
727 |
597 |
Other long-term liabilities |
20 |
16 |
Current liabilities |
||
Provisions for risks and charges |
12 266 |
10 499 |
Accounts payable |
54 681 |
52 544 |
Total liabilities |
67 693 |
63 656 |
Net assets |
||
Reserves |
72 353 |
— |
Accumulated surplus/deficit |
101 663 |
132 575 |
Economic result of the year |
69 415 |
41 442 |
Total net assets |
243 431 |
174 017 |
Total liabilities and net assets |
311 125 |
237 672 |
THE OFFICE'S REPLIES
7. |
The Office is continuing its efforts to improve its forecasts of its revenue and expenditure. The significant amount of carried over appropriations form 2006 to 2007 is mainly due to delays of some IT projects. The Office has put in April 2007 an improved procedure for handling transfers. |
8. |
The Office takes good note of the observations of the Court of Auditors. In December 2006, the Commission made proposals for a new fee mechanism. The Council, in May 2007, asked the Commission to make a proposal for a substantial reduction. |
9. |
In 2006, the Office has already improved the formalising of its procedures regarding human resources management and in particular recruitment. In 2007, this effort will be pursued to take account of the Court's remarks. |