EUROPEAN COMMISSION Brussels, 28.7.2014 C(2014) 5215 Final
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EUROPEAN COMMISSION Brussels, 28.7.2014 C(2014) 5215 final ANNEX 1 ANNEX REPORT FROM THE COMMISSION FINANCIAL REPORT ECSC in Liquidation at 31 December 2013 to the COMMISSION DECISION approving the Financial Report of the ECSC in Liquidation at 31 December 2013 and fixing the 2015 allocation to the EU Budget of ECSC i.l.'s 2013 net revenue from investments {SWD(2014) 254 final} EN EN REPORT FROM THE COMMISSION FINANCIAL REPORT ECSC in Liquidation at 31 December 2013 This is the twelfth report on the ECSC in liquidation, covering the year ended on 31 December 2013. This report is shown in the form approved by the Commission. This report is accompanied by a Commission Staff Working Document, the Financial Statements ECSC in liquidation at 31 December 2013. The Commission’s powers and responsibilities are governed by Council Decision 2003/76/EC of 1 February 2003. At 31 December 2013, the members of the Commission were : José Manuel BARROSO President Catherine ASHTON Vice-President Viviane REDING Vice-President Joaquín ALMUNIA Vice-President Siim KALLAS Vice-President Neelie KROES Vice-President Antonio TAJANI Vice-President Maroš ŠEFČOVIČ Vice-President Olli REHN Vice-President Janez POTOČNIK Member Andris PIEBALGS Member Michel BARNIER Member Androulla VASSILIOU Member Algirdas ŠEMETA Member Karel DE GUCHT Member Máire GEOGHEGAN-QUINN Member Janusz LEWANDOWSKI Member Maria DAMANAKI Member Kristalina GEORGIEVA Member Günther OETTINGER Member Johannes HAHN Member Connie HEDEGAARD Member Štefan FÜLE Member László ANDOR Member Cecilia MALMSTRÖM Member Dacian CIOLOŞ Member Tonio BORG Member Neven MIMICA Member The management of the ECSC in liquidation and of the Research Fund for Coal and Steel is the responsibility of Mr. Olli Rehn at the reporting date as at 31 December 2013. 2 The ECFIN Directorate-General for Economic and Financial Affairs - Directorate L - conducts the main financial operations of the ECSC in liquidation under the authority, at 31 December 2013, of Mr. Marco Buti, Director-General of DG ECFIN, of Mr. Maarten Verwey, Deputy Director General of ECFIN (in charge of Directorates D, E and L) and Mr. Gerassimos Thomas, Director of Directorate L. Address European Commission Directorate-General for Economic and Financial Affairs Directorate L Drosbach Building 12 rue Guillaume Kroll L - 1882 Luxembourg Tel. (352) 4301 - 1 Fax (352) 4301 - 33459 Internet : [email protected] Activity report and financial statements of the ECSC in liquidation In implementation of the Protocol, annexed to the Treaty on the functioning of the European Union on the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for Coal and Steel, on 1 February 2003 the Council decided (Article 3 of Decision 2003/76/EC) that the liquidation and asset management operations must be the subject, separately from the other financial operations of the remaining Communities, of a profit and loss account, a balance sheet and a financial report. The Balance sheet at 31 December 2013, the Economic outturn account, the Statement of changes in equity and the Cash flow statement for the year ended 31 December 2013 are shown hereafter. They are followed by the Independent Auditor's Report. The complete ECSC's Financial Statements are, due to the Commission rule not to translate reports of more than 15 pages, established only in English. This Commission Staff Working Document is accompanying this report. 3 Balance sheet at 31 December 2013 (amounts in thousands EUR) - before allocation of surplus Notes 31 December 2013 31 December 2012 Assets Cash and deposits with credit institutions B.3.3. - Repayable on demand 5 437 4 976 - With agreed maturity dates or period of notice 23 603 143 025 Loans and advances to credit institutions B.3.1., D.1. 221 415 255 499 Loans and advances to customers B.3.1., D.1. 6 802 8 537 Available-for-sale securities B.3.2., C.5., 1 695 752 1 591 725 D.2. New Member States’ contribution D.3. 447 - Other assets D.4. 1 569 1 860 Total assets 1 955 025 2 005 622 Liabilities Debts evidenced by certificates B.3.4., D.5. 189 838 194 185 Other liabilities D.6. 212 809 220 485 Total liabilities 402 647 414 670 Equity Profit (loss) for the year (212) 5 782 Reserves D.7. 1 552 590 1 585 170 Total equity 1 552 378 1 590 952 Total equity and liabilities 1 955 025 2 005 622 The accompanying notes are shown in the attached Commission Staff Working Document "Financial Statements ECSC in liquidation at 31 December 2013". 4 Economic outturn account for the year ended 31 December 2013 (amounts in thousands EUR) Notes 31 December 2013 31 December 2012 Income Interest and similar income : From bank accounts and loans 12 589 15 746 From fixed income debt securities and other interest 25 927 38 470 Total B.4.1., E.1. 38 516 54 216 Fees and commissions income 61 96 Net gain on sale of securities E.2. 20 986 5 169 Net gain on foreign exchange E.3. - 757 Total 21 047 6 022 Other operating income E.4. 3 380 7 502 Total income 62 943 67 740 Charges Interest and similar charges B.4.1., E.5. 15 252 16 729 Fees and commissions charges E.6. 236 228 Net loss on foreign exchange E.3. 666 - Total 16 154 16 957 Provision for Research financing E.7. 47 000 45 000 Other operating charges 1 1 Total 47 001 45 001 Total charges 63 155 61 958 Net profit (loss) for the year (212) 5 782 The accompanying notes are shown in the attached Commission Staff Working Document "Financial Statements ECSC in liquidation at 31 December 2013". 5 Statement of changes in equity for the year ended 31 December 2013 (amounts in thousands EUR) Assets of the Coal and Member Steel States’ Special General Fair value Profit (loss) Research Contribution Reserves Reserves Reserve for the year Total Fund not yet called (B.5.2.) Previously reported balance at 01 January 2013 1 454 820 - 27 290 49 490 53 570 5 782 1 590 952 Allocation of retained earnings 5 782 - - - - (5 782) - Net change in fair value reserve - - - - (38 109) - (38 109) Use of reserves - - - - - - - Contribution Republic of Croatia - 447 - - - - 447 Call for Member States’ Contribution - - - - - - - Transfer of reserves on 31 December 2013 6 000 - (6 000) (700) - - (700) Net loss 2013 - - - - - (212) (212) ________ ________ ________ ________ ________ ________ ________ At 31 December 2013 1 466 602 447 21 290 48 790 15 461 (212) 1 552 378 The accompanying notes are shown in the attached Commission Staff Working Document "Financial Statements ECSC in liquidation at 31 December 2013". 6 Cash flow statement for the year ended 31 December 2013 (amounts in thousands EUR) 2013 2012 Operating activities New Member States’ contribution 0 14 641 Repayment of loans 4 835 50 248 Interest received – loans 15 962 16 841 Repayment of borrowings 0 (45 735) Interest expenses – borrowings (15 756) (16 585) Proceeds from other assets 4 4 Net advance to the General Budget of the EU (50 167) (58 368) Net cash flow from operating activities (45 122) (38 954) Investing activities Interest received - cash and cash equivalents 53 1 597 Net increase (decrease) of deposits (maturity 4-12 m) 21 500 (21 500) Purchase of investments available-for-sale portfolio (1 396 304) (940 402) Proceeds from sales of investments available-for-sale portfolio 1 258 066 885 289 Interest received - available-for-sale portfolio 43 072 51 862 Investing cost and other (233) (227) Net cash flow from investing activities (73 846) (23 381) Foreign exchange difference 10 4 Net decrease in cash and cash equivalents (118 960) (62 331) Cash and cash equivalents at 01 January 148 001 210 331 Cash and cash equivalents at 31 December 29 041 148 001 The accompanying notes are shown in the attached Commission Staff Working Document "Financial Statements ECSC in liquidation at 31 December 2013". 7 REPORT OF THE REVISEUR D’ENTREPRISES AGREE Section 1 - Report on the financial statements We have audited the accompanying financial statements of European Coal and Steel Community in liquidation (“ECSC in liquidation”) managed by the Economic and Financial Affairs DG (DG ECFIN) on behalf of the European Commission (the “Commission”), which comprise the balance sheet as at December 31, 2013, and 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 information. Responsibility of the DG ECFIN’s Management for the financial statements The DG ECFIN’s Management is responsible for the preparation and fair presentation of these financial statements in accordance with the accounting rules applicable to the European Communities set out in note B, and for such internal control as DG ECFIN’s Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Responsibility of the réviseur d’entreprises agréé 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 for Luxembourg by the Commission de Surveillance du Secteur Financier. 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 réviseur d’entreprises agréé’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.